Question

Define scarcity in economic terms.

Answer 1

Answer:

Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. ... Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity.

Answer 2

From an economic standpoint,scarcity refers to the limited,finite or insufficient availability of various resources in order to fulfill the unlimited and unending wants and demands of normal human beings.

Explanation:

• From the perspective of scarcity,the human wants and demands are unlimited and unrestrained but the resources or the effective means available to adequately fulfill those wants and demands are limited or finite.
• Hence,the resources or means to fulfill human demands and needs are considered as scarce or inadequate with respect to the endlessness of human desires and wants.
• Economics is a discipline or subject matter that basically denotes various human behavioral patterns and efforts to find out different ways to fulfill the unlimited and unending wants and desires of the society of communities as a whole through best efficient and optimal allocation of the limited and fixed amount of resources or endowments to do so.