give an example for scarcity
Answers
The gasoline shortage in the 1970's.
After poor weather, corn crops did not grow resulting in a scarcity of food for people and animals and ethanol for fuel.
Over-fishing can result in a scarcity of a type of fish.
Scarcity refers to the fact that the factors of production: natural resources, labour, capital, and entrepreneurial skill, are limited in their supply.
●Natural Resources: There is a finite limit to the amount of natural resources available for production, such as land and fossil fuels.
●Labour: Labour is limited by population size, labour market skills and the willingness of the population to work.
●Capital: Capital is limited by the extent to which private individuals and firms, as well as governments, are willing to invest in capital, as well as the level of savings available for investment.
●Enterpreneurical Skill: The supply of entrepreneurial skill is limited by the size of the population, and the willingness of individuals to innovate and take risks.