Scarcity is the root causes of the problem of choice which every economy has to face.'Discuss
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Scarcity is the root causes of the problem of choice which every economy has to face.
In order to understand this statement, one must understand the meaning of these terminologies.
The economy depends on the resources consumption, production and transferring of wealth. There are elements on which the country's growth depends. Like Consumption, investment, government expenditure, and net exports.
Scarcity is the limited availability of resources and the unlimited demand. Therefore choices have to be made. So every economy has to face such problems, due to opportunity cost, i.e. the next best alternative forgone.
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