Question

What are the two factor which define scarcity?

Answer 1

drought is one of them........

Answer 2

Concepts of Scarcity

Scarcity refers to the condition of insufficiency where the human beings are incapable to fulfill their wants in sufficient manner. In other words, it is a situation of fewer resources in comparison to unlimited human wants. Human wants are unlimited. We may satisfy some of our wants but soon new wants arise. It is impossible to produce goods and services so as to satisfy all wants of people. Thus scarcity explains this relationship between limited resources and unlimited wants and the problem there in.

Economic problems arise due to the scare goods. These scare goods have many alternative uses. For example: a land can be used to construct a factory building or to make a beautiful park or to raise agricultural crops. So, it is very essential to think how limited resources can be used alternatively to satisfy some wants of people to get maximum satisfaction as possible.

The problem of scarcity is present not only in developing countries but also in highly developed countries such as Japan, Canada, etc. Thus, scarcity is the heart of all economic problems.