what role does scarcity of resources plays in economic decision making
Answers
The scarcity of resources plays a vital role in choosing the best alternative from the availability of resources.
EXPLANATION -
The scarcity of resources refers to the situation where there is an unlimited alternative to use certain resources among that customer/ consumers opt for the best option that gives utmost satisfaction after consumption.
For example -
Mr.A has just bought a shop in the middle of the market. Now, he wants to start a business that could run well in that area.
Hence, Mr.A can do business like a bakery, cafe, clothes shop, medical shop, etc. But, to do that he has to check up on several factors like demand, need and acceptance of the products by local customers.
This detailed analysis of what could be done in the shop has different alternatives but the resources is a limited piece of land.
Conclusion-
So, scarcity of resources promotes a significant detail study of factors and its result that helps in determining the best option to work with for the attainment of the specific goals and objectives.
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