Scarcity

Scarcity is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. Since resources such as time, money, labor, and raw materials are finite, scarcity forces individuals, businesses, and governments to make choices about how to allocate these limited resources to meet the most pressing needs and desires. Scarcity underpins the need for economics, as it drives decision-making and prioritization, influencing production, distribution, and consumption across economies.