Question

?)Explain why botR rich onl poor countries to xpericance scarcity. Does scarcity appy individuals as wel/2

please solve both sections.

thank you

Answer 1

Scarcity of resources is the foundation of economic thought. The whole concern of Economics is to make sure that the scarce resources are used efficiently. From scarcity we mean the relative insufficiency of the resources when they are compared with the wants and desires of human. The desires are unlimited in nature and a satisfaction of one desire leads to emergence of the other. Scarcity of resources reflects the relative insufficiency of resources to satisfy the unlimited wants and desires. It�s a problem that goes beyond the division of rich and poor, individual or groups, developed or underdeveloped nations. When economist talk about scarcity they imply the scarcity of resources, the scarcity of capital . land and labour to produce a given level of output. These resources are known as factors of production and are limited by nature. Judicious use of all the resources requires zero wastage and efficient utilisation of resources. In this particular- sense, scarcity becomes the most important concept in economics.