Q:

Why is scarcity an economic problem?

A:

Quick Answer

Scarcity is one of 51 concepts identified by the National Council on Economic Education. Scarcity is an economic problem because one of the main factors that drives economics is the relationship in supply versus demand; if something is in demand and also in short supply, it is more scarce and therefore garners a higher price.

Know More

Full Answer

The field of economics looks at how purchasing decisions are made and what factors affect the choice to buy a given item. The principal of scarcity results from having unlimited wants in a world of restricted resources. The theory says that society has a limited means to produce, and therefore fulfill, all the desires and demands placed on a given market.

One simple example is produce shopping in a supermarket. When a fruit or vegetable is at its peak of production there is more of that food available and the price for it is lower than when that same item is purchased off season. When a food isn't in seasonal production, it becomes more scarce and then requires more resources to obtain than when it's plentiful.

The market availability of a demand, what it takes to produce or procure it, and the subsequent effect that has on prices are all factors in whether something is considered economically scarce.

Learn more about Sustainability

Related Questions

  • Q:

    How does scarcity affect your life?

    A:

    Scarcity, or the lack of sufficient resources, affects virtually all aspects of life, as people must constantly acquire wealth to pay for needs that are in short supply. According to Western Reserve Public Media’s “Economics Academy 101,” scarcity is the first lesson in economics. Scarcity leads to the law of supply and demand, which underpins all material transactions.

    Full Answer >
    Filed Under:
  • Q:

    How do you dispose of a lithium-ion battery?

    A:

    Lithium-ion and other rechargeable batteries should be recycled so that any hazardous waste, including lead acid and nickel cadmium, can be removed from the waste cycle. Federal guidelines consider lithium-ion and nickel metal hydride batteries to be non-hazardous.

    Full Answer >
    Filed Under:
  • Q:

    What can I do to help save the environment?

    A:

    Eliminate paper. Easing up on the use of paper and paper products will help with one of the biggest landfill culprits. Good places to start include replacing paper gift wrapping with fabric or used grocery bags, using glassware instead of paper plates, bringing reusable shopping bags for use at the store, and replacing paper towels with washable hand towels.

    Full Answer >
    Filed Under:
  • Q:

    What are some global warming slogans?

    A:

    Global warming slogans are catchy ways of delivering messages about the environment. Common themes include reducing carbon use, using less-polluting forms of transportation, and leaving the Earth in a better state for future inhabitants.

    Full Answer >
    Filed Under:

Explore