Scarcity
Definition
Scarcity refers to the limited availability of resources in relation to unlimited wants and needs. It means that there are not enough resources to satisfy all the desires and demands of individuals or society.
Analogy
Imagine you're at a buffet with a limited amount of food. There are so many delicious options, but you can only choose a few because there's not enough for everyone to have everything they want.
Related terms
Choice: The act of selecting among alternatives when faced with scarcity.
Factors of production: Resources used in the production process, such as land, labor, capital, and entrepreneurship.
Production possibilities curve: A graphical representation showing different combinations of goods and services an economy can produce given its resources and technology.
"Scarcity" appears in:
Subjects (2)
Study guides (3)
Additional resources (2)
Practice Questions (5)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.