Scarcity of resources pdf

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    An image of drought and a plant.

    Introduction

    Economics is the study of human behaviour when people face limited resources to satisfy their unlimited wants.

    Since human wants are unlimited while resources are limited, people cannot satisfy all of their wants.

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  • Resource scarcity in economics
  • This problem is called the problem of scarcity and is considered a key concept in economics. In this article, we will explain scarcity in detail.

    What is Scarcity?

    The limited availability of resources in contrast to unlimited wants is known as scarcity in economics.

    Scarcity leads to economic problem, which means that due to the limited availability of resources, it is impossible to satisfy all of our unlimited wants. Due to scarcity, individuals, firms, and governments are forced to make choices.

    Historical Background

    The following points explain the historical background of scarcity:

    Classical Economics and Thomas Malthus 

    An economist named Thomas Malthus first recognised the problem of scarcity in the late 18th and early 19th centuries.

    He argued that a rapid increase in population can

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