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    Scarcity &amp Choice

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    Shakeel Abbasi
    Microeconomics introduces the basic economic concepts of scarcity and choice. Scarcity means that resources are limited and cannot satisfy all human wants, forcing people and societies to make choices to allocate resources efficiently. Because people have unlimited desires but resources are limited, economic decisions must be made to satisfy some wants over others. This involves tradeoffs where one want is given up to fulfill another. Scarcity and the need for choice are fundamental economic problems.

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    Scarcity &amp Choice

    Uploaded by

    Shakeel Abbasi
    423 views1 page
    Microeconomics introduces the basic economic concepts of scarcity and choice. Scarcity means that resources are limited and cannot satisfy all human wants, forcing people and societies to make choices to allocate resources efficiently. Because people have unlimited desires but resources are limited, economic decisions must be made to satisfy some wants over others. This involves tradeoffs where one want is given up to fulfill another. Scarcity and the need for choice are fundamental economic problems.

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    Microeconomics introduces the basic economic concepts of scarcity and choice. Scarcity means that resources are limited and cannot satisfy all human wants, forcing people and societies to make choices to allocate resources efficiently. Because people have unlimited desires but resources are limited, economic decisions must be made to satisfy some wants over others. This involves tradeoffs where one want is given up to fulfill another. Scarcity and the need for choice are fundamental economic problems.

    Copyright:

    © All Rights Reserved
    423 views1 page

    Scarcity &amp Choice

    Uploaded by

    Shakeel Abbasi
    Microeconomics introduces the basic economic concepts of scarcity and choice. Scarcity means that resources are limited and cannot satisfy all human wants, forcing people and societies to make choices to allocate resources efficiently. Because people have unlimited desires but resources are limited, economic decisions must be made to satisfy some wants over others. This involves tradeoffs where one want is given up to fulfill another. Scarcity and the need for choice are fundamental economic problems.

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    Microeconomics Economics Basics- Scarcity & Choice Written By Shakeel Abbasi (BBA-II SaLu)

    Scarcity
    Scarcity means limited, The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently. People must make choices between different items because the resources necessary to fulfill their wants are limited. These decisions are made by giving up (trading off) one want to satisfy another. Scarcity is the fundamental economic problem of having seemingly unlimited human needs and wants, in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. Alternatively, scarcity implies that not all of society's goals can be pursued at the same time; trade-offs are made of one good against others. In an influential 1932 essay, Robbins defined economics as "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses." For Example: fruits such as strawberries are scarce on occasion because they grow only at certain times of the year. When the supply of strawberries is lower, they are scarce, or not always available. If enough people want strawberries when none are available, then the quantity demanded exceeds the quantity supplied, resulting in a shortage.

    Choice
    People must choose which of their desires they will satisfy and which they will leave unsatisfied. When we, either as individuals or as a society, choose more of something, scarcity forces us to take less of something else. Economics is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people to make choices.

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