DETERMINATION OF SCARCITY;
- A resource is said is to be scarce when it is not easily
available within a particular area/region.
- In other words, when the demand/need of the resource is more
than its supply/availability, that resource becomes scarce for that
particular region.
IMPORTANCE;
- Economics deals with understanding the human behaviour and the
pattern of production, consumption and transfer of wealth.
- Various resources are scarce from region to region and the
replenishment rate is very low.
- Thus, a balance has to be maintained between the unlimited
needs and wants of the people and the scarce resources.
- If a parity is not maintained between the two, the concept of
sustainable development will suffer, as the future generations will
have to face a brunt of extreme scarcity.
- Therefore, scarce resources have to be used with utmost
intelligence, so that the balancing cycle of production &
consumption is not disturbed and there is optimum utilization of
resources.
- Scarcity is to be kept in mind while taking all decisions
because, if there are no resources, every other process/thing won’t
be able to take place.