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.

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.