Scarcity in Economics

The common meaning of scarcity refers to the unavailability of goods and services in the market of a certain commodity. The conceptual meaning of scarcity in economics is however different. A commodity is scarce because it commands value. It commands price. We have to pay for any goods and services we want to consume. In addition, the resources that we have are also limited. A commodity is scarce, in economic sense not because it is rare or unavailable in market but because the means to have it are limited of resources to satisfy them are always limited. Human wants are unlimited, but between limited resources and unlimited wants and the problem there in. Economic problem arise because the goods we need are scarce. These scarce goods have many uses. Again, these uses are tempting and competing with each other. There is a problem of choice between alternative uses. Therefore, scarcity and choice guide the whole course of economic activities.

Scarcity is not just an individual problem. It is a problem of national economy as well. Its dimension charges when it is applied to national economy. In other words, scarcity of resources gives birth to national economic problems.

Scarcity brings broad human problems into our notice. There is poverty and human misery because of scarcity of resources. A poor man is poor because the resources accessible to him are scarce. A country is poor because there is scarcity of resources. Scarcity is deeper sense, tells the story of human misery and unhappiness around the earth. To understand and analyze the problem of poverty of a man and a country and to eradicate it, proper understanding of the problem of scarcity is of utmost importance.