Definition - What does Resource Scarcity mean?
Resource scarcity is the lack of availability of necessary supplies required to maintain life, or a specific quality of life, and is one of the fundamental ideas that economics is built on. Scarcity is the primary problem that comes about with economics due to the fact that human wants are unlimited in quantity, but the various resources we have available on our planet to fill human needs are limited and therefore must be rationed and careful choices must be made in distribution of resources.
Safeopedia explains Resource Scarcity
In economics, the principles of scarcity and choice are important because without them economics would not exist. Scarcity and choice are what make economics an important skill to master. This is because in economics, a scarcity of resources means we must make wise choices as to how we distribute limited resources. This involves a tradeoff, or means we must give something up. So, ideally, we must choose to give resources to things which produce best results.
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