Scarcity

1
Scarcity

• What is it?
• Why does it matter?

2
Humans are greedy!

• Most humans have unlimited wants
• However, the total resources of the world are
  limited
• So scarcity exists

3
Scarcity

• Scarcity is the condition that exists because
  human wants exceed the available resources
  required to satisfy those wants
• In other words, we want more of something than we
  can have

4
Why does scarcity matter?

• As a result of scarcity, it isnt possible for
  everyone to have everything he or she wants
• No society has ever had enough resources to
  produce the full amount and variety of goods or
  services its members wanted
• In a world of scarcity, producing any good or
  service means that other goods and services
  cannot be produced, and trade-offs are necessary

5
To be considered SCARCE, something must . . .

• be limited in quantity
• be desirable
• have more than one valuable use

6
Is it scarce?

• YES

• NO