what is scarcity in economics and how to solve the problem of scarcity. the effect of scarcity to government planning. st as long as resources are scarce relative to wants or needs it is therefore very important to plan with the little resources available
DEFINITION OF SCARCITY
Definition: Scarcity is defined as the limited supply of resources which are used for the satisfaction of unlimited wants. In other words, scarcity is inability of human being to provide themselves with all the things they desire or want.
planning to cussion the effects of scarcity
These resources are scarce relative to their demand. As a student, you will need to buy school materials, e.g. exercise book worth #100.00 but you have only #50.00.It can be seen that the money you have (#50.00), which is your resources, will not be sufficient to buy all you need the available resources within the environment can never at any time be in abundance to satisfy all humans wants.
Since wants are numerous and insatiable relative to the available resources, human being have to choose the most important ones and leave others that are less important.
There would be no economic problem if resources were not scarce; hence economics is sometimes defined as the study of scarce, hence economics is sometimes defined as the study of scarcity.
Why is Scarcity a Fundamental Problem in Economics?
Economics seeks to study the relationship between ends and means. Ends are unlimited while the means are limited. Scarcity simply means resources are limited in relation to the ends.
Economics is therefore concerned with allocating limited resources among the competing and unlimited wants.
How do governments solve the problems of Scarcity?
Governments are faced with the problem of allocating scarce resources among competing unlimited wants. In doing this, government draws a scale of preference which helps them to choose or select the most important want to be satisfied.
In making choices, you forgo some other wants. The forgone wants are the opportunity cost or real cost of the selected alternative.
- public enterprises
- private enterprises
- limited liability companies
- market concept
- money market
- how companies raises funds for expansion
WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
8. CROP ROTATION
9. GRAZING AND OVER GRAZING
10. IRRIGATION AND DRAINAGE