Scarcity Problem Essay

290 Words2 Pages
Essay Topic:scarcity problem Introduction Scarcity problem is the problem in which we lack a resource in a way which it often causes a problem in how to maintain the resources we already have. Body There are two types of scarcity: i.Absolute scarcity -this is all in all the factors of production Human resources:physical and mental skills Natural resources:land Human-made resources:capital Enterpreneurial talents:enterpreneurship -they are also limited resouces -they are mostly from nature and we need these resources to go by on a daily basis ii.Relative scarcity -These resources are available but are overgrown by people's wants and in they could end up very limited -they can be used over and over again -relative scarcity is a garuntee that unsatisfied wants will always exist Scarcity & poverty -scarcity affects everyone and also the rich but poverty affects only a certain number of people everywhere -poverty refers to the people who live with less than a minimum income per day,they cannot provide for all their needs Economic & free goods Economic goods -they are very scarce -they satisfy wants and they can be sold -they mostly are beneficial to many people mostly they are used to trade and money -they belong to someone and have commercial value Free goods -they are available to everyone -they cannot be paid for -they have no commercial value(exchange value) -they do not belong to any one Opportunity cost -a choice made in favour of another certain good -it is sacrificing the other good chosen and instead take the other one which holds more value Conclusion The government or countries could try and increase they're production capacities and teach people to use they available resources
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