Economic scarcity refers to what?

Answer 1

Choices of scarcity Scarcity forces a choice among other alternatives, everyone faces scarcity at some point in time, as most person income does not allow them to buy everything they would like to obtain so this forces them to make a budget to decide how much of what goods to buy. With scarcity choices are always a factor as it involves giving up one thing to again another, for example, you wanted to take a vacation with your family which would cost you US$1000 with this US$1000 you could also do some well needed work the roof of your for the hurricane season which is coming up. What did the vacation really cost? Some might say just US$1000 but in reality it really cost you a well needed repair that should have been done to your house which would be available for years to come for the family to inherit and enjoy, which is called Opportunity Cost the cost of foregone alternatives. Time also plays a major role in the economy's society as in scarcity and choice, and also opportunity cost. As time is not always available and scarcity is considered when the amount of a good is not being supplied to meet the demand, as it is often based on an idea that goods are often times limited in the supply, which can be managed through making choices regarding value for exchange. If a persons spends eight hours each day working, the opportunity gained is more work experience and knowledge you gained if you had spent the same eight hours each day sitting with friends drinking and watching movies.