What is the main problem of Scarcity?

Answer 1

The main problem of scarcity is that resources are limited while human wants and needs are virtually unlimited. This fundamental economic issue forces individuals, businesses, and governments to make choices about how to allocate resources efficiently. As a result, scarcity leads to trade-offs, where prioritizing one need often means sacrificing another. Ultimately, it drives the need for economic systems to manage resource distribution and production.