Scarcity

Scarcity means that human wants for goods, services, and resources exceed the available supply (the opposite of scarcity is abundance). Scarcity also includes an individual’s lack of resources to buy commodities. Resources, such as labor, tools, land, and raw materials are necessary to produce the goods and services we want but they exist in limited supply. Of course, the ultimate scarce resource is time; everyone, rich or poor, has just 24 expendable hours in the day to earn income to acquire goods and services, for leisure time, or sleep. At any point in time, there is only a finite amount of resources available.

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