1. The basic problem on which classical economic theory is built: simply, that human wants will always exceed the resources available to fulfill those wants.
2. The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
Explanation:
Scarcity is the idea that people want or need a certain product or resource but for some reason that product is in short supply. Sometimes this is becuase the product or resource is limited, rare, or hard to get (like gold). Sometimes scarcity can occur when that product or resource is carefully controlled by a very powerful company, country or organization. (i.e. The group of Middle East Countries who are a part of OPEC exercise control over oil production and as a result have huge control over the price of oil in the world.)
Metaphor:
GoAnimate.com: scarcity by MrFreezerExplanation:
Scarcity is the idea that people want or need a certain product or resource but for some reason that product is in short supply. Sometimes this is becuase the product or resource is limited, rare, or hard to get (like gold). Sometimes scarcity can occur when that product or resource is carefully controlled by a very powerful company, country or organization. (i.e. The group of Middle East Countries who are a part of OPEC exercise control over oil production and as a result have huge control over the price of oil in the world.)
Metaphor:
Scarcity could be compared to what would happen if my tech geek buddy Kev would buy up all the Ipods in the world. Then he could charge whatever he wanted to.
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sources: Dictionary.com || Investopedia
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