Ekonomiks

The Concept of Scarcity

|Resources are the items needed to do something. For example, oil is a valuable natural resource. Other resources can include |

|workers, knowledge, or technology. |

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|Scarcity is the idea that there are not enough resources to meet the wants of an individual. If you wanted to buy a shirt, pair of |

|pants and a pair of shoes, there is not enough money to buy it all. |

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|Many 16 year olds want or need a car. The costs of owning and operating a car are greater than the average 16 year old can afford. |

|Yet, sixteen year olds still want cars. This situation reflects the basic economic problem, scarcity.   |

|Wants are items that make life more comfortable. For example, wants include luxuries such as automatic dishwashers. We could |

|actually wash dishes by hand, but the dishwasher makes the job easier and quicker. |

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|Governments also face these kinds of decisions. Governments also have limited resources, including money. |

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