SCARCITY OF RESOURCES

Scarcity of Resources

Scarcity of Resources

Introduction

Consumers' needs and wants are increasing and are said to be unlimited, however to fulfill these wants the resources that are required are limited and also insufficient thus this has resulted in the problem of scarcity of resources, due to which these consumers have to make choices and must forgo something, which is the next best alternative or the option which is forgone is the opportunity cost (Sowell, 2010, Pp. 48-49).

Question 1

Due to limited resources what does an economy needs to determine?

Since there are insufficient resources in an economy thus it is ...