01. Basic concepts of economics and allocation of resources

Scarcity and choice are the fundamental basis of economic analysis.

Scarcity, in economics, refers to the situation where the demand for a commodity exceeds its supply. All commodities, except for air and sunlight, are scarce in this sense. Scarcity does not imply that a resource is unattainable, but rather that the supply is insufficient to meet the demand. Resources such as land, buildings, machines, automobiles, televisions, furniture, etc. are examples of scarce commodities.

man, beg, lack of money-2503248.jpg

Scroll to Top