-Unit 01 - Scarcity Needs – These are the basic requirements which are essential for living
and survival.
Eg: Food, Shelter, Drink
Wants - These are the different categories of needs which are usually
unlimited in nature
Eg: Burgers, Rice, Houses, Apartments, Water, Sodas
Scarcity
➢ Scarcity is a situation where there are not enough resources to
satisfy everyone’s wants.
➢ Scarcity continues to exist because more goods and services are
produced because people have more wants.
Economic Problem
➢ Economic problem is where there are unlimited wants compared
to limited resources.
➢ As people have limited income, they cannot afford all what they
desire but still they have unlimited wants so therefore economic
problem will still exist
SUMMARY
 Peoples wants continue to grow.
 Resources such as workers, machines and land are limited in
supply.
 The economic problem scarcity arises because wants exceed
resources
End of chapter questions
1. Why does scarcity exist?
a. Each year workers tend to produce less than previously.
b. Machines wear out with time.
c. There are not sufficient resources to produce all the
products people want
d. There is a limit to people’s wants
2. Why will scarcity continue to be a problem in the future?
a. Prices will rise
b. The quantity of resources will decline
c. Wants will continue to rise
d. World population will fall