A fundamental concept in economics is Scarcity. It refers to limitations in achieving desired outcomes due to insufficient resources, goods or abilities.
Scarcity creates situations where choices have to be made. Working out how to make the best use of available resources or finding alternatives to them is fundamental to economics.
Like individuals, governments and societies experience scarcity because human wants exceed what can be made from all available resources.
Even in the new, knowledge intensive economy, where the cost of providing information is low or almost zero, we still have to decide how to spend our time which is scarce.
In one way or another scarcity is likely to remain a significant issue in economics. What do you think?
This Micro Brief is provided by Lytton Advisory as a general public information service. Find out more about smarter capital investment decisions using economics at http://www.lyttonadvisory.com.au.