Type a new keyword(s) and press Enter to search

Scarcity

 

            Scarcity is a condition when humans have infinitive wants but limited resources, therefore not all their wish can be fulfilled, so there is an opportunity cost involved everytime they make a decision to satisfy one wish rather than the other. As an example when they have $10 to spend on a shirt, they will have $10 less to spend on a CD. Opportunity cost is a missed opportunity, an opportunity someone lose when he/she make a choice. It is the second best alternative they have to sacrifice when they decide to choose something rather than the other.
             Scarcity forced us to make a choice, as there are not enough resources to fulfill all of our desires. When we make a choice, we forgone the next best alternative, and that is the opportunity cost of doing our choice. As example, if we decide to go to school in other country, we will have to spend less time with our family, and that is our opportunity cost. We will have lesser time to spend with our family. .
             Limited resources caused scarcity, therefore it is valued. We can't have everything we want, as it is not possible, and we do not have enough resources. We have to make a choice between a lot of things, and lose the next best alternative everytime we do so. Resources is scarce in a way that we cannot get them at a zero price. We have to pay an opportunity cost everytime we choose what we want or what we do.
             Scarcity is not the same as a shortage. Scarcity is a condition where demand for something exceed the number of them can be supplied by nature at a zero price. Shortage is a temporary condition where one area is lack of something. It can be solved by distributing resources to the lacking area. As example, when a flood hits Ohio, there will be shortage of food, medical supplies, and shelters. This can be solved by sending food, medical supplies, and build temporary shelters in Ohio. In a short period, the problem will be solved. .
             Scarcity will last forever, and shortage is not.


Essays Related to Scarcity