Scarcity is an important economic concept that indicates the lack of resources for unlimited wants. It is a fundamental principle of economics, and it is essential for understanding how resources are allocated. Scarcity can be illustrated in several different ways, and it is important to understand which of the following is not an example of scarcity.
Types of Scarcity
Scarcity can be classified into two main types: absolute scarcity and relative scarcity. Absolute scarcity occurs when a resource is completely unavailable, while relative scarcity occurs when a resource is limited but not completely unavailable. Examples of absolute scarcity include air and water, which are both essential for life but cannot be produced or manufactured. Examples of relative scarcity include land, oil, and labor. These resources can be produced or manufactured, but at a cost. As such, they are not in unlimited supply and must be allocated in some fashion.Examples of Scarcity
Natural Resources
Natural resources such as oil, land, and water are examples of scarcity. These resources are limited in supply and cannot be manufactured, so they must be allocated in some fashion. This allocation must be done in a way that maximizes the benefits of the resource while minimizing any potential negative impacts.Labor
Labor is another example of scarcity. Labor is a limited resource, and it is essential for the production of goods and services. As with natural resources, labor must be allocated in a way that maximizes its benefits while minimizing any potential negative impacts.Time
Time is a limited resource, and it must be managed carefully in order to achieve desired results. Time is essential for completing tasks and achieving goals, so it must be allocated in a way that is both efficient and effective.Which Of The Following Is Not An Example Of Scarcity?
| Scarcity | Example |
|---|---|
| Absolute Scarcity | Air, Water |
| Relative Scarcity | Land, Oil, Labor |
| Not an Example of Scarcity | Money |