Advertisement

Scarcity and choice

Visits
Scarcity-and-choice

Scarcity and choice

The concept of scarcity and choice was introduced by British economist Lionel Robbins in 1932. Both the scarcity and choice are major issues in economics.

Scarcity here means failure to meet wants through available resources or there is a shortage of resources. Human wants are unlimited but productive resources are limited. The major scarce resources are labor resources, natural resources and capital resources. Because of scarcity of resources, wants become lower then leading to economic problems.

When all wants can't be met because of scarce resources, another problem arises which should be first met, which is called the problem of choice. Maximum good should be produced with efficient use of limited resources. so, problems like; what to produce? how much to produce? how to produce? for whom to produce?, etc are basic economic problems. So economic problems mean those of scarcity and choice.

Post a Comment

0 Comments