Answer to Question #178036 in Microeconomics for Anum Adjetey

Question

Scarcity of economic resources force us to choose, to choose is to lose. Discuss this statement providing at least three economic examples.

Answer 1

Definition::

Scarcity is a state where resources become finite and limited in their supply.

Economic is the study of how human beings strive to satisfy their unlimited wants using limited resources available. We have to make the right choices to seek and to get most giving up on the least need. The value of the next best choice forgone is the opportunity cost.

EXAMPLES OF ECONOMIC RESOURCES

1.LAND-land being a fixed factor of production is scarce in nature. Shortage of fertile land for cultivation ie desertification leads to low production of food.

2.SHORTAGE OF SKILLED LABOUR-Shortage of skilled personal providing professional services like nurses, doctors, and engineers leads to low and poor provision of services.

3.SHORTAGE OF WATER. Climatic changes and globalization which have caused desertification and drying of rivers in some parts of the world have to lead to a shortage of clean drinking water for both humans and animals. It also affects factories that are using water as raw material or cooling factor.