scar⋅ci⋅ty
[skair-si-tee] 
sɪ
| 1. | insufficiency or shortness of supply; dearth. |
| 2. | rarity; infrequency. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
Cite This Source
| scar·ci·ty (skâr'sĭ-tē) n. pl. scar·ci·ties
|
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source
scarcity
The basic problem on which classical economic theory is built: simply, that human wants will always exceed the resources available to fulfill those wants. This tenet was challenged by the rise of what John Kenneth Galbraith described as the affluent society.
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
Cite This Source
Scarcity
The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
Investopedia Commentary
When we talk of scarcity within an economic context, it refers to limited resources, not a lack of riches. These resources are the inputs of production: land, labor, and capital.
People must make choices between different items because the resources necessary to fulfill their wants are limited. These decisions are made by giving up (trading-off) one want to satisfy another.
Related Links
Economics Basics Tutorial
Hairline Fractures: Exploring The Dismal Science
See also: Economics, Guns and Butter Curve, Opportunity Cost, Seller's Market
Cite This Source
Copyright © 2009, Dictionary.com, LLC. All rights reserved.
