SCARCITY- The most important aspect of economics
Human wants and needs are unlimited and resources are limited in nature.Scarcity refers to the situation where resources available are shorter than it is actually required. resources can be natural or man made.Scarcity is considered as the basic economic problem. Therefore decisions are to be made regarding efficient allocation of resources in the economy. People face shortage of land, labour etc. Now for instance, with the depletion of forests in Thailand, people living there are facing shortage of wood. Therefore here comes the need for economic planning. Economic planning refers to the mechanism which is used for the allocation of resources between or within the organisation.
Human wants and needs are unlimited and resources are limited in nature.Scarcity refers to the situation where resources available are shorter than it is actually required. resources can be natural or man made.Scarcity is considered as the basic economic problem. Therefore decisions are to be made regarding efficient allocation of resources in the economy. People face shortage of land, labour etc. Now for instance, with the depletion of forests in Thailand, people living there are facing shortage of wood. Therefore here comes the need for economic planning. Economic planning refers to the mechanism which is used for the allocation of resources between or within the organisation.
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