Question

Based on your understanding of scarcity, please write a reflection explaining why resources are scarce using sound economic reasoning. please use an example from your own life as part of your explanation.

Answer 1

Resources are scarce because economic goods not have an infinite supply. As a result, we have to make decisions on how to allocate them to serve our needs. An example of a scarce resource is gas. Gas powers our cars and is also used in electricity generation. As our population increases, so does the demand for gas grows. Gas is scarce has it does not exist in infinite quantities and requires resources to be converted from oil in the ground to gas.