• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What is scarcity?

Extracts from this document...

Introduction

Donnelisha Jackson Due: 9/24/09 In this day and age, scarcity is a concept that all individuals will soon learn to understand whether they use the technical term or not. The problems with our economy are derived from scarcity, which is the reason why economists exist. If all people could cope with their unlimited wants, it makes one wonder if the world would be a better place. In order to truly understand the difficulties with scarcity in everyday life, one must first know and understand its meaning. The term scarcity refers to the insufficient amount of goods or service to satisfy the unlimited wants that human beings naturally have. ...read more.

Middle

Well, one thing all societies must consider having businesses produce things that don't require the same resources such as paper production companies going into furnishing companies. This basically means that people can't have what they want all the time, but must budget their wants through budgeting of money because the government sets prices on most everything. Anyway, different countries deal with poverty through different economy systems. One economy system is called pure market system where there are no controlling powers on what happens economically, the resources are privately owned, and prices are created to regulate the system. The other common way is through pure command economy, which is opposite pure market economy and deals with publicly owned resources and centralized planning. ...read more.

Conclusion

Publicly owned businesses include fast food restaurants where shares can be bought (etc.) while private are like electrical companies. An example of the second is when an economy shuts most out of competition because their resource whereabouts and connections are discreet and this used to be ATT a long time ago as an example. The third is practiced not by the U.S. in particular, but it possesses some qualities with central powers that the U.S. agrees on. All in all, scarcity is a problem for us all or at least anyone that wants for more than one thing, but these problems can be overcome and managed. If they are neglected then the well being of the citizens within the economy begin to transition their methods of dealing with scarcity. These economic systems are effective ways of dealing with scarcity to regulate or decrease poverty. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Allocation of Resources

    Therefore, the market equilibrium, where demand meets supply, is also where marginal social benefit meets marginal social costs. At this point, net marginal social benefit is maximized, meaning this is the allocatively efficient outcome. If a market or firm is not Pareto efficient, then it cannot be allocatively efficient.

  2. The Economic Problem andEconomic Systems

    * Greater profit for petrol company The individual will only consider the private cost and benefits when making his/her choices. This can result in resources being allocated in ways that are not necessarily in society's best interest because any externalities are not taken into consideration.

  1. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    Henry Bessemer's renovation of steel production was also crucial. Each of these improvements assisted the production and transportation of products and materials used for trade and in industrial factories. The transition from an agricultural based economy to a machine based economy was a milestone for Britain. By employing innovations such as the water wheel, and later the steam engine,

  2. Is there possibilities of war for resources?

    tropical rainforests, changes in the proportion of non-food crops to food crops may have even greater impacts on the available cropland for food production. The scarcity of other resources may prove serious as well. For example, today one in four people on the planet do not have access to safe

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work