Scenario Concept
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Scarce Resources & Economics
Hasha Hines Bernal
ECO/561PR Economics-Puerto Rico
November 22,, 2011
Prof. Adelaida Torres Dilan, M.A.
SCARCE RESOURCES & ECONOMICS
Supply and demand! Two words that everyone in the business and supply world are familiar with. It is one the basis of today’s commercial and market economy as well as one of the key principles within economics. As long as there is a need for a certain type of product or service or resource, there will always be a company or individual that is willing to fulfill that need. But what if there is not enough of a certain product or service to satisfy the demand? The idea of scarcity is not new in business, but it is easy to understand when it is explained in terms that are simple and clear. Even children at a young age are aware of the smallest concept of scarcity. It must be understood that scarcity does not affect anyone personally. We all at one time or another are limited by such things such as energy, time and money just to name a few, however, it is the choices that we make that affect the concept of scarcity.
In some cases, we are not involved at all as to the input of how much of a resource we will receive, but it is the choices that we make as to how to use the resources we are given. If we know that resources are scarce, we should in turn realize also that production will be scarce as well. Many economists believe that the commercial and material wants of society will continue to remain unlimited, however, this is a contradiction to resources which in many cases tend to be limited. There will never be enough of anything to actually satisfy everybody or the demand. This in turn creates an economizing problem. This is the ‘”how” and “who” when it comes down to the distribution of resources. Economic wants are defined as the continuing wants and desires of the general population which in the end focus on their own satisfactions. Theories and models are then created by...
Hasha Hines Bernal
ECO/561PR Economics-Puerto Rico
November 22,, 2011
Prof. Adelaida Torres Dilan, M.A.
SCARCE RESOURCES & ECONOMICS
Supply and demand! Two words that everyone in the business and supply world are familiar with. It is one the basis of today’s commercial and market economy as well as one of the key principles within economics. As long as there is a need for a certain type of product or service or resource, there will always be a company or individual that is willing to fulfill that need. But what if there is not enough of a certain product or service to satisfy the demand? The idea of scarcity is not new in business, but it is easy to understand when it is explained in terms that are simple and clear. Even children at a young age are aware of the smallest concept of scarcity. It must be understood that scarcity does not affect anyone personally. We all at one time or another are limited by such things such as energy, time and money just to name a few, however, it is the choices that we make that affect the concept of scarcity.
In some cases, we are not involved at all as to the input of how much of a resource we will receive, but it is the choices that we make as to how to use the resources we are given. If we know that resources are scarce, we should in turn realize also that production will be scarce as well. Many economists believe that the commercial and material wants of society will continue to remain unlimited, however, this is a contradiction to resources which in many cases tend to be limited. There will never be enough of anything to actually satisfy everybody or the demand. This in turn creates an economizing problem. This is the ‘”how” and “who” when it comes down to the distribution of resources. Economic wants are defined as the continuing wants and desires of the general population which in the end focus on their own satisfactions. Theories and models are then created by...