Scarcity

What is Scarcity?

The economic condition in which resources are limited while human wants are unlimited. Scarcity makes choice unavoidable for individuals, businesses and governments, and it is the reason every economic decision carries an opportunity cost.

This definition is part of the Understanding Business Activity chapter in Cambridge O Level Business Studies.

Concepts related to Scarcity

• needs and wants
• Opportunity Cost
• Factors of Production