The importance of the concept of scarcity in economics and to determine if a resource is scarce.
Concept introduction:
Scarcity of resources means lack of resources in comparison to wants.
Explanation of Solution
The scarcity of resources is determined when
The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.
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