Why is scarcity a relative term?

“Relative” means that we do not measure a resource in absolute terms, but only with regard to the DEMAND for it. All resources on Earth are finite, but they are only 'scarce” if someone wants more of them. Here's a good general resource for students of economics: Relative scarcity. read more

“Relative” means that we do not measure a resource in absolute terms, but only with regard to the DEMAND for it. All resources on Earth are finite, but they are only ‘scarce” if someone wants more of them. read more

Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants at possible. read more