Economicscalendar_todayLast updated: Apr 2026
What is Scarcity?
/ˈskɛəsɪti/
Scarcity is the fundamental economic problem: there are unlimited human wants but limited resources to satisfy them. Every economic decision is ultimately a response to scarcity.
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Everyday Example
There is only 24 hours in a day — time is scarce. Choosing to spend two hours watching TV means those two hours cannot be spent exercising or working. Every choice involves a trade-off.
publicReal-World Application
“Water scarcity affects 2 billion people globally and is projected to become one of the defining economic and geopolitical conflicts of the 21st century.”
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Did you know?
Economics as a discipline is built on the concept of scarcity. Lionel Robbins defined economics in 1932 as "the science which studies human behaviour as a relationship between ends and scarce means."
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Key Insight
Scarcity is relative, not absolute. The same glass of water has vastly different economic value in the middle of a desert versus beside a river. Value is determined by availability relative to want.
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