Question #03f83
1 Answer
We find scarcity almost everywhere, and no life is without scarcity -- which makes economics relevant, since we consider the allocation of scarce resources.
Explanation:
Try to consider an extreme case where no scarcity impacts someone. That person would need to be very rich, right? Perhaps someone like Bill Gates or Warren Buffett would appear to have no scarcity. That may be true, in terms of money, but then consider their time! I'm sure both of these individuals would agree that their time is incredibly scarce.
You might notice that sometimes extremely high income individuals will spend a lot of money just to save a little bit of time. This is another indication of the scarcity of time in their lives.
For the rest of us who are not extremely wealthy, we see scarcity in most other resources, too. Economics gives us insights about how markets allocate scarce resources.
