Final answer:
Scarcity is the economic principle that people must decide which goods and services to use due to limited resources and unlimited wants. It is a fundamental concept in economics, and the condition of scarcity forces decision-making.
Step-by-step explanation:
Scarcity is the economic principle stating that people must decide which goods and services to use, due to limited resources and unlimited wants. It is a concept at the centre of economics and is applicable to individual decisions, family decisions, business decisions, and societal decisions. Scarcity means that human wants for goods, services, and resources exceed what is available, and resources exist in limited supply. The condition of scarcity forces decision-making because individuals will never be able to have everything they want.