Question

List down 5 Resources that are scarce, and give a solution on how to allocate and distribute them.

a) Oil, implement a rationing system based on need.

b) Clean water, implement efficient water recycling and purification methods.

c) Rare metals, encourage recycling and sustainable mining practices.

d) Rainforests, create protected reserves and promote sustainable logging.

Answer 1

Scarcity refers to the limited availability of resources and necessitates careful allocation to meet society's needs. Strategies like rationing oil, recycling metals, and preserving rainforests help address scarcity. Cost benefit analyses aid in resource allocation decisions to maximize societal benefits.

Step-by-step explanation:

Scarcity is a fundamental concept in economics that refers to the limited nature of society's resources. Given this scarcity, we must consider how to allocate these scarce resources to satisfy the diverse needs and wants of a population.

For instance, dealing with scarce resources such as oil might involve an allocation based on need through a rationing system, while clean water scarcity may be addressed with recycling and purification technologies.

In the context of rare metals, recycling and sustainable mining practices can help, and for rainforests, the creation of protected reserves and promoting sustainable logging are essential strategies.

Across these areas, the implementation of a cost benefit analysis is often used to ensure that the decisions made regarding resource allocation lead to the maximum benefit for society.

To manage the issue of scarcity, societies can also use technology to advocate for a fairer distribution of resources and to influence behavior to reduce consumption and population growth.