Final answer:
Scarcity is a concept in economics that describes how people's unlimited wants cannot be completely satisfied with limited resources. It is a fundamental concept in economics and helps explain why choices must be made.
Step-by-step explanation:
Scarcity is a concept in economics that describes how people's unlimited wants cannot be completely satisfied with limited resources. This means that there are not enough resources to produce all the goods and services that people want. For example, there may not be enough land, labor, or capital to produce everything that people desire.
In other words, scarcity is the condition of having to choose among alternatives. When resources are scarce, individuals, businesses, and governments must make decisions about what to produce, how to produce it, and who will receive the goods and services.
Scarcity is a fundamental concept in economics and helps explain why choices must be made. It is a key factor in understanding supply and demand, production and consumption, and the allocation of resources in society.