Scarcity means that there are limited resources or goods available to fulfill unlimited wants and needs. Because of this, people must make choices about how to allocate their resources in order to satisfy their most important wants and needs. If resources were not scarce, people would not need to make choices about how to use them because there would be enough resources to satisfy all wants and needs. However, because resources are scarce, people must choose how to use them in the most efficient and effective way possible to maximize their benefits. This is why scarcity leads to the need for choice.