7.17.2015

Economic problems such as scarcity



Everyone works to earn money to buy items needed. Why do we have to buy the goods? Goods, such as clothing, shoes, school bags, textbooks, and watches, not available offhand. Goods is the result of work that requires manpower and costs. That is why, we have to buy goods with the appropriate energy prices and the cost to produce it.

To produce goods, humans require materials in the form of resources. For example to make a bicycle, a human need: iron, rubber, paint, manpower, space (land) used to make the bike, and engines as a tool to make it. Apparently, the resources to produce goods inventory is limited when compared to the magnitude of human needs. According to economics, lack of resources to produce goods is called scarcity (scarcity).

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