Short note on scarcity and choice.
Scarcity... We know that human wants are unlimited but human capacity to satisfy these wants is limited. In other words, scarcity is the fact of life. Goods and services have to be produced to satisfy human wants. Productive resources are necessary for this purpose. But the supply of productive resources are limited in relation to their demand. This is known as scarcity. The goods and services should be distributed among the people due to scarcity. In common language, scarcity means not found in sufficient quantity. But in economics, scarcity refers to the limitations of product regarding the given demand. It's a relative term but not a absolute term. A goods is scarce because it possesses utility, it commands value and it is transferable from one person to another. For example: generally air is not scarce but air in cylinder is being scarce because we have to pay certain amount for this. In fact, all economic goods and services are scarce. ...