Question
Scarcity causes economic problem. How?
Solution
Resources are always scare in relation to our wants. Resources are not only scare but also have alternative uses. Scarcity is the root cause of all our economic problems. Had there been no scarcity, there would have been no economic problem. In our daily life, we have
various forms of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.
