Scarce Resources and Satisfying Wants
The problem of scarcity arises because the resources needed to produce goods and services are limited. This means that wants will remain unsatisfied.
Individuals and organisations need to make choices:
Which wants should be satisfied
How are they to be satisfied given the limited resources
Each of the following will have to make choices regarding the use of scarce resources.
Think of an example of a choice each may have to make, then click on the link to compare your examples with the sample answer.
Example of choice
Click here for the answer to Activity 2