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

 

 

 

 

Activity 2

 

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.

 

Decision maker

Example of choice

Individual

 

Family

 

Local Government

 

Business

 

Central Government

 

 

Click here for the answer to Activity 2