Scarcity
Scarcity is the economic problem arising from the infinite wants of consumers but limited resources available to satisfy them. It is the core reason economics exists as a discipline and why choices must be made about resource allocation.
Real World
During the COVID-19 pandemic, the NHS faced scarcity of ventilators and ICU beds, forcing doctors to make difficult decisions about which patients received critical care first.
Exam Focus
Link scarcity to opportunity cost and the three economic questions — examiners reward integrated analysis.
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