1.1 Scarcity

Define resources and the cause(s) of their scarcity.

• Economic trade-offs arise from the lack of sufficient resources (scarcity) to meet society’s wants and needs.
• Most factors of production (such as land, labor, and capital) are scarce, but some factors of production (such as established knowledge) may not be scarce due to their non-rival nature.
• Enduring understanding MKT-1: Most resources are scarce, and in most cases the use of resources involves constraints and trade-offs.