The term “resource scarcity” describes a low supply and high demand of a limited resource. In theory, human wants can be infinite, but there is a finite amount of material resources, meaning there will always be some degree of scarcity. Economists use resource scarcity to determine the value of different goods.
government needs, and what will be an efficient use of resources to maximize profits. Countries also import resources from other countries, and export resources from their own.
Scarcity can be created on purpose. For example, governments control the printing of money, a valuable good. But, paper, cotton, and labor are all widely available across the world, so the things required to make money are not themselves scarce. If governments print too much money, the value of their money decreases, because it has become less scarce. When the supply of money in an economy is too high, it can lead to inflation. Inflation means the amount of money needed to buy a good or service increases—therefore money becomes less valuable, and the same amount of money can buy less over time than it could in the past. It is therefore in a country’s best interest to keep its paper money supply relatively scarce. However, sometimes inflation can help an economy. When money is less scarce, people can spend more, which triggers a rise in production. Low inflation can help an economy grow.
Answers & Comments
Verified answer
Answer:
The term “resource scarcity” describes a low supply and high demand of a limited resource. In theory, human wants can be infinite, but there is a finite amount of material resources, meaning there will always be some degree of scarcity. Economists use resource scarcity to determine the value of different goods.
Explanation:
please mark me brainlist if it helps you
Ans--
hi
government needs, and what will be an efficient use of resources to maximize profits. Countries also import resources from other countries, and export resources from their own.
Scarcity can be created on purpose. For example, governments control the printing of money, a valuable good. But, paper, cotton, and labor are all widely available across the world, so the things required to make money are not themselves scarce. If governments print too much money, the value of their money decreases, because it has become less scarce. When the supply of money in an economy is too high, it can lead to inflation. Inflation means the amount of money needed to buy a good or service increases—therefore money becomes less valuable, and the same amount of money can buy less over time than it could in the past. It is therefore in a country’s best interest to keep its paper money supply relatively scarce. However, sometimes inflation can help an economy. When money is less scarce, people can spend more, which triggers a rise in production. Low inflation can help an economy grow.
❤️