Scarcity refers to the limited resources we have and a fundamental problem facing all societies. Also, it refers to the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants. Society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans. Nowadays society suffers from shortage in the economy due to the scarcity of resources.

Other important facts: The scarcity of goods plays a significant role in affecting competition in any price-based market. Because scarce goods are typically subject to greater demand, they often command higher prices as well. Scarcity affects more than just products or natural resources. Everything usable can be considered resources. Common examples are oil, coal and precious metals. When these materials become scarce, the ability of businesses to meet production goals can be affected adversely.

For many reasons, kids should learn about personal finances, jobs, make intelligent decisions related to the stock market, or pension, or when opening a business. Mr. Sanchez, a teacher of economics of liberty high school said “Scarcity is a basic problem of economics because the world is limited and finite. Economics is all about choices and opportunities. Cost affects scarcity affects my personal life because I am not a rich person. I need to plan ahead and make sure that I retire at the right age and at the right amount of years.”

Economics  sometimes is good and other times not. Scarcity works in the free market by supply and demand, which can fluctuate the price of a good or service over time, when there is more or less of it available. This limited resource sees its price consistently change. When oil reserves get used, the supply falls.

Mr. Segura, another teacher of economics, said  “​If there is not enough oil then the price of gasoline will be too high. When I refill my car with gas, it will be too high. For example, I used to pay about $28 dollars for gas. Now I pay almost $50. If we do not find renewable sources of energy or natural resources, we cannot continue to live the way we do.”

Mr. Patterson who works in Catholic charities said “Scarcity in economics is a big problem because there are limited resources in the world and they are  mostly available to rich and powerful people, but it doesn’t affect my personal life because I was able to to go to the colleges and get a good job after graduate.”

There are not many resources in the world, so it is important to understand how the economic system works because if you don’t know how the system works, you don’t know how to handle money.  

One way for a society to handle scarcity is to reduce its wants and needs. If we only had more resources we could produce more goods and services and satisfy more of our wants. This will reduce scarcity and give us more satisfaction (more goods and services). The needs we can reduce increasing supply with limitations, such as production capacity, land available for use, and the time they can use it.