Scarcity leads to tradeoffs, as resources are limited from "summary" of Basic Economics by Thomas Sowell
The fundamental concept of scarcity is that there are not enough resources to satisfy all the competing wants and needs of people in a society. This basic fact forces people to make choices about how to allocate those scarce resources. In other words, scarcity leads to tradeoffs, as resources are limited. These tradeoffs are evident in every aspect of our lives, from personal decisions about how to spend our time and money, to collective decisions made by businesses, governments, and other organizations. For example, when a consumer decides to spend money on one product, they are choosing not to spend that money on other products. Similarly, when a business decides to invest in one project, they are forgoing the opportunity to invest in other potentially profitable ventures. This concept of tradeoffs is not limited to financial d...
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