The problem of scarcity is reduced by

The problem of scarcity arises when the resources available to produce goods and services are limited in comparison to the unlimited wants and needs of people. The reduction of this problem is done by ensuring efficient allocation of resources. This means that the available resources are used in the most effective and efficient manner to produce goods and services that are most needed and wanted by the society. By doing this, the available resources can be utilized to their fullest potential, and the needs of people can be met to the best possible extent. Controlling consumption of goods and services and restricting consumer choice and taste are not effective ways to reduce the problem of scarcity, as these measures can lead to dissatisfaction and inefficiency in the allocation of resources. Producing everything needed by the consumers is not possible due to the limited nature of resources, and thus is not a feasible solution to the problem of scarcity.