WAEC SSCE - Economics - 1997 (Objective)

Question 1 Report

Scarcity in Economics means that

the economy can scarecely produce anything

human wants are limitless

the economy has very few resources

human wants are limited, relative to resources

resources are limited relative to wants

Answer Details

Scarcity in economics means that resources are limited relative to wants. This means that there are not enough resources available to satisfy all the unlimited human wants and needs. Since resources such as land, labor, capital, and entrepreneurship are scarce, choices must be made regarding how to allocate these resources efficiently to produce the goods and services that will best satisfy the most urgent wants and needs. This necessitates making trade-offs and prioritizing wants and needs, which is the fundamental problem of economics.

Read lesson note on Factors Of Production And Their Theories (JAMB)

Read lesson note on Definition And Scope Of Economics (WAEC)






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