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Often, you find people stand in line to obtain or to purchase some goods or services they need. Why do they have to stand in line? Because there are scarce resources to make needed goods and service for people. While people's necessities, either quality or quantity, do not have a limit. The basic problems of economy are the scarcity of resources and human necessities.
Have you ever thought of why people stand in line for hours? For example:
1. to buy fuel at a gas station;
2. to buy train tickets at a train station.
Sometimes, the cases occur because of the scarcity of fuel supply and train service for the approaching the Labaran Day. Such a condition is about to happen as the result of the increasing demand for train service. Sometimes, people have to stand in line to get some scarce goods or service. It is quite different when people try to get some goods or services which are not scarce., such as ait. To get some air people do not have to stand in line because air is not scarce thing. What is the meaning of scarcity?
The Definition of Scarcity
Scarcity refers to a condition that there is a limited means of necessities fulfillment toward unlimited necessities. Human's necessities are not limited. It means when a need is fulfilled, it will be followed by any other needs to fulfill. A limited means of necessities fulfillment causes scarcity and imbalance of between resources and its necessities.
The Scarcity as the Basic Cause of The Economic Problems
People have necessities and try to fulfill them. When people have been able to fulfill their needs, it indicates they live prosperously. It can be concluded that those who are able to fulfill their necessities are included as wealthy people. While human have various necessities to be fulfilled. Human needs food, drink, clothing, vehicles, consolations, radios, televisions, material book, sport equipments, medicines, and many more.
Human necessities go to increase because of developed civilization. In former time, people did not need televisions, cinemas, videos, cellular phones, or vehicles. But, nowdays people need them all because civilization goes advanced rapidly.
Besides, world population gets to increase which causes a great amount of necessities. One necessity will be followed by other necessities. It flows on and on without any limits.
It is impossible to fulfill all unlimited human needs although a large amount tools and goods are reproduced. The fact points out that the increase of needs is not balanced with the increase of the means of the necessities fulfillment. The increase of needs is larger than the means of necessities fulfillment. In other word, human necessities are unlimited while the means of necessities fulfillment are limited. As the result, it leads to the scarcity of means of necessity fulfillment. The scarcity is the root of problems of economy.
How does human overcome the problems of economy? Human always attempts to over come the scarcity of means of necessities fulfillment. There are two ways out to handle the problems. Firstly, exploring natural resources. Secondly, producing brand new goods with existed production equipment.
Although human attempts to run the best ways, natural resources and production equipment are limited.
Example:
a. As natural resources, the large of the land is limited. Human cannot extend the large of the land. Besides, planting the land continually can be reduced the soil fertility.
b. As natural resources, the large of amount of seas is limited also. The large of sea cannot be increased, and then all sea resources tend to decrease.
c. Mine resources is also limited natural resources. When mines are over explored, they can be exhausted.
d. Forest as a lumber producer which human needs are limited resources. Felling of trees without compromise will destroy the forests. Even, it drives to natural calamity.
e. Device of production is limited, like factories, machines, and buildings.