Principles of Microeconomics / Unit 1 MIC 0002 short lesson, about 20 seconds
Scarcity and the Three Questions
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The idea
Scarcity means wants exceed the resources available to meet them, so every society must answer three questions: what to produce, how to produce it, and for whom.
In practice
A parcel of land can hold houses, a park or a factory, but not all three.
Where people slip
Scarcity is not poverty. A rich person still cannot buy every good, and still gets twenty-four hours a day.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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