Scarcity and choice — Economics, 11–13 years
There is never enough of every useful thing for everyone to have all they want. Scarcity helps explain why people, families, businesses and governments must choose.
What scarcity means
Scarcity means that a useful thing is limited compared with people’s wants. Time, money, clean water and seats on a bus can all be scarce. It does not mean the thing has completely run out; it means choices are needed.
Why choices are unavoidable
Economics begins with a simple problem: wants can grow faster than the resources available to meet them. A town may want more parks, buses and clinics, but its land, workers and money are limited. Scarcity makes deciding what to do first unavoidable.
Choosing with a limited budget
Maya has €12 for a class picnic. A sandwich costs €5, fruit €3 and a drink €2. She could buy two sandwiches and one drink for €12, or one sandwich, fruit and two drinks for €12. Her money is scarce, so she compares the combinations before choosing.
The more is always better?
A common mistake is to think that scarcity only affects people with little money. It is reasonable to think that because money buys many things, but even a wealthy person has only 24 hours in a day. Choosing one activity still leaves less time for another.
Scarcity outside school
Scarcity appears when a family plans its monthly spending, when a nurse’s time must be shared between patients, or when a dry region limits water use. It also affects your day: homework, sleep, sport and friends compete for the same hours. Seeing the limit helps explain the decision.
Keep exploring
Other languages
Loading MyLeoNes™…