Scarcity
What Scarcity means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Scarcity
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Reference: Pearson Edexcel
The fundamental economic problem resulting from unlimited wants and finite resources, meaning society cannot produce enough to satisfy everyone's desires.
The condition of limited resources that the price mechanism allocates through its rationing, signalling and incentive functions.
The condition of limited resources which means all economic agents face trade-offs when making choices.
Topics that use Scarcity
- Price mechanism (Pearson Edexcel A-Level)
- The economic problem (Pearson Edexcel A-Level)
Related terms
- Capacity utilisation
- Economic agents
- Factors of production
- Market dynamics
- Niche markets
- Price elasticity of demand
- Price mechanism
- Profit maximisation
Using Scarcity in the exam
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