Scarcity and resource allocation
What Scarcity and resource allocation means in Economics GCSE, as defined for AQA.
Definitions of Scarcity and resource allocation
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Reference: AQA
Because resources are scarce, every economy must make three fundamental economic decisions, and these choices dictate resource allocation.
Because resources are scarce, choosing one option means giving up another, so resources must be allocated efficiently.
Topics that use Scarcity and resource allocation
- Economic activity (AQA GCSE)
- Making choices (AQA GCSE)
Related terms
- Scarcity
- Basic economic problem
- Circular flow of income
- Consumers
- Distribution of wealth and income
- Economic agents
- Economic decision making
- Economic welfare
Using Scarcity and resource allocation in the exam
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