CONCEPT

Scarcity and choice are basic problems in economics. this concept was introduced by proof. Lionel the effects of unlimited human wants and supply of limited resources create the problems of scarcity in human society. The quantity supplied of economic resource such as water .forest and mineral resources, human resources and physical resources is very limited in compassion of their demand. But the quantity supplied of no economic resource such as sunlight, air, water is unlimited to us. Therefore economics is such a subject which aims to utilize scarce resources in a scientific way, so that human being can achieve maximum satisfaction from the use of limited economic resources. The problems scarcity is present is present not only in development nations but also in highly developed nations. So long as human wants are more then the supply of resource, the scarcity problems world not is shoved from human society. The nature of scarcity change along with change in living standard and life system of human being. The problems of scarcity can be minimized and the satisfaction from good and service can be maximized by judicious use of available resource. It can be achieved through the scientific study and decision making on what do produce, how to produce, how much to produce and whom to produce to produce the good and services in an economy.