Why the issue of scacity so central to economics?
Answer:
Scarcity is the the central purpose of economics.
If everything was unlimited then there would be no need to consider how can I get my hands on it. Its because there are limited amounts of goods and services that supply and demand even exist. Its a means to value what otherwise, if it was endlessley abundant, could not be quantified. And would not need to be quantified. You cant buy or sell goods and services if there is limitless amounts of those goods and services laying around for everyone.
Its all about the haves and the have-nots. If everyone was a have, then economics does not exist.
Wrong way round...Economics is primarily about the issue of scarcity. Because we realised we had a problem of scarcity, we started analysing situations in which it was a problem. It's not like economics just came along and its central issue was scarcity, economics developed around this issue. Everything to do with economics stems from the concept of scarcity.
Tigr is not quite correct. The other guy is correct. Economics IS the study of scarcity. Economics is the study of how society and individuals make choices in the face of scarcity. We have what is known as the "economizing problem": our wants are virtually unlimited yet our resources to acquire these wants are scarce and limited. We study economics so that we have better decision making skills when dealing with scarcity.
Economics studies allocation of scarce resources.
Air and sunlight are free & unlimited to all, so there is no market for them and no economics.
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