scarcity

(redirected from scarcities)
Also found in: Dictionary, Thesaurus, Legal.
Related to scarcities: paucity

Scarcity

In classical economics, the fact that resources are limited while desires are unlimited. The existence of scarcity requires the efficient allocation of resources and drives innovation to work around limitations. That is, scarcity often refers to trading one good or service for another, but it may cause an economic actor to invent something that will satisfy as many desires as possible. See also: Land, labor, and capital.

scarcity

the limited availability of economic resources (FACTORS OF PRODUCTION) relative to society's unlimited demand for GOODS and SERVICES. See ECONOMICS.
References in periodicals archive ?
Resource scarcities can lead to constrained agricultural and economic productivity, causing widespread poverty.
Homer-Dixon acknowledges that the human ability to generate ideas, what he terms ingenuity, is a crucial factor that can help people overcome resource scarcities.
Also, as most scarcities are local rather than universal, areas can trade a share of a pie that is locally abundant for a share of another pie that is locally scarce, thereby benefiting from comparative advantages.
They argue rather that local resource scarcities arise and persist because market mechanisms and technological developments often fail to work locally in many developing countries, thereby limiting ingenuity.