Supply shortage. This occurs when environmental degradation or other unforeseen factors lead to a significant decrease in the supply of a resource, even if demand is within normal limits. In light of Robbins` definition of economics, “economics cannot be called black science, swine philosophy, bread and butter science, the science of selfishness and greed, or humiliating dirty investigation, because it assumes no responsibility for the choice of goals.” They can be good or bad. The economy deals directly with multiple objectives and scarce resources, cannot be an animade version. Scarcity is especially useful for marketers, as people are willing to pay more for a product that is considered rare and valuable. Marketers imply that a product is scarce, which creates a sense of urgency for the potential buyer. The shortage of certain necessary goods such as food and water in some areas can be catastrophic for a population. Drought and hunger continue to cause death in some parts of the world. International organizations often have to step in to deliver the goods they need. The problem of resource conservation leads to the problem of choice.
Since the needs are many and resources are scarce, we must choose the most urgent needs from among these unlimited needs. Therefore, the consumer will choose only a few wishes from the many wishes according to his preferred model. Therefore, the scarcity of resources makes the choice necessary. Therefore, economics is called the science of choice. The definition of scarcity is more scientific than the definitions of wealth and well-being, but it nevertheless has the following criticisms: Since scarcity means working with limited resources to meet unlimited needs, people are often forced to choose from different alternatives. In most cases, they need to prioritize the expected value of a particular option over the expected value of the next best option. What are the most important issues related to scarcity? Q. The diversity of needs and the scarcity of resources are the two cornerstones of the economy.” Explain it critically. (OR) The high demand for certain products often makes them scarce over time. Companies that wish to continue offering these products to their customers can choose to launch a limited edition or increase production to meet demand.
These can become habits that stay with you even after the scarcity period. In some cases, time can even be considered a resource. Therefore, time is also subject to the rules of scarcity. For example, most people only have eight or nine hours a day to complete their tasks at work. If you have to run a personal errand, remove the hours that should be reserved for work. As a result, you may run out of time to complete the tasks your employers expect of you. Very quickly, the scarcity of clean air (the fact that clean air has a non-zero cost) raises a multitude of questions about how to allocate resources efficiently. Scarcity is the fundamental problem that creates the economy.
Again, the attention you gain through scarcity leads you to focus only on things that have to do with the object of scarcity. Now consider the same duck in search of fish. Entry into the aquatic environment makes oxygen a scarce commodity. After my expansion of Robbins` definition, the duck`s search for oxygen shifted to the economic realm. In the aquatic environment, oxygen in a form that can be used by the duck is only available on the surface, while prey is only found at depth. Two important objectives, gas exchange and energy balance, are now in conflict. The time available to achieve each of these goals is scarce, and there are other uses. The duck can fish or breathe, but it cannot do both at the same time or in the same place. To maximize its energy intake, the duck must reduce its precious oxygen reserve, go to accessible areas with the highest prey density, and harvest what it can while staying there.
Maximizing net energy intake is therefore at odds with maintaining a sufficient amount of oxygen in the blood for a safe return to the surface. The duck must stay there long enough to replenish at least partially its oxygen supply. However, if it stays on the surface too long, it will starve, and if it stays too long underwater, it will drown. Professor Lionel Robbins` definition of economics is more scientific because it is not based on Marshall`s artificial classification of material and immaterial desires, but on a realistic view of multiple goals and scarce means. Structural rarity. This occurs when there is unequal access to certain resources among members of the population. In his 1932 essay on the nature and significance of economics, British economist Lionel Robbins defined the discipline in terms of scarcity: scarcity is a fundamental economic problem in which unlimited needs cannot be satisfied due to limited resources. The world has limited factors of production, including land, human labor, and capital, that cannot be produced as much as people want.
The scenario requires people to make decisions about how to allocate resources efficiently so that basic needs can be met. In the economy, any resource that has no cost of consumption is scarce to some extent, but what matters is relative scarcity. This is the power of scarcity. However, this power comes at a price. In their book Scarcity, Eldar Shafir and Sendhil Mullainathan show how the benefits of scarcity can quickly become negative – with serious consequences. Professor Robbins` Definition of Economics is an analytical study that has broadened the scope of economics. Because it is not a certain place or time, but all places, all times and all people. Businesses can cope with the shortage by increasing supply. The more goods and services available to all, the less shortage there will be.
Of course, the increase in supply comes with constraints, such as production capacity, available land, time, etc. Another way to deal with the shortage is to reduce needs. The fewer desires or demands there are for certain goods and services that are not basic needs, such as food and shelter, the less pressure there will be on limited resources. Later in this essay, I speculate on what Robbins meant by “sensitive,” and argue that sensitivity is not a necessary condition for economic behavior. I discuss the implications of extending Robbins` definition to the biological domain and describe an experimental paradigm for the laboratory study of economic decision-making in nonhuman animals based on time allocation as a scarce resource.