How does scarcity affect my daily life?

Question

My Economics class' discussion tomorrow is going to be on how scarcity affects my daily life. Now, I am not quite out of high school yet, so how can it affect me? I understand the concept that unlimited wants of people cannot be met due to the limited amount of resources, but I cannot think of a single thing that is even remotely scarce in my life. What can there be? Is gasoline even considered scarce as it was back in the '70s?

So prices bring raised due to some event counts as a scarcity? Such as the recent freezing weather in California at night that destroyed a noticeable amount of crops which they say might lead to higher prices once the farmers yield their crops.

Answer 1

Just an idea for you to work with - but depending where you live certain fruits and vegetables may be scare enough that the price would rise because what is there has to be imported. IE., tomatos are least expensive in the summer and expensive in the winter and also don't taste as good as homegrown.

Here's another - during hurricane season the price of plywood rises because it is scarce (depends on where you live) The trickle down ecoonomy of this in the case of an active hurricaine season means that all lumber products become scarce and more expensive - even that wooden 24" shelf at Home Depot will cost you more $.

Answer 2

Scarcity in an economic sense simply means that there is not enough supply to satisfy everyone if the item was free. If you would consume more of an item if it's price was zero, you are impacted by scarcity. Just because you don't feel the price of gas doesn't mean it does not factor into the decisions you or your parents make, whether it be in terms of the trips you make or the car you drive (or whether you got a car at all).

Think about education, to take an example that I'm sure impacts your life. Not everyone who wants to go to a private high school can due to the price. Once you start applying to schools, you will realize that not everyone who might otherwise qualify to go to Harvard can, again because of the price.

Prices are a way to allocate scarce resources, and so just because you do not realize that scarcity is limiting your consumption doesn't mean it isn't happening. As long as you can't pick up everything off the street for free, scarcity is affecting your life.

Answer 3

If you have lived in the United States all your life you have never faced true "scarcity" in your life.

Maybe a few minor blips on the scale such as the gas "shortage"(where the price went up but not a single day went by when you could not get gas).

I am guessing this professors idea of scarcity is that everyone can not run our and buy a mansion, a new car, a new boat or the latest electronic gadget. That money is "scarce" if you can not buy your every whim. Most of us think of scarcity as being able to provide for your basic needs.

He is thinking in terms of if there was a boat made for every person in the world than boats would cost just the cost of production. Because there would be so many boats available and not everyone would want them so people could always get a better deal. But since there are not that many boats avalable as there is people that want the cost goes up. Only those who really want them, enough to pay the higher price, can get them. He calls it scarcity. Most professors just call it supply and demand.

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Answer 4

Must this scarcity you speak of refer to material matters only?

You could expand this idea of lack towards today's generally compromised ethics, lack of quality, shortness of spirituality in an overly materialistic society. That list goes on. You might consider the rapidly dwindling rights and freedoms of the American people becoming scarcer day by day under the current neo fascist administration.

Consider the effects of the scarcity that our fellow human beings suffer from, these things also effect you by creating more pain and suffering on our planet. For every human being that is not able to reach his or her potential, the human race loses out. Perhaps by these losses we missed out on a cure for Cancer or Spina Bifida or some other wonderful finding that could improve human lives or even change the history of the world so it is a better place for all. This might not be an obvious lack in your life, but it is quite real.

I hope this helps you a little bit. Good luck!

Answer 5

Well, you are not out of high school just yet, so your parents take care of you. Lets take a "majority" example so that its easy for everybody to understand. Your parents feed you. Your family likes eating chicken. Now if the bird flu came by, and killed 3/4 of all chicken in USA, your family would be devastated. But, chicken is still available, except its kinda expensive. It used to be $3 dollars a chicken. Now its $25 dollars a chicken. Now what? Your family cannot buy one chicken per day to feed the family. What about rice and veggies, etc etc. And cost of cooking. So, it would cost about $35 dollars a day to feed the family with chicken. But without chicken, it would cost only 9 dollars a day to feed the family. So, your family starts buying chicken about twice a week instead of 7 days a week. The other days are filled up with beef, pork, lamb, etc etc. You dont eat as much on those other days. But, when chicken comes, you eat alot. And if chickens never recuperate, you MAY NEVER EAT GOOD FOR THE REST OF YOUR LIFE.

Answer 6

think of the long lines that formed when the ps3 came out.

basically, consider anything that you would go out of your way to get. that is usually because it's scarce.

Answer 7

If you can do without it, it does not affect you. WG: during the WW 2 there was no meat available for food, but those who are vegetranian had no problems!