If you still do not believe that scarcity is a problem, consider the following: Does everyone require food to eat?

Does everyone need a decent place to live? Does everyone have access to healthcare? In every country in the

world, there are people who are hungry, homeless (for example, those who call park benches their beds, as

Figure 1.2 shows), and in need of healthcare, just to focus on a few critical goods and services. Why is this the

case? It is because of scarcity. Let’s delve into the concept of scarcity a little deeper, because it is crucial to

understanding economics.

The Problem of Scarcity

Think about all the things you consume: food, shelter, clothing, transportation, healthcare, and entertainment.

How do you acquire those items? You do not produce them yourself. You buy them. How do you afford the

things you buy? You work for pay. If you do not, someone else does on your behalf. Yet most of us never have
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