In economics, the principle of __________ highlights the necessity for making choices due to limited resources and unlimited wants, especially during critical situations such as wars or pandemics.

In economics, the principle of scarcity highlights the need to make choices because our resources are limited while our wants are endless. This means that when we face situations like wars or pandemics, we have to decide how to use our resources wisely. For example, during a pandemic, a government might have to choose between buying more vaccines or providing financial support to businesses. These choices can be difficult because each decision affects people's lives in different ways. Understanding scarcity helps us see why it's important to prioritize certain needs over others when resources are tight.