Scarcity in economics refers solely to the physical shortage of resources, rather than the need to make choices due to limited availability and unlimited wants.

Scarcity in economics means there are not enough resources to meet all our wants and needs. It’s not just about running out of something, but also about how we have to make choices because we can’t have everything we desire. For example, if you have a limited amount of money, you might have to choose between buying a new video game or saving for a concert ticket. This situation shows how scarcity forces us to prioritize our choices based on what we value most. So, scarcity is really about the balance between our unlimited wants and the limited resources available to satisfy them.