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Q: How economics help to manage scarcity ? ( Answered 5 out of 5 stars,   1 Comment )
Subject: How economics help to manage scarcity ?
Category: Business and Money > Economics
Asked by: 888-ga
List Price: $10.00
Posted: 04 Mar 2004 23:43 PST
Expires: 03 Apr 2004 23:43 PST
Question ID: 313682
Describe 3 ways that economics help to manage scarcity in our world.
Please provide some examples.
Subject: Re: How economics help to manage scarcity ?
Answered By: techtor-ga on 06 Mar 2004 06:52 PST
Rated:5 out of 5 stars
Hello 888-ga,
I believe the answer is in this one source:

The 5Es of Economics
- Quote: 
"There are three, and only three, options (choices) for society to
deal with scarcity, and all societies must deal with scarcity because
there are limited resources and unlimited wants.

Those three options are:
   1. economic growth
   2. reduce our wants, and
   3. use our existing resources wisely (Don't waste the few resources
that we do have.)"

I am sure this is from an economic perspective. I also hope the
examples below will work for you:

Economic Growth:
1. A town in Guatamela, due to Christian renewal, increased
agricultural production efforts and resulted in increased yield.
2. Looking for and extracting from more oil wells. (Oil)
3. Shortage of nurses in UK; invite nurses from abroad to work there. (Labor)

Reduce Wants:
1. Russian purge of population during the Cold War and Communist era,
reducing hungry mouths to feed. (Food)
2. Encouraging healthy eating habits and discouraging binges or
excessive feasts. (Food)
3. Switch to alternative fuel cars instead of the usual petrol-fueled ones.(Oil)

Using existing resources wisely:
1. Rationing of food stores. (Food)
2. Encouraging healthy eating habits and discouraging binges or
excessive feasts. (Food)
3. Conservation, whether of electricity, gas or water. (Various)

Google Search terms used:
economics ways handle scarcity

I hope this has been a most helpful answer. If you need anything else,
such as better examples, or have a problem with the answer, do please
post a Request for Clarification before rating and I shall respond as
soon as I can. Thank you.
888-ga rated this answer:5 out of 5 stars

Subject: Re: How economics help to manage scarcity ?
From: acidtest4u-ga on 05 Mar 2004 04:58 PST
I'll try to be as simple as i can in order to show thatyou could have
done it by yourself before asking google

Well, market economy is all about scarcity
I think of
1/Stock exchange mechanisms (the less commodity there is the more you pay)
2/innovation (if you can't have more of a commodity or if you are not
willing to pay the price, you try to use less through innovation (SUV
consuming less gas, double glass windows and so on ) or to use
something different (substitution : ersatz products during the
3/taxes in order to curb consumption through high prices
(environemental tax on water consumption in some countries,or on
swimming pools for the same reasons)
4/ Restrictions agreements, alliances or Cooperative way of working
(irrigation for plantations in some saharan oasises : each farmer is
granted access during a certain period of time, fishing policy of the
European Union
5/trade (Does your neighbour has something you do need?)

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