Writing Resources
Scarcity Scarcity is where the demand for goods is where there are only a limited supply of something and therefore it is scarce http www businessdictionary com definition scarcity html 1 Identify a minimum of two examples of a scarce resource 2 Oil oil is becoming scarcer and the prices of oil are increasing because of more scarce its becoming Scarcity of crops bad weather could have an effect on a farmers crops therefore have less crops which leads to scarcity Scarcity of water in Zimbabwe due to lack of rainfall this then effects their crops Zimbabwe has adequate transportation and electrical power networks although maintenance has been neglected over the years After land redistribution much of Zimbabwe s land and agricultural production decreased drastically Zimbabwe has one of Africa's highest literacy rates http examples yourdictionary com examples of scarcity html 3 Describe what is meant by the term opportunity cost Opportunity cost is something that you have to give up in order to get something else like choosing between ice cream shop you have to choose between rocky road and strawberry When you choose rocky road the opportunity cost is the enjoyment of the strawberry http www businessdictionary com definition opportunity cost html 4 Identify what the basic economic problem is for all countries Limited Resources Limited in physical quantity as in the case of land which has a finite quantity 1 Limited in use as in the case of labour and machinery which can only be used for one purpose at any one time 2 Limited in physical quantity as in the case of land which has a finite quantity http www economicsonline co uk Competitive_markets The_economic_problem html 5 Describe the choices facing an economy when faced with the basic economic problem
