Scarcity and Sustainability
What Is Economics? Scarcity, Choice, and Economic Models
AO2
Syllabus requirement
Unlimited wants must be met with limited resources; sustainability frames the long-term viability of resource use.
Assessment objectives
AO2 Application and Analysis
Summary
This topic explains scarcity and sustainability and how they force economic agents to make choices because resources are limited while wants are unlimited. It covers renewable resources and how they can still be depleted if used faster than they regenerate, the social costs of resource depletion (for example from pollution), and the role of government intervention and investment to make growth sustainable. The concept of opportunity cost is introduced as the economic cost measured by the best alternative forgone when making choices.
