Page 4 - FLIP BOOK ECONOMIC PROBLEMS AND HOW TO SOLVE THEM BY SELA PUTRI AGUSTIANI

the imbalance between people's rice needs and the resources they have will definitely cause
economic problems.

B. Scarcity in economics

The definition of scarcity in economics Scarcity in economics is the gap between limited
resources and theoretically unlimited demand. According to Suparmoko in the book Economics
1, the definition of scarcity is a condition that shows the limitedness of something, either in the
form of needs or resources. the definition of scarcity in economics is the gap between limited
economic resources and the unlimited number of needs of life.

A.Factors that can cause scarcity

 Population growth is something that needs attention. Rapid population growth without
the production process of an adequate means of satisfying needs will hamper the process
of meeting the needs of human life. A high population growth rate will result in the needs
of life having to be met increasingly uncontrollably.
 Production capability is determined by production factors in the form of labor, capital,
natural resources, and entrepreneurship. These supporting factors are limited in number,
so they will automatically have an impact on whether or not scarcity occurs.
 Differences in geographical location. Natural conditions in every part of the world are not
the same. Each region has its own characteristics. These characteristics will create a
diversity of resources according to the potential of each region. The distribution of
geographical conditions is the cause of resource scarcity.

B.Types of scarcity

 Scarcity of natural resources. Natural resources are everything that comes from nature.
These natural resources consist of biotic resources and abiotic resources. If utilization is
carried out continuously, the available natural resources will be depleted. This of course
can lead to scarcity.
 Scarcity of human resources. Since birth, humans have the power of creation, taste, and
karsa which makes them have many roles in economic activities. Apart from being a
resource, humans act as consumers or people who utilize the results of their economic
activities. Lack of quality such as skills or human thinking ability can have an impact on
the scarcity of other resources. For this reason, everyone is expected to improve their
quality by exploring as many sources of knowledge as possible.
 Scarcity of entrepreneurship resources.
 This is a scarcity that is in charge of managing and combining the three elements (nature,
people, and capital) to meet human needs. This scarcity occurs due to the lack of people
who innovate and create. As a result, economic resources cannot be managed optimally
because creative ideas are not well implemented.