Unlimited Needs And Wants And Scarce Resources – Activity 5

5. The economic problem of scarcity can be solved by increasing the productivity of resources.

Think again.  The statement is false. The scarcity problem arises because our needs and wants are unlimited. While an increase in the productivity of our resources increases our capacity to produce more goods and services, it will still not be enough to satisfy all our needs and wants since our needs and wants are unlimited. Our needs and wants will always exceed or outstrip our resources.

The statement is indeed false. The scarcity problem arises because our needs and wants are unlimited. While an increase in the productivity of our resources increases our capacity to produce more goods and services, it will still not be enough to satisfy all our needs and wants since our needs and wants are unlimited. Our needs and wants will always exceed or outstrip our resources.