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Goods and services are scarce because resources are scarce

Explain:  “Goods and services are scarce because resources are scarce.”  Analyze:  “It is the nature of all economic problems that absolute solutions are denied us.”

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Goods and services are the product of resources.  If resources were abundant without limit, then we would not have a scarcity of the products they produce.

Economic problems are problems of relative scarcity—wants exceed resources in the relative sense.  We cannot absolutely solve all of our economic problems; i.e. gratify all of everyone’s wants and needs.  If all our wants were absolutely fulfilled, anything would not have a price—why pay for anything if you’ve got everything already?  And if there were no unfulfilled wants there would be no economic resources—why pay for an input when you’ve got all the outputs you could ever need?  The fact which totally free services and goods do not exist provides support for the notion that total fulfillment of our wants is impossible.

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