Scarcity Resources are scare. There is only so much of a resource available at any one point in time, like say, coal, oil, or wheat. Every resource has many uses. For example cement can be used to build house bridges, or build factories. Wheat could be used to make bread or cake or macaroni. All these uses are important But because resources are scarce, we need to choose between these many uses. Scarcity occurs when the limited resources available are unable to me the unlimited Wants of humans. How people choose to allocate the resources between their many wants is the fundamental question that economics studies and tries to answer. All the choices come with some benefits and some costs. But the best choice is that which maximises overall benefits over costs. Thus, the two primary concerns of economics are Goods are scarce Society must use its resources efficiently.