What is the concept that indicates a limitation on natural resource availability?

Scarcity is a fundamental economic concept that refers to the limited availability of resources in comparison to the unlimited wants and needs of individuals and society. It highlights the essential fact that while resources such as natural resources, time, and money are finite, human desires are practically infinite. This limitation means that choices must be made about how to allocate these scarce resources effectively.

In the context of natural resources, scarcity implies that there is not enough of a resource, such as oil, water, or minerals, to meet all possible uses without some form of trade-off. This fundamental economic issue drives the need for efficient resource management, sustainable practices, and innovation in finding alternatives to meet societal needs while respecting the limits of nature. The concept of scarcity is central to understanding economic decision-making and the allocation of resources in any economy.