This video is Part 2 of a 5 part series which explores the economic concept ‘scarcity’. Part 2 of this series looks at types of scarcity. These two types of scarcity are natural scarcity and contrived scarcity.
Natural scarcity occurs when there is not enough supply of particular goods or services to meet the demands of the people. This could be because supply has been restricted or reduced because of natural depletion, reduced access or natural disaster/s. Natural scarcity can also occur because of increasing demand relating to people’s insatiable wants or because the requirements of the population have become too great.
Contrived scarcity is an artificially created form of scarcity which is commonly used to control the population and/or obtain power and wealth. Large corporations and Government have ownership of most of the world’s resource. When contrived scarcity occurs, the rest of the population (not owners of resources or factors of production) are forced to compete with each other to obtain or access required goods, services, and resources.
Natural scarcity and contrived scarcity are explained using a very basic example of a small society consisting of 10 people. Several scenarios are investigated.
Part 1 of this series can be accessed using the following link:
This 5 part series is the video version of the original 5 part series which can be accessed using the following links:
https://steemit.com/economics/@spectrumecons/scarcity-part-1
https://steemit.com/economics/@spectrumecons/scarcity-part-2-natural-or-contrived
https://steemit.com/economics/@spectrumecons/scarcity-part-3-meat-and-dairy-land-use
https://steemit.com/economics/@spectrumecons/scarcity-part-4-labour-capital-and-entrepreneurship
https://steemit.com/economics/@spectrumecons/scarcity-part-5-possible-solutions
