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The economics of being economical amidst scarcity

The effective use of finite resources to meet the desires and requirements of consumers is the cornerstone of all things taught in the discipline of economics. This holds, regardless of whether the focus is macroeconomics, microeconomics, or academic economics. As a result, we will look at a word that comes from economics and embodies the basic basis on which it is built — economical.


Scarcity is a major issue that all governments and economies across the world are dealing with. Some things in life are necessary for our survival and ongoing existence as human beings and these things are referred to as necessities. The food we eat, the water we drink, the oxygen we breathe, the clothes we wear, and the building we live in are all necessary for our survival. On the other side, there are certain things in life for which we desire but are not necessary for our survival, and these are our wants. After establishing all of this, we may more precisely define scarcity as the unavailability of resources to meet the demands and desires of customers and citizens. The lessons of economics emerge economically in softening the impacts of this event on civilians.


In our daily lives, we make decisions based on our desires and wants to meet our needs. The unpleasant fact is that we do not all have the same number of financial resources throughout the world. As a result, while making decisions and leading certain lifestyles, we must evaluate what we can and cannot afford, as well as how to spend money wisely. Most economics instructors and teachers believe that we are continually practicing being a "rational" consumer, spending our limited monetary resources wisely and without impulsiveness. Unfortunately, this is another example of “easier said than done.” This is because it is difficult to consume intelligently all the time. Human wants are unquenchable. Assume you need a phone and have chosen that you will only use iPhones and no other brands; moreover, you have decided that you must use the most recent iPhone and will update every year. You would be an "irrational" shopper who did not live or spend money wisely.


As a result, it is a challenge for humanity to continually use economics lessons in being economical and reasonable in our daily lives and spending. We may always strive to educate others around us about the need of saving and spending wisely, especially since not all resources are renewable, yet scarcity remains, even if this is being done now.