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Philippines have many natural resources but it is now stated that it became limited because of over population. These resources are the input of production like land, labor and capital. The unlimited wants of people with limited resources is called scarcity.
“Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. A common misconception on scarcity is that an item has to be important for it to be scarce. However, this is not true, for something to be scarce, it has to be hard to obtain, hard to create, or both. Simply put, the production cost of something determines if it is scarce or not. For example, although air is more important to us than diamonds, it is cheaper simply because the production cost of air is zero. Diamonds on the other hand have a high production cost. They have to be found and processed, both of which require a lot of money. Additionally, scarcity implies that not all of society's goals can be pursued at the same time; trade-offs are made of one good against others. In an influential 1932 essay, Lionel Robbins defined economics as "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses."
In biology, scarcity can refer to the uncommonness or rarity of certain species. Such species are often protected by local, national or international law in order to prevent extinction.” Source: en.wikipedia.org/wiki/Scarcity
The people have unlimited wants that causes economic shortage. “An economic shortage is a disparity between the amount demanded for a product or service and the amount supplied in a market. Specifically, a shortage occurs when there is excess demand; therefore, it is the opposite of a surplus.
Economic shortages are related to price—when the price of an item is set below the equilibrium rate determined by supply and demand, there will be a shortage. In most cases, a shortage will compel firms to increase the price of a product until it reaches market equilibrium. Sometimes, however, external forces cause more permanent shortages—in other words, there is something preventing prices from rising or otherwise keeping supply and demand balanced.” Source: http://en.wikipedia.org/wiki/ Economic shortage
If you know what scarcity means you can predict if the price will be increase in resources, wages & real states. This prediction will give you the idea when is the best to invest in, what kind of real state will you buy and of course what kind of career you will enter. People must think other ways to fulfill their needs because basic necessities are now limited.
Here are common effects of scarcity:
- The demands will increase and the supply decreases so the prices will be higher.
- Illegal marketing of products. Black markets will be appearing in. Black Market is illegal marketing of products with higher prices.
- Smuggling of Products.
- Unavailability of products to purchase even if many wants for it.
- Case of Illegal Drugs will be increase
- We are importing many products from other countries.
- Many people will suffer poverty and many will be hungry.
- Criminal Case increases because of lacking on job offered.
- Many people will go to the other countries to find a job and to seek for the better future.
- Extinction of animals.