Resources are scarce because economic goods not have an
infinite supply. As a result, we have to make decisions on how to allocate them
to serve our needs. An example of a scarce resource is gas. Gas powers our cars
and is also used in electricity generation. As our population increases, so
does the demand for gas grows. Gas is scarce has it does not exist in infinite
quantities and requires resources to be converted from oil in the ground to
gas.
