Analyze why scarcity is such an important focus for the US economy and how do we determine the scarcity of our resources?

Scarcity is an important focus for the U.S. economy because resources including raw materials have degrees of scarceness that place limitations on the quantities available for use in creating and consuming products and services. Scarcity is also influenced by time and money and the limitations associated with each.

For example, people can choose to work nonstop but this will not overcome the limitations of time that bound a person's degree of productivity. Money can be earned but, in many instances, will not be enough to enable unlimited consumption of resources when considering the scarcity of time. In other words, the resources of people, time, and money can be equally scarce to the limited availability of raw materials and supplies necessary to satisfy the basic needs and the extended wants of consumers.

The scarcity principle summarized at states that the economics of scarcity by stating that a 'limited supply of a good, coupled with a high demand for that good, results in a mismatch between the desired supply and demand equilibrium. In essence, the price for scarce a scarce good will rise until supply equals demand but would result in a restricted exclusion where only those that can afford it will have access to the good. This conflict is furthered as consumers are psychologically drawn to scarce goods more often than those that are in abundance.

Scarcity is measured by reviewing supply and demand curves and demand over time when seeking patterns and trends that will indicate gaps and shortfalls of in specific and aggregate products and services.