What does it mean to say that scarcity is the central fact o

What does it mean to say that scarcity is the central fact of economics?

Solution

All humans have unlimited wants of goods.Nobody is fully satisfied.But resources are not unlimited;whether it is land,labor,capital etc.There will be always scarcity of resources.Resources are always limited.And those limited resources are not free.We have to pay some price to get those resources.If there is no scarcity of resources,everyone can have unlimited resources, so there is no need to value the resource if it is available unlimitedly, which nullified the role of economics.Everyone can have as many amount of good as he wants.

Hence, scarcity is the main cause of problem in economics.