Discuss in paragraph forum natural resources of scarce resou

Discuss in paragraph forum natural resources of scarce resources and how you would use that resource most effectively.

Solution

ANSWER:

Discuss in paragraph forum natural resources of scarce resources and how you would use that resource most effectively.

Scarcity exists only because the wants of people are greater than the available resources to satisfy their wants thus it is important to allocate them efficiently and effectively to get the optimum benefit. Scarcity = lack of resources = need for resource allocation, thus an efficient resource allocation will lead to better growth of the economy. Natural resources are either renewable or non-renewable which are classified on the basis whether or not these replenish naturally. The natural resource utilization is regulated through the usage of taxes and permits. The government and individual states makes a decision on the utilisation of resources and monitor the status and availability of the resources. Firms will choose methods that will minimize the cost of production process, thus efficient allocation of scarce resources and as a result will automatically minimize the opportunity cost of the resources that they utilize. When scarce resources are put to their highest-valued use in the process of production of goods and services then it results to optimisation.