Running Head: Scarcity in the Economy 1

Scarcity

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Running Head: Scarcity in the Economy 2

Recently, the international economy has had concerns with Scarcity whereby gaps of

unlimited wants and resources bring it about. Decisions are made according to the situation in

place for the allocation of resources in an efficient manner. It, in turn, ensures the contentment of

basic needs with inclusivity of other wants. Scarcity is preferred regarding to any resource that

pertains to a non-zero consumable cost due to the scarcity degree (Sunstein, 2019). The modern

economy is limited by the Scarcity of choices that are available to clients in an economy. Within

an economy, Scarcity can be caused by supply, demand, and structural induced when there is a

shortage in supply and demand of commodities.

Scarcity can be affected by demand-driven as it tends to showcase as clients purchase

more products; hence, resources are less accessible to other consumers in the global economy.

For instance, there is a supply of over 2 million containers of lubricants distributed in the

international economic markets (Sunstein, 2019). Supply driven as an additional cause of

Scarcity tends to incorporate on if the rate of demand is constant, supply rate intends to decline

with creation by inadequate resources. Structural Scarcity tends to occur when resources have

unequal access to assets if there are political concerns (Sunstein, 2019). Below, there shall be

discussions based on Scarcity's book: Why Having Too little means So Much". Also, I shall

discuss concepts and how they will affect future behaviors, poverty, and how it is different.

Additionally, there shall be discussions on how can develop social programs to improve the

livelihoods of poor people. Similarly, there shall be discussions on how is poverty defined in

Scarcity's book, `Why Having Too little means So Much’ and how is it distinct from the other

two books that is Poor Economics and Economics of Poverty and Discrimination.

The book called" Scarcity; Why Having Too Little means So Much" intends to showcase

concepts of importance. Also, these concepts intend to demonstrate how they affect behaviors
Running Head: Scarcity in the Economy 3

and actions. Concepts comprise of psychological concepts, poverty concepts, societal concepts,

and scarcity concepts. Based on this book, the psychological concept showcases how people try

to engage in their struggles in managing their lives. Additionally, the psychological concept

notably showcases how issues happen in the natural state according to Scarcity (Shafir, 2017).

Another concept consists of a societal concept whereby both writers of the book, Eldar Shafir

and Sendhil Mullainathan, have an opinion regarding how Scarcity affects clients` daily lives

within the economy. Also, there is the inclusion of deficiencies and other connections that are

crucial to the global markets. Societal concepts tend to understand better how some issues come

into place and how Scarcity tends to lead clients off target.

The poverty concept tends to show the case of how Scarcity is a problem in the markets.

This concept showcases how clients and consumers are having changes in wants and needs

within the economy. Foremost, poverty could bring a more comprehensive attentive

concentration that develops resource effectiveness and enabling attentional negligence that leads

to forgetfulness and behaviors of over-borrowing (Shafir, 2017). Poverty concepts tend to bring

into place negligence cases and a focused concentration within the worldwide economic market.

Poverty tends to strengthen performances through distinct psychological modes. Increased

temporal discounting and over-borrowing may ultimately reduce the overall payoff of the poor.

Cultural concepts engage on how clients can ensure the satisfaction of customer's wants

and needs. Based on economics, Scarcity intends to prioritize wants and needs satisfaction as all

they share in cultural concepts. Scarcity is observed across the global economy. It intends to

bring about limitations of available choices towards clients involved in the economy. It is

essential to understand the client's cultural concepts and recognize how to deduce changes within

the economic markets due to Scarcity.

Running Head: Scarcity in the Economy 4

According to, Scarcity: Why Having Too little means So Much," it tends to explain

poverty as a widespread and in-depth scarcity in the modern world. Regarding assessments done

by UNICEF, it tends to showcase that many children globally pass due to high poverty levels. In

a case where there is a Scarcity of monies within an economy, it tends to make borrowing a

means of evading the chance of poverty (Shah, Shafir, et al., 2018). Poverty refers to Scarcity in

every product that supports other life aspects in the global economy. Likewise, poverty generates

conditions that are mainly unfriendly to the scarcity approach. Poverty intends to describe issues

of Scarcity in the economy where changes are done on what one needs.

According to, Why Having Too little means So Much, it tends to differentiate the term

poverty compared to the two books called Poor Economics and Economics of Poverty and

Discrimination. Moreover, the book Poor Economics and Economics of Poverty and

Discrimination regards poverty as a significant issue affecting the American nation (Sheikh,

2017). Besides, poverty is bound to be referred to in these books as individuals at the lowest

income circulation who don't have enough earnings to fulfill necessities. Compared to the book

called, `Why Having Too little means So Much,' poverty is portrayed in the global economy,

whereas in Poor Economics and Economics of Poverty and Discrimination book showcases

poverty only as a significant challenge in the United States of America based on public opinion

polls.

Furthermore, the book called Poor Economics refers to poverty as an emerging issue and

understanding on livelihoods of the poor with an economy (Sheikh, 2017). Likewise, it does

assist in the economy to ensure a sense of what the poor people can accomplish. In contrast to

the book `Why Having Too little means So Much,' there is a distinctive change in poverty

(Sheikh, 2017). Issues addressed by the two books called, Poor economics and `Why Having
Running Head: Scarcity in the Economy 5

Too little means So Much' showcase and differs on poverty regarding choices and livelihood of

poor tends to imply how poverty is a vital issue and how can evade it in the global economy.

Under "Scarcity: Why Having Too little means So Much," it intends to showcase how

best social programs improve the livelihood of the poor. Using the latest technologies in

developing the air sectors of the economy to evade cases that affect the planes (Balogh, 2017). It

will improve the air sector economy and improving experiences within the transport sector.

Using social programs will help clients in an economy understand issues affecting the economy

and educate other customers in the global economy.

Discussions have taken into place on welfares in culture in developed countries to

motivate clients` within an economy. Designed social programs tend to bring a positive impact

on the economy. The introduction of training programs that will emphasize fault tolerance does

allow chances for clients obtain to equalize on efforts put in place in the economy (Shah, Shafir,

et al., 2018). Social programs bring a better positive impact, encouraging how best to endure

based on Scarcity in the economy. It, in, turn brings about a positive image towards the

economy.

Conclusively it is in the best interest for the economy to remain stable due to Scarcity. By

ensuring that the economy remains accessible and stable, there have to be precautions taken into

place, focusing on having better ideas to cope with Scarcity within an economy. In cases where

poverty arises due to the Scarcity of commodities, their emphasis is put into place whereby signs

of improvements in the economy are observed. Understanding better concepts, an economy has

to introduce better modes of behaviors and actions that will significantly assist people in the

global economy.
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References

Balogh, T. (2017). The economics of poverty and Discrimination. Routledge.

Shah, A. K., Zhao, J., Mullainathan, S., & Shafir, E. (2018). Social programs are designed to

improve the lives of the poor. Money in the mental lives of the poor. Social Cognition,

36(1), 4-19.

Sheikh, F. A. (2017). Poor Economics: a radical rethinking of fighting global poverty, Abhijit

Banerjee and Esther Duflo. African Journal of Science, Technology, Innovation and

Development, 9(2), 223-228.

Sunstein, C. R. (2019). Cass R. Sunstein Recommends "Scarcity: Why Having Too Little Means

So Much" by Sendhil Mullainathan and Eldar Shafir. In 21st Century Economics (pp.

127-128). Springer, Cham.