The Background to Business Activity: The Problem of Scarcity
Man’s standard of living has always been limited by the resources at his disposal. Thus, as a hunter, how well he lived was mainly determined by the abundance of game and the effectiveness of his weapons. Today we face the same problem of scarce resources. Just think of the extra things we could buy if our incomes were larger — new clothes, up-to-date kitchen furniture, a better car, a hi-fi tape recorder, a cine-camera. Indeed the list has no end, for, even as these wants were satisfied, new wants would arise. You just cannot get a quart out of a pint pot. This is the economic problem — unlimited wants, very limited means.
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