Scarce resources refer to the limited availability of inputs required to produce goods and services. There are not enough resources to satisfy all the wants and needs of people. Decisions on how to best allocate resources, such as land, labour, and capital, need to be made by businesses to maximise efficiency and productivity.
Scarcity forces businesses to prioritise and make trade-offs. This influences pricing, production methods, and overall business strategy. Understanding scarce resources in GCSE Business is essential for recognising the challenges businesses face when meeting consumer demand and planning for sustainable growth.
Examiner-written GCSE Business revision resources that improve your grades 2x
- Written by expert teachers and examiners
- Aligned to exam specifications
- Everything you need to know, and nothing you don’t
Share this article
written revision resources that improve your