Scarcity and the Mixed Market Economy

Every individual in a mixed market economy faces scarcity in one form or another. This is because one’s needs and desires are relative to one’s income bracket. The more money one makes, the more one tends to spend. This trend is clearly evident in all aspects of a mixed market society. (Parkin et al., 2010:1).

By contrasting a rich person with a poor person, one can see how scarcity is evident is both their lives. A poor person has a limited amount of money with which to satisfy their basic needs. A rich person has enough money to cover their basic needs. They do, however have wants that they would also like to satisfy. They may want a second home or perhaps a newer motor vehicle.

Scarcity affects everyone. Therefore, one can never have enough money to completely satisfy one’s needs and desires. This is what drives trade and ultimately the economy.

List of References:

· Parkin, M, Kohler, M, Lakay, L, Rhodes, B, Saayman, A, Schöer, V, Scholtz, F, Thompson, K, 2010. Economics: Global and Southern African Perspectives. Cape Town: Pearson.