What are scarce resources? Why are economic agents concerned with the

What are scarce resources? Why are economic agents concerned with the allocation of these resources?

What will be an ideal response?

ANSWER

Scarce resources are resources for which the quantity that people want exceeds the quantity that is freely available. Economic agents need to satisfy their unlimited wants in a world of limited resources. This makes it important for them to understand how these scarce resources are to be used and distributed in order to optimize allocation.