Introduction

• A resource is something that is useful in the condition in which we find it.
• In its raw or unmodified state, it may be an input into the process of producing something of value, or it may enter consumption processes directly and thus acquire value.

Scarcity:

• The scarcity means simply that the amount available is limited relative to amount demanded.
• Any resource with positive price must be scarce: if its availability were unlimited relative to demand, it would be free.

Dimensions of resources:

• Resources are multi-attributes and thus have quantity, quality, time and space dimensions.
• Air is useful example. It is available in most places in such vast quantities relative to demand that it may seem more like a free good than a resource. Yet in many places, the quantity of air impair to some degree, thus the air of better quality has a positive value that is individuals and/or society are willing to spend money to obtain air of higher quality.
• In certain small, enclosed places- for example, manned space capsules- air (oxygen) is very scare and is highly valued. In open environment, air quality may change time passes. In a space capsules, the flow of oxygen is strictly limited by the amount initially available and the rate at which stocks can be replenished the exhaustion of the oxygen supply as time passes is possible.
• At this example suggests, the concept of scarcity is not confined to the quantity dimension but pertain to each of the dimension of resources.