Saturday , 25 May 2013

Factors causing the scarcity of economic resources


There are several factors causing the shortage, among others, as follows:
a. Resource constraints. Nature does provide adequate resources abundance. However, still limited, especially when humans process it arbitrarily. Although these resources can be updated or freely available, it still will be reduced and eventually will run out.
b. Geographical differences. Natural resources are usually not spread evenly in each area. There is a very fertile area, there are also mineral-rich areas. However, there are also areas of arid and always short of water. This difference causes the resources become scarce and limited, especially for areas that do not have abundant resources.
c. Population growth. Population growth is always faster than the growth of production of goods and services. It has been observed by an economist, Thomas Robert Malthus. According to him, the man arose following the geometric progression (1, 2, 4, 8, 16, and so on). While the number of production grew only follow arithmetically (1, 2, 3, 4, 5, and so on).
d. Limitation of production capacity. Production capability is supported by the factors of production used. For example the human factors of production capacity is limited because it can still be sick, tired, or bored. Production machines can also be damaged and worn. In addition, the limited production is also determined because of technological developments are not the same. In developed countries, technological developments took place very quickly. Meanwhile, the development needs of developing countries in goods and services is still faster than the development of technology.
e. Natural disasters. Natural disasters are destructive factors that are beyond human power and ability. Although the actual disaster occurred partly caused by human activities alone. Floods, earthquakes, landslides, forest fires, and others has brought substantial losses. Damage to buildings, premises, resources, and even loss of life who are victims of natural disasters.

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