The document discusses the concept of scarcity and its causes. It defines scarcity as limited availability of resources where demand exceeds supply. Scarcity arises due to natural limits on resources, limitations of technology, poor planning, and the gap between unlimited human wants and limited resources available. The key ways to manage scarcity are through proper planning and use of techniques to maximize production of insufficient resources. This addresses the economic questions of what to produce, how to produce, and for whom to produce in order to minimize scarcity conditions. Scarce resources take on market value, which can lead to inflation if demand is high and supply is low.