DECA Financial Consulting Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The concept of scarcity in economics refers to the limited nature of resources compared to the unlimited wants and needs of individuals and society. In the context of natural resources in the U.S., land can be considered scarce because, despite its availability, the demand for land for various uses—such as residential, commercial, agricultural, and recreational—often outstrips the supply in certain regions. Urbanization and population growth further exacerbate this scarcity, leading to increased competition for land and higher prices.

While water, solar energy, and coal are all significant resources, their availability and categorization as scarce can vary by region and usage context. Water might be abundant in some areas but limited in others, particularly in arid regions. Solar energy, being renewable, is generally not considered scarce in the same way as land, as it can be harnessed in various locations without depleting existing resources. Coal, while a finite resource, is abundant in certain areas of the U.S. and is being supplemented with alternative energy sources, thus qualifying it less as scarce in a resource allocation context compared to the pressing and competitive demand for land.