Scarcity and Rivalry Basics

Vocabulary flashcards covering key terms from the lecture on scarcity and rivalry.

Scarcity

The condition in which unlimited human wants exceed the limited resources available.

Scarce Resource

A good or service that is limited in supply; there is not enough to satisfy everyone who wants it.

Unlimited Wants

The economic idea that people’s desires for goods and services are boundless if items are free.

Rivalry (Economics)

A situation where multiple parties compete for the same limited resource or good.

Rival Good

A good where one person’s consumption reduces the amount available for others.

Non-Rival Good

A good that one person can use without diminishing its availability to others.

Oil (as a Scarce Resource)

A limited natural resource with potentially unlimited demand if offered at no cost.

Cake Example

Illustration of a scarce, rival good: one cake can serve only a few people, so one person’s consumption limits others.

Housing Market Rivalry

When multiple buyers or renters compete for limited housing, making each unit a rival good.

Spectrum of Rivalrousness

Economic concept placing goods on a continuum from highly rival to non-rival.