Scarcity in Economics: An Integrated Framework of Theory, Manifestation, and Policy

Abstract

Scarcity is the foundational condition that shapes all economic reasoning, yet its meaning and implications vary widely across theoretical and practical domains. This study presents a multidimensional exploration of scarcity by integrating classical economic theory with institutional, behavioral, ecological, and ethical perspectives. Drawing upon reputable international literature, the research addresses three interrelated questions: how scarcity is conceptualized across economic schools of thought, how it manifests in real-world systems, and what ethical and policy implications arise from its presence. Utilizing qualitative document analysis and thematic synthesis, this study reveals that scarcity extends beyond resource limitation, encompassing institutional inefficiencies, cognitive constraints, and environmental degradation. The findings highlight that addressing scarcity requires more than market solutions—it necessitates ethical reasoning, behavioral insights, and systemic reform. The study contributes an integrative analytical framework and proposes a values oriented, policy-relevant approach to economic scarcity. This reconceptualization advances both theoretical clarity and practical relevance, offering meaningful pathways for inclusive, sustainable economic development.