1. Scarcity is the problem of unlimited wants faced with finite resources (1 mark)
2. Scarcity is a universal problem/affects all economies (1 mark)
3. Scarcity arises due to human greed/competing wants (1 mark)
4. Scarcity is a relative concept (1 mark)
5. Scarcity is permanent (1 mark)

(Taken from 2018 Higher Economics marking instructions Q2a)

• discovery of new resources for example finding new reserves of oil (1)
• Specialisation in order to improve efficient use of scarce resources (1)
• Resource substitution can help reduce the pressure on finite resources (1). For example, using machinery instead of labour (1)
• Alternative resources can be sought for example solar/wind energy instead of fossil fuels (1)
• Geographical mobility of resources can be improved for example helping workers find employment across the country (1)
• Occupational mobility can be improved for example, training schemes which provide workers with flexible skills (1)
• New production techniques to increase productivity (1) for example, Japanese management styles/techniques or performance-related pay (1)
• Encouraging immigration to increase the supply of labour (1)
• Reduce level of wants: o by educating regarding sustainability (1) o by use of price mechanism for example max/min price to ‘ration’ (1)
• Ensure the economy is efficient with productive, allocative efficiency and full employment (1)

(From 2019 Higher Economics marking instructions Q3a(ii))