Why would economics as a science cease to exist without the concept of scarcity?
Scarcity is the key component of economics and means having too few resources to satisfy the needs and wants of humankind. Without scarcity, the science of economics would not exist because there would be no need to make choices or tradeoffs. Choices made to overcome scarcity via alternatives are of particular interest to economists. Contemporary economics can be broadly divided into two fields: (1) Microeconomics: Behaviors in individual markets and small economic units to understand their behavior within the market; and (2) Macroeconomics: The “big picture” market that consider aggregate functions of all markets
Health care economics is a recently developed specialized field and is differentiated by the level of government intervention, intractable uncertainty, asymmetrical information, and externalities it involves. Uncertainties in particular lead to inefficient resource allocation in health care that forces non-market institutions to compensate for inequalities.
