In our economy class we learned the definition for scarcity as a good that is desirable and limited. So I asked myself the question what about wather? On our powerpoint-presentation it says that 75 per cent of the whole world is covered by water.
First of all only very little said water is fresh water. In some places fresh water is not a scarce but in other places it is - like in Africa.
The conclusion is that the decision whether a good is a scarcity or not depends on the specific and not on a general situation.

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We learned that choices are made based on three basic economic questions:

What should be produced?
How should things be produced?
Who should things be produced for?

One inherent problem of this decision is that it has to be made without sufficient information. Otherwise the market would be efficient. If, for instance, every farmer in an area is producing patatos and the weather is too cold then the entire production can be lost. Maybe producing corn would not have been as promising but corn might not have been as depending on the weather. So the conclusion is that to make a perfect decision is only theoretical concept and a function of the information available.

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