What is the meaning of artificial scarcity?
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What is the meaning of artificial scarcity?
The scarcity which exists even after the technology for production is available is known as Artificial Scarcity. Such shortage exists due to the limitless or more production of the quantity than exists. The inefficiency which is associated with the term artificial scarcity is known as the deadweight loss.
Economic Actions that promote artificial scarcity are as follows:
- Monopolies or the rentier capitalism
- Copyright
- Patent
- The Agricultural Adjustment Act
- Hoarding
- Pay walls
Artificial scarcity is assumed to a very important to promote the development of goods, as, for example, it is free to copy digital information infinite times.
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