It is very rightly stated that scarcity is the root of all economic problems. In the absence of scarcity, no economic problem would have arisen. In other words, if everything was available in abundance everyone could have it in as much quantity as one wanted.
But this is not true as in the real life we have unlimited wants but the means or resources to satisfy them are limited. They are also such that they can be put to a number of uses, i.e., have alternative uses. This makes them more scarce in the economy.
As a result, “a problem of choice' crops up between various commodities that can be produced by these resources.
An individual/ household/ economy has to pick and choose the commodity which is most urgent and gives maximum satisfaction.