What term best describes the economic principle of having limited resources versus unlimited wants?

The term that best describes the economic principle of having limited resources versus unlimited wants is scarcity. Scarcity highlights the fundamental economic issue that resources—such as time, money, materials, and labor—are finite, while human desires continue to grow and are virtually limitless. This imbalance requires individuals and societies to make choices about how to allocate their limited resources effectively to satisfy as many wants as possible.

Understanding scarcity is crucial in economics, as it leads to the need for prioritization, trade-offs, and efficient resource management. In contrast, the other terms provided do not accurately capture this concept. For instance, surplus refers to having more of a resource than is needed, abundance implies plentiful resources, and oversupply indicates having too much of a product or service available for sale, which are not aligned with the fundamental idea of scarcity.