The economy is based on the following points:

1) There is a scarcity of resources.

2) People have unlimited wants.

3) Resources have many alternatives.

Though America is a rich country, people still have unlimited wants. Their desires are never-ending which outpace the ever-rising desires. People need to have more luxury and facilities. Also, due to continuous advancing technology, the demand for new gadgets and devices increase simultaneously. The examples can be shown below:

a) Though they already have mobile phones, they want new models with new technology. This encourages continuous innovations in technology.

b) The demand for new models of automobiles never ends.

The purchasing power of people in an economy is high in a rich country. So, people can buy and use the resources, no matter how much amount is there. Thus, it can be said that resources can be “scarce”.