What is the difference between physical and economic scarcity?

Physical scarcity refers to the actual shortage of a resource due to its limited availability in nature, such as water or fossil fuels. In contrast, economic scarcity arises from the imbalance between limited resources and unlimited human wants, leading to competition for those resources. While a resource can be physically abundant, it may still be economically scarce if it is not accessible or affordable to those who need it. Essentially, physical scarcity is about the resource itself, while economic scarcity focuses on the allocation and distribution of that resource.