Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1QP
To determine
Explain how scarcity comes in a land of abundance.
Expert Solution & Answer
Explanation of Solution
The United States is a rich country since there are abundance of goods and services that are available to the people. But the fact is abundance does not mean that the resources available in the United States are unlimited, and no one has unlimited quantity of resources such as time, money, and so on. The limited resources and unlimited needs or wants are the central root of the problem of scarcity. Since the country is rich, it has the capacity to buy more number of goods and services. Thus, even in a land of abundance, there is also a scarcity problem.
Economics Concept Introduction
Scarcity: Scarcity refers to the limited availability of resources than the required level.
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Students have asked these similar questions
Most economists believe the scarcity of resources will persist. Why?
Economics affects nearly everything we do in some way. Someone else has produced most items we consume, or use, in our daily lives, from food to clothes to music to gas for our cars. Chances are, when we purchase these daily items, we don't question the price with the producer. But in the United States, the interactions between the consumers and producers determine quite a lot in terms of business and economics.
Think about the items and services that you and your family buy or consume. What causes you to pay the prices that you do for these goods and services? What determines the price that's on the price tag? What goes into determining, or setting, that price? Consider all the possible elements that could influence the prices you pay.
“Scarcity is the fundamental problem that every nation in this world faces.” What do you mean by this statement? If you were an economist how would you address this fundamental problem?
Chapter 1 Solutions
Microeconomics
Ch. 1.2 - Prob. 1STCh. 1.2 - Prob. 2STCh. 1.2 - Prob. 3STCh. 1.3 - Prob. 1STCh. 1.3 - Prob. 2STCh. 1.3 - Prob. 3STCh. 1.4 - Prob. 1STCh. 1.4 - Prob. 2STCh. 1.4 - Prob. 3STCh. 1.4 - Prob. 4ST
Ch. 1 - Prob. 1QPCh. 1 - Prob. 2QPCh. 1 - Prob. 3QPCh. 1 - Prob. 4QPCh. 1 - Prob. 5QPCh. 1 - Prob. 6QPCh. 1 - Prob. 7QPCh. 1 - Prob. 8QPCh. 1 - Prob. 9QPCh. 1 - Prob. 10QPCh. 1 - Prob. 11QPCh. 1 - Prob. 12QPCh. 1 - Prob. 13QPCh. 1 - Prob. 14QPCh. 1 - Prob. 15QPCh. 1 - Prob. 16QPCh. 1 - Prob. 17QPCh. 1 - Prob. 18QPCh. 1 - Prob. 19QPCh. 1 - Prob. 20QPCh. 1 - Prob. 21QPCh. 1 - Prob. 22QPCh. 1 - Prob. 23QPCh. 1 - Prob. 24QPCh. 1 - Prob. 25QPCh. 1 - Prob. 26QPCh. 1 - Prob. 1WNGCh. 1 - Prob. 2WNGCh. 1 - Prob. 3WNG
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Similar questions
- Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. Explain why scarcity exists in this economy. Use the data as evidence of your reasoning. What is the maximum quantity of guns that can be produced? What is the maximum quantity of butter than can be produced? Draw the nation’s production possibility curve. What is the opportunity cost of guns in this nation? Explain why the nation can’t produce both 3 guns and 4 butters. Explain why the nation shouldn’t produce both 1 gun and 2 butters.arrow_forwardProduction possibilities are whatarrow_forwardEconomics can be defined as the study of how people, businesses, governments, and societies Make choices to deal with scarcity. Engage in trade to increase their wealth. Choose abundance over scarcity. Use their infinite resources to maximize satisfaction.arrow_forward
- Enumerate economic resources in the country considered as scarce, and suggest measures to resolve the problem of scarcity.arrow_forwardWhat is economics? A social science that teaches one how to cope with scarcity. A discipline that quantifies the values of assets. A quantitative science to analyze business cycles. A science that teaches firms and individuals how to maximize profits.arrow_forwardWhy we study economicsarrow_forward
- Three economic questions must be determined in all societies. What are they? What goods will be produced? How will goods be produced? For whom will goods be produced? What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? What will the price of each good be? Who will produce each good? Who will consume each good? How much will be produced? When will it be produced? How much will it cost?arrow_forwardScarcity means thatarrow_forwardEconomics deals with the efficient use of resources. Why?arrow_forward
- In some countries the government makes most of the decisions about what will be produced, how it will be produced, and for whom. Does the fact that these choices are made by the government eliminate scarcity in these countries? Why or why not?arrow_forwardWhy can an economy not achieve multiple economic goals simultaneously?arrow_forwardThe United States is one of the world's wealthiest countries. Think of a recent case in which the decisions of the U.S. government were severely constrained by scarcity. Describe the trade-offs that were involved. What were the opportunity costs of the decisions that were actually made?arrow_forward
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