Why does scarcity lead to the "what," "how," and "for whom" questions?
What will be an ideal response?
Human wants exceed the resources available to satisfy them, thereby creating the problem of scarcity of goods and services. Everyone wants more than he or she can have, be it a student dreaming of a faster computer or an extraordinarily rich business leader wishing for more vacation time. Because not all wants can be satisfied, people must make choices about which wants to satisfy. The choices resulting from scarcity mean that people must decide what gets produced, how are the products produced, and for whom are the products produced.
You might also like to view...
Which of the following groupings correctly represents the Four Tigers (or Four Dragons)?
A) Thailand, China, Japan, and Malaysia B) Hong Kong, Singapore, South Korea, and Taiwan C) Japan, Hong Kong, Thailand, and Malaysia D) South Korea, China, the Philippines, and Japan E) Singapore, Malaysia, Indonesia, and India
Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium
A) quickly. B) slowly. C) after a protracted negotiation process. D) after an adjustment period.
Explain why each of the following is considered an economic issue:
a. whether to spend Saturday afternoon at a football game b. obtaining tickets to a U2 concert c. your university considers your application for one of 25 available scholarships
Inefficiency is best illustrated by which of the following?
a. foregoing civilian goods in order to produce more military goods b. limiting economic growth by reducing capital spending c. high levels of unemployment of labor and other resources that could be productively employed d. producing outside the production possibilities frontier