Distinguish between scarcity and shortages
What will be an ideal response?
Scarcity exists because the wants of human beings are unlimited while resources are limited. The meaning of a shortage is not the same as scarcity. A shortage exists when people have to wait in line for things, especially on a temporary basis. Scarcity relates to the poor but also to the rich; scarcity is a fact of life that affects everyone. A shortage occurs when the quantity of a good desired exceeds the quantity available at a positive price.
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Intel wants to attract the most productive and knowledgeable workers. To achieve this goal it could pay ________ wage
A) a Lucas wedge B) a minimum C) an efficiency D) an equilibrium E) a nominal
Productive efficiency is achieved when
A) firms add a low profit margin to the goods and services they produce. B) firms produce the goods and services that consumers value most. C) there are no shortages or surpluses in the market. D) firms produce goods and services at the lowest cost.
The demand for Nike shoes is _________________ than the demand for shoes in general
a. More elastic b. More inelastic c. Less elastic d. Less inelastic
Many firms have implicit and explicit costs. The difference between them is that implicit costs
a. are taken into consideration for tax purposes while explicit costs are not b. are the same as explicit costs but are internalized within the firm, such as hiring labor c. are part of accounting costs while explicit costs are not d. represent actual money payments to factors of production while explicit costs do not e. although not involving money payments are the opportunity costs of resources used by the firm