--%>
Assignment Help - homework help

Goods and services are scarce because resources are scarce

Explain:  “Goods and services are scarce because resources are scarce.”  Analyze:  “It is the nature of all economic problems that absolute solutions are denied us.”

E

Expert

Verified

Goods and services are the product of resources.  If resources were abundant without limit, then we would not have a scarcity of the products they produce.

Economic problems are problems of relative scarcity—wants exceed resources in the relative sense.  We cannot absolutely solve all of our economic problems; i.e. gratify all of everyone’s wants and needs.  If all our wants were absolutely fulfilled, anything would not have a price—why pay for anything if you’ve got everything already?  And if there were no unfulfilled wants there would be no economic resources—why pay for an input when you’ve got all the outputs you could ever need?  The fact which totally free services and goods do not exist provides support for the notion that total fulfillment of our wants is impossible.

   Related Questions in Business Economics

  • Q : Economics chapter 1 Suppose that on the

    Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr

    		•
  • Q : Programs exchanged in the market For

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

    		•
  • Q : Production possibilities curve is a

    How a production possibilities curve is a graphical representation of choices?

    		•
  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?

    		•
  • Q : Circular flow model of the private

    I have a problem in economics on Circular flow model of the private sector. Please help me in the following question. The simple circular flow model of private sector doesn’t comprise: (i) Firms. (ii) Product markets. (iii) Government agencies.

    		•
  • Q : Best illustration of a perfectly

    Which of the given is the best illustration of a perfectly competitive industry: w) wheat production. x) steel production. y) electricity production. z) airplane production. Hey friends please give your opinion for

    		•
  • Q : Explain how women expanded production

    Explain how women expanded production possibilities?

    		•
  • Q : Demand often exceeds supply and supply

    “In the corn market, demand often exceeds supply and supply sometimes exceeds demand.” “The price of corn rises and falls in response to changes in supply and demand.” Among these 2 statements used correctly which in the terms “supply&rdq

    		•
  • Q : Expiation of Economists for Economic

    Please help me to solve the problem of economic that is given below: Economists describe economic costs as like: (w) money outlays. (x) accounting cost. (y) opportunity cost. (z) v

    		•
  • Q : External factors which influencing the

    Write down the external factors which influencing the capital structure?

    		•