--%>

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 : What are the main sources of growth

    What are the main sources of growth?

  • Q : Important source of revenue and major

    What is the most important source of revenue and the major type of expenditure at the Federal level?

  • Q : Barter - Efficiency and the Gains from

    Relative to other systems, economies in that people exchange goods or resources directly along with other people for other goods or resources without using money like a usual denominator rely relatively heavily upon: (i) barter. (ii) specialization. (

  • Q : Independent queue vs. pooled queue

    Instruction: McDonald's vs. Burger King - these two fast food chains use different waiting line design: Independent queue vs. pooled queue. To compare the two different queue systems on equal footing, let's assume that we pick a McDonald's sto

  • Q : Supply and demand at tax burdens and

    The new supply and demand curves within University City are S0 and D0. But after the county commission imposed at $3 per six-pack excise tax upon beer: (w) beer sellers' revenue after taxes decreases by $60,000 monthly. (x) buyers and sellers eac

  • Q : Best alternatives while choices are made

    Opportunity costs, which are the values of the: (i) monetary costs of goods and services. (ii) best alternatives sacrificed while choices are made. (iii) minimal budgets of families upon welfare. (iv) hidden charges passed upon to consumers. (v) exorb

  • Q : Illustrate a fundamental characteristic

    Illustrate a fundamental characteristic of demand behavior?

  • Q : Define explicit cost and implicit cost

    Briefly describe the term explicit cost and implicit cost?

  • Q : Expansion of preschool programs for

    Use the circular flow model to confirm this assertion for an expansion of preschool programs for disadvantaged children?

  • Q : An Inquiry in the Nature and Causes The

    The first comprehensive work upon economics written within English was authored through Adam Smith in 1776 year and entitled that “An Inquiry within the Nature and Causes of: (1) Laws of Supply and Demand.” (2) Wealth of Nations.” (3