--%>
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 : 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 : Possession protection of property rights

    Why possession protection of property rights and private property promotes the market system?

    		•
  • Q : Describe advertising costs or

    Advertising costs or persuasive advertising: When the expenses incurred by a find to persuade the potential consumer to present their brands or products as different or better compared to another brands or products is termed as advertising costs or pe

    		•
  • Q : Problem related to market circular flows

    In output markets, the simple circular flow model, households replace their _________ for _________. Can someone help me in determining the right answer from the given options. (1) Resources | income. (2) Labor | g

    		•
  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Q : Determine the relative cost of a product

    If banana divides are $2, CD disks are $10, and SCUBA vacations are $360, then what is the relative cost of a SCUBA vacation in phrases of a CD disk: (i) 36 disks. (ii) 360 disks. (iii) 180 disks. (iv) 20 disks. (v) 3,600 disks.

    Q : Government expenditures on goods and

    Explain Government expenditures on goods and services and transfer payments?

    		•
  • Q : Describe what do you mean by European

    Describe what do you mean by European Union (EU)?

    		•
  • Q : Describe North American Free Trade

    Describe North American Free Trade Agreement (NAFTA)?

    		•
  • Q : Variation of wages in inverse proportion

    This wages vary within inverse proportion to the agreeableness and constancy of the employment was a perception first explicitly stated through: (i) Adam Smith. (ii) Karl Marx. (iii) Thomas Malthus. (iv) John Stuart Mill. (v) David Ricardo.