--%>
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 : Way to determine nature price of Adam

    “Natural price” by Adam Smith of a good was eventually determined through: (1) the amount of capital used within production in the short run. (2) long-run average costs of production, that Adam Smith believed to be the amo

    		•
  • Q : Are quantities supplied-demanded equal

    In perfectly competitive market, the market demand curve is given by Qd = 10 − Pd, and the market supply curve is given by Qs = 1.5Ps. a) Prove that the market equilibrium price and

    		•
  • Q : Factor Price Equalization theorem

    Please answer each of the exercises below. While you may work together on the homework, you must turn in your own work (in your own words). Homework must be handed in at the beginning of class on the due date unless other arrangements have been made. No late homework will be accepted. Homework wi

    		•
  • Q : Economics as a science Economics as a

    Economics as a science:We no longer ask the problem whether economics is an art or a science. Science is a systematized body of knowledge. Merely as physics and chemistry are sciences, econo

    		•
  • Q : Guardian implies that there really is

    Evaluate and explain the statements: “Market is its own guardian implies that there really is an invisible hand or taskmaster that watches over the decision makers in the marketplace”

    		•
  • Q : Elucidate facilitating factors that

    Elucidate facilitating factors that explain the growth of trade?

    		•
  • Q : Circular flow model to confirm this

    Use the circular flow model to confirm this assertion for the construction of a new high school in Blackhawk county?

    		•
  • Q : Describe Low financial leverage and low

    Describe briefly Low financial leverage, low operating leverage?

    		•
  • Q : Common factors influencing capital

    Write down the common factors influencing capital structure?

    		•
  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

    		•