ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1.1P
To determine
Scarcity in economic context.
Concept Introduction
A scarce resource is not freely available within a given community. The other condition to determine the scarcity of resource is to understand if the price exceeds zero. The concept of scarcity is dependent on the resources in order to satisfy unlimited wants. In the world of economics, the concept of scarcity is related to how people are able to satisfy their wants.
Expert Solution & Answer
Explanation of Solution
Economics is the study of understanding the human behavior & rationality to satisfy unlimited wants and the scarce resources. It becomes important to understand the concepts, as the best alternative methods to satisfy the wants can be identified.
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