The importance of the concept of scarcity in economics and to determine if a resource is scarce. Concept introduction: Scarcity of resources means lack of resources in comparison to wants.

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Answer 1

Question

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

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Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 1000 billion dollars with an increment of 50 billion dollars, and the y-axis is scaled from 0 to 180 units with an increment of 10 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (200, 40)Point 2 at (800, 160)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (200, 160)Point 2 at (800, 40)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (350, 170)Point 2 at (900, 60)A vertical Long-run Aggregate Supply, LRAS line with two endpoints:Point 1 at (500, 170)Point 2 at (500, 0)Two Reference Points:Lines AS and AD1 intersect at (600, 120)Lines AS, AD, and LRAS intersect at (500, 100) a. How much does aggregate demand need to change to restore the…

a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ billion b. If the MPC is 0.6, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ billion.

Answer 2

Question

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

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05:38

Answer 3

Question

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

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05:38

Answer 4

Question

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

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05:38

Answer 5

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

Answer 6

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.

Answer 7

Chapter 1, Problem 1.1PA

To determine

The importance of the concept of scarcity in economics and to determine if a resource is scarce.

Concept introduction:

Scarcity of resources means lack of resources in comparison to wants.

Answer 8

Expert Solution & Answer

Explanation of Solution

The scarcity of resources is determined when demand is more than availability and the price of resources is more than zero. The human demands are unlimited and means to meet those wants are limited. This situation requires the efficient allocation of scarce resources in such a way that all the resources should be optimally utilized (no resource should go waste).

The concept is important to the definition of economics because it studies the human behavior as a relationship between unlimited wants and scarce resources. It is the science which studies how to make a choice between alternative uses of scarce resources. Scarcity is itself a big economic problem. Without it, economies studies will have no value.