Explain why the textbook authors focus on coordination rather than scarcity.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

1. Imagine a society that produces military goods and consumer goods, which we'll call "guns" and "butter." a. Draw a production possibilities frontier for guns and butter. Using the concept of opportunity cost, explain why it most likely has a bowed-out shape. b. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient. c. Imagine that the society has two political parties, called the Hawks (who want a strong military) and the Doves (who want a smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point the Doves might choose. d. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger "peace dividend," measured by the increase in butter production? Explain.

A health study tracked a group of persons for five years. At the beginning of the study, 20%were classified as heavy smokers, 30% as light smokers, and 50% as nonsmokers. Resultsof the study showed that light smokers were twice as likely as nonsmokers to die duringthe five-year study, but only half as likely as heavy smokers.A randomly selected participant from the study died during the five-year period. Calculatethe probability that the participant was a heavy smoker

Consider two assets with the following returns: State Prob. of state R₁ R2 1 23 13 25% 5% 2 -10% 1% Compute the optimal portfolio for an investor having a Bernoulli utility of net returns u(r) = 2√√r+ 10. Compute the certainty equivalent of the optimal portfolio. Do the results change if short-selling is not allowed? If so, how?

Answer 2

Question

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Answer 6

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.

Answer 7

Chapter 1, Problem 1QE

To determine

Explain why the textbook authors focus on coordination rather than scarcity.

Answer 8

Expert Solution & Answer

Explanation of Solution

In this case, the coordination refers to how the three major problems faced by an economy are solved. The three major problems are as follows:

What to produce,
How to produce, and
For whom to produce.

As anticipated, an individual wants more than available in terms of how much they are willing to work and this causes a problem of scarcity.

Here, the concept of scarcity has two elements that are wants and means of fulfilling those wants. Since wants are unpredictable and partially determined by the society, the two elements are interrelated. However, the degree of scarcity is constantly changing, depending on the available means of production and the development of new wants.

Thus, the author of the textbook focused on coordination rather than scarcity to emphasize the supplementary nature of scarcity to the overall concept of coordination. Economics is not merely about an individual’s wants or the means of fulfilling those wants; it is also about reconciling our wants with reality, where the reality consists of social customers, political realities, and decision-making mechanisms.