Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
Book Icon
Chapter 1, Problem 1QE
To determine

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

Expert Solution & Answer
Check Mark

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
Answer question 2 only.
1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.
Frederick Jones operates a sole proprietorship business in Trinidad and Tobago. His gross annual revenue in 2023 was $2,000,000. He wants to register for VAT, but he is unsure of what VAT entails, the requirements for registration and what he needs to do to ensure that he is fully compliant with VAT regulations. Make reference to the Vat Act of Trinidad and Tobago and explain to Mr. Jones what VAT entails, the requirements for registration and the requirements to be fully compliant with VAT regulations.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
MACROECONOMICS
Economics
ISBN:9781337794985
Author:Baumol
Publisher:CENGAGE L
Text book image
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning