MICROECONOMICS
MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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
Explain how the introduction of egg replacers and plant-based egg products will impact the bakery industry. Provide a graphical representation.
Explain Professor Frederick's "cognitive reflection" test.
11:44 Fri Apr 4 Would+You+Take+the+Bird+in+the+Hand Would You Take the Bird in the Hand, or a 75% Chance at the Two in the Bush? BY VIRGINIA POSTREL WOULD you rather have $1,000 for sure or a 90 percent chance of $5,000? A guaranteed $1,000 or a 75 percent chance of $4,000? In economic theory, questions like these have no right or wrong answers. Even if a gamble is mathematically more valuable a 75 percent chance of $4,000 has an expected value of $3,000, for instance someone may still prefer a sure thing. People have different tastes for risk, just as they have different tastes for ice cream or paint colors. The same is true for waiting: Would you rather have $400 now or $100 every year for 10 years? How about $3,400 this month or $3,800 next month? Different people will answer differently. Economists generally accept those differences without further explanation, while decision researchers tend to focus on average behavior. In decision research, individual differences "are regarded…
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