ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
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Question
Chapter 1, Problem 1QFD
To determine
The reason resources can be scarce in a rich country like America.
Expert Solution & Answer
Explanation of Solution
The economy is based on the following points:
1) There is a scarcity of resources.
2) People have unlimited wants.
3) Resources have many alternatives.
Though America is a rich country, people still have unlimited wants. Their desires are never-ending which outpace the ever-rising desires. People need to have more luxury and facilities. Also, due to continuous advancing technology, the
a) Though they already have mobile phones, they want new models with new technology. This encourages continuous innovations in technology.
b) The demand for new models of automobiles never ends.
The
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