Explain why both low living standard and high living standard country face the problem of scarcity.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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

Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000

P2 P₁ $ per unit Using the graph below, determine which statement is TRUE. MC1 SRATC₁ Q1 Q₂ MC2 SRATC2 LRAC ✓ LEA Quantity

Using the grapns below, wnicn snow the snort-run cost curves for 3 perfectly competitive firms in the same industry, determine whether the industry is in long-run equilibrium or not. Q Q Firm A QA MC ATC Output Firm B QB MC ATC Firm C MC ATC Output Output Qc If Firms A, B and C are in the same industry, is this industry in long-run equilibrium? ○ A. Yes, because P = MC = MR for each of the 3 firms. ○ B. No, because Firm A is not producing at a profit-maximizing level of output. ○ C. Yes, because all 3 firms are producing at their minimum average total cost. OD. The answer is uncertain since it's unknown whether the firms are producing at the minimum efficient scale or not. ○ E. No, because if the industry were in equilibrium, all 3 firms would be earning zero economic profits.

Answer 2

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Answer 6

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Answer 7

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Answer 8

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.