Chapter 1.3, Problem 3R

To determine

To explain the condition in the absence of scarcity of resources in the economy.

Answer to Problem 3R

If there would be no scarcity in the economy, there won’t be the study of economics as there will be no sense of fall in economic growth and no issues related to limited choices with unlimited wants of the humans.

Explanation of Solution

If there is no scarcity of resources in the economy, there would not be any economics. The decision of what to produce, for whom to produce, distribution, consumption, everything depends upon the unlimited wants of humankind which causes scarcity and results in the question of choice in the economy.

Scarcity explains about the ways of management of the available resources and the ways to fulfill the needs of the consumers as per the priority of the products.

If there would not be any kind of scarcity in the economy, you will have everything in abundance and the prices of the products will be very less along with no problem of choice.  There would be no issues related to the demand and supply of the products and the government won’t have to focus on the proper resource allocation and distribution for the resources.

Economics Concept Introduction

Introduction:

Scarcity: Scarcity is the root cause behind the existence of economics which explains the unlimited wants of the humans that are not satisfied by limited resources.