EBK EXPLORING ECONOMICS
7th Edition
ISBN: 9780100544772
Author: Sexton
Publisher: YUZU
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Question
Chapter 2, Problem 1P
To determine
The scarce goods from the given options.
Expert Solution & Answer
Answer to Problem 1P
Following are the scarce goods:
d. Clean air in a big city
f. A public library
Explanation of Solution
Given options:
- Garbage
- Salt water in the ocean
- Clothes
- Clean air in a big city
- Dirty air in a big city
- A public library
Garbage is a waste for human beings and is undesirable. No human wants are satisfied with garbage. Thus, garbage is not scarce.
Oceans are a large part of our earth. There is no dearth of salt water in the oceans. Therefore, salt water in the ocean is not scarce.
Clothes are not a scarce resource. Clothes are made from either natural or synthetic fibers, which can be produced as much as humans want. Thus, clothes are not scarce.
In big cities, air pollution is a major and common issue. Hence, it is not easy to get clean environment and clean air in a big city. Thus, clean air in a big city is a scarce resource.
In big cities, air pollution is a major and common issue. Hence, it is not easy to get clean environment and clean air in a big city and air quality is expected to be dirty in most of the cases. Thus, dirty air in a big city is not a scarce resource.
A public library may or may not be a scarce resource. The availability of a public library is a subjective issue. If the government and local authorities in an area has provided enough libraries given the number of students and visitors in the library, then we would say that a public library is not a scarce resource. However, if on the contrary, the number of libraries is not enough, it would be considered a situation where public libraries are scarce.
Economics Concept Introduction
Scarcity: Scarcity is the concept referring to the shortage of any resource. Human wants are unlimited and resources are limited. Thus, considering the unlimited human wants, the resources that are available to humankind are scarce.
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3. Use the AS-AD model to show the changes in aggregate demand and aggregate supply that occurred in
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Chapter 2 Solutions
EBK EXPLORING ECONOMICS
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