Scarcity and opportunity cost .

Question

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Answer 1

Question

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

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Answer 2

Question

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

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 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

Answer 6

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.

Economics Concept Introduction

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

Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.

Answer 7

Chapter 2, Problem 1SQP

To determine

Scarcity and opportunity cost.

Answer 8

Expert Solution & Answer

Explanation of Solution

The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.