Why everyone, whether poor or affluent, faces the problem of scarcity? Concept Introduction: Scarcity : In economics, it refers to the limited availability of a commodity which people desire in the market. The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

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 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

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 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

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 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

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 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

Answer 6

Chapter 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

Answer 7

Chapter 2, Problem 2.1LO

To determine

Why everyone, whether poor or affluent, faces the problem of scarcity?

Concept Introduction:

Scarcity: In economics, it refers to the limited availability of a commodity which people desire in the market.

The problem of scarcity arises because the factors of production are limited, but the human wants are unlimited.

Answer 8

Expert Solution & Answer

Explanation of Solution

Scarcity exists in every society and at all income levels because the human wants exceed the available resources.

Scarcity is a relative concept. For poor, scarcity would mean limited resources with which she could buy things. Resources are scarce to her because they are with others.

Scarcity for rich is the limitedness of the resources in the market. A rich person might have wealth and money but she cannot buy infinite amount of things she desires for. Those things, let’s say gold and silver, are also limited on earth.

The available resources are limited and have multiple uses with which whatever we can produce is not enough to satisfy the human wants.

Scarcity is the central problem of economy which gives birth to the problem of choice due to which the economy has to decide what to produce, how to produce, and for whom to produce.

Since people have unlimited desires and wants but the resources in the world are limited, that is the reason why scarcity is something that both poor and rich face.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 2 - Prob. 2.1LO Ch. 2 - Prob. 2.2LO Ch. 2 - Prob. 2.3LO Ch. 2 - Prob. 2.4LO Ch. 2 - Prob. 2.5LO Ch. 2 - Prob. 2.1SC Ch. 2 - Prob. 2.2SC Ch. 2 - Prob. 2.3SC Ch. 2 - Prob. 2.4SC Ch. 2 - Prob. 2.5SC

Explanation of Solution

Want to see more full solutions like this?

Chapter 2 Solutions