The meaning of scarcity.
Answer to Problem 1KC
Option 'e' is correct.
Explanation of Solution
Scarcity is obviously shortage. The shortage of supply to the existing demand in the economy is denoted as scarcity in the economy. Whatever may be the demand, let it be the money, commodity, or anything that people demand, when the supply of the same is lower than the demand, then it is called scarcity of the item in the economy.
Option (e):
Human wants are unlimited, and there are no limits to the wants of the consumers. But the resources to meet human wants are limited, which means that there is scarcity of resources in the economy. The available scarce resources have many alternative uses that make choices for the consumers. Thus, scarcity forces the individuals to choose between the available choices. This indicates that option 'e' is correct.
Option (a):
Scarcity arises when the wants are more than the supply. This means when the supply of anything from money to goods and services are lower than the demand, there arises scarcity. Thus, when there is scarcity, not all the wants can be satisfied because the scarce resources have alternative uses. This makes option 'a' incorrect.
Option (b):
The consumers are free to choose between the alternative uses of the scarce resources and are not forced to accept one, which means that there is no abandoning of the consumer sovereignty. This means that option 'b' is also incorrect.
Option (c):
Scarcity arises when the wants are higher than the supply. The resources are having alternative uses and when the consumers lie about their wants, they cannot get the wants fulfilled, and this means that they would never lie about the wants, and so, option 'c' is incorrect.
Option (d):
The resources are limited, whereas the human wants are limited, and this makes scarcity in the economy. Thus, humans cannot make the unlimited resources because it is naturally formed. This means that option 'd' is incorrect.
Scarcity: The term “scarcity” defines the situation where the supply of something in the economy is lower than the required demand in the economy, which is obviously known as shortage.
Want to see more full solutions like this?
- Using the graph on the right, determine the per unit prices of capital and labour. 20- Given the information provided about the isocost lines, we know that the per unit price of capital is TC=$100 and the per unit price of labour is 16- TC $80 ○ A. $50; $20 ○ B. $2; $5 ○ C. $5; $2 ○ D. $20; $50 E. not determinable; not determinable Quantity of K 12 TC $60 TC $40 0 10 20 30 Quantity of L 40arrow_forwardThe diagram to the right contains isocost lines A and B. If the price of capital is the same for both lines, then the difference between isocost line A and isocost line B is that OA. the total cost is larger along B. B. the level of output is lower along A. C. both capital and labour are cheaper along A. OD. labour is more expensive along A. ○ E. labour is more expensive along B. Capital Labourarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is ○ A. between 60 and 140 units of production. OB. about 20 units of production. OC. about 60 units of production. OD. about 100 units of production. OE. the level of fixed cost corresponding to SRATC2. SRATC₁ LRAC SRATC4 SRATC₂ SRATC3 เนด เad iso C 20 20 40 60 80 100 120 140 160 180 200 Output per Periodarrow_forward
- SRATC₂ SRATC3 In the figure, increasing long-run average total costs for the firm are confined to the output range OA. where the LRAC curve is downward sloping. B. above 80 units of output. O C. above 50 units of output. OD. between 50 and 80 units of output. SRATC₁ OE. between 10 and 100 units of output. ---- SRATC LRAC 10 20 30 40 50 60 70 80 90 100 Output per Periodarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is OA. between 10 and 50 units of production. OB. about 80 units of production. O C. the level of fixed cost corresponding to SRATC₁. OD. about 10 units of production. ○ E. about 50 units of production. Cost per Unit SRATC₁ LRAC SRATC2 SRATC4 SRATC3 10 20 30 40 50 60 70 80 Output per Period 90 100arrow_forward• 3 different people working at any companies under the BPO industry in the Philippines. • What are the 3 different Vision, Mission, Duties and Responsibilities and Career Path of these people in their companies under the BPO industry?arrow_forward
- Module 6 ⚫(1902) Buckner C X | (1902) How to d x (1902) Buckner F X (1902) Productic X WP Videoplayer Canvas Login | Ir x | + Σ R mybrcc.instructure.com/courses/417310/discussion_topics/3420114?module_item_id=20155705 Spring 2025 Home Announcements Modules Syllabus Grades 8 People BRCC-_Library DLASC Module 6 Discussion - Business Costs Relaunch to update For this discussion, think about where you work or a business you have a significant amount of knowledge about. What is a common product that the business sells? What are the main costs the business has to incur in order to be able to sell that product? Which of these costs are fixed and which are variable? How much additional costs would be incurred if it were to sell one additional unit of that product (marginal cost)? Write a discussion thread about this business, the product it commonly sells, and your answers to the above questions. Also, respond to at least two threads created by your classmates. In these responses, share what…arrow_forwardRefer to the video to answer the following: • what are all the key policies or all the strategies the Philippine government should prioritize to accelerate sustainable economic growth? • these should consider the Philippines current economic challenges, including inflation, unemployment, and the need for digital transformation. "The Philippines' Strong Economic Growth" (YouTube link: https://youtu.be/1YtEoGp2ZeM?siJQfIv5kbu0txVsLL.)arrow_forwardsolve about this qarrow_forward
