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Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548 Exercise 1
DEFINITION OF ECONOMICS What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?
Explanation
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Scarcity of resources:
Resources are called factors of production, which are necessary to produce goods and services. The availability of resources according to the consumer's requirement determines whether the resource is scarce or not. Scarce resources are not available freely and its price is more than zero.
With limited resources, economies have to meet the unlimited wants of human beings. Hence, economics takes decision about the better utilization of limited resources to optimize the consumer's utility.
Economic problems arise because of the scarce nature of resources; hence, scarcity is important in the definition of economics.
Resources are called factors of production, which are necessary to produce goods and services. The availability of resources according to the consumer's requirement determines whether the resource is scarce or not. Scarce resources are not available freely and its price is more than zero.
With limited resources, economies have to meet the unlimited wants of human beings. Hence, economics takes decision about the better utilization of limited resources to optimize the consumer's utility.
Economic problems arise because of the scarce nature of resources; hence, scarcity is important in the definition of economics.
Econ 4th Edition by William McEachern
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