1. Tradeoffs and Price Elasticity of Demand
The specific goods themselves are not so important, rather what they are meant to represent: the tradeoff any nation faces between allocating more of its scarce resources towards national defence versus goods and services that benefit the nation's consumers (Mankiw, 2012), (Shmoop, 2014). ... Society must allocate its scarce resources towards the goods and services it deems most desirable based on the needs of its citizens. ... Among the countless other goods and services the government provides or supports the provision of, the United States faces a tradeoff arising from the scarce reso...
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