In the chapter The Problem is Scarcity the author discusses the importance of economics, defines scarcity and opportunity cost and mentions the five basic economic questions.
First, economics is important to study because it affects a person everyday in different ways and helps you make better economical choices. It is the study of how individuals and nations make scares resources to fulfill their wants. For example, you can choose on a better economical shoe or solve economic problems.
In addition, the author points out that many people do not have or cannot have enough income, time, or other resources to satisfy their every desire. So, in the end they would have to decide on what they really want and wait another day for any other thing that came second. The value of the best next alternative that had to be given up for the alternative that was chosen is called opportunity cost. .
Moreover, the author emphasizes that there are five basic economic questions asked by every individual to decide on which wants and desire they will choose. The first question that is asked is, "What should be produced?" This is asked because it depends on the resources they have to know what can be produced. The second question is, "How much should be produced?" Producers need to decide on how much they need to make so they will not over or under produce. The next question asked is, "How should the product be produced?" Producers need to think of an economical and well-organized way to combine resources to make the product that is needed. Then they question "Who gets what and how much?" For example, they decide on how much free medical care someone gets. Finally, they would consider on "Who answers the first four questions?" There are three economic systems to see who will answer the last question. They are: market economy, traditional economy and command economy. .
Finally, the author concludes the meaning of economics, scarcity and opportunity cost.
Scarcity forced us to make a choice, as there are not enough resources to fulfill all of our desires. ... Limited resources caused scarcity, therefore it is valued. ... Scarcity is not the same as a shortage. ... Scarcity will last forever, and shortage is not. ... Scarcity cannot be solved. ...
Chapter 3 Scarcity and Choice: The Economic Problem Introduction What is Economics? ... ( I ) Scarcity, Choice, and Opportunity Cost The resources available for decision-makers are always scarce (limited), and as result everyone has to make hard decisions. This is the fundamental problem of any economy, the scarcity of available resources. ... ( III ) Scarcity And Choice For The Entire Society The entire economy is also constrained by its limited resources and technology, like an individual firm. ... (IV) Scarcity And Choice Elsewhere In The Economy Rich and ...
Question Is chronic hunger a problem of scarcity or inequality? ... Scholars along the years have spoke out about food scarcity but still they haven't decided if hunger is physiological or a social problem. ... I do agree with the statement from the book Limits to Scarcity that "affluent countries and communities that already have sufficient access to food are gaining more." ...
In most of the state governments have carried out some policies to restrict water use due to water scarcity. ... While water shortages and water scarcity are imminent phenomena that human facing right now, the key to reduce their use should rest with good water management by government, community and individual, further technological innovations are needed to provide best ways to process something like sea water into freshwater (desalination) and as well for recycling wasted water....
Water scarcity is currently a problem that is on the rise in Yemen and the majority of the population are affected by it. ... As a result, this would potentially lead to an increase in tribal conflict due to the scarcity of water. ... The water scarcity problem in Yemen has led to series of consequences that could inevitably exacerbate the situation in Yemen. One the consequences that could worsen due to water scarcity would be the increase of tribal conflict throughout the country. ... Harvesting rainfall in the capital could also be a very helpful in reducing the scarcity of water in Yemen. ...
Scarcity arises when the demand for goods or services exceeds the supply of resources used to produce those goods or services at any particular time. ... The choices that arise from the scarcity of resources include: What and how much to produce? ... Examples of individuals, firms and governments deal with the choices that arise from the scarcity of resources involve opportunity cost. ... In conclusion, individuals, firms and governments all use the problem of scarcity, and ask themselves, How to produce? ... By asking themselves these questions, one overcomes relative scarcity, and thus parti...
Let's begin with the theory of Scarcity. The concept of demand is directly relatable to the scarcity of an item. ... To clarify scarcity, let's have a look at value. ... However, the theory of scarcity is directed by more than the available fixed quantity. For example, the book strongly acknowledges that "scarcity also captures the idea of how many people want or value an item " (Chap 2, page 23). ...
A scarcity of any kind in the economy creates burrowing tendency among individuals without considering the ability to pay. This is because scarcity draws the attention of individuals to focus on the pressing present expenses. ... This form of burrowing show how scarcity shifts the attention of individuals (Meyer, 2014) Research done in the field shows that due to the scarcity of resources, business people make adjustments in their businesses that have a negative impact on the poor people. ... Experiments done showed that the larger percentage of neglect was brought about by the scarcity of...
However, he knew that if scarcity of goods were to occur then some may want for more leaving other's with less. ... In other words, the guardian's position in the state was required so that the people in the state would not fall victim to their desires and passions, thus becoming selfish should scarcity occur. ... His belief is that everyone wants to live morally and do what is best even if scarcity was an issue; therefore, because they want to live in accordance to what is best, endeavoring to the higher calling and wisdom of the guardians would lead them to what is right and just. ...