Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1.2.5PA
To determine
How to apply the concept of scarcity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
According to an article on Barrons.com, "Investment firms are starting to use Al (artificial
intelligence] to execute trades [of stocks, bonds, and other financial securities], manage portfolios,
and provide personalized service to their clients." The article notes that other financial firms,
including banks, insurance companies, are using Al to decrease costs and increase the accuracy of
compliance with government regulations, and to "free employees to work on more valuable jobs."
Source: Scott Likens, "How Artificial Intelligence is Already Disrupting Financial Services"
Barrons.com, May 16, 2019.
Does the use of Al increase or decrease labor productivity?
Increase, because the use of Al represents technological advance.
Decrease, because the use of Al increases the stock of capital
Increase, because the use of Al raises investment returns.
O Decrease, because the use of Al reduces the number of work hours in the economy.
Check Answ
on 6 of 21
Attempt 2
Thinking about scarcity in terms of the economic way of thinking, why does scarcity exist? Select the most
complete explanation.
Scarcity
and
poverty are the same thing; they are both unavoidable because poverty is relative.
exists because people have unlimited wants.
exists because there are limited productive resources in the world.
exists because people virtually have unlimited wants and because the earth has a limited supply of land, labor, capital,
and entrepreneurial ability.
exists because people have limited incomes.
On the Forbes list of the World's Billionaires, Elon Musk, Bernard Arnault, and Jeff Bezos rank at the top with net worth above $186 billion each. Is the following statement True, False, Both (True and False), or None (neither True nor False) "These richest people in the world do not face scarcity. Scarcity only affects people who are not in the Forbest list
Chapter 1 Solutions
Microeconomics (7th Edition)
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PACh. 1 - Prob. 1.1CTECh. 1 - Prob. 1.2CTE
Knowledge Booster
Similar questions
- On the Forbes 2021 list of the World’s Billionaires, Jeff Bezos ranks at the topwith a net worth of US$177 billion. Does he face scarcity, or does scarcity onlyaffect those with more limited incomes and lower net worth?arrow_forwardwhat does the absence of scarcity in an economy reflect in a graph?arrow_forwardThe following graph shows the production possibilities curve for an economy that produces Consumption goods and Capital goods. Use the graph to answer the following questions A) How do you describe what is happening as the economy moves from point P to point L? (discuss it in terms of economic efficiency) B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer. C) If the economy is currently operation at point L, what is the opportunity cost of producing 10 more Capital goods (Moving from combination L to combination M)?arrow_forward
- Briefly explain the term incremental innovations. Which companies in terms of the size (small, medium, large size) have more economic incentives to produce these?arrow_forwardIn 2018, the Pew Internet & American Life Project asked 743 teens aged 13 to 17 several questions about their attitudes toward social media. The results showed that 602 say social media makes them feel more connected to what is going on in their friends' lives; 513 say social media helps them interact with a more diverse group of people; and 275 feel pressure to post content that will get a lot of likes and comments. Round your answers to four decimal places. a. Develop a point estimate of the proportion of teens aged 13 to 17 who say social media makes them feel more connected to what is going on in their friends' lives. b. Develop a point estimate of the proportion of teens aged 13 to 17 who say social media helps them interact with a more diverse group of people. c. Develop a point estimate of the proportion of teens aged 13 to 17 who feel pressure to post content that will get a lot of likes and comments.arrow_forward1.12 Read the following extract and answer the question that follows. Women's empowerment movement eyes 40% of government spending accreditation ..Last year the South African government affirmed its support for women-owned businesses as part of its commitment to ensuring that gender equality in Africa's most advanced economy was achieved. President Cyril Ramaphosa said then: “We are going to drive women's economic inclusion through public procurement. We have set the target of ensuring that 40% of goods and services procured by public entities are procured from women-owned business." Source: https://www.news24.com/citypress/news/womens-empowerment-movement-eyes-40-of-government- spending-20210819 Accessed: 23/08/21 The above decision by the South African government is an example of... a) Market participation. b) Government spending. c) Commercialisation. d) Nationalisation. 1.13 Read the following extract and answer the question that follows. Yes, SANParks can refuse to take your cash,…arrow_forward
- 1.12 Read the following extract and answer the question that follows. Women's empowerment movement eyes 40% of government spending accreditation ..Last year the South African government affirmed its support for women-owned businesses as part of its commitment to ensuring that gender equality in Africa's most advanced economy was achieved. President Cyril Ramaphosa said then: "We are going to drive women's economic inclusion through public procurement. We have set the target of ensuring that 40% of goods and services procured by public entities are procured from women-owned business." The above decision by the South African government is an example of... a) Market participation. b) Government spending. c) Commercialisation. d) Nationalisation. 1.13 Read the following extract and answer the question that follows. Yes, SANParks can refuse to take your cash, says the Reserve Bank At the start of September, South African National Parks (SANParks) will stop accepting cash payments at the…arrow_forwardWhat is scarcity in economics, provide an example. What is the impact of technology and innovation on scarcity?arrow_forwardWhy is scarcity an essential concept in economics?arrow_forward
- MICROECONOMICS ( ALL OF IT IS ONE QUESTION!!!) For the article write the number of the graph that best describes what happened. King Size Beds For some couples, the solution for too much pandemic togetherness is saying good night on Valentine’s Day in a bigger bed where they don’t need to touch. After nearly two years of working from home and sharing close quarters with spouses, kids and pets, people are tossing out their full- and queen-size beds in favor of more spacious kings. After nearly two years of working from home and sharing close quarters with spouses, kids and pets, people are tossing out their full- and queen-size beds in favor of more spacious kings. Robert Pagano and his girlfriend, Tracy Jones, weighed the pros and cons of switching to a king from a queen last year. The couple, who live in Las Vegas, had been getting on each other’s nerves when they were stuck working from home. “We hoped a bigger bed would help us avoid arguments,” Mr. Pagano said. “But we were…arrow_forwardWhat does a production possibilities graph show in economics? how many items can be produced in a specific amount of time possible production costs one's final choice one's top two choices when making a decisionarrow_forwardWhat is scarcity? Can you think of two causes of scarcity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co