Explain why both low living standard and high living standard country face the problem of scarcity.

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Answer 1

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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Students have asked these similar questions

Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce.  Explain why scarcity exists in this economy. Use the data as evidence of your reasoning.  What is the maximum quantity of guns that can be produced?  What is the maximum quantity of butter than can be produced?  Draw the nation’s production possibility curve.  What is the opportunity cost of guns in this nation?  Explain why the nation can’t produce both 3 guns and 4 butters.  Explain why the nation shouldn’t produce both 1 gun and 2 butters.

“Scarcity is the fundamental problem that every nation in this world faces.” What do you mean by this statement? If you were an economist how would you address this fundamental problem?

Most economists believe the scarcity of resources will persist. Why?

Answer 2

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

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Answer 3

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Answer 6

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.

Economics Concept Introduction

Scarcity: Scarcity refers to the limited availability of resources than the required level.

Answer 7

Chapter 1, Problem 1SQP

To determine

Explain why both low living standard and high living standard country face the problem of scarcity.

Answer 8

Expert Solution & Answer

Explanation of Solution

Scarcity is a situation in which human wants are greater than the available resources. A low standard of living country is less wealthy, which means low production, low employment, and so on. A poor country like this would face the problem of lack of food, clothing, and shelter. Here, the resources are limited to meet the needs of people. In the case of a high standard of living country or rich countries, they are wealthy and where the production of goods and services are at the peak level. People in the rich country are highly competitive, so their needs are also more. Here the needs are more than that of available resources. Thus, $1 million does not contribute to solve the problem of scarcity or does not help the countries to escape from the problem of scarcity.