Asked by Kristen Phelps on May 23, 2024
Verified
How does the study of economics depend upon the phenomenon of scarcity?
Economics
The social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices on allocating resources.
Scarcity
The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
Phenomenon
An observable event or a fact that is apparent and can be scientifically described or explained.
- Familiarize oneself with the elementary principles of economics, covering scarcity, opportunity cost, choices, and resource apportionment.
Verified Answer
KP
Kelly PesciottaMay 23, 2024
Final Answer :
Because economics is the study of how society allocates its scarce resources, if there were no scarcity, there would be no need for economics. Everyone could have all the goods and services they wanted. No one would have to make decisions based on tradeoffs, because there would be no opportunity cost associated with the decision. (It is difficult to conceive of a situation where time is not scarce, however).
Learning Objectives
- Familiarize oneself with the elementary principles of economics, covering scarcity, opportunity cost, choices, and resource apportionment.