How can there be scarcity in the land of abundance?

How can there be scarcity in the land of abundance?

There can be scarcity in a land of abundance because scarcity exists in all places at all times. We can never have everything we want and we can never have the time to do everything we want. We have unlimited wants and limited resources. Even in a land of abundance, we cannot all have everything.

Would there be a need for a rationing device if scarcity did not exist explain your Answer?

If scarcity didn’t exist, there would be no need for a rationing device and people wouldn’t pay dollar prices for resources and goods. In every transaction—buying a T-shirt at the university bookstore, buying food in a grocery store, or buying a new computer— scarcity plays a role.

How would an economist define the efficient amount of time spent playing tennis?

The efficient amount of time spent in playing tennis can be defined as the right amount of time or optimal amount of time spent in playing tennis. We say that efficiency is achieved where Marginal Cost = Marginal Benefit (MC = MR).

Is a videotape a tangible good?

Tangible goods are concrete goods that can be exchanged and reproduced more easily than intangible goods, such as a videotape of an economics lecture or a cell phone. One example is that the resources used to produce a car found there could have been used to produce a different good.

What is the relationship between scarcity and competition?

The condition of scarcity in the real world necessitates competition for scarce resources, and competition occurs “when people strive to meet the criteria that are being used to determine who gets what”. The price system, or market prices, are one way to allocate scarce resources.

Why do we need rationing devices and competition as it relates to scarcity?

Rationing devices are needed to decide who gets what portion of the available goods. Because people compete for the rationing device, competition is a consequence of scarcity. Economists often consider both the costs and benefits of an activity.

Why do we need a rationing device?

Why do we need a rationing device like price? A rationing device—such as dollar price—is needed because scarcity exists and as a reult of scarcity, a rationing device is needed to determine who gets what of the available limited resources and goods.

What is one of the biggest advantages of international trade in relation to scarcity?

Increased specialisation, economies of scale, greater efficiencies in production, acquisition of needed resources, increased competition, technological advances and expanding markets, all made possible by international trade, contribute to increases in domestic output, and therefore to greater economic growth.

Why do trade barriers exist?

Countries put up barriers to trade for a number of reasons. Sometimes it is to protect their own companies from foreign competition. Or it may be to protect consumers from dangerous or undesirable products. Or it may even be unintended, as can happen with complicated customs procedures.