BUSINESS COLLEGE

How does the study of economics depend upon the phenomenon of scarcity?

Answers

Answer 1
Answer:

Answer:

Scarcity is the basic economic problem because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions are made to allocate resources efficiently. Some wants must be given up so that others can be achieved. The fact that choices have to be made about how to use limited resources to meet unlimited wants affects individuals, businesses, industries, governments, and even the worldwide economy.

Answer 2
Answer: Scarcity in the economy is the excess of demand over supply. Scarcity shows a discrepancy between supply and demand and the absence of countervailing prices.
Study of economics depends on existence of scarcity. The phenomenon of scarcity determines the development of new trends and theories that enable you to analyze and control the economy in the scarcity. Great importance has the deficit to achieve government goals and improve the economic situation in the country. Effective management allows minimizing public costs and losses and getting more profits.
The phenomenon of scarcity leads to appear of notion of budget scarcity or good scarcity. And this leads to creating the theories for studying, regulating, using and overcoming the relevant phenomena 
The phenomenon of scarcity is another element of the economy and allows you to explore it (economy) in all its integrity and versatility

Related Questions

HIGH SCHOOL

Assume that the commercial banking system has checkable deposits of $10 billion and excess reserves of $1 billion at a time when the reserve requirement is 20 percent. If the reserve requirement is now raised to 30 percent, the banking system then has

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Answer:

If the reserve rate is raised to 30%, the banking system will be able to comply with it without having to make any more reserves, since their total reserves are currently $3 billion.

Explanation:

If the banking system currently has $10 billion in deposits:

  • a reserve ration of 20% = $2 billion in reserves
  • excess reserves = $1 billion

total reserves held by banks = $2 billion + $1 billion = $3 billion

HIGH SCHOOL

In terms of the approaches to exchange rate forecasting, which of the following is based on the premise that there are analyzable market trends and waves and that previous trends and waves can be used to predict future trends and waves? a. chart analysis
b. technical analysis
c. behavioral equilibrium model
d. fundamental analvsis
e. port folio balance model

Answers

Answer:

The correct answer is the option B: technical analysis.

Explanation:

First of all, in trading, technical analysis is the name given to the term that receives the discipline that evaluate investments and that its major purpose is to identify trading opportunities based on the fact of analyzing statical trends, such as price movement.

Secondly, this type of trading focuses on patterns and any type of analitycal charting tools to that help the evaluation of a security's strength or weakness in order to encourage the person to trade or not doing it. In addition to that, the technical analysis is based on historical trading data so therefore it is understandable that this type of analysis is based on the premise that there are analyzable market trends and waves and that previous trends and waves can be used to predict future trends and waves as well.

MIDDLE SCHOOL

Which of these investments may pay dividends?
O Bonds
IRAS
Mutual funds
Stocks

Answers

Stocks may pay dividends.

Explanation:

A stock is a generic term to describe any company's own documents. On the other hand, a stake applies to a specific company's stock certification. You become an investor by owning a certain company.

All stocks are popular and favored. The distinction is that the owner of the former is entitled to vote that can be practiced in business decisions, not the latter. Nevertheless, preferential investors have the legal right, until dividends can be given to other shareholders, to obtain a certain number of dividend payments.

It is also termed a 'preferred convertible stock'. It is a preferred share, typically at a specified time, with such an option to turn into the set number of specific shares.

HIGH SCHOOL

The assumption that some of the resource and capability differences among firms may be long lasting because it may be very costly for firms without certain resources and capabilities to develop or acquire them is known as ________.

Answers

Answer:

D. Resource Immobility

Explanation:

Resource immobility is the concept that if a resource is easy to obtain by competitors because the cost of developing, acquiring or using that resource is relatively low, then that resource cannot provide competitive advantage.

Sometimes, resources are not free or able to move between markets. This may lead to the resources not being used as efficiently as possible. Due to this immobility, companies cannot replicate rivals’ resources and implement the same strategies.

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