is horizontal. Global hunger and food insecurity are frequently oversimplified as being primarily a problem of scarcity (not enough food) or a problem of distribution (not enough access to food). More accurately, hunger and food insecurity result from a web of immensely complex and inter-affecting factors, including both food supply and distribution issues. Question 19. C. Choices have to be made about how resources are used. (TCO1) Money is not considered to be an economic resource because (Points : 4)as such, it is not productive.money is not a free gift of nature.money is made by man.idle money balances do not earn interest income. (TCO 1) As a consequence of the problem of scarcity (Points : 4) there is never enough of anything. used to determine the size of the labor force, but not the unemployment rate. cause total revenue to decrease for firms that issue coupons for their products. (TCO 3) In the short run, output (Points : 4)is absolutely fixed.can vary as the result of using a fixed amount of plant and equipment more or less intensively.may be altered by varying the size of plant and equipment which now exist in the industry.can vary as the result of changing the size of existing plants and by new firms entering or leaving the industry. stock market crash of 1987. Like individuals, governments and societies experience scarcity because human wants exceed what can be made from all available resources. What would expansionary fiscal policy do? - things which are plentiful have relatively high prices. the Fed. There Is Never Too Much Of Any Good Or Service Produced. Choices have to be made about how resources are used. individuals have to make choices from among alternatives. an amount greater than GDP for that year. (TCO 1) As a consequence of the problem of scarcity (Points : 4) there is never enough of anything. Water scarcity is a problem of both natural and human origin. things which are plentiful have relatively high prices. Question 8. The Problem of Scarcity. (TCO 8) In a two-nation world, comparative advantage means that one nation can produce (Points : 4)a product with fewer inputs than the other nation.a product at lower average cost than the other nation.a product at a lower domestic opportunity cost than the other nation.more of a product than the other nation. At the more strategic level, military deception has withered. inflow of payments for goods and services. (TCO 2) Chuck Grim has a price elasticity of demand for beer of 1.2. Therefore people cannot have all the goods and services they want. B) There is never too much of any good or service produced. TASK 1. We run into scarcity because while resources are limited, we are a society with unlimited wants. (Points : 4)The firm is making only normal profits.The firm’s marginal cost is greater than its marginal revenue.The firm’s marginal revenue is equal to its marginal cost.A decrease in output would lead to a rise in profits. depreciated. subsidy. (TCO 4) Refer to the diagram. 11. Question 15. b. These papers are intended to be used for research and reference purposes only. other banks. production has to be planned by government. production has to be planned by government. Every society, at every level, must make choices about how to use its resources. (TCO 4) Nominal GDP differs from real GDP because (Points : 4)nominal GDP is based on constant prices.real GDP is based on current prices.real GDP is adjusted for changes in the price level.nominal GDP is adjusted for changes in the price level. employment policy. Question 7. 7. Question 2. 20. If we take a good like oil. Question 2. Water scarcity worldwide The report “Thirsting for a Future” by Unicef shows that there are currently 36 countries with extreme water shortage. Water management by the use of regulations and policies can help reduce water scarcity. As a consequence of the condition of scarcity: - there is never enough of anything. Similarly, addressing only food supply (or lack there of: scarcity) is also only a partial piece of the equation. Question 17. 7. (Points : 4)It will not change.It will decrease.It will increase.It is impossible to tell. One the consequences that could worsen due to water scarcity would be the increase of tribal conflict throughout the country. use tariffs and quotas to protect the production of vital products for the nation. 1. (TCO 8) Which country is the United States’ largest trading partner in terms of volume of trade? In economics, Scarcity means limitations that imply inadequacy or insufficiency in goods, resources and capacities through which desired goals are achieved. 4. exhibit more price elasticity of demand for a given product than consumers who do not clip and redeem coupons. Decisions must be made about what to produce, how to produce and for whom to produce. These papers are not to be submitted as it is. According to these definitions, the economic problem, also referred to as the scarcity problem, arises because the resources that we have available for the production of goods and services are limited, while our needs and wants for goods and services are unlimited.It is this fundamental problem of scarcity that is the common thread that binds all the topics that are studied in economics. In this blog we’ll explain more about causes and consequences water scarcity and about what the future will bring. Question 11. individuals have to make choices from among alternatives. 18. Thus, the growth of population retards agricultural development and creates a number of other problems discussed above. a firm can change its fixed inputs. (TCO1) In a command system (Points : 4)self-interest guides and commands individuals to pursue actions that lead them toward achieving their goals.the head of each family decides what to do with the family’s resources.the government makes production and allocation decisions.market traders command what outputs are produced and how they are allocated. budget lag. If the resources were unlimited, the problem of what goods are to be produced would not have arisen because in that case we should have been able to produce all goods we wanted and also in the desired quantities. It implies that human wants are unlimited but the means to fulfil them are limited. 1(a)Explain the economic problem of scarcity and resource allocation, and evaluate the role of opportunity costs in determining how economics make decisions All the problems which are associated with money are known as economic problem. excess of exports over imports. tax rate, transfer payments, and level of government spending. 15. foreign government administers the former, whereas the domestic government administers the latter. (TCO 7) How many members can serve on the Board of Governors of the Federal Reserve System? D) The … (TCO 9) Remittances of Mexican workers in the U.S. to their families in Mexico are included in the U.S. balance of payments as a debit in the section on (Points : 4)trade in services.net international transfers.financial accounts.capital accounts. monetary policy. an amount less than GDP for that year. Question 1.1. Choices Have To Be Made About How Resources Are Used. How does the free market solve the problem of scarcity? Reliance on the market system speculation during World War I. deflated. decreases in government spending and increases in taxes. there is never enough of anything. Problems of specialisation in production. Competition and unrestricted markets Individuals have to make choices from among alternatives C. Production has to be planned by government D. Things which are plentiful have relatively high prices Explanation: People cannot have all that they desire because there are limited resources. all factors of production can be varied. deposit insurance provider. Question 18. As a consequence of the problem of scarcity. Trough, recovery, expansion, peak (TCO 2) Which is consistent with the law of demand? 1. (TCO 4) Refer to the diagram. It’s best to consider this by way of asset allocation. things which are plentiful have relatively high prices. open market operations. managed floating exchange rates. Question 2. Question 13. The Problem of Choice. production has to be planned by government. Buying of U.S. Treasury bonds by a foreign bank things which are plentiful have relatively high prices. the rationing function of price. individuals have to make choices from among alternatives. Consequence # 7. (TCO 1) As a consequence of the problem of scarcity . Thrift Advisory Council 1. fiscal policy. Zero plagiarism. always successful in raising profits. individuals have to make choices from among alternatives. (Points : 4)When supply increases and demand increasesWhen supply decreases and demand decreasesWhen supply decreases and demand increasesWhen supply increases and demand decreases. (TCO 2) What combination of changes in supply and demand would most likely increase the equilibrium quantity? When the supply of a resource decreases, the price of that resource drives up making it economically possible to bring new supplies in the market. Additionally, in impoverished regions, such as Africa (where thousands die from a result of having zero access to clean water) or in Pakistan (where the shortage has claimed ⅓ of its population), a different set of problems assaults the region: economic water scarcity. Scarcity is the basic economic problem and can also be considered as the fact of life. 6 months ago. As a consequence of the problem of scarcity (Points : 4) there is never enough of anything. 17. things which are plentiful have relatively high prices. 1. Economic scarcity – Scarcity of resources depends upon its demand and supply. Question 3. Government ownership of most factors of production (TCO 7) The purchase and sale of government securities by the Fed is called (Points : 4)federal funds market.open market operations.money market transactions.term auction facility. operational lag. things which are plentiful have relatively high prices. 2. Question 8. Peak, recession, trough, expansion. Because of scarcity, choices must be made by consumers, businesses and governments For example, over six million people travel into London each day and they make decisions about when to travel, whether to use the bus, the tube, to walk or cycle or work from home. increases in taxes and government spending. Treating hunger solely as a problem of distribution can result in harmful strategies and practices that undermine crucial long-term solutions. attainable and the economy is efficient. However, this is a good that is wasted, contaminated and distributed unevenly. 3. There is never enough of anything b. a form of covert collusion. - production has to be centrally planned. The firm’s marginal cost is greater than its marginal revenue. U.S. government sending aid to natural disaster victims in Asia (TCO1) Money is not considered to be an economic resource because (Points : 4) as such, it is not productive. Question 5. People want and need variety of goods and services. individuals have to make choices from among alternatives. Standard 1: Scarcity. B) There is never too much of any good or service produced. Price level rises, but the rate of inflation does not. all coins and paper money held by the general public and the banks. In the far stretch of northern Peru where the family lives, medicinal oxygen to treat the coronavirus has become a scarce commodity. unattainable and the economy is efficient. discount rate, reserve ratio, open market operations, and term auction facility. concentrate production on those products for which it has the lowest domestic opportunity cost. The problem of what goods are to be produced and in what quantities arises directly from the scarcity of resources. treated the same as “discouraged” workers who are not actively seeking employment. The United Nations Conference on Trade and Development Timely delivery. Question 2. As a consequence of the problem of scarcity: A. The problem of feeding the additional population becomes serious due to acute shortage of food products. spending 70 percent of its disposable income. 2. A consequence of the economic problem of scarcity is that: A) Choices have to be made about how resources are used. Decrease in taxes and increase in government spending This applies equally to the poor and the rich people. Question 18. “For whom?” is a public choice question. production has to be planned by government. (TCO 2) Which is true for a purely competitive firm in short-run equilibrium? There is enough fresh water on the planet to meet the needs of the world's population. It is basically the gap between limitless human wants and limited available resources. (TCO 7) During the financial crisis of 2007-2008, the FDIC increased deposit insurance coverage from (Points : 4)$50,000 to $100,000 per account.$100,000 to $250,000 per account.$200,000 to $500,000 per account.$500,000 to $1,000,000 per account. PAGE 2:3. is legal tender, is generally acceptable in exchange for goods or services, and is backed by the gold and silver of the federal government. 2. (TCO 1) As a consequence of the problem of scarcity (Points : 4) there is never enough of anything. Question 16. things which are plentiful have relatively high prices. (TCO 7) As of January 2010, slightly more than half of the money supply (M1) was in the form of (Points : 4)currency.checkable deposits.gold coins and bars.savings deposits. A Consequence Of The Economic Problem Of Scarcity Is That: The Production Of Goods And Services Must Be Controlled By The Government. The firm is making only normal profits. decrease aggregate demand in the U.S. price level falls, but the rate of inflation does not. A consequence of the economic problem of scarcity is that: Factors of production are: Opportunity cost may be defined as the: A point on a nation's production-possibilities curve represents: If an economy experiences increasing opportunity costs with respect to two goods, then the production-possibilities curve between the two goods will be: 2. It is difficult to have a thriving economy when fresh water is not easily accessible for industrial, farming, and individual use. (TCO 2) Consumers who clip and redeem discount coupons (Points : 4)exhibit the same price elasticity of demand for a given product than consumers who do not clip and redeem coupons.exhibit more price elasticity of demand for a given product than consumers who do not clip and redeem coupons.exhibit less price elasticity of demand for a given product than consumers who do not clip and redeem coupons.cause total revenue to decrease for firms that issue coupons for their products. Question 12. As a consequence of the condition of scarcity:- there is never enough of anything.- production has to be centrally planned.- things which are plentiful have relatively high prices.- individuals and communities have to make choices from among alternatives. (TCO1) A point inside the production possibilities curve is (Points : 4)attainable and the economy is efficient.attainable, but the economy is inefficient.unattainable, but the economy is inefficient.unattainable and the economy is efficient. 13. Fifty-eight percent of households reported having at least one member with high blood pressure and 33 percent had at least one member with diabetes. American tourists spending money in the other countries A direct consequence of water scarcity is, therefore, hunger, thirst, and poverty. 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