Briefly explain the difference between the concepts of scarcity and shortage
What will be an ideal response?
Scarcity is not a shortage. Scarcity occurs when we cannot obtain all that we want at a zero price. We can eliminate a shortage but we cannot eliminate scarcity because it always exists as a result of limited resources relative to our unlimited wants.
Economics
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Transfer payments are an injection into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
Economics
The diagram that represents how income is distributed among members of a population is known as a(n):
a. indifference curve. b. Laffer curve. c. Edgeworth box. d. Lorenz curve. e. Phillips curve
Economics