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Posted: February 26th, 2022
What is scarcity?
Scarcity is the limited nature of society's resources.
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If there are no scarcity of resources, then economics will be ceased to exist. Do you agree with statement? If your answer is yes, explain; if your answer is no, explain. Offer examples in your answer.
I agree. If there is no scarcity of resources then the concept of supply and demand would be insignificant. There would be no need to manage resources or needs for trade offs. Economics would cease to exist because there would be no need to efficiently manage scarce resources. If society did not have to make choices about what to produce, distribute, and consume, the study of those actions would be relatively insignificant. With the absence of scarcity, society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans. Everyone would get everything they wanted. For example, if fuel/ oil was available in infinite amounts and there was no scarcity of oil as a resources, then gas prices would not reflect the way they have been reflecting for years, and everyone would get access to the oil or fuel they want/ need. Supply and demand would not affect oil prices if there is no scarcity. Same would go for other resources in society.
There is no such thing as a "free lunch." Do you agree or disagree. Discuss and offer examples
I agree. Everything comes at a cost to someone and nothing in life is truly free. Things that appear to be free will always have some hidden or implicit cost to someone, even if that person/entity is not the one receiving the benefit. For example, products and services gifted (free) to individuals are paid for by the person giving the gift- it is not free. Even when there is no one to assume the direct costs, society bears the burden, for example the negative side effects like pollution. There are opportunity costs associated with things.
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References:
Twin, A. (2021, May 19). There ain't no such thing as a free lunch (TANSTAAFL) explained. Investopedia. Retrieved February 23, 2022, from https://www.investopedia.com/terms/t/tanstaafl.asp
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