Answer to Question #207738 in Microeconomics for SDA

Question

 “To an economist, a resource is ‘scarce’ only if it has a positive price. Resources with zero prices are, by definition, not scarce.” Do you agree? or does the scarce convey some other meaning?       

             

                                                                                                             

Answer 1

Solution:

I do not agree with the economist's statement that scarcity will only occur if a resource has a positive price.

Scarcity of resources is a condition under which a resource has numerous alternative uses. By selecting one alternative from a resource, it means that other uses are sacrificed. Therefore, scarce goods can either be goods that are low or sufficient, which can be due to factors such as low production, loss, or transport strike.