Answer to Question #46952 in Microeconomics for Yoyo

Question

If all the people in a country earned the same money, there would be neither poverty nor scarcity in the country. Please explain in detail why this statement is false.

Answer 1

The fact that all the people in a country earn the same money doesn't guarantee the same spending and the same level of live, because different people need to spend money for different purposes and different amount of money. So, this fact doesn't tell us, that there would be neither poverty nor scarcity in the country, that's why this statement is false.