Answer to Question #80902 in Microeconomics for joseph

Question

“it is orthodox to say people’s desire has no boundary from the time past, even in the face realistic limited resources, individual agents never stop to want more of economic output”.

In not less than 180, and not more than 250 words, validate the above statement and discuss with relevant details. (7 points)

Answer 1

The principle above is one of the basic principles of economics. Generally, economics is science that studies how society satisfies its unlimited desires, having limited resources. On the one hand, it is a true fact that an economic agent's desires and needs are unlimited. Moreover, the satisfaction of one desires leads to occurrence of the new ones. For instance, when the one invented the car and satisfied its needs for transportation, the need for faster and more comfortable transportation occurred. That is why it is possible to assume that the range of society's needs is only be growing. On the other hand, the resources are limited. Especially it is related to natural resources. Traditionally, society has resolved this problem via innovations and more effective usage of those limited resources. Thus, disbalance between an economic agent's needs and resources is the main driver of economic progress and growth.