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3 years ago

Explain why economists are concerned with relative scarcity as opposed to absolute scarcity?

Business

2 answers:

STatiana [176]3 years ago

7 0

Answer:

Absolute scarcity: First, it may be that there are simply insufficient quantities of a resource to meet human needs or wants. ... Relative scarcity: Second, there may be physical quantities of a resource present but scarcity exists because of problems about supply or distribution.Jan 19, 2012

Explanation:

olganol [36]3 years ago

6 0

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McCarthy Company has inventory... McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, i

KatRina [158]

Answer:

Ending inventory= $3,485

Explanation:

Giving the following information:

Beginning inventory= 8 units for $200 each

On October 2= purchased 20 units at $205 each.

11 units are sold on October 4.

u<u>nder the FIFO (first-in, first-out) inventory method, the ending inventory is calculated using the cost of the last units incorporated into inventory.</u>

Ending inventory= 17*205= $3,485

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3 years ago

Firms are very small relative to the market. Firms have significant price control. Firms produce very similar products. There is

Anika [276]

Answer:

Firms are very small relative to the market. PERFECT COMPETITION
Firms have significant price control. NOT PERFECT COMPETITION - in perfect competition all firms are price takers.
Firms produce very similar products. PERFECT COMPETITION
There is a large number of firms. PERFECT COMPETITION
There are significant barriers to entry and exit to the market. NOT PERFECT COMPETITION - in perfect competition there is free market entry and exit
Firms have no price control. PERFECT COMPETITION
Firms produce differentiated products. NOT PERFECT COMPETITION - in perfect competition firms produce homogeneous products.

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2 years ago

The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of deposits.

Flauer [41]

Answer:

Quantity of money changes by $50,000,000

Explanation:

Desired reserve ratio = 10% = 0.1

Currency drain ratio = 1% = 0.01

Money multiplier = (1+0.1) / (0.1+0.01) = 1.1/ 0.11 = 10

Value of securities purchased = $5 million

Change in quantity of money :

$5 million * 10 = $50 million

Currency created : currency drain ratio * change in quantity of money

0.01 * $50,000,000 = $500,000

Amount of bank deposit = quantity change - currency created

= $50,000,000 - $500,000 = $4,500,000

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2 years ago

Money is

Contact [7]

Answer:

Explanation:

money is a valuable because it is backed by gold

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3 years ago

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3 years ago

Explain why economists are concerned with relative scarcity as opposed to absolute scarcity?​

Explain why economists are concerned with relative scarcity as opposed to absolute scarcity?