Explain how scarcity comes in a land of abundance.
Explanation of Solution
The United States is a rich country since there are abundance of goods and services that are available to the people. But the fact is abundance does not mean that the resources available in the United States are unlimited, and no one has unlimited quantity of resources such as time, money, and so on. The limited resources and unlimited needs or wants are the central root of the problem of scarcity. Since the country is rich, it has the capacity to buy more number of goods and services. Thus, even in a land of abundance, there is also a scarcity problem.
Scarcity: Scarcity refers to the limited availability of resources than the required level.
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Chapter 1 Solutions
Mindtap Economics, 1 Term (6 Months) Printed Access Card For Arnold's Macroeconomics, 13th
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