"Scarcity Implies That Some Way of Rationing Goods Must Be

question 173

Essay

"Scarcity implies that some way of rationing goods must be found." Explain what this statement means. How is this rationing done?

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Definitions:

Professors of Economics

Academics specialized in the study of economics, typically working in universities or colleges, conducting research, and teaching students about economic theories and principles.

Supply

The overall quantity of a particular product or service that is accessible to buyers.

Productivity Workers

Employees whose output per period of time increases due to improvements in technology or work methods.

Labor Demand

The quantity of workers that employers are willing and able to hire at a given wage rate, reflecting businesses' need for labor.