In a world of scarcity, we will never O satisfy all basic human needs. O meet all of society's wants. O use all economic resources such that we satisfy the maximum amount of wants.

When new and better ways of producing all goods and services are discovered or when the quantity of capital increases, O A. the opportunity cost of all goods decreases O B. our economy grows, but we still face scarcity and opportunity cost O C. the economy moves along its production possibilities frontier O D. the production possibilities frontier shifts inward e Text Pages Grapher Get More Help -

7. What is scarcity? In market economies, what determines the distribution of scarce goods and resources?

Could a person or country ever produce a combination of goodsthat lies outside the production possibilities frontier? Why or why not?

Situation in which the amount of an item available is less than people want; O a. Scarcity O b. Production Possibility Frontier O C. Resources Od Opportunity cost

Identify the scarcity definition of economics from the following. a. None of these O b. ways to reduce wants to remove the problem of scarcity. O c. the choices we make because of shortage of resources. O d. the distribution of surplus goods to those in need.

Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce.ElucidateExplain why scarcity exists in this economy. Use the data as evidence of your reasoning.What is the maximum quantity of guns that can be produced?What is the maximum quantity of butter than can be produced?Draw the nation’s production possibility curve.Explain why the nation can’t produce both 3 guns and 4 butters.Explain why the nation shouldn’t produce both 1 gun and 2 butters.

What is Production Possibility Frontier? Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economy’s cow population?

Which of the following scenarios most accurately reflects the concept of scarcity? O Sienna enjoys viewing flowers in the city garden during her walk. O The Smith Household produces an average of three bags of trash a week. Brett is a farmer with an open field on which he can plant either soybeans or corn. O The steak Henry did not buy because he is a vegetarian. 4

Explain why scarcity leads to tradeoffs.