Economics is about trade-offs. If more scarce resources are used to produce one thing, fewer will be available to produce others.
2007-08-23 17:22:57 · 4 answers · asked by Anonymous in Social Science ➔ Economics
I would agree with this statement in general. Economics is about the allocation of scarce resources. Since there are more possible uses for a resource than there are resources, they are, by definition, scarce. The goal of most economic models is to maximize some measure of utility, through the systematic allocation of resources according to a predefined set of rules.
2007-08-23 18:44:34 · answer #1 · answered by William N 5 · 0⤊ 0⤋
Firstly, I would say equilibrium instead of trade offs. "one thing" should be changed to: good, product, commodity etc. Like: Equilibrium is one foundation of Economics. If a product (good, commodity etc.) utilizes mass quantities of resource A, other products using resource A will be affected. Due to the depletion of resource A, production of subsequent products will lessen as resource A decreases in availability............Or something like that.
BTW, if the product is not a popular product, even if it uses large quantities of a resource, it will not effect the production of the 2nd product as much, if not at all.
2007-08-24 00:53:31 · answer #2 · answered by bellaserah2 3 · 0⤊ 1⤋
Sounds pretty straightforward to me.
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2007-08-24 00:25:57 · answer #3 · answered by Wise@ss 4 · 0⤊ 0⤋
sure
2007-08-24 00:28:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋