Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scarcity and choice are the two essential ingredients of economic analysis.A good is scarce when the human desire or need for it exceeds the amount

Scarcity and choice are the two essential ingredients of economic analysis.A good is scarce when the human desire or need for it exceeds the amount freely available.As a result, society must choose the most efficient manner of allocation of those scarce resources.

Based upon scarcity and choice, why is it not possible for governments to efficiently provide everyone with free healthcare and free higher education without there being negative effects to the aggregate economy?

Think about society's need to choose amongst competing resources and goals.How does personal gain affect choices by individuals and government?Opportunity costs.While we want to do one thing, we can't do others based upon scarcity and opportunity costs.Resources are finite.What about incentives as opposed to free offerings?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Economics In The Twenty-First Century

Authors: Claudia Sunna, Davide Gualerzi

1st Edition

1317219961, 9781317219965

More Books

Students also viewed these Economics questions