2 points
25. Consider a world without
scarcity of resources. Then
what would be the
consequence
Answers
Explanation:
In theory, if there was no scarcity the price of everything would be free, so there would be no necessity for supply and demand. There would be no need for government intervention to redistribute scarce resources. ... But, if there is no scarcity, then a fall in economic growth would be meaningless.
Answer:
The difficult thing is trying to imagine what a society would be like if it had no scarcity.
One thinks of the imaginary desert island, with abundant resources and a lone Robinson Crusoe living a life of luxury. In this case, it is hard to see the relevance of studying economics.
In theory, if there was no scarcity the price of everything would be free, so there would be no necessity for supply and demand. There would be no need for government intervention to redistribute scarce resources.
One could think of macroeconomic problems like economic growth and unemployment. But, if there is no scarcity, then a fall in economic growth would be meaningless.
Nevertheless, you could say it is impossible to eliminate scarcity because Robinson Crusoe would face a scarcity of time. In other words, he would be facing opportunity costs between picking pineapples and swimming in the sea.