outline the theory of resource scarcity . state the reason for which bower rejected
Answers
Answer:The scarcity principle is an economic theory in which a limited supply of a good, coupled with a high demand for that good, results in a mismatch between the desired supply and demand equilibrium. In pricing theory, the scarcity principle suggests that the price for a scarce good should rise until an equilibrium is reached between supply and demand. However, this would result in the restricted exclusion of the good only to those who can afford it. If the scarce resource happens to be grain, for instance, individuals will not be able to attain their basic needs.
Explanation:
Marshall's welfare definition until the publication of Lionel Robin's bookan essay on the nature and significance of economic science in 1932 Robbins definition what are the logical inconsistencies and inadequacies of the early definitions and formulated his own definition of economics he has given a more scientific definition of economics.
in the words of the Robinson economics is the science which studies "human behaviour as a relationship between ends and scarce means which have alternative uses"
MAIN FEATURE:
Human wants are unlimited the fulfilment of 1 want gives rise to number of new ones the means of a person by which is once maybe satisfied are limited. It leads to and economic problems as well warned that cannot be satisfied by these limited means.
CRITICISM:
1) even though Rabbins' criticise marshals definition he has introduced the welfare concept indirectly and his definition therefore the criticism of welfare definition is equally applicable to it.
2) another criticism of Robbins definition is that this definition does not distinguish between ends and means because means you're more sources of enjoyment and end is nothing but satisfaction hence enjoyment and satisfaction at one of the same thing .
3) scarcity definition has been criticised by economics as to say economics is neutral between ends does economics is concerned not only with means but also with the ends.
4) Robin is made economics a positive signs as per Robin is made economics a positive since as per message Macfie," economics is fundamentally a normative science not merrily positive science like chemistry".
5) this definition is not applicable to dynamic society where changes take place and the problem of scarcity of resources can be overcome with the passage of time.
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