Author Question: Are all goods economic goods? Are all economic goods also goods? Explain. What will be an ideal ... (Read 156 times)

clippers! · **on:** Jun 29, 2018

Are all goods economic goods? Are all economic goods also goods? Explain.

What will be an ideal response?

Question 2

Distinguish between scarcity and shortages.

What will be an ideal response?

hanadaa · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Not all goods are economic goods. Economic goods are a subset of all goods, and are produced from scarce resources. Sunlight is an example of a good that is not an economic good. Hence, the answer to the second question is yes.

Answer to Question 2

Scarcity exists because the wants of human beings are unlimited while resources are limited. The meaning of a shortage is not the same as scarcity. A shortage exists when people have to wait in line for things, especially on a temporary basis. Scarcity relates to the poor but also to the rich; scarcity is a fact of life that affects everyone. A shortage occurs when the quantity of a good desired exceeds the quantity available at a positive price.