Author Question: Explain why both rich and poor people experience scarcity. What will be an ideal ... (Read 123 times)

Bob-Dole · **on:** Jun 29, 2018

Explain why both rich and poor people experience scarcity.

What will be an ideal response?

Question 2

In calculating GDP, economists

A) measure total expenditure as the only true measure.
B) can measure either total expenditure or total income.
C) measure total income as the only true measure.
D) measure total income minus total expenditure.
E) measure total income plus total expenditure.

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

Answer to Question 1

Scarcity exists when people's wants exceed their ability to satisfy the wants. People's wants are literally infinite, so just as a poor person can want more, so too can a richer person. Therefore both rich and poor experience scarcity.

Answer to Question 2

B