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What is scarcity with example?

Scarcity dictates that economic decisions must be made regularly in order to manage the availability of resources to meet human needs. Coal is used to create energy; the limited amount of this resource that can be mined is an example of scarcity. Those without access to clean water are experiencing a scarcity of water.

What is opportunity cost kid definition?

Kids Encyclopedia Facts. Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is “the loss of potential gain from other alternatives when one alternative is chosen”.

What is a positive economic statement?

Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it.

Which of the following is an example of positive economic statement?

“A 5% fall in the unemployment rate will lead to a 2% increase in the inflation rate” is an example of a positive economic statement. Normative economics, on the other hand, is analysis that prescribes what an individual or society ought to do.

What is an opportunity cost explain with the help of an example?

When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.

Which of the following is an example of microeconomics?

Answer: Some examples of microeconomics include supply, demand, competition, and the prices of items.

What is the example of microeconomics study?

An example of microeconomics—the study of how individuals or individual businesses allocate resources—could be the way in which a family plans for a vacation to Disney World.

What are economic agents examples?

Economic agents are consumers, producers, and/or influencers of capital markets and the economy at large. There are four major economic agents: households/individuals, firms, governments, and central banks. Some economists put governments and central banks together.

What are the three main economic agents?

Within an economy, there are three main groups of agents.

  • Producers.
  • Consumers.
  • Government.

What are the three main economic groups?

the key economic decisions are: what to produce, how to produce, and who is to benefit from the goods and services produced. consumers, producers and government are the main economic groups. the interactions between the main economic groups.