The Concept of Scarcity and the Stimulus Discussion


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Essay #: 055182
Total text length is 10,333 characters (approximately 7.1 pages).

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The beginning:
The Concept of Scarcity and the Stimulus Discussion
Part I: The central economic problem
In modern economics, one of the fundamental conceptual theories deal with the concept of scarcity and how to resolve such an issue. For economists, it is assumed that human wants are virtually unlimited, and that with finite supply there would be a corresponding finite demand. However one must contrast this unlimited demand with the limited resources available to fulfill these wants. Given this resource scarcity, only a finite amount of goods and services can be produced at any one time within an economic system. Thus, the central economic problem becomes how to prioritize needs and the allocation of available resources to satisfy economic utility to...
The end:
.....hin the economic cycle. Although interest rates were already incredibly low, this school of thought would have still maintained that this was the correct course of action, especially since it didn’t further add to the deficit.Notes
Analysis: Economic stimulus package will increase federal debt.
2009. Interlina. 4 Feb. (10 Nov. 2009).
Clarke, Conor. CBO on stimulus multipliers. 2009. The Atlantic.
2 Mar. (10 Nov. 2009).
Farrell, Chris. 2008. The Age of Scarcity. Business Week. 7
April. (9 Nov. 2009).