Economy - Scarcity is the problem of infinite human needs...

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Scarcity ( ةردن وا ±لق ) is the problem of infinite human needs and wants , in a world of finite resources . In other words, society does not have sufficient productive resources to fulfill those wants and needs. Alternatively, scarcity implies that not all of society's goals can be pursued at the same time; trade-offs are made of one good against others. Inflation : refers to a general rise in the level of prices of goods and services over a period of time. The term "inflation" originally referred to increases in the money supply ( monetary inflation ); Inflation can also be described as a decline in the real value of money—a loss of purchasing power . When the general level of prices rises, each unit of currency buys fewer goods and services. A trade-off (or tradeoff) Giving up one advantage in order to gain another. For example, a trade-off may be realized by taking a financial loss in order to gain a tax deduction that will lower total tax liability. What must be given up, and what is gained, when an economic decision is made. When choices are made (collectively or by an individual) to accept having less of one
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This note was uploaded on 10/12/2008 for the course ECONOMY 101 taught by Professor Ken during the Spring '08 term at Abraham Baldwin Agricultural College.

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Economy - Scarcity is the problem of infinite human needs...

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