ECON 1050 Study Guide - Midterm Guide: Externality, Semicolon, Informa
Document Summary
I am terribly sorry for not writing sooner, but the other day while reading this new book called. Cocktail party economics i couldn"t help but remember the dif culties we used to have in our high-school economics class! After reading the book i knew that if there was one person who would want to know about this book, it would be you. The author, eveline adomait starts of in chapter one by explaining the idea behind scarci- ty, which i found very interesting because in this ever expanding world with unlimited wants and. Nite resources to satisfy these wants, we need to have the knowledge which will enable busi- nesses and societies to use economic principles to distribute resources effectively and achieve ef ciency in the economy. Scarcity determines several economic characteristics namely the price, demand and supply of a product (pp. 09). Scarce goods have higher prices due to their high demand and limited supply for example gold.