Question

A lecturer demonstrates to his students some principles of Economics. He pays attention to the science, which tries to find answers to the following question: What causes unemployment? What causes inflation? What creates or stimulates economic growth? One of the students thinks that the mentioned science examines economy-wide phenomena such as price levels, rate of economic growth, national income, gross domestic product (GDP), and so on. What branch of economics are they talking about?

Answer 1

Ответ:

The primary reason to study unemployment is that it contributes to scarcity. Scarcity always exists since resources are limited and human wants are unlimited. There are five ways to reduce scarcity - the five Es of economics (see diagram below). Full employment is one of the five Es. We defined full employment as "using all available resources". If a society uses ALL AVAILABLE RESOURCES then more goods and services will be produced and scarcity will be reduced