00:01
Hey everyone, today we're answering problem 8 from chapter 2 the textbook, which asks us to basically explain the rationale for why scarcity inevitably leads to tradeoffs.
00:13
So first you to think about the concepts of scarcity and tradeoffs, then their connection.
00:21
So we want to think about the concepts of scarcity and tradeoffs.
00:27
And then we want to think about their connection.
00:29
And then once we identify that connection, we can kind of answer the question.
00:45
All right.
00:46
So, well, thinking about scarcity, it means that basically not enough of resources, not like however much resources are put into the economy, not enough of one good could be produced to satisfy everyone's demand.
01:21
That means that, you know, there may be less of one idea.
01:24
So that means that there's going to inevitably be trade -offs, which i'll explain why and a little bit more, which means that there has to be a choice of choosing one good or service over another.
01:44
You're going to have to give one up in order to get another...