The Role of Scarcity Value and Market Price
Economics has been defined as ‘A study of human behaviour as a relationship between ends and scarce means which have alternative uses’ (Robbins, 1935). Human wants are more or less unsatiable; with scarce resources they cannot be fully satisfied. As resources have alternative uses, they can be used to satisfy different wants, or combinations of them. The possibility and repercussions of this choice is the subject matter of economics. The choice is optimised by choosing various commodities that can be produced from the available resources in such a way that no other combination of commodities that is also feasible is preferred to the one chosen.
KeywordsWage Rate Foreign Exchange Shadow Price Price System Fixed Capital
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