2. ResourcesCanBe said toBe scarce inBothAnAbsoluteAnd relative sense: the surface of the Earth is finite, imposingAbsolute scarcity;But the scarcity thatConcerns economists is the relative scarcity of resources inDifferent uses. Materials used for one purposeCannotAt the same timeBe used for other purposes; if the quantity ofAn input is limited, the increased use of it in one manufacturing process mustCause it toBecome lessAvailable for other uses.
TheCost ofA product in terms of money may not measure its trueCost to society. The trueCost of, say, theConstruction ofA supersonic jet is the value of the schoolsAnd refrigerators that will neverBeBuiltAsA result. EveryAct of production uses up some of society’sAvailable resources; it means the foregoing ofAn opportunity to produce something else. InDeciding how to use resources most effectively to satisfy the wants of theCommunity, this opportunityCost must ultimatelyBe taken intoAccount.
InA market economy the price ofA goodAnd the quantity suppliedDepend on theCost of making it,And thatCost, ultimately, is theCost of not making other goods. The market mechanism enforces this relationship. TheCost of, say,A pair of shoes is the price of the leather, the labor, the fuel,And other elements used up in producing them.But the price of these inputs, in turn,Depends on what theyCan produce elsewhere—if the leatherCanBe used to produce handbags thatAre valued highlyByConsumers, the prices of leather willBeBid upCorrespondingly.
26. WhatDoes this passage mainlyDiscuss?____
A. The scarcity of manufactured goods.
B. The value of scarce materials.
C. The manufacturing of scarce goods.
D. TheCost of producing shoes.