5. (paradox of) VALUE = (blank) + (blank).
16. (Blank) is a situation when production cannot reach its full potential because resources are available, but not being used.
These are the only two questions that I can't figure out on my study guide. Help?
Please and thank you in advance!
Of course! I'd be happy to help you with these questions.
5. The paradox of value refers to the situation where certain commodities have high value despite being abundant, while others have low value despite being scarce. To answer this question, you need to fill in the blanks in the equation "VALUE = (blank) + (blank)." The answer lies in the concept of scarcity and utility. The value of a commodity is determined by both its scarcity and its utility. So, the two blanks in the equation can be filled as follows: VALUE = SCARCITY + UTILITY.
16. The situation you are referring to, where production cannot reach its full potential due to the underutilization of available resources, is known as "unemployment." This occurs when there are idle resources, such as labor or capital, that could be used for production but are not being used. Unemployment leads to a decrease in output and is considered an inefficient use of resources.
I hope this explanation helps you understand the concepts behind these questions! Let me know if you have any further questions.