Please discuss the following questions using concepts and knowledges you learned from this course. The word limit is 1000 in this question.
1. Critically analyse and explain the following statements:
a) ‘Wants aren't insatiable. I can prove it. I get all the coffee I want to drink every morning at breakfast.'
b) ‘Goods and services are scarce because resources are scarce.'
c) ‘It is the nature of all economic problems that absolute solutions are denied us.'
2. ‘Empirical estimates suggest the following demand elasticities: 0.6 for physicians' services; 4.0 for foreign travel; 0.1 for newspapers; and 1.2 for radio and television receivers.' Use the generalisations for the determinants of elasticity to explain each of these figures.
3. Explain the meaning of the following statements:
a) ‘Before economic growth, there were too few goods; after growth, there is too little time.'
b) ‘It is irrational for an individual to take the time to be completely rational in economic decision making.'