Question

What does Heilbroner mean by social surplus? Contrast this idea with Schiller’s scarcity concept. How might a macroeconomic analysis centered on social surplus differ from one centered on scarcity?

Answer 1

Heilbroner means social surplus is the relationship between two distunct forms and its the wealth and the underlying concepts in the economical organization its the sum between the producer surplus and the consumer surplus and the total surplus is always higher at the equilibrium for pice and quantityt.According to the schillers concept the people will always want more than what is allowed to them.Scarcity is the gap between the limited in this type of situation one has to decide on how to be sure of allocating their resources to cover their needs.A macroeconomic analysis will be done at various levels such as to show the projections of economic trend,long term projections,impacts of the fiscal and monetary measures.In this the contrast to both side there is a difference between the both when there is a need of a product eg:during the season of Christmas there is a huge requirement of Christmas trees and they are also stored in extra but still there is a scarcity, if we look there is no need of getting into the scarcity zone even after the Christmas holidays are close but how would this be eradicated it can only be done when the seller is willing to sell at a price lower than what It is, but again each of the trees would be priced differently hence at a economic type of perspective the nature of both are different at its end and it can vary or depend upon the situations to be actioned.