Assignment: What is scarcity?
Assignment: What is scarcity?
Simply and with a simple extrapolation, most specialists agreed that there is an imbalance in the balance of people’s needs and desires relative to their economic resources. Human needs and desires are much more than the resources provided by nature and human effort, so the resources we have are insufficient to satisfy everyone’s needs and desires.
An example of scarcity: drinking water in a village on the bank of a river or with springs is not an economic resource; Because he fulfilled the first condition and did not fulfill the second condition, no one in this case would sell or trade in water. But suppose that the river’s water has become polluted, and the nearest source of safe drinking water is located miles away from the village, only then will the water become an economic resource. People pay money to get it!
One of the most important principles?
The distinction between macroeconomics, which is concerned with economics and its applications as a whole, and microeconomics concerned with economic activities and smaller entities. Knowing the available opportunities and the comparison between them. Any selection process for purchase or investment will be based on the differentiation and weighing the best option. Focusing on developing the competitive advantage in business, making use of specialization and continuous production. The apparent benefits of the usual commodities for which the supply increases and, consequently, the quantities produced from them. The relationship between supply and demand. An increase in supply contributes to lowering the price, and an increase in demand increases the price. The importance of developing the economy and raising the standard of living of individuals, which contributes to raising the gross domestic product. Resistance to abnormal inflation, as well as economic downturn. Carelessness in accepting bank loan offers and their consequences, and balancing the risk between obtaining money and bearing the burdens of the bank loan. Follow-up government financial policies, and inspect rates of spending and taxes, to resist the damages of economic setbacks. Knowing the life cycle of economic movements, from the beginning of growth to its peak, then recession and decline, then resumption of growth, and so on Assignment: What is scarcity?
Post 2
What is Economics?If we talk in very simple terms, then economics is all about making choices
as we all know that resources are limited on our earth and they should must be selected in such a way that it should give the higher opportunity cost
it works on the three main concepts that are –
what to produce
how to produce and
whom to produce
it is concerned with the production, distribution and the consumption of goods and services
it is broadly categorized into two categories that are microeconomics and macroeconomics
microeconomics keeps the smaller picture and macroeconomics keep the bigger picture like calculation of inflation, unemployment etc
the main principle lies behind it is that human beings have unlimited wants but world has limited resources, so the concept of efficiency arises and has economics control comes into the picture
2-Provide an example of scarcity problem that affects an individual consumer.
3-Which economics principles govern the situation you described?
SCARCITY— It is an economic problem which depicts a gap between unlimited human wants and limited resources.
EXAMPLE—-Example of scarcity problem affecting an individual consumer Is SCARCITY OF PETROL/ DIESEL
Assignment: What is scarcity?