Economic Problem of Scarcity and Resource Allocation

Economic Problem of Scarcity and Resource Allocation TASK 1 1(a)Explain the economic problem of scarcity and resource allocation, and evaluate the role of opportunity costs in determining how economics make decisions All the problems which are associated with money are known as economic problem. It is also known as central, basic or fundamental economic problem. It state that there is scarcity that is, the availability of limited resources are not enough to satisfy the need want and demand of the society. So the question is that how to control and what to be produced, and how the capital and labor are utilized to remove this type of problems. The problems of economics appear mostly with two problems: Unlimited human wants Limited resources Scarcity Scarcity is one of the most important and basic problem in which human wants are unlimited so it creates difficulties to fulfill the satisfaction of human wants because resources are limited. Thus we have selected one option. We have to make tradeoffs. We have to use our resources with efficiently and well-mannered way. We are bound to do so because resources are limited and demands of our own are unlimited. Without scarcity, the discipline of economics cannot be presents. Economic is a field of distribution, production and consumption of goods and services. If the society fails to produce the goods according to the required demand and fail to distribute the goods equally between the societies and didn’t fulfill the wants and demands of humans, then the study of the economic problems become boring. In case of scarcity not appears, and then the goods and services would be free. Therefore the decision about scarcity would be made. Allocation resources problems occur due to scarcity of resources and give the answer of the question that what would be satisfied and which should be left unsatisfied. In other words we can say that what to produce and where it is produce and how much it is going to produced? Because production of goods in maximum quantity required more resources and resources are scarce. These two factors are run together if the productions of some products increased then the resources are also being increased because more productions require more resources. The problem of distribution contracts with the question of whether to products capital goods or customer goods. When the demand of some products are increase then the society take decisions of producing capital goods and the resources withdrawn from the production of consumer goods. So in that case both the capital and customer goods are significance 1(b)Explain how market equilibrium is achieved It is the state of the market in which the demand and supply are equal in the market. When the prices of the goods and services are involved in the supply and demand equality state, equilibrium price is achieved. Whenever a market is in the state of equilibrium and the prices of goods and services are not changed unless any external factors changes effect on it, it results in a distraction of the equilibrium. Market equilibrium can be best define on the help of below example and graphical representation For Example: let’s suppose the weekly supply and demand program of soft drink in Students at various prices (between 30p and PKR 1.10p) is shown Price Quantity Demanded Quantity Supplied 1.10 0 1000 1.00 100 900 90 200 800 80 300 700 70 400 600 60 500 500 50 600 400 40 700 300 30 800 200 Equilibrium As it can be seen this market will be in the state of equilibrium at a price of 60p as per soft drink. At this point the demand and supply of soft drinks is to be equal and will be the clear market which means that 500 soft drinks will be presented for sale at the price of 60p and same 500 drinks will be bought that result is no change in demand and supply at price 60. Price Quantity Demanded Quantity Supplied 1.10 0 1000 1.00 100 900 90 200 800 80 300 700 70 400 600 60 500 500 50 600 400 40 700 300 30 800 200 When the price is higher than equilibrium, supply will be more than 500 but demand will be less than 500 so in the short run there will be an excess of supply. Graphically we can say that supply extends outwards along with the curve and demand contracts inwards. Such a changes are called movements along the demand or supply curve in reaction to a change in price. Demands of product contracts due to higher prices therefore the substitution effect and income effect make a chain to dispirit demand as well as when demand extends at lower prices, the substitution and income effect make a chain to boost demand. In term of supply the supplier’s belief of higher revenue and profits when increase in prices boost up supply therefore increase in price decreses the cost of opportunity for supplying more and vice versa. The cost of opportunity of supply narrates to the probable substitutes of the factors of production. Similarly in the case of a college or university canteen that supplies soft drinks or other products become more or less attractive to supply when the price of soft drinks changes.In response to changes in prices, changes in demand and supply stated to as the signaling and incentive effects of change in price. If the information passing rapidly between the buyer and seller in the market efficiently, the excess of demand and elimination of supply will be achieved and the markett growth will rapidly accommodate (in the case between students and a college canteen). Simliarly in the case of supply superfluous, the price will adjust downwards and supply will be reduced by the seller with holding excess stocks. Whereas in the case of surplus demand, the seller will speedily neglect their stock that will generate an increase in price and improved supply. So to create a stable equilibrium price it is necessary and depend on the efficiency of market working and closer to settle the market. 1(c)Assess the importance of elasticity in market interactions In the market interaction the elasticity is important dimension of how the approachable and economic variable is to a change in to another. Elasticity is one of the most significant concepts in neoclassical economic theory. It is the valuable and consideration in the occurrence of unplanned assessment, negligible conception as they communicate to the theory of the firm distribution of money and different categories of goods as they communicate to the theory of customer excellent. Elasticity is also significantly important in any argument of the money distribution and most important in customer benefit, producer benefit or government benefit. Elasticity could be calculated as the ratio of the proportion change in one variable to the proportion change in another variable, when the concluding variable has a fundamental influence on the former. Commonly used elasticity eliminates price elasticity; supply elasticity, income elasticity and replacement elasticity between issues of production and elasticity of inter progressive replacement. Following are some important points which show the importance of elasticity in the market interaction. International trade It is important to keep information about the elasticity of demand of goods while exporting of fix price of products. An organization may fix high prices for the goods with inelastic demand. Thus if the required demand in the importing country is elastic, then exporting country will fix low price. Decisions of Monopolist: A monopolist deliberates the environment of demand whereas fixing price of his manufactured goods. If demand on behalf of the manufactured goods is elastic, at that time he will fix low price. But, if demand is inelastic, at that time he is in a situation to fix a high price. Guideline to the producers The elasticity concept gives the idea to the manufacturers of advertising the amount to be spent on. In case of elastic in commodity demand, then the manufacturer will have to be consumed more amounts on advertising by increasing the sale. Help to trade unions The trade union has the power of increasing the wages of labor where product demand is inelastic. It the demand is relatively elastic then the trade union never force for higher wages. Importance in taxation policy As respects its applied benefits, the idea has huge significance in the scope of government finance. When a finance minister levies a tax on an assured product, he has to understand whether the demand for that product is elastic or inelastic. In case of inelastic in demand he can use his power of increasing the tax and can gather huge amount in the form of revenue. But if the demand is elastic then he is the situation of increasing the tax rate. By doing so the total revenue reduced and demand for commodity is calculated. 1(d)Compare how prices are set in different market structures An industry compares its products with every one of those by whom its products are identify by nature or match with it and a company’s market strategies and structure reliant of that company which they compete. An organization or a company is confidential into four market structure. These are: Perfect competition Monopolistic competition Oligopoly Monopoly Perfect competition A market structure in which the five following condition are encountered. All the organizations sell an indistinguishable product. All the organizations cannot control the price of product into the market. All the organizations have comparatively minor shares in market. Consumers know each and every thing about the product price of sale and purchase. The organizations are categorized by independence of free entry and exit. Monopolistic competition this situation is created when the manufacturer sell out those products who are totally different from one another. This is also called imperfect competition. In the monopolistic competition an organization ignore the impression of its own price and charge heavy price as compare to its competitors. Oligopoly Oligopoly has its own market structure in which market industry is controlled by small numbers of suppliers. Oligopoly reduce competition and from numerous competitors and make principal to higher prices from customers. Monopoly Monopoly creates in the situation when there is no any other company or any competitor. Actually there is only one company is providing the goods and services to the customers and there is no additional company is available to fulfill the requirements of the customer’s needs and demands. Comparison of prices sets in different market structures The pricing strategy is very important in the market structure. This is in a impeccable modest that market will be obvious by the market demand and supply curve of the product in question. The supply curve presents the company’s ability of producing the price. On the perfect competition pricing strategy is show that there is only going to sell products for the consumer on which he demand and pay for it. This is complementary in price and demand. In this situation the perfect competition of market prices would be strong minded by the equilibrium of products and services in the question meaning in that the existent market will establish the price of the product in question. The organization in this situation will be the price taker and fundamentally sole its products on going market strategies. So the producer produces the product at low cost for making high profit. In a monopolistic competition the market structure is categorized by the company to sell their products at the pricing strategy of a company. May be a product that a company produce it is similar with another but a slit different from another then select a price strategy which may not affected to the market. As such, the company will effort to advance a modification in their product by using consumer segments, branding, advertising, and personal sales to set their product separately from other similar but different products. Therefore, there are a variety of prices of the different products as an alternative of a single market price. Due to numerous numbers of competitors in the competition of monopolist they have control over the price they have to set for their individual products. A company’s price strategy that is an oligopoly competition market structure is resulted by their straight competitors as strong and complex by pricing for each other. The company collections of its product price founded on demand. The additional demand, the advanced they can alteration the price but they are thoughtful not to determination the price too in elevation so they won’t interest challengers who would hunger to come into hooked on the marketplace and ambition prices depressed. 1(e)Evaluate the importance of different market systems As compare to the manufacturing of any goods or providing any services, the marketing system is more important. From the producer point of view, the wholesaler and the consumers are changed. But everyone is interested in his profit. From the manufacturer point of view it is also essential to know that the price in the market allow him to make continue to produce or not. This is also important that what to produce and where it is produce and at what time he should sell it. Customer watches in the market form the point of viewing of his buying power as he is able to purchase the goods or services or not. Wholesaler definitely wants to increase their profit by satisfying different market functions to the customers. Marketing has larger reputation and significance for the society as a full than for any of the separate receivers complicated in marketing system. Marketing system brought new ideas and information about quality advantages of goods to customers. It provides relationship between production and consumption. This system also gives to the manufacturers the useful tools and equipment’s, for the easy use of machines and other implements for taking more benefits etc. An efficient marketing system outcomes in lower costs of spreading and lower prices to customers, actually transports around an increase in the National Income. A lower cost of marketing is a straight advantage to the general public. Marketing system supports in become stable the price level. If manufacturer products what customers demand and customers have a extensive optimal of merchandises around are no variation in price. Marketing system changes dormant incomes into authentic resources, of requirements into activities and growth of accountability financial privileged and knowledgeable economic countries. One third of society is involved in the marketing segment and it is expected that one fourth of national income is earned by the profession of marketing. TASK 2

Relationship between hypothesized behavior Essay

The aim of the paper was to determine the relationship between hypothesized behavior resulting from a personality test and actual information behavior from a group-based assignment. Traditionally, information seeking behavior is subsumed under a single monolithic theoretical framework. The study seeks to address the empirical categorization of such behavior. About three voluntary groups of ten library and information science students were observed during a project assignment. The NEO-PI-R test was employed to describe and define personality traits of participants. The independent variables are gender and test results. The dependent variable is the so-called ‘differential information-seeking behavior’ (between the populations). The findings are as follows: 1) some personality traits are related to actual information-seeking behavior, 2) gender is not a good determinant of good behavior, and 3) personality traits are also related to the overall context of group activities. 2) Research Design. You want to know more about the social interaction of preschoolers in the playground. Suppose the number of preschoolers (assuming) is 30 and above, then we can conduct a statistical test. The independent variable is ‘time spent playing with other preschoolers’- X- (assuming that we expand the playing time of the children). The dependent variable is ‘personal acceptability’ – Y – (the degree in which a child receives positively other children). If we observe that an increase in X is accompanied by an increase in Y, then we can assume that the two are correlated. In short, as the amount of time spent playing with other preschoolers is increased, the degree of personal acceptability increases. 3) A correlation value of 0. 89 means that there exists a very strong positive linear relationship between the two variables. In short, the amount of time (in hours) spent in studying is positively related to exam scores. A student who spends more time studying will likely to receive high exam scores. 4) The researchers subjected ‘Albert’ to intense psychological conditions without his consent. The researchers were also indifferent to the consequences of the experiment (which turned out bad for the child). These two instances merit as ethical faults in the study. 5) Neurotransmitters are chemicals which allow the transmission of signals from one neuron to the next across synapses. Neurotransmitters, in a sense, activate receptors of the nervous system. Hormones are also signal chemicals but with different purpose. They are chemicals that transport signal from one cell to another, altering body metabolism (which neurotransmitters cannot do).

Hunger Games, Film Essay Essay

The movie ‘The Hunger Games’ directed by Gary Ross is an extraordinary fictional tale. A tale set in a futuristic dystopia society called ‘Panem’. This nation is divided into 12 districts and a capitol. Every year each district must offer two tributes a male and a female that must fight to the death until there is one remaining tribute out of twenty-four, who later becomes a victor. An interesting character in the film is Katniss Everdene, the films heroine. A District 12 citizen, katniss’s will to survive and furious attitude is shown from the moment we first see her on screen. Throughout the games we see Katniss challenging the regime and having the will to survive. Even before Katniss enters the games we see her take a maternal role over Primrose, her younger sister. Katniss provides a living for them both. The level of maturity shown through the character Katniss makes her intriguing to the audience, making her and interesting character. Throughout the film, character Katniss provided the audience with a sense of maternal values and wholesome family principals. As food is scarce in District 12, Katniss hunts in the nearby district in order for her family to survive, despite the dictatorship her life is ruled by. A full shot of Katniss daringly venturing into a neighbouring district to provide food, shows us just how bad the situation is for the district. The fence that separates the districts can be seen for an immense way, and the close up of the high voltage sign provides us with the feeling of what Katniss would do for her family. This restores a sense of familiar family values to the audience. The director Gary Ross has deliberate used Katniss’s character to involve our own emotions and connect closer to the film through Katniss’s maternal instinct to keep her family alive. Gary Ross positioned the viewers to feel for her family and the community who are run by greedy sadistic dictators and we feel disgusted for those who try and run others lives through the enforcement of fear. Gary Ross uses Katniss to relate to our problems and us, viewers can understand the challenges Katniss goes through cause they are much like our own. Katniss show the audience how everybody has the natural instinct to survive when put in front of difficult situations. Before Katniss enters the games she comes across as stubborn and making friends is not her strong point. Katniss portrays a sympathetic and loving emotion during the games once Hamish, her mentor gave her wise words, ‘you have to make people like you’. Hamish being a past tribute, who became a victor, knows how the games must be played to win. A mid shot on Katniss’s face when told this captures her emotions in a way the lets the audience know the discomfort the news has brought her. Katniss preformed well during the games, and upheld a persona leading up to the games. Together Katniss and Peeta, the male tribute from district 12 forged a fake love for the satisfaction of the government. In a critical moment in the film after Peeta gets injured they use their ‘love’ to receive medication, A single kiss helped them get the suplies they needed with a note attached reading â€Å"you call that a kiss†. Kat niss is willing to adapt to lying in order to survive. As the audience, we are positioned to understand to understand her point of view, Katniss does not enjoy killing, nor approve however in order to survive she is willing to do what is nessercery, and as viewers we asked left asking what would we do in this situation? Through Katniss’s character, Gary Ross has led the audience to see how natural human emotions have led Katniss to rebel. A rebellion against the regime ordered by the totalatarian government. When a young girl named Rue from district 11 is murdered due to a consequence of the games, Katniss comforts her as she would with her younger sister, Primrose, this positions the audience to feel sympathy towards the tributes of the games, especially young Rue and we feel ashamed towards the form of entertainment enforced by the government. Katniss’s rebellion is sparked by Rue’s dying last wish ‘ you must win’. Rue is helping Katniss through her battle, so Katniss supports her by showing a symbol of respect towards district 11. Katniss holds up her three fingers towards the camera in a full shot angle to capture the significance of this tiny action. No past tribute has ever done this towards another tributes and Gary Ross uses this action to differentiate Katn iss from the other tributes. Katniss’s action brought humanity to the games, which brought hope, and a lot of hope was unwelcome by the Capitol.

Essay The Media Causes Eating Disorders - 2171 Words

During your lifetime 250,000 people will die due to an eating disorder. Is this really the type of society we want to be a part of? One which causes people to die needlessly due to media influences which cause the augmentation of a detrimental body image? In the eyes of society emaciated celebrities are the embodiment of perfection. This media ideal of thinness presents society with an unrealistic body image and is projected through the means of television, commercials and magazines, causing women to replicate this ideal. False idealism is the jurisdiction of the 21st century with the number of teenage girls in Britain being admitted to hospital due to anorexia doubling in the last decade. The fundamental reason I chose this topic is†¦show more content†¦In this essay I will assess and focus on why this is so, as well as recent new stresses the media has established throughout society. Flawless images used throughout the media saturate young girl’s minds, highlighting superlative women. For teenage girls this is hard to ignore with the line between fantasy and reality skewed my mass media and stress placed on obtaining an idealistic body portrait. In modern, Western society children are constantly bombarded with images of a false nature: many of which are photo-shopped to remove ‘imperfections’. But one of the most outraging/staggering facts is that children are not unaware of the demeaning and derogatory methods used by the media with ‘81% of 10 year olds scared of becoming fat’ (World Health Organisation) showing that the prominence of the media is becoming ever more apparent. Television images have the capability and unique aptitude to mould children’s attitudes and these are established at a very early age. Children look at TV characters as what society sees and expects of them and begin to stereotype. If a thin actor/ actress is playing the lead or key role children automatically assume they play an important factor in society and by being thin they are therefore of a higher status. This false imagery plays a vital role in a child’s upbringing, leading to a submissive pressure to constantly diet and strive for the ‘perfect body image’ and my research hasShow MoreRelatedPeer Pressure And Media Cause Eating Disorders1743 Words   |  7 PagesPeer Pressure and Media Cause Eating Disorders A USA Today article reported, â€Å"According to a 2011 study in Archives of General Psychiatry about 6% of youths suffer from eating disorders. The report went on to say the 55% of high school girls and 30% of boys had eating disorder symptoms. They used diet pills, vomiting, laxatives, fasting and binge-eating to help them lose weight (Healy). 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