Last Updated 23 Jun 2020

Impact of the European Economic Crisis

Category Economic Crisis
Essay type Research
Words 496 (1 page)
Views 248

What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? The determination of whether a resource is scarce is its supply in relation to demand such as land, labor capital and human capital. If there is not sufficient amount of resource to satisfy the demands, then resources are set to be scarce. On the other hand if supply exceeds it demand, then the resource is not scare not only that if the supply of a goods or service is low, the market price will rise, providing there is sufficient demand from consumers.

Goods and services that are in plentiful supply will have a lover market value because supply can easily meet the demand from consumer. However there is excess supply in a market, then we can expect to see price fall. The concept of scarcity is because in order to differentiate good in relation to the market, because of the scarcity of resources we need an economic system to determine where and who gets the resources. In capitalism it is the free market system that determines this. In socialism the government owns the resources and determines who gets them. . In the coordinate system of graphs, there are two main relationships between two variables. With the use of numerical examples, describe these two relationships. The two variables is positive means when two variables changes in the same direction and negative means when two variables changes in opposite directions, the relationship is when one variable rises the other variable falls. Positive relations is to say the I need to exercise 5 hrs a week to loss 2lbs so the next week I will have to work 10 hrs a week to loss 4lbs and 15 hrs to loss 6lbs so on.

Negative is buy 1 CD for $5 and when you by three it is 10 so you will pay $3. 33 for one CD on so on . 3. Why is choice important in economics? What are the costs of choice? Choice is important in economics because of is the scarcity of goods in the marketplace. Scarcity means that goods are limited in the marketplace, and consumers must choose wisely which items they will purchase to meet their needs or wants. Consumers will place an internal value on goods they purchase partly based on the available amount of the good.

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Scarcer goods will force consumers to purchase these items first, making the economic choice easier for them. Cost choice is the value given up when choosing to purchase one item over another. The item not purchased represents an opportunity cost, the second-best item available, that the consumer lost purchasing a different item. For example you have to buy $100 worth of groceries but you only have 75, so you decide to forgo and buy the necessary basic food item that is needed like bread, milk, water, etc. The Role of Choice in Economics | How. com http://www. ehow. com/about_5398568_role-choice-economics. html#ixzz1jBKaEUeF

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Impact of the European Economic Crisis. (2018, Jan 19). Retrieved from https://phdessay.com/impact-of-the-european-economic-crisis/

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