Time constrained assessment Essay Example | Topics and Well Written Essays - 1000 words

Time constrained assessment - Essay ExampleIn economic terms the needs and wants of individuals, companies, organizations, and full countries are transformed into demand. This law of society raises the basic economic problem, as all these needs and wants can be satisfied only to certain finale as the resources required for its satisfaction are limited. Scarcity occurs when people want more than can be satisfied with the resources they have (Wessels 2006 2). Therefore, in order to pay off certain needs and wants people have to choose among alternative uses of their scarce resources, such, for example, as time or money (Wessels 2006, 1). However, the economics as a bailiwick embraces a broader picture of this issue, taking into consideration not only those who consume but also those who produce. In terms of this concept, in that respect is naturally raised the safe and sound set of questions, such as what goods to produce, how to produce these goods, and for whom to produce it. T hese questions are cognise as Samuelsons three questions (Howarth 2013) and help to solve the problem of scarcity resources. What to produce? service to this question helps people to decide the best combination of goods and services to meet their needs (Howarth 2013). ... For whom to produce? This question keys people to decide who will get the outturn from the countrys economic activity, and how much they will get (Howarth 2013). For example, who will consume these grown vegetables or fruits that have been grown? This situation forces all actors to make choices and to prefer one choice to some other one. In economics, this concept of the value, people refuse from, is known as the opportunity cost (Wessels 2006, 3). Opportunity cost, also known as economic cost, is the cost of a scarce factor of production used to produce a good or service, as opposed to other that could have been used, instead of the one adopted (Collin 2006, 58). To illustrate the concept of the opportunit y costs there can be used the following example congeneric to students life and education. The opportunity cost of going to the university is the money a student would have earned if he worked instead during the 5 years of study. Here time is a scarce resource, which an individual can spend either by getting a degree or earning money. However, by graduating the university there is increased chance for a person to find a better paid job due to the professional qualification gained and thus to recover the wooly-minded wages (Investopedia.Com). Thus, an individual has to make a choice between going to university and being employed for a given period of time. The risk of achieving greater benefits with another option is the opportunity cost (Investopedia.Com). In order to illustrate the economic problem and opportunity costs faced by a person, company, or thrift can be used the Production Possibility Frontier, also known as production possibility curve. Production Possibility Fronti er is a interpret