Question

In: Economics

Provide an example of scarcity problem that affects an individual consumer. Which economics principles govern the...

Provide an example of scarcity problem that affects an individual consumer.
Which economics principles govern the situation you described?

Solutions

Expert Solution

The problem of allowance of resources develops because of the shortage of resources. Now, let's discuss an example of a concern of deficiency that affects a private customer. Expect I prepare to spend $2000 on a fantastic night in Vegas, that means $2000 less than I needed to invest in other things, such as a diamond pendant for myself, or college tuition for your kids due to minimal resources. This restricted resource is needed for other things also. Take an example of US economy for, during Katrina when oil ended up being costly, people will have to cut on spending to afford oil for their cars and houses.

Deficiency restricts choices and needs choices, this is the condition of having to choose among various alternatives. To get more of one thing, a person passes up the chance of getting the next best thing. Therefore in the above-discussed example, we can apply the concept of opportunity expense. When making any choice, decision-makers need to consider the chance expenses of each alternative course of action.

Please vote thumbs up


Related Solutions

What is Economics? Provide an example of scarcity problem that affects an individual consumer.
Write a one page summary that addresses the following: What is Economics? Provide an example of scarcity problem that affects an individual consumer. Which economics principles govern the situation you described?
What are the three behavioral economics principles associated with the psychology of scarcity? List and explain...
What are the three behavioral economics principles associated with the psychology of scarcity? List and explain these principles, while offering an example in public policy.
1.There are certainly many exceptions to the “fact” of scarcity in economics. For example, I can...
1.There are certainly many exceptions to the “fact” of scarcity in economics. For example, I can turn on the tap and have all the water I want. Therefore there is no scarcity of water.” Critically evaluate. 2.      A friend of yours expresses the opinion that the only resource that is important in the macroeconomy is money. He says, “The more money an economy has, the richer it is.” How would you respond?
Which of the five philosophical principles that govern media ethics is most important and why?
Which of the five philosophical principles that govern media ethics is most important and why?
Which of the following is not a "false" statement in economics? Question 3 options: Scarcity means...
Which of the following is not a "false" statement in economics? Question 3 options: Scarcity means that the available economic (limited) resources are enough to produce the goods and services necessary to satisfy all of the unlimited human wants. The production possibility frontier (PPF) for an economy illustrates the different combinations between two products that an economy can produce when all resources are fully employed, with an unchanged available amounts of resources, and for a level of technology that only...
Explain two key principles which are the foundation of accrual basis of accounting. provide an example...
Explain two key principles which are the foundation of accrual basis of accounting. provide an example of how accrual and cash basis differ
Provide an example of how (if any at all) an event affects the location of a...
Provide an example of how (if any at all) an event affects the location of a country's production possibility curve (PPC)? Now discuss the two major ways in which an economy can grow and push out its production possibilities curve.
In the Mankiw's Principles of Economics Ch.21 Consumer Theory regarding budget constraints and indifference curve. There...
In the Mankiw's Principles of Economics Ch.21 Consumer Theory regarding budget constraints and indifference curve. There are two applications; wages and labor supply & Interest Rates and Saving. What are the slope of the budget constraint curve and indifference curve in both cases? Please tell me the meaning and the mathematical form of optimization of both.
1.Which of the following is NOT an example of scarcity? Select the correct answer below: Due...
1.Which of the following is NOT an example of scarcity? Select the correct answer below: Due to a lack of rain in San Diego, California, the amount of water for families is limited. Crude oil was in short supply in the 1970s, leading to a quantity demanded being greater than the quantity supplied. After textbook buyback season, Amazon received an influx of used textbooks into their inventory. Fresh water bass are on the decline due to disease. 2. Which of...
Provide an overview of the "economics" of college Historical cost escalation of tuition (inflation) vs. Consumer...
Provide an overview of the "economics" of college Historical cost escalation of tuition (inflation) vs. Consumer Price Index (CPI) Student loan growth over the last 10 years College as an investment Lifetime earnings for college grads vs. non-grads Top 10 starting salaries by college major
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT