Question

What are the way to narrow the scarcity gap?

What are the two broad types of Economic Organization?

Plz answer all questions!

Answer 1

SCARCITY is the foundation of the essential problem of economic, the allocation of of the limitted resources to fulfill the unlimited wants.

There are three basic economic issue are :-

* "WHAT GOODS TO PRODUCE & IN WHICH QUANTITY "

* " HOW TO PRODUCE THEM "

* " FOR WHOM TO BE PRODUCED "

These three economic issue , it will causes the decision making to bring or become many changes as the scare resources because , it's causes the demand change in market, it's may be affects the quantities of using the scarcity of resources.

At this time we have choose the best option, most appropriate and efficient to overcome these three basic economic issue it's help the entrepreneur to make a decision which goods and services to consume and utilize by effective using the scarcity resources.

In this situation the opportunity cost will occur.

Opportunity cost is the cost in which option choosen from the alternatives.

The opportunity cost is the cost of the next best alternative for the product or services.

Human never feel satisfied us with the something they have they still wanted to get something that is better then they have already.

Human is always instability in their need .The needs have to be satisfied for the life and the wants and to live comfortably ex :- phone firstly humans required photo to talk , then to listen music use radio then for capturing pic and today they require the phone which have many features available in it.

limitlesss needs & wants make resources scares and difficult to sustain . Needs are never ending by the human was never stip working to earn money in order to satisfying their needs.

When human get many alternatives and have to choose the best one of the wants in order to achieve their satisfaction, based on their limited resources

Scarcity can be narrow or removed while providing many options to the consumers or by using the four economic resources in there priority of wants as it's may causes causes the demand to exceed supply.

In LIONEL ROBBIN'S theory, its talks about all wants of human are not sane and important, some are less important and some are more important, so have to consider that which wants is more important and arrange the want which have more important to less important like first we chose the more important wants then the less important wants.

The four resources of economic are also be arranged and come as per their priority like entrepreneur , land , capital and labour

Enterprenuer is required first as is means a person who organize the resources for the production has an idea and able to produce new products

These the person gain the reward and bears the risk. An entrepreneur purpose is bringing innovation and risk taking.

The land resources it's not only represents a piece of land in a country the land contains all natural resources tree , minerals, rivers etc.

The resources of the labour is consist of mental and physical ability of workers the worker is able to work according to job routine and job responsibilities the workers is supervisor, engineer etc

The resources of the capital, capital refers to the goods produced in economy that are used to produce other goods and services for ex :- machine , tools , vehicles etc.

So , if we use these four resources in effective way as per their priority and need in the market and provide many alternatives to consumers then the scarcity gap will get narrow.

All economic aims are organised through market.

A market is a place which organises free interaction of individuals following their economic pursuits prices of the goods and services is collectively constend upon by the purchase and seller.

Fundamental issue can be either resolved in the organisation of economic activities

The two economic organisation are :-

• CENTRAL PLANNED ECONOMIC

• MARKET ECONOMIC

* CENTRAL PLANNED ECONOMIC:- It's a economic structure in which state or government take economic resulation or decision regarding manufacturing and the distribution of the product instead of decision being taken by the interaction between consumers and enties.

* MARKET ECONOMIC :- An economic in which the decision and pricing policy of goods and services are leaded by the comprehensive interaction & involvement of a nation individual Citizen and enties.

In market economic government involvement or central organisation involvement is very small.