Answering Questions Order 906481
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Answering Questions Order 906481
- What does the discipline of economics study? In your answer, use at least four of the following five terms: economics, scarcity, division of labor, specialization, economies of scale.
The discipline of Economics is involved in ensuring that the scarcity of products and services in a certain place is afforded all people the ability to get the products. Also, the discipline involves the division of labor in an organization to ensure that all people are given the little opportunity available in the company. Also, economics involves the specialization of work or labor in the organization in that people handle jobs that they have expertise in (Peng, 2019). Besides, it involves ensuring that companies are market leaders through the manufacturing of products through economies of scale.
- Contrast microeconomics from macroeconomics
Microeconomics is the study of decisions made at the business level and the management of the company’s capital. Macroeconomics is far-reaching as it covers the study of the decisions that have to be made by governments such as inflation, fiscal policy, and monetary policy.
- Contrast traditional economies, command economies, and market economies.
A traditional economy involves the use of beliefs and customs to make decisions that involve the production of service and products. On the other hand, command economies are where a centralized system is used in making decisions about factors such as inflation and unemployment. On the other hand, a market economy involves the system where the laws of supply and demand take effect and control the production and consumption of goods and services.
- Assess the importance and effects of globalization.
Globalization has been important as many people have been able to assess new technology. Also, globalization has enabled goods’ movement to other countries, thus finding a market for them. Globalization has brought about the effects of the killing of local industries due to firms’ entry that has high economies of scale. Globalization has also brought about making the business world a small village as many barriers have been removed.
- Describe and graph your example of a budget constraint using two goods (don’t forget to label your axes). In your example, make sure to state the budget, the price of the two goods, the slope of the budget constraint equals (make sure to include the correct sign), and interpret what the slope represents.
The X-axis presents the product of juice, and the y-axis has the bread. The cost of juice is $12, while that of bread is $7. The required budget is $36, which is on the lower side of the income; all goods will be affordable, but if on the upper side, they will be against the budget.
- Give an original example of someone making a decision “at the margin.” Make sure to discuss the marginal benefits, the marginal costs, and how they decide the best decision (or when to stop).
An example is an increase in price for water. The marginal benefits of water increased price will mean that they have been increased above the product’s marginal cost. The best decision will be decided when the marginal benefit is lower than the marginal cost; therefore, people will buy the water.
- Graph a production possibilities frontier (PPF) showing the production of two potential goods (don’t forget to label your axes). What do points within, on, and outside of the curve represent? What does a bowed-out PPF curve tell us about opportunity costs?
A presents the resources going to the health care industry while at F, all the resources are given to education. The community is supposed to decide whether they should go for healthcare and not education at point B. At point D, the society has to decide foregoing healthcare for education. At C, the tradeoff takes place. A bowed curve shows that a decision has to be made on the opportunity cost.
- Discuss what is meant by comparative advantage and how trades between two individuals based on their comparative advantage can lead to a “win-win” situation.
It is when a person can produce a product at a low cost. The tradeoff is based on the costs involved in producing the product, and a win-win situation is found by sharing raw material ideas.
Reference
Peng, Y. (2019). Introductory Discussion on Microeconomics. International Journal of Tax Economics and Management.