Type
Essay
Pages
9 pages
Word Count
2290 words
School
California State Univers
Course Code
business

Economic

March 31, 2020
YPC INTERNATIONAL COLLEGE
BA (HONS) BUSINESS MANAGEMENT
Individual coursework
Assessment 1
Business and Economics Decision Making
4051YPCBM
Ms. Fatin
BBM1909007
896871
1 Contents
1. Introduction ..................................................................................................................................... 3
2. Explain what is mean by the term scarcity. What are the implication of scarcity for all
economics? .............................................................................................................................................. 1
3. What do you consider to be the main reasons for the recent increase in the retirement age? 2
4. Why is the price elasticity of demand so important in economics? ....................................... 3
5. Outline using real world examples where appropriate, what is meant by the term
‘Monopolistic Competition’…………………………………………………………………………………………………4
6. What is price discrimination and what conditions are necessary for it to be successful?
Give examples in your answer……………………………………………………………………………………………5
7. References…………………………………………………………………………………………………………………..6-7
1. Introduction
Economy is a state of a country or region in terms of goods and services production and
consumption and money supply. To discuss the definition of scarcity and implication of
scarcity throughout the economy. Then, illustrate about main reasons for the recent increase in
the retirement age. Next explain about the price elasticity of demand so important in
economics. However explain about the monopolistic competition and show the real world
examples. Finally, discuss the price discrimination and what conditions are necessary for it to
be successful with give an examples.
4051YPCBM Business and Economics Decision Making
2. Explain what is mean by the term scarcity. What are the implication of scarcity
for all economics?
(Dixon, 2000) comments that scarcity is one of the key economic issues. The scarcity issue
means we need to consider how to manufacture from limited resources and what to do. This
means that the cost of making economic choices requires endless incentives. By placing a
higher price on scarce goods, economics solves the problem of scarcity. The high price
discourages competition and allows businesses to come up with alternatives. (Shah, 2014)
support that scarcity is defined as wants always exceed limited resources to satisfy them.
According to the (Hodge & Siobhan, 2017) implication of scarcity is limited production
resources-labour, capital, arrive, and entrepreneurship are restricted. It means that the
economy only has so many resources that it can use to produce goods and services at any
given time. Limited resources are one half of the fundamental scarcity problem that has
plagued mankind from the beginning of time. The other half of the problem of scarcity is
limitless needs and wishes (Madeleine, 2009). The second implication is opportunity cost.
Cost of opportunity is the advantage lost in choosing between two competing uses of scarce

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