Nicholas Byrd
August 13, 2010
World Issue/ Economics
*How does scarcity influence the choices you make about how you spend your money? Give a specific example of a trade-off that you had to make. What was the opportunity cost of your decision? Afterwards how did you feel about your choice? Scarcity influences me because I only have very small amount money to try to buy something expensive. I can see if I had a job that pays a good amount off money then I will be able to buy stuff that is limited up to the cost. A trade-off I had to make was going to a fancy restaurant or the mall I choose the mall because I can walk out with more merchandise. My opportunity cost was that I didn’t get to eat at Houston which is one of the best restaurants. I felt good and proud of myself because instead of going to the restaurant I went the mall and got what I wanted and more.
*How do your business owners influence each of these factors of production? What is a risk and reward that business owner might incur with each of the four factor productions? Well a Business owner Influence their land by improving opportunities to enable the business with the people you want to do business with. Labor are in short supply, which increases the costs by requiring either more pay to acquire the labor that is available, the recruiting of labor from other areas, or the usage of the less productive labor that is available locally. My Capital goods are t-shirts, shorts; pants, socks, sweaters, and shoes. Entrepreneurship this is the input to production may be thought of as good management and showing the customer’s respect.
*Do you see yourself more as an individuals that will supply labor or as an entrepreneur who make decision about the use of labor? Explain how you reached this conclusion? I see myself as an entrepreneur who makes decision about the use of labor because if my business is going the right way then there will be enough money to pay my labors.
*How do you feel about your knowledge of this standard? What are two questions that you have about this standard? I feel comfortable about this standard because I paid attention and study my vocabulary words and it helps a lot. One of my question is what is the difference between Scarcity and Opportunity cost and is there a way i can remember the four factors of productions.
Nice thoughtful post Nick. I want you to refer to your notes more as you respond to the questions. The four factors of production are the four components that are required to produce goods and services. An entrepreneur influences land by renting, leasing, or purchasing property--he/she influences labor by hiring individuals to do the work--influences capital goods because capital goods are needed in the production of goods and services.
ReplyDeleteAs for your questions, think of scarcity as the limited money you spoke about--money is a scarce resource--scarcity refers to limited resources; unlimited wants and needs. Because our money (resources) is limited, we have to make choices (trade-offs)--So you made a trade-off and chose to go to the mall instead of to Houstons. The opportunity cost is the 'cost' of this decision...which in your example was not eating an expensive meal at Houstons. Think of opportunity cost as the 'cost' of your decisions. So when you make choices, ask yourself "What is this decision going to cost me?" and whatever that answer is, that's your opportunity cost. By definition, opportunity cost is the next best forgone alternative. If you're still confused, we can talk about it more during tutorial. Thank you for all your effort in class!