ECONOMICS 1
Economics
Student's Name
Institution Affiliation
Tutor's Name
Course
Date
, ECONOMICS 2
INTRODUCTION
Generally, global markets tend to have an upward trend that assists the economy in
having desirable products. Also, international markets ought to have better and effective
resources that are beneficial to the investors. For an economy to have positive growth, producers
must incorporate better services to engage and ascertain the appropriate resourceful and valuable
products (Hamilton et al., 2019). Additionally, for an economy to ascertain better growth, it has
to undergo various challenges that may affect the economy positively and negatively. Regarding
the task mentioned above, the various factors will be focused on and showcased: scarcity,
opportunity cost, analysis of production possibilities, and differences between macro and
microeconomics.
1.SCARCITY:THE BASIC ECONOMIC PROBLEM
Similarly, scarcity in an economy refers to how an economy can have products that are
insufficient for a business. Scarcity affects both consumers and producers, thereby affecting
avenues within an economy. Producers are affected by scarcity, thereby making suitable choices
in using limited resources within an economy. Scarcity tends to affect consumers, deciding what
goods and services are desirable to select. Additionally, scarcity plays a vital function that
influences both the demand and supply of products that affect the producers. Products subjected
to higher demand showcase higher prices that affect competition within the economic market.
Regarding consumers, scarcity affects services and commodities to be purchased based on
infinite wants and limited resources.
Notably, land, labor, capital, and entrepreneurship are factors of production that tend to
relate to scarcity in different ways. Land and labor can be argued in terms of scarcity, whereby
Economics
Student's Name
Institution Affiliation
Tutor's Name
Course
Date
, ECONOMICS 2
INTRODUCTION
Generally, global markets tend to have an upward trend that assists the economy in
having desirable products. Also, international markets ought to have better and effective
resources that are beneficial to the investors. For an economy to have positive growth, producers
must incorporate better services to engage and ascertain the appropriate resourceful and valuable
products (Hamilton et al., 2019). Additionally, for an economy to ascertain better growth, it has
to undergo various challenges that may affect the economy positively and negatively. Regarding
the task mentioned above, the various factors will be focused on and showcased: scarcity,
opportunity cost, analysis of production possibilities, and differences between macro and
microeconomics.
1.SCARCITY:THE BASIC ECONOMIC PROBLEM
Similarly, scarcity in an economy refers to how an economy can have products that are
insufficient for a business. Scarcity affects both consumers and producers, thereby affecting
avenues within an economy. Producers are affected by scarcity, thereby making suitable choices
in using limited resources within an economy. Scarcity tends to affect consumers, deciding what
goods and services are desirable to select. Additionally, scarcity plays a vital function that
influences both the demand and supply of products that affect the producers. Products subjected
to higher demand showcase higher prices that affect competition within the economic market.
Regarding consumers, scarcity affects services and commodities to be purchased based on
infinite wants and limited resources.
Notably, land, labor, capital, and entrepreneurship are factors of production that tend to
relate to scarcity in different ways. Land and labor can be argued in terms of scarcity, whereby
