Relate Thsese Three Situations To The Definition Of Economics. In Other Words, How Are These Situations Econimic Issue?

1 ) A household works together to do the chores . They cut wood for the fireplace , cook meals , go to the stock and rent movies at the local video storePut simply , skimp science foundation be understood as the get word of how diametric market system of ruless interact with each other in to win each with the alternatives that they desire . The supply-demand model is one of the original concepts of frugals . The price level of a good essenti on the wholey is driven by the point at which quantity supplied equals quantity demanded . The law of supply and demand predicts that the price level will set off toward the point that equalizes quantities supplied and demandedThis understanding of stintings as applied to this scenario implies that all(prenominal) exertion that involves the procurement of resources can basic ally be called an economic bodily function in relation to the definition of economics . In this scale , the cutting of firewood , cooking of meals and even the renting of movies can all be considered as economic activities because they involve the parceling of scrimpy resources , namely wood food , videos and money2 ) Managers of a braggy hard are decision making to produce a sonsy product for line of electronics . They are making decision on the best place to put their ad dollars , either online or in traditional television system commercialsEconomics has been defined as the assignation of scarce resources among many different players . Simply understood as mere supply and demand Economics can alike be made to apply to more complex systems such(prenominal) as production frontiers and economies of scale . This scenario shows how the scarce resources are allocated amongst twain different economic activities , advertizing online or in traditional television commer cialsAs the allocation of scarce resources ,! the economic sustain down that arises in this situation comes from the fact that there is what is called an chance bell involved .

In decision making whether or not the dollars should be determined online or in traditional television commercials , the family has to decide where the scarce resources (advertising dollars should be properly invested . There is a certain expected rate of return between these two choices . Investing the amount in one of these activities will debark an economic issue with regard to the expected profit that the advertising can generate in the form of increased gross revenue .3 ) Law makers in Washington , DC are deciding how to swing federal money S hould they spend money on preschool programs for minority children or should they invest in a unclothed as a jaybird military weapon system that could make the country safer ? to boot , how much money should they spend on health tutelage or what controls should be placed on the internetThe basic gross domestic product equation includes the amount that the government spends on infrastructure and the rechanneling of monetary resource into the private sector In this model , the investment that a government makes in preschool programs creates more jobs and better opportunities for young students This true(a) affects the productivity curve of the populace therefore making it into an economic activity . On the other hand...If you want to get a full essay, order it on our website: OrderEssay.net

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