Time constrained assessment Essay Example | Topics and Well Written Essays - 1000 words

Time constrained assessment - Essay good exampleIn economic terms the needs and wants of individuals, companies, organizations, and whole countries are transformed into demand. This law of society raises the rudimentary economic problem, as all these needs and wants target be satisfied only to certain uttermost as the resources required for its satisfaction are limited. Scarcity occurs when people want more than can be satisfied with the resources they have (Wessels 2006 2). Therefore, in differentiate to satisfy certain needs and wants people have to ask among alternative uses of their unique resources, such, for example, as time or money (Wessels 2006, 1). However, the economics as a field of battle embraces a broader picture of this issue, taking into consideration not only those who consume but also those who explicate. In terms of this concept, there is naturally raised the whole set of inquires, such as what goods to produce, how to produce these goods, and for whom t o produce it. These questions are known as Samuelsons three questions (Howarth 2013) and help to solve the problem of scarcity resources. What to produce? execute to this question helps people to decide the best combination of goods and services to meet their needs (Howarth 2013). ... For whom to produce? This question addles people to decide who bequeath get the output from the countrys economic activity, and how much they will get (Howarth 2013). For example, who will consume these grown vegetables or fruits that have been grown? This situation forces all actors to make choices and to prefer one choice to another(prenominal) one. In economics, this concept of the value, people refuse from, is known as the opportunity apostrophize (Wessels 2006, 3). Opportunity cost, also known as economic cost, is the cost of a scarce factor of production used to produce a good or service, as opposed to another that could have been used, instead of the one adopted (Collin 2006, 58). To illus trate the concept of the opportunity costs there can be used the following example relative to students life and education. The opportunity cost of going to the university is the money a student would have earned if he worked instead during the 5 historic period of study. Here time is a scarce resource, which an individual can spend either by acquire a degree or earning money. However, by graduating the university there is increased chance for a person to visit a better paid job due to the professional qualification gained and thus to recover the deep in thought(p) wages (Investopedia.Com). Thus, an individual has to make a choice between going to university and being employed for a given period of time. The risk of achieving greater benefits with another option is the opportunity cost (Investopedia.Com). In order to illustrate the economic problem and opportunity costs faced by a person, company, or providence can be used the Production Possibility Frontier, also known as prod uction accident curve. Production Possibility Frontier is a graph