Strategies to Solve Economic Issues

Strategies to Solve Economic IssuesINTRODUCTIONMicro stinting science is a branch of scotch science that studies the behaviour of individual households and firms in making decisions on the allocation of extra resources and studies individual prices. It to a fault analyses demand and add of labour and analyses demand and supply of goods.Economics is a science that studies human behaviour as a relationship between ends and scarce fashion which prep atomic deem 18 pick uses. It to a fault the study of how men use particular resources in order to cope with their un limited wants and how human beings make choices to use scarce resources to satisfy suspicion 11. Three basic economicals problem and how the how the unalike economic systems solve the economic problems.There atomic number 18 three basic economics problem. The first integrity is what which mean what to do produce due to limited resources that comport and what should the preservation produce in order to satisfy c onsumer wants. For example, a comp whatever want to produce laptop or hand skirt which both agree their own function or use to consumer or substance abuser which refer that maximises consumer satisfaction then the economy is allocatively efficient.Second mavin is how will which mean the quantities to produce due the demand from consumer or user and due to the population with resources that avail adequate because it integrity of an economy achieves productive susceptibility if it produces goods using the least resources possible. For example, mevery consumer or user want secure hand cry than laptop, so the company should produce hand phone more due the demand from consumer or user.Lastly, to whom which mean to distribution, depend on the distribution of income and depend on who want to pay or should the economy produce goods targeted towards those who have high incomes or those who have low incomes and what categorisation of demographic group should the goods in the economy that are produced be targeted toward. For example, consumer or users that are willing and be able to pay or buy the produce that they want.So, with if all three problems are addressed at any one judgment of conviction then the economy has achieved electrostatic efficiency. If the economy achieves static efficiency over a period of time then it is dynamically efficient. All these problems are focused close to the problem of unlimited wants and limited resources which resources are the factors of intersection such as labour, capital, technology and land which are used to produce the products that satisfy the wants.There are also how the different economic systems solve the economic problems. Different societies have performed these economic functions, and want to achieve technical and allocatively efficiency, in different ways. These ways can be classified as different economic systems. The first new economic system was Capitalism or the market system. However, early capitalism left(p) many people in poverty, while competitive markets decayed into monopolies. In response, social reformers developed alternative economic systems. Fascism and Socialism attempted to pickle capitalism with a dose of government participation. Communism simply seek to overthrow capitalism. It was a struggle between the invisible hand of ingenuous markets and the visible hand of the command (planned) economy.2. scarcity, choice and opportunity costScarcity refers to resources that are not enough meet all wants which it want of all time exceed limited resources to satisfy society. In other words, human beings have unlimited wants which at that place is never such a time that a human being is satisfied and not in need of anything. It also refer to the fundamental economic problem, and all economic activities revolve around trying to solve this problem and the other sides, a good which is functional but in abundant supply may not determine to be called an economic good. For exa mple, air and water are just goods in the sense that they are readily available and cannot be deemed to be scarce.Then, another(prenominal) concept in economics is that know as choice. Choice comes astir(predicate) as a result of scarcity, and in a way, choice is intercommunicate by these circumstances. Since human wants are unlimited and resources limited, it emerges that one cannot be able to practically meet all their wants at any one time and because of this, it becomes inevitable for someone to choose between the many unlimited wants which one o satisfy at any given moment. Since you make a choice of doing something, or fulfilling a certain want, it turns out that at any one time, there is a certain want that you have to ignore, or forego, in order to fulfil another want. For example, you were deciding to grow carrot or potatoes which one of them will become the option to be foregone.after that, the option that has been foregone is usually called an opportunity cost. Opportu nity cost refers to jiffy best alternative that has to forgone for another choice which give more satisfaction. For example, if you go under to grow carrots, your opportunity cost is the alternative crop that might have been grown instead potatoes.3. Four assumption in clear a production possibility curve (PPC)PPC is A graphical representationof the alternative combinationsof theamountsof twogoodsorservicesthat aneconomy canproduceby transferringresourcesfrom one good orserviceto the other which can helps in determining whatquantityof a nonessential good or a service an economy can afford to produce without jeopardizing therequiredproductionof anessential goodor service. It also can be called as transformation curve.There are four assumption in draw a PPC Produced only two goods onlyFixed amount of resources full moon employmentConstant technologyExample curve of PPCThere are also factors that can influence the PPC curve to shift. The first one is changes in the resources or fact or of production. The influences are divided to two shift which refers to, shifting to the estimable which mover increasing in PPC and shifting to the left which means fall in PPC. For example is shown at below. Chicken tip bust i. PPC1 and PPC2 Discovery of new resources in Chicken and Fish.ii. PPC3 Decreasing in resources.The indorse one is changes in the level of technology. For example is shown at below. ChickenPPC2PPC1FishAssume i. PPC1 and PPC2 Technology advancement in Fish only.The third one is changes in economic condition which economic evolution or economic recession. The influences are divided to two shifts which refer to, shifting to the right which means increasing in PPC and shifting to the left which means decreasing in PPC. For example is shown at below. ChickenFishAssume i. PPC1 and PPC2 Economic growth in the countryii. PPC3 Economic recession in the country.Lastly, changes in the number of population. The influences are also divided to two shifts which refe r to, shifting to the right which means increasing in PPC and shifting to the left which means decreasing in PPC. For example is shown at below. ChickenFishAssume i. PPC1 and PPC2 increase in the country population.ii. PPC3 Decreasing in the country population.4.Three type of advantage with diagrams and short run monopolyMonopoly is a type of market in which there is a seller and overlarge number of buyers. It also refers to selling products that have no close substitution and have a high entry and exit barrier. There are example for this monopoly in Malaysia such as TNB and JBA.There also characteristics for monopoly. The first one is one seller and large number of buyer which monopoly subsist when there is only firm exist which selling a product which has no close substitute.Next is no close substitution which monopoly firm would sell a product which has no close substitute. Then, restriction of entry of new firms which in monopoly market, there are strict barriers to the entr y of new firm. Lastly, advertising in monopoly market depends on the types of product sold.