...satisfy their material wants. Economics is all about satisfaction of materials wants. The truth is that it is people's wants which provide the motive for economic activity. People go to work in order to obtain an income which will buy them the things they want. IT the resources available to people are insufficient to satisfy all their wants, such resources are said to be scarce. In fact is that we almost always find ourselves in a situation of scarcity. We cannot have all the things we want. The resources available to satisfy our wants are, at any time, limited in supply. Our wants however, appear to be unlimited. This is the economic problem faced by us - by each member of society. And, this problem of scarcity forces us to make choice. We can have more of food by having less of clothing. Economics is a lot more lively than many people have thought of. It's basically about decision making which we do everyday. And we live by participating in daily economic activities, influencing other people by making choices in our own interest and at the same time are subject to all other people's choices. Our resources (incomes) are not sufficient to buy all the things we would like to have. An individual with a limited income and unlimited wants constrainted to exercise choice when he(she) spends that income. Society as a whole faces a similar problem. Unlimited Ends of Wants: • According to Prof. Robbins, human wants are unlimited which can never be fulfilled. Once the first and...
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...well-being. But most contemporary definitions of economics involve the notions of choice and scarcity. This is how I have found Lionel Charles Robbins (22 Nov 1898 – 15 May 1984), a British economist and Head of Economics Department at the London School of Economics. His book, “Nature and Significance of Economic Science” (1932), he defined, ‘Economics is the science that studies human behaviour as a relationship between ends and scarce means which have alternative uses. According to his definition, Economics focused its attention on a particular aspect of human behaviour, that is, behaviour associated with the utilization of scarce resources to achieve unlimited ends (wants). Scarcity limits us both as individuals and as a society. There are 3 main aspects in his definition, which are: 1. ‘Ends’ 2. ‘Means’ 3. ends and scarce resource provides the foundation of economics 4. ‘Scarce means have alternative uses’ 1. ‘Ends’ are the wants. Humans wants referred to as ends by Robbins are unlimited. According to his definition, ends here means the goal, purpose or objective that every human being desires to satisfy. ‘Wants’ initiates a powerful incentive in the effort to acquire for something and it varies in quantity and quality over a period of time. ‘Wants’ can only be satisfied when it is fulfilled. But by nature of human beings, we have...
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...Recommendation …………………………………………………………………..9 Reference …………………………………………………………………………10 Appendices ………………………………………………………………………10 Findings Introduction Australian market. (Portfolio 1) Portfolio 1 gathered 9 shares from different industries. After comparing the covariance of each share, 2 of them knocked out from the list. It comes to the end that the type of business engaged in this portfolio are transport (Asciano Limited), material (Amcor Limited), resources (Fortescue Metals Group Ltd) , financial (Commonwealth Bank of Australia) , energy (AGL Energy Limited) , insurance ( Insurance Australia Group limited), Agricultural Chemicals (Incitec Pivot Limited). Asciano Limited is company founded in 1996, it started with rail industry then the company has been through several amalgamate and restructure process. This company was listed on the ASX in 2007. Amcor Limited’s history dates back to 1860s but officially established in 1986. It is one of the world's top global packaging companies. Fortescue Metals Group Ltd was founded in 2003. The company has been doing well in iron ore production and sea-borne trading in the last decade. Commonwealth Bank of Australia provides ranges of financial...
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...TEN PRINCIPLES OF ECONOMICS * Economics—the social science that studies how society allocates its scarce resources to those with unlimited wants * Scarcity—limited amount * Resource Types: * Land * Labor- job availability * Capital-manufactured aid to production( i.e., manufactured goods…desk..markers…) * Entrepreneurship- person who starts a business; combines land, labor, and capital to produce a business * LIMITED RESOURCES = LIMITED PRODUCTION OF GOODS AND SERVICES * ALLOCATION: * Market system * Command system TEN PRINCIPLES: GROUPS A. How households (people) make decisions B. How households (people) interact C. How the economy as a whole works A. How households make decisions: 1. People face trade-offs: a. Personal—doing more of one activity and doing little to none of another activity b. Production—producing more of one good and producing less of another good Most money spent towards: * Defense * Social security * medicare c. Efficiency/Equity—society chooses b/w being efficient or equity; more efficiency= less equity ~ more equity= less efficiency * Efficiency—exists when the society gets the most from its resources * Equity—exists when societies output is distributed fairly among its members * Redistribution: among members of society, i.e, social security (OASDI), unemployment, welfare (TANF= food stamps, housing)...
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...It is when our wants for goods, services, and resources exceed what is available. If you really think about it you see the resources around us that is scarce. Transportation, clothing, and food, as well as a place to live are all examples of things that are scare in the world in which we live. The causes of scarcity vary in some ways such as the resources are limited for such large numbers of consumers. As humans our wants are limitless but resources are limited to produce the goods and services wanted. For instance, time is scarce in my life because it seems as though there is never enough time in the day to do the things that I want. Having two small kids to take care of, throughout the day I am constantly doing the things that they want in order for them to be happy. There is not enough hours in the day to take care of their wants and the things that I want to accomplish within the day. Opportunity cost is closely connected with scarcity. Being faced with opportunity cost is being faced with a decision of what must be given up to obtain something that we want. An example of opportunity cost would be that myself having $200 that I could spend on a laptop, but instead, I use the money to purchase clothes that I had seen on sale. When you take a moment to actually think about what scarcity is, you begin to realize how scarcity affects your life as well as everyone else’s life. There are things that we could do as humans to improve our limited resources such as businesses taking...
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...Report on HRM Practices at Dhaka Bank Limited 1.1 Introduction: Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Employees are the core resources of any organization, without them, one cannot run their organization and human resource is conducted with the growth of development of people toward higher level of competency, creativity and fulfillment. It keep employees become better more responsible person and then it tries to create a climate in which they contribute to the limits of their improved abilities. It assumes that expanded capabilities and opportunities for people with lead directly to improvement in operating effectiveness. Essentially, the human resource approach means that people better result. Dhaka Bank Limited always determine what jobs need to be done, and how many and types of workers will be required. So, establishing the structure of the bank assists in determining the skills, knowledge and abilities of job holders. To ensure appropriate personnel are available to meet the requirements set during the strategic planning process. This effort is to determine what HRM requirements exists for current and future supplies and demands for workers. Because this bank believes that the quality work comes from quality workers who are well motivated and ready to take challenge...
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...Scarcity Think of a thing that you like to have. What would your life be like if you suddenly couldn't get any more of it? People deal with this kind of problem every day. It's called scarcity. It comes from the word scarce, which means there isn't a lot of it or it isn't always available. Some fruits and vegetables are scarce in markets sometimes because those fruits or vegetables grow only at certain times of the year. Because the supply of fruits and vegetables is lower, there is a better chance that those fruits and vegetables will be scarce, or not always available. You may find that the market has no strawberries at all. Why? Either no shipments of strawberries came in, or so few strawberries came in that by the time you got there, they were all gone. What does this mean for the demand of strawberries? If enough people want strawberries when none are available, then the demand is quite high. And the demand is high not because the price is low (as is usually the case) but because the supply is low. An older person in your family can probably tell you about a time 30 years ago when there was a gasoline shortage. At that time, in the 1970s, gasoline was scarce. Many people wanted to buy it, but only a certain amount was available. This is a great example of scarcity: Wants are more than what is available. The supply was low. Because the demand was greater than the supply, the gasoline was scarce. So how does scarcity relate to supply and demand? Scarcity is a measure...
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...unlimited wants + Limited Resources = Scarcity The cause of shortage or scarcity of goods and services is that there are not enough factors of production. The four factors of production are: * Land- This is the term used to cover all the natural resources provided by nature e.g. Forests, oil, Gas, metals… * Labour- the No. of people that make the product or produce the service. * Capital- the Finance inputted in a business * Enterprise- the skill and risk-taking ability of a person who uses the factors of production together to produce a good or service. (Owner of a business) There are limited resources but so many wants. We therefore have to decide which wants we would like. We would inevitably have to give up something by making this choice. This leads to opportunity costs- the next best alternative given up by choosing another item. Specialisation- occurs when people and businesses concentrate on what they are best at. It’s common because the technology that specialists use are available and most people are aware that higher living standards can be achieved by being a specialist. Advantages: * Workers are trained in one task so they are more efficient * Less time is wasted moving from one workbench to another Disadvantages: * Workers can become bored doing the same thing * Is one worker is absent no one else can work Business: * Combine scare factors of production to produce goods. * Produces goods and services which...
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...scarce resources to obtain our own needs, wants and desires. The Assumption of Rational Self –interests tells us that the definition of rationality means not doing something that will deliberately cause harm. We are told that with every decision we make, we must weigh the rewards against the punishments and that it is actually necessary for us to ask the question “What is in it for me”. There is actually a difference between acting selfishly and acting on the best of our own self- interest. Acting selfishly means that in doing so, you are causing harm to others. Acting in your own self- interest actually benefits others. Adam Smith is known as the father of Economics. In 1776 he purchased The Nature and Causes of the Wealth of Nations. Today the title has been shortened and is known as Wealth of Nations. Smith was asking the question, why powerful countries such as Spain and Portugal collapsed while a small country such as England thrived. The biggest difference he found was that while Spain and Portugal denied their colonies education, England encouraged it. Smith believed that governments have to give people incentive to do well. He stated that self-interest should be encouraged in every person. When people understand their strengths and weaknesses, then they are able to specialize in their field. Specialization leads to better productivity and wealth. Smith speaks of what he calls the Invisible hand theory. This is when a person acts on his own self- interest and in doing so without...
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...Business Activity The economics problem: needs and wants. Basically, all humans have needs and wants. Needs are things we can't live without, while wants are simply our desires that we can live without. We all have unlimited wants, which is true, since all of us want a new PC, a car, new graphics card, etc. that we actually do not need to live. Businesses produce goods and services to satisfy needs and wants. Although we have unlimited wants, there are not enough resources for everyone. Resources can be split into 4 factors of production, which are: - Land: All natural resources used to make a product or service. - Labour: The effort of workers required to make a product or service. - Capital: Finance, machinery and equipment required to make a product or service. - Enterprise: Skill and risk-taking ability of the entrepreneur. Entrepreneurs are people who combine these factors of production to make a product. With these discussed, lets move on to the economic problem. The economic problem results from limited resources and unlimited wants. This situation causes scarcity, when there are not enough goods to satisfy the wants for everybody. Because of this, we will have to choose which wants we will satisfy (that will be of more benefit to us) and which we will not when buying things. For any choice, you will have to would have obtained if you didn't spend that money. For example, you would have got a book if you didn't buy the pen, or you would have a burger if you...
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...likelihood of each achieving their mission and to amplify their reach. (p.1) Although partnerships may sound intriguing and advantageous, as with any ownership form, there are pros and cons which must be weighed and evaluated. According to allbusiness.com (n.d.), general partnerships have many benefits, but perhaps the most compelling is the ease with which they can be set up and maintained. You do not have to register with your state and pay fees, as you do to establish a corporation or limited liability company (LLC). Because a general partnership is normally a "pass through" tax entity -- meaning the partners, and not the partnership, are taxed -- filing income tax returns is relatively easy. Unlike a regular corporation, there is no need to file separate tax returns for the corporate entity and its owners. Partnerships are also considered a discrete asset and as such (as opposed to a sole proprietorship) can be transferred to other people, heirs, or estates. Transference is usually limited by the terms of the partnership agreement. But partnerships can also be risky. The business-related acts of one partner can legally bind all other partners. So it's essential that you enter into partnerships only with people you trust. It is equally...
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...the example of milk versus guns, if a country produces more guns, then its resources are reallocated and shifted such that it creates an effect on their milk production. Their local economy may suffer more since the local abundance of milk and consumer goods starts to lack. The local impact causes a shift in their production probability curve. This almost starts a ripple effect in that they are now causing an impact on another area where they may have been trading local goods or services for those of someone else. This small effect is multiplied several times over all around the country and then bleeds into the global economy. And although it causes a shift in the production probability curve, other factors can influence this. In an effort to support the war on terrorism, the government may provide subsidy ($$) to areas that produce more guns and products for this fight, which gives them buying power. However, in other areas where they are doing the same thing, there is now less milk and consumer goods produced countrywide. So, no matter how much money you have, there are still no resources to produce the goods that are needed. Demand goes up. And now this effect moves over in the global market. The country as a whole now has to be more reliant on other countries to provide the necessities of life, so they can continue to fight terror and produce more guns. But we also are doing more trade for goods and services based on us provided some of those countries with guns...
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...1) The definition of scarcity is that it “means that society has limited resources and therefore cannot produce all the goods and services people wish to have.” Scarcity forces individuals and governments to make trade-offs between one good thing and another because it is impossible to obtain all goods that are seen as desirable, and because of the fact that scarcity exists, products and services with equal scarcity are exchanged. 2) This statement is valid given the very meaning of scarce resources is that there is a limited amount. One example is the “guns and butter” trade off, which means that society can use their funds on guns (national defense) to protect itself, but then there will be less of the scarce financial resources to spend on butter (consumer goods). Another example is the trade-off between protect the environment and having a high level of income. Laws which regulate pollution increase the cost of manufacturing goods and services thus leading to a chain reaction resulting in higher costs of goods, lower wages and smaller profits. 3) This statement is false because there are always trade-offs, even when services cost no money, there are still negative repercussions for such actions. If the government used all of its funding for goods like health care and education, there would be no more resources remaining for other projects. Additionally, if the government provided these goods for free, there would no longer be incentive to work hard to pay for them...
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...1-finance is essentially any transaction in which money or money like instrument is exchanged for another money or money like instrument. So we can say the concept of finance is very old it, has taken place probably since the roman or the Chinese dynasty era. Finance is used in the market. A market is a place that allows forces of demand and supply to operate. Where sellers and buyers trade services goods, contracts, for money or barter, this is the place where finance also takes place. You can’t have one without the other. There are different types of markets, according to our book in United States there is real estate market, the internet and commodity market. All these market have one thing is common which is finance, they all involve some type of trade, information trade, goods trade and property exchanged for some type of money. 2-Economic capital is the money value, how much monetary asset it has to cover expenses, and other financial needs; it’s what we consider solvency. Financial capital it’s a much broader term, it’s anything related to money and assets to a company, it’s a dollar value claim on economic capital which includes cash, accounts receivables, stocks, and bonds. 3-Oportunity cost is the benefits you could have received by taking an alternative action, for example investing money in a savings account where you get 3% interest or on a another type of investment where you could have received 10% interest. Entrepreneurs face this dilemma every time they make...
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...three business organizations called Bogawanthalawa Tea Estates PLC, Swarnamahal Financial PLC and Vallibel Power Erathna PLC and the nature of the national environments in which the companies operate, the behavior of the organizations in their market environment and the importance of the global factors that shape national business activities. First the report identifies the purposes of the selected companies and then categorizes based on the differences between organizations. Then it identifies stakeholders and their expectations and applies the stakeholder mapping model to those stakeholders. After that the actions that the organization has taken to meet different responsibilities have been analyzed. Furthermore it investigates the resource allocation of the economic system in which the Bogawanthalawa Tea Estates PLC operates and the impact of monetary and fiscal policy on this organization and of competition policy on the activities of a business organization. By assuming that the aforesaid organization is operating in a monopolistic competitive market, the report analyzes the way how pricing decisions are made. Furthermore the impact of market forces and PESTEL factors on the above company has been taken into discussion. Finally the advantages of international trade to the company Bogawanthalawa PLC and the influence of the global factors in Sri...
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