Scarcity Essay

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Scarcity is the limited nature of society’s resources. I would describe this as for something to be scarce, you must give up or trade something in order to obtain what you want. There are some good examples given in the textbook, and one really stuck out in my head. Parents need to decide between buying food and clothing for their family or taking a family vacation. (p.4) In other words, money for this family is scarce, but they will give up buying the macaroni and cheese that their kids really love in order to put that money away for a vacation, this really struck close to home as when my daughter was in high school, she was a cheerleader, this is a very expensive sport. Being a single mother, I would forego the huge grocery shopping that …show more content…

I believe this is one of the reasons that companies outsource a lot of their work. Take a T-shirt maker. If they had a factory in the US that would make 20K t-shirts a day. If the same factory was in India or Taiwan, they could make 50K t-shirts a day. Inflation is the increase of prices. This is term that I really never grasped. This happens when the government prints too much money and then the value goes down. Why they would do that is beyond me. Business cycle is the ups and downs of economic activity such as employment and production. I would compare this to running a household. If one loses their job, they can no longer purchase the same things that they used to. This is usually temporary and will surely rebound back to where it was before they were laid off. Circular flow diagram is a diagram that shows how and where the money in the economy are spent. I am looking at this as basically and income statement that shows where all of the money is being spent on and where all of the money is coming in …show more content…

Normative statements are how the world should be. This is actually pretty funny and I have an example that I actually remembered from a college writing class that I took. I wrote a paper on how affirmative action is becoming reverse discrimination. Needless to say I made a statement that said “This action gives minorities who have not had advantageous lives the chance to succeed. That being said, this does not happen." (Carbone, K.,2013)My professor told me I should have said "Unfortunately, all too often this does not happen,"or "This does not always happen."( Breault, M., 2013). What I said would be a normative statement, and my professor’s response would be a positive

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