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economic inquality essay
economic inquality essay
opportunity cost theory
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“There is no such thing as a free lunch.” When someone offers me free lunch, I now understand that the lunch may not cost me any money but that someone else produced the ingredients, transported them to the store, and paid for them. Economics is the study of how goods and services are produced, distributed and utilized. In The Wealth of Nations, Adam Smith wrote that the sole motivator of man is self-interest. My self-interest is active when I buy shoes, develop my talents, and participate in our economy.
Last week I bought a pair of shoes at the Short Hills Mall. The production, distribution, and sale of shoes are a prime example of division of labor. Companies manufacture these shoes. These companies utilize the division of labor. In these companies, there is a specific job for a person or a group of people. The division of labor is defined as the separation of a work process into a number of tasks, with each task performed by a separate person or group of people. It is most often applied to systems of mass production and is one of the basic organizing principles of the assembly line. Splitting up work into simple, repetitive tasks eliminate unnecessary motion and limit the handling of different tools and parts. This is related to the example above; where the production, distribution, and sale of shoes are separate tasks in the separation of a work process. Another example of division of labor is: two people are assigned to wash the dishes. One person has their own task for themselves. One person washes the dishes while the other person dries them. As you can see, these two people have their own task that they were assigned to, just as companies. One last example of scarcity is: if we all grow our own wheat, and then al...
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...f alternatives of how to spend my Friday night: I can go to the movies, I can stay home and watch ‘The Big Bang Theory” on TV, or go out for hot chocolate with friends. If I choose to go to the movies, my opportunity cost of that action is what I would have chose if I had not gone to the movies - either watching the “The Big Bang Theory” or going out for hot chocolate with friends. As you can see, the concept of opportunity cost is a part of our every-day life.
Economics is related to everyone’s life. It is (as said before) the study of how goods and services are produced, distributed and utilized. We are making economic choices every single day in our every-day life; we just might not realize it. In this essay, I explained to you how these economic concepts, opportunity cost and scarcity, are related to our every-day life.
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Economics take part in many daily lives can be seen in the music people listen to. Harry Chapin’s “Cats in the Cradle” song is no exception. The song describes a young father trying to live up to capitalistic America’s economy and needs. Sometimes in life choices must be made. People respond to incentives put in place by Homo Economicus. For many, just as it is in the song, that incentive is money. The song states, “My child arrived just the other day. He came to the world in the usual way. But there were planes to catch and bills to pay. He learned to walk while I was away.” These lines relate to opportunity cost. The father had to give up one thing in order to achieve another. The opportunity cost is the time that the father lost watching his son grow up. He felt there was a higher demand for his job than for his time with his son. He chose to be on that plane and to be at a job that would keep him from his family. In his mind, the father used marginal analysis to make this decision. He simultaneously, even though he might not have realized he
Adam Smith begins his analysis of the market society with a look at the division of labor. He elaborates on the idea that the division of labor is essential for the growth of a civilization. Smith explains how for example, the production of pins can be done more efficiently with the breaking down and deconstruction of
Adam Smith wrote The Wealth of Nations as a guide why economics should be catered to benefit both the business as well as the consumer. While Smith stresses the importance of d...
Common Sense Economics: What Everyone Should Know About Wealth and Prosperity, written by James Gwartney, Richard Stroup, Dwight Lee and Tawni Ferrarini, explains the foundation of economics and how it all works in all aspects of our lives from the role of the government trickling down to personal credit cards and savings. This book was written with clear language for the audience to understand and comprehend the large amount of information within its condensed size. The authors’ target audience for this book seemed to be for those individuals wanting to learn the mechanics of economy including economic growth and stability. Gwartney separates his book into four parts: Part I, Twelve Key Elements of Economics, Part II Seven Major Sources of Economic Progress, Part Three Economic Progress and the Role of Government, and Part IV Twelve Key Elements of Practical Personal Finance.
Up until Adam Smith’s Wealth of Nations, this was the dominant economic belief. Smith’s work would challenge the dominant theory of the time and push towards a free market approach with its premise reliant on individual rights and laissez faire economics. The push and belief in free-markets was innovative due to its belief that all parties benefit from a voluntary exchange, much different than the mercantilist view that only one party is beneficiary of trade (Rothbard 1). A simplified example of this is that of buying a painting from a painter; the buyer benefits from the gratification of looking at the painting, while the painter is benefitted
Individuals are always confronted with decisions. America is changing into being more materialistic and it is becoming a problem in schools. It may be a matter of constrained time. The economy is critical on the grounds that it widens our comprehension, which thusly enhances the expectations for everyday comforts. Matters of trade and profit are paramount to ordinary life on the grounds that it gives social order an adjusted and composed framework for cash administration and business cycles. What ties the individuals and their lives together is the manner by which they choose to settle on the decisions against the risk of lack. The economy is about why individuals settle on the decisions they do and what the suggestions or impacts of those decisions are, and it assumes a significant part in everyone's lives. As America advances in technology, our materialism appears to grow and technology has become a tool for distracting individuals.
...every man’s business to some one simple operation, and by making this operation the sole employment of his life” (Smith 13). Smith’s economic theory was based on how individuals’ self-interest benefits the economy rather than the artificial laws enforced by the government.
The division of labor is a process in which individuals take on specialized tasks. Over time, philosophers and economists have developed multiple views on this concept and its resulting consequences. Adam Smith claims that the division of labor leads to greater productivity due to an increase in skill and a decrease in required time. Karl Marx and Friedrich Engels argue that it destroys the individual, as well as their power and creativity. Émile Durkheim agrees with Smith while addressing the negatives of specialization. Durkheim also explores organic solidarity, which he says creates social unity. One may argue that the division of labor is detrimental to an individual’s personality, but it can be beneficial. One might say that the division
When it comes to financial planning, economics plays a major factor in people’s personal finances in many ways, it is an essential part of the world we live in today. When you buy gas, or shop for groceries, plan a vacation, economics is at the core of those choices. So why does economics play such a vital role, what is the driving force behind this? In its simplest form, it’s based on choice. We will look at a few factors that impacts financial planning and the economy, including the use of credit, and how the government affects the economy.
The economics, as an independent subject has already existed in this world for a long time. Maybe some people believe that the knowledge which is contained in economics is so far from them that it is not necessary to consider about is. Actually, economics always hides in our daily life and effects decisions what we made. Once I have hold the same opinion of economics is not really my business, but I do not think like this any more after I studied this subject. Economics no longer acts as an abstract terminology lying on the textbook far away from me, this word became meaningful and I am sure it will make some changes not only in my mind, but also in my future life.
So we looked at being different and the importance of working through the why we do things the way we do with items and services. If not, we learned, who we are and why we buy, more than what we are and where we buy – something most like to perceive economics to be.
Martin argues this point, stating that, according to Adam Smith, while most likely unintentional, some merchants seek to please customers by benefiting the community in order to increase satisfaction and therefore gain sales (pg. 12) or the rich provide jobs for the poor who need them, thereby distributing wealth (pg. 15). While obviously not an exact science, individuals must consistently seek to moderate between the two sides to keep the marketplace free and energized. David Landes (in Dawson, 2004) suggests that, historically, free enterprise is the most successful driver of wealth creation and, above that, it may also provide “all manner of social advantage within the company, community, and home country.” Dawson (2004) goes on to highlight these advantages include investments in community programs, impetus for social change, a tax base that can be used for public works, education funding, and support for democracy (e.g., freedom from totalitarian
According to Sloman (2003), many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend; what is costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. It is concerned with the production of goods and services and the ...
In today's world, economics associated disciplines are of fundamental significance and application and this has encouraged me to pursue a degree in Economics. Economics has an important relevance in all of our lives. As consumers we try to make the best of our limited incomes. As workers we take our place in the job market. As citizens of a country our lives are affected by the decisions of our government: decisions over taxes, decisions over spending on health and education, decisions on interest rates, decisions that affect unemployment, inflation and growth. As dwellers on the planet Earth we are affected by the economic decisions of each other: the air we breathe, the water we drink and the environment we leave for future generations are all affected by the economic decisions taken by the human race. It is these stimulating issues that excite me about economics. I enjoy studying Economics enormously and believe my passionate interest in economics is continually strengthened by my regular reading of 'The Economist'
Economics is a social science which deals with the goods and services and their overall life cycle. There is a direct impact that this has on the overall working and the everyday lives of individuals. For instance the overall needs and desires of individuals is covered by the innovation and finance. These are used as a means to effectively provide the needed products and services to the public. Hence it is important to note that economics has a direct impact on the overall lives of individuals and there is a need to understand these in order to be able to run businesses more successfully.