The Key Concepts in Economics
Four key points from the article below
New Zealand Curriculum Guides. (2015) Key concepts / Economics / Social sciences / Home – Senior Secondary. [Online] Seniorsecondary.tki.org.nz.
The articles describe several concepts of economics, among them are the following four key concepts; First is that scarcity of resources brings in the aspect of making choices and each choice has an opportunity cost. In the article, there are three other things that have been identified as things that reduce the scarcity of resources. These are;
Full employment of resources
The second key concept is that value has an impact on the economic choices made. This concept differs from person to person, that is, the same information can be valued differently by different parties.
Thirdly, it is stated that markets provide motivations and a way of balancing the scarce resources by setting prices which is in turn done by considering the demand and supply curves. Prices appear to be higher when the resource in question is very scarce or the demand is high.
Lastly, in a market where there are many sellers and buyers who sell and buy respectively what they want and they all determine the price of the goods as a team, the allocation of scare resources to meet the needs and wants of the community is done well. In such a case, there is market equilibrium since all demands are met and all s…
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