Monday, February 28, 2011

scarcity, choice and opportunity cost

scarcity or limitation is a reality that actually occurs. to obtain all sorts of needs, resources available today is not sufficient for those needs even if only a small part. this is what is meant by scarcity, a condition that explains the limited resources in producing human needs that need to be scarce. scarcity is caused by most of the following.
• natural disasters, natural disasters such as earthquakes, floods can destroy resources so that resources can not be used. • war, the war also caused shortages. a war that many occur causing food shortages causing famine • human behavior, this could lead to scarcity of resources which ultimately can lead to shortages of goods and services, such as illegal logging • needs that are not limited to, human needs continue to grow in accordance with human nature that always feel deprived because of the amount of limited resources, the communities face problems of decision making. must take this decision applies to all members of the community. decision to have something more decisions need to have something else a little more. more at least something is called a cost. opportunity costs is anything that should be sacrificed to obtain something else. These fees cover these costs include direct costs and trim costs. for example when you decide to go on to college, you must calculate how much tuition is and how much opportunity cost (an alternative that could be sacrificed in addition to money)

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