The Main Factors Of An Opportunity Cost

Society has limited or scarce economic resources, meaning all natural, and manufactured resources that go into the production of goods and services. (McConnell, BRUE, & FLYNN, 2015, p. 11)

Resources are all the ingredients needed for production. The factors of production include land(natural resources, labor (workers for the production process) entrepreneur (business owners), and capital (technology and machinery/tools of production).

Why is it that within our U.S. Economic System, we must make choices, sacrifices, and trade-offs in order to obtain enough goods to be sustainable? Why are we charged to produce and consume goods that are wanted by society? The answer to these questions is scarcity. The economic term scarcity represents one of the most fundamental, recurrent problems that we as a country, as well as everyone around the world, face today. The definition of scarcity, according to Investopedia, is a "basic economic problem that arises because people have unlimited wants but resources are limited" ("Scarcity Definition," 2003). In other words, due to the limited amount of resources available to us, there are not enough resources to produce the required amount

Scarcity is an economic term for a very serious and real-life issue. Scarcity is the problem that results from people having relatively unlimited wants even though the world’s resources are relatively limited. Simply put, there are not enough worldly provisions to satisfy all human wants and needs. The term has many examples. One case is the gasoline shortage in the 1970’s. The resource, gas, was scarce and there was not enough for everyone to freely consume anymore. People had to cut back on driving and there were certain days and times that people were allowed to refuel. Another example is the current drought that The United States, specifically California, is experiencing. The natural resource, water, is very scarce and the population is

“ Human capital is what makes individuals productive, and productivity is what determines our standard of living.”(Wheelan, 130). By investing in human capital, we are able to have more skilled workers who are productive and positively affect the economy because we make more contribution and therefore will get more in return.

Most people today consider Economics to be a hard subject to grasp because of the elaborate terms and descriptions, however Evie Adomait's book turns a hard subject into a less complex compilation of topics into a cocktail party setting. After reading the book I know realize a little help in understanding economics can go a long way in assisting you in understanding the world, we live in. As I read the book I am able to get a better understanding of the economy and how it plays a role with the rest of the world. As I build my knowledge on the economy through Cocktail Party Economics I find the subject scarcity to be an interesting topic. I believe scarcity is a problem faced by every economy system in the world. Scarcity is a problem of fulfilling our needs and wants with limited resources level. Without scarcity there would be no economic problem because everyone could have as much as everything as they want. Fundamentally scarcity is a relative term rather than an absolute one. A real-life example of scarcity, would be the depletion of coal since there is a limited amount available to mine, therefore this causes a greater demand for coal and causes the price of coal

Scarcity shows us the basic economic problem, where humans have unlimited wants, yet there are only finite amount of resources. Therefore, there are not enough resources to fulfill these unlimited needs. One real world example of a scarce resource is coal. Coal is a resource used for fossil fuel and is a combustible rock. Coal is used for “electricity generation, steel production, cement manufacturing and as a liquid fuel”. As you can see there are many uses for coal, thus there will be companies needing as much coal as they can get, however there is only a finite amount for everyone, therefore it must be allocated correctly in order to satisfy those needing coal for self interest and their own objectives.

“The basic economic problem that arises because people have unlimited wants but resources are limited” (Investopedia). In the story scarcity

H. Resources are the things needed to get a job done, such as tools and machines, materials, information, energy, people, capital, and time.

Resources are important to all facets and forms of life. From the smallest microorganism that feed on the small particles, to the largest whales which feed on a vast supply of krill. Even the plants that require sunlight for photosynthesis finds the sunlight as a valuable resource. Some organisms found that stockpiling resources or controlling a territory where resources are plentiful allows them to have the greater chance of survival. Humans found a way to utilize both methods, and effectively maximized their chances of survival. In the case of stockpiling resources, we see those who grow their own resources like farmers or people who hunt down for their food and save the surplus. This strategy is effective when we are talking about the individual, but in a society, we are presented with a problem. Nature only can provide so much substance to care for the people. This means that there will be people who will be able to prosper since they reaped all that nature has to offer,

Scarcity is when resources are limited, therefore not available or sufficient to meet demand. Scarcity relates to trade-offs because due to resources being limited, all demands cannot be fulfilled. In that case, the consumer must choose to make a trade off in order to use what scarce resources they have to meet some but not all of the needs that they have.

Define the concept of scarcity: Scarcity: The goods available are too few to satisfy individuals' desires. Scarcity is a central concept in economics. Resources are scarce if any individual would prefer to have more of that good or service than they already have. Most goods and services are scarce - those that are not are known as free goods. Where goods are scarce it is necessary for society to make choices as to how they are allocated and used. Economists study (among other things) how societies perform the optimal

My definition of opportunity cost is something that you give up in order to something that you want or need. The opportunity cost attending Bethel on-line program is that online classes tend to be less cost effective than your average traditional college. For an example instead of staying on campus in a dormitory you can opt to stay home and do your studies. Also, no textbook cost or commute cost. When choosing a traditional classroom setting the opportunity cost is not able to work a full time job to help support housing cost and other items. The cost of driving and can be costly if you have to drive to school. Mostly the cost of course materials such as books and other devices that you need for your class.

Opportunity cost to me is the good in a not so good or absolute best of a situation. For example, I was invited to go out to eat with my cousins, but I had homework that was due. The opportunity cost would be the me spending money on food and missing out on the quality time with my cousins.

Voluntary exchange involves a mutual trading of goods between at least two people. In order to have this exchange one has to have possession of this good. One cannot trade what one does not have. More importantly the person has to own this good. If he does not own it then it is not his to trade. There are three ways in which one can come into ownership of a good; by receiving it from someone else, by finding the good as an unclaimed resource, or by producing it on his own property. Typically to receive items from someone else one must first have something to give them in return. One can only find so many unclaimed recourses and once he does he cannot use these resources to produce other goods unless he has somewhere to do it and other items to do it with. This leaves the most important role of obtaining ownership: the production of goods on one 's own property. Once a person can start