Principles of Microeconomics 1. Economics is the study of how to allocate scarce (God-given) resources to satisfy unlimited human wants. What are the limits or constraints that make this objective so hard to achieve? How should Christians behave given such limitations?…
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The limitations need to be worked upon so that sanity could prevail within the related domains. The limits and constraints that make it so hard to achieve include the fact that man has at times over-utilized these resources which has made them scant. The limitations have come about with the passage of time and need to be analyzed and researched upon properly within the future. 2. A big debate in both politics and economics is the extent to which the government should be involved in stabilizing the economy through taxing and spending measures. Do you think that government is involved too much, too little, or just enough these days? The role of the government within the taxing and spending measures is a bit too much. It should work upon making sure that the goals and objectives of its very basis are being handled well more than anything else. This will resolve a number of disputes and long standing issues within the relevant scheme of things. The economic role should be allotted to the people who can do the best possible jobs. This could even include the relevant departments and units which are specialized to undertake such tasks and activities. This will make sure that the taxing and spending measures are being amicably taken care of within any nation of the world. 3. Over the past several years, prices for personal computers and related computer equipment have fallen dramatically, but suppliers have offered more and more of them for sale. Does this refute the law of supply? Explain how this situation may have occurred in the market for personal computers. The supply and demand philosophy banks on the more the customers buy over a period of time, the demand goes up and the supply becomes lesser. This is vice versa in the case of the supply being more and demand being less, and hence the price variations are very direct and have a long-lasting consequence. The law of supply has not been refuted under such a situation as there is an overall increase in the wake of understanding the supply and demand of personal computers and computer related equipment. The situation has come about in the wake of the personal computers because people have relied more on laptops and hence the price ranges of the personal computers have come down considerably. 4. Discuss this statement: "Health care is too expensive. The government should limit the prices doctors charge so that everyone can afford health care." It is a fact that the price of health care has crossed the limits. This is the reason why doctors have been able to make big bucks out of the related settings that the patients find themselves engulfed within. The role of the government under such situations is of immense significance. This is because the government has to wrest its initiatives more than anything else. It needs to make sure that the health care is reasonably priced and is not too costly for the poor and needy. In fact, the people should receive it free of cost as health is essential one’s priority number one. The prices that these doctors charge is just too much and the affordability aspect is an important consideration that must be taken into proper perspectives before one can suggest that the health care is not expensive any more. 5. You hear a candidate for the United States Congress state that a tax on corporate stocks is an equitable way for the government to raise revenue, because it only affects the very wealthy. Evaluate this statement. The United States C
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(Principles of Microeconomics Essay Example | Topics and Well Written Essays - 1250 Words - 1)
“Principles of Microeconomics Essay Example | Topics and Well Written Essays - 1250 Words - 1”, n.d. https://studentshare.org/macro-microeconomics/1425119-principles-of-microeconomics.
Primary reason for it being, we live in a place with limited resources and to choose one over the other has an opportunity cost. If the capital produced is more than the capital that wears out, then capital goods would be more than the actual demand which will lead to reduced consumer goods in the market.
Partnerships are comparatively easy and convenient to develop. Moreover, this type of organization increases the ability to raise larger sums of capital. Additionally, the profits generated by the business are directly earned by the partners after deduction of taxes.
Name Professor Business Date Microeconomics Principles Introduction This paper will focus on establishing a discussion that can foster substantial understanding of significant ideas concerning gains from trade, opportunity cost and price elasticity of demand; In fact, this discussion is made in the context of consumer behaviors.
Moreover, it is in order that the property rights owner is accorded the privilege to transfer the property rights to the highest bidder. The failure by the economic systems to assign property rights to resources gives rise to externality (Stern, 2006). The lack of clearly defined property rights means that externalities cause market failure and hence by allocating property rights to the use of natural resources, regardless of who holds these rights, will protect these resources better than government intervention.
Utility is an arbitrary concept representing a relative value (Investopedia ULC). The general observation is that the higher the amount of one good or service consumed, the higher the utility and this incremental utility achieved from the consumption of additional good is called the marginal utility (Investopedia ULC).
A price floor is a legal minimum on the price of a good or service. This essay discusses two outcomes, that are probable when the government entails a price floor, gives comparative research on price floor and equilibrium price and explaines how the minimum wage affects the labor market.