We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

How can scarcity be a problem in the capitalist economy when the shops are well stocked, there are over 2.5 million people unemp - Essay Example

Comments (0) Cite this document
Scarcity be a Problem in the Capitalist Economy Contents Contents 2 Introduction 3 Discussion of the position 3 Conclusion 10 References 12 Introduction Most of the economies of the world aim at allocation of the resources in the most optimal manner. The amount of resources in a particular economy is limited…
Download full paper
How can scarcity be a problem in the capitalist economy when the shops are well stocked, there are over 2.5 million people unemp
Read TextPreview

Extract of sample
How can scarcity be a problem in the capitalist economy when the shops are well stocked, there are over 2.5 million people unemp

Download file to see previous pages... Thus the concept of exchange arises here. The capitalist countries on one hand have enough amount of capital but they have scarcity of labour which the socialist or the developing economies have. Thus there arises a concept of exchange that would ensure that the production takes place in both the economies in a successful manner. There have been paradoxical evidences however which shows that even in the capitalist countries there is excess supply of labour and the level of unemployment is quite high. This essay is an analysis of this paradox that arises in the context of capitalist economies and the level of scarcity. Discussion of the position In order to proceed with the main problem of the essay it is important to look into the different theories that are necessary to build up the argument. The economic system is a method of the allocation of limited resources of the necessary goods like grain and butter to the economic agents that make up the society. There are various types of economic systems like the socialist system, the capitalist system as well as the mixed economy system. In the socialist system the entire decision regarding the allocation of the resources lies with the government existing in the economy. The government acts as the owner of the means of production in such a case (Snooks, 1999, pp. 393-399). Thus the distribution of the grain and butter is mainly done by the government of the country to the people of the country. The production of even the basic grain and butter is done by the factories that are under the ownership of the government. Erstwhile China as well as Cuba and North Korea are examples of such economics where the principles of communism are being practised. The government in such countries is the sole decision maker regarding the level of production and the allocation of resources (Conklin, 1991, p. 427). Alternatively, in case of the capitalist economies the process of production is undertaken by the private players. In almost all the capitalist economies there is a government but the function of the government is restricted to the regulatory aspects of the country and to ensure that the laws are obeyed. The main function is limited to the collection of the taxes and the protection of the citizens (Stephen, 1998, pp. 31-49). The market power lies mainly with the players that are dominant in the market. The UK, the US as well as the German economies constitute the capitalist nations (Slater and Tonkiss, 2001, pp. 31-40). The characteristics of these nations are that free market is allowed to operate and the prices in the economy are determined by the forces of the demand and supply. The prices of grain and butter would be determined by the market forces of demand and supply. Thus the optimal production would take place at the point where the quantity demanded would be equal to the quantity supplied. Therefore the intervention of the government is this context is almost zero. Source: Winch, 1984, p. 14 The optimal price of bread in this economy would be $2.50. However the buyers would be able to buy 2 breads at $3. But this would be subject to the budget constraint of the consumers who buy the product. Alternatively a developed country is one in which the major part of the GDP is contributed by the industry or the services sector rather than the agricultural sector. Thus the developed countries are those which have passed through the various stages of development ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“How can scarcity be a problem in the capitalist economy when the shops Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1498023-how-can-scarcity-be-a-problem-in-the-capitalist
(How Can Scarcity Be a Problem in the Capitalist Economy When the Shops Essay)
“How Can Scarcity Be a Problem in the Capitalist Economy When the Shops Essay”, n.d. https://studentshare.org/macro-microeconomics/1498023-how-can-scarcity-be-a-problem-in-the-capitalist.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Why did a world capitalist civilization emerge when it did
Why did a world capitalist civilization emerge when it did? Contemporary analysts have observed that while different nations and states exist, they are bound together in a single system which can loosely described as “the capitalist world economy” (Wallerstein: 1984, p.
6 Pages(1500 words)Essay
Economics is said to be concerned with the central problem of scarcity and infinite wants
It arises due to the prevalence of unlimited want for food, time, money and comfort with limited resources for the purpose of satisfying these wants at the same time. In the context of economics, scarcity indicates that there is absence of unlimited resources.
5 Pages(1250 words)Essay
The State of the economy and how it is efecting the people
Banking Guide states “The risks of negative equity (where mortgages are greater than the value of the property) became a reality and mortgage defaults hit record highs. Banks have lost the trust which is a pre-requisite to the efficient functioning of credit markets”.
10 Pages(2500 words)Essay
Scarcity and how it Applies to Micro-Economic Decision Making
In simple words it can be explained that there are only a limited amount of resources available to produce the unlimited amount of goods and services that we desire. It’s a question everyone asks how to manage the scarce and limited resources that are available to us, who should be given preference to use them and how the resources can be best utilized.
6 Pages(1500 words)Essay
Capitalist Economy: Individual and Institutions Units
It focuses two units, namely individual and institutions, to analyse how these two units integrate a capitalist economy and concludes which unit is more practical in a capitalist economy. Given the empirical studies, we normally grasp a capitalist economy that distinguishes itself from other economic systems in that it depends upon the idea of private property, labour market and profit motive.
6 Pages(1500 words)Essay
How do electric cooperatives impact the local, as well as the national economy
During their history, the rural electric cooperatives have been a considerable economic benefit, both locally and nationally. According to Folsom, "The benefits are attributable to local ownership and single-level taxation and being able to retain the economic benefits, primarily in the form of profits and dividends, within the local community" (10).
3 Pages(750 words)Essay
Economy and the Capitalist Society
 This, therefore, implies that although individuals and their preferences play a major role in a capitalist economy, the final outcome of each option or course of decision making rests fully on the aggregate decisions and the decisions of other stakeholders which collectively determines affairs in the society.  
9 Pages(2250 words)Essay
The US advocated for capitalism while the USSR advocated for socialism so it is apparent that when USA won the cold war, she and capitalism emerged very popular. Capitalism is regarded as an economic system where private
4 Pages(1000 words)Essay
How has the rapid growth of Dubai's economy impacted its long term urban planning as well as its architectural value
The city has 37 billion USD turnovers. Herein, it should be noted that the economic activity in Dubai is majorly dependent upon trade and financial services. The economic activity in
9 Pages(2250 words)Essay
How Business ethical problem effect economy
The sweatshop issue which drew in Nike is also very well-documented. Nearly every high-end apparel brand operates its sweatshops in various countries around the world, especially in places where labor costs are low. This helps companies to save up on
5 Pages(1250 words)Essay
Let us find you another Essay on topic How can scarcity be a problem in the capitalist economy when the shops are well stocked, there are over 2.5 million people unemp for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us