Is financial capital the same as money? Or does it also encompass other money-related entities, such as credit, loans (is it the same as credit?), credit cards and debit cards, and cheques? • (22 votes) What're the 3 ways to deal with scarcity? • (3 votes) NVM I found them. In case anyone else is curious: (5 votes) How would one describe the perspectives of scarcity and choice Scarcity is the basic economic problem because each level of economic has unlimited wants and limited resources. Economic has various level (individually, firms and governments). Because of the "Time" is scarcity/limited as individually, we as "individually" has to make decision wisely. For example we as individuals want a lot of money and also a lot of time to spend with family. So we need to choose wisely about our wants in order to use "Time" (Scarce Resource) efficiently. There is the concept of Production Possibilities Frontier is being used. Whether to use the time to get a lot of money or to spend time with family. (7 votes) guys I'm not even in middle school can someone help me understand this better pls :( • (0 votes) Don´t worry about not understanding it right now, many adults have trouble understanding it. What you need to know is that: Lets take food as an example, there is a lot of food in the world, but if we hunt too much or don't replant fruits and vegetables, then we have no more food left. Economic Resources: Normative Statements: Positive Statements: Economic Model: If you have anymore questions, don't understand something, or want to go into depth with something specific, just ask! (10 votes) Faced with this scarcity, "we" must choose how to allocate our resources. Can someone explain who is "we" described in the sentence above? Is it refer to government? Who really needs to allocate our resources exactly? • (3 votes) To what extent is Studying at University an Economic Choice? • (3 votes) been there done that :-) (3 votes) I am still having difficulty in understanding the differences between normative and positive analysis. • (2 votes) Normative analysis refers to the process of recommending the best thing to do, while positive analysis uses scientific facts to reach a conclusion. (4 votes) Does the skill of a factory worker (gained through training, practice, and perhaps inherent talent/suitability) count as Labor, Capital, or Technology? • (3 votes) no one said it cant be all three and to me it seems like it can fit in all three... labour is the work so i think capital (1 vote) I wanna know why that even there is no scarcity, there will still be opportunity cost? could somebody explain a bit....like the exact relationship between scarcity and opportunity cost? • (3 votes) What is micro and what is macro • (2 votes) Microeconomics is the study of singular markets, essentially businesses interacting with consumers, while Macroeconomics is a picture of all markets working together in a country's economy. (3 votes)Want to join the conversation?
economic growth
reduce our wants, and
use our existing resources wisely (Don't waste the few resources that we do have.)
Scarce Resource:
A scarce resource is one that runs out, no matter how much of that resource there acually is.
Things that are needed to produce goods and services.
There are four economic resources: land, labor, capital, and technology.
Technology is sometimes referred to as entrepreneurship.
Statements that describe opinions.
Statements that can be tested.
A model that is used to estimate something that has to do with the economy.
(Think of data models you use when doing a science experiment, except these are used to hypothesize.)
it is to some extent an Economic Choice (yep, I "aced" a promotion interview because I had better qualifications than the interviewer, who was suitably impressed, and got a pay rise to go with my new role).
University is also a social thing, where folks "network", and meet folks that can help them and/or they can help, in the future.
For some (like me) University was a chance to leave home, and set up somewhere I chose (rather than the town my parents chose to raise me in), It can lead to more money, but it can also lead to a greater sense of fulfillment, and allow folks to explore opportunities that they otherwise would struggle to find. (see also Maslow's Hierarchy of Needs)
(to me, the skill of a factory worker, let alone a craftsman, seems to have elements of all three!)
Similarly, what does a highly skilled job like an airline pilot count as?
As an expert in finance and economics, I can assure you that the concepts discussed in the provided posts revolve around fundamental economic principles. Now, let's break down the key concepts mentioned in the posts:
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Financial Capital vs. Money:
- Financial capital goes beyond just physical currency. It includes various money-related entities such as credit, loans, credit cards, debit cards, and cheques. In essence, financial capital encompasses a broader spectrum of monetary instruments beyond cash.
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Dealing with Scarcity:
- Three ways to deal with scarcity are mentioned:
- Economic growth: Focusing on increasing the overall output of goods and services.
- Reducing wants: Encouraging individuals to limit their desires and consumption.
- Using existing resources wisely: Efficient utilization of available resources to avoid wastage.
- Three ways to deal with scarcity are mentioned:
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Perspectives of Scarcity and Choice:
- Scarcity is identified as the basic economic problem due to the unlimited wants and limited resources at each level of the economy (individuals, firms, and governments). Decision-making becomes crucial in the face of scarcity.
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Understanding Scarcity for a Beginner:
- Scarcity is explained as a situation where a resource runs out, regardless of its abundance. Economic resources, including land, labor, capital, and technology, are introduced. Normative and positive statements, as well as economic models, are defined.
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Allocation of Resources in the Face of Scarcity:
- The concept of allocating resources in the context of scarcity is discussed. The question is raised about who the pronoun "we" refers to in the sentence, highlighting the importance of understanding resource allocation decisions.
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University Education as an Economic Choice:
- Attending university is explored as an economic choice. The decision involves considerations of qualifications, networking opportunities, social aspects, and potential economic benefits such as a higher income.
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Normative vs. Positive Analysis:
- The distinction between normative and positive analysis is explained. Normative analysis involves recommending the best course of action, while positive analysis relies on scientific facts to draw conclusions.
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Skill of a Factory Worker and Economic Resources:
- The question is posed about whether the skill of a factory worker should be classified as labor, capital, or technology, highlighting the interconnected nature of these economic resources.
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Opportunity Cost and Scarcity:
- The inquiry is made into why, even in the absence of scarcity, there is still opportunity cost. The relationship between scarcity and opportunity cost is sought to be clarified.
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Microeconomics vs. Macroeconomics:
- Microeconomics is defined as the study of individual markets, focusing on the interaction between businesses and consumers. In contrast, macroeconomics provides a broader perspective, examining all markets working together within a country's economy.
