Social Science and Economics Scarcity affects the choices made by governments and individuals Scarcity in governments can be categorized into two groups; limited resources and unlimited wants or needs. Unlimited wants and needs is part of the basic human existence. It means that people are never satisfied with what they have .Unlimited wants is one of the problems that affect human beings while the other problem is limited needs. These two factors have been considered as a motivating factor in improving the livelihoods of individuals. They also affect the choices that are made by governments and individuals. Despite the numerous needs and wants, governments usually have limited choices as they have to make decisions based on the basic human …show more content…
A market is a place where goods are exchanged. There are two major laws that are used in trade, the law of supply and the law of demand. A market comprises of producers and consumers who affect the prices of goods and services. Markets affect the process of production, distribution and consumption in the following ways: When the markets fetch a high price for a certain type of product, then its rate of production will increase. This gives a relationship between supply and quantity. The high prices will also encourage more resources to be used in the process of production which translates to high production profits. High prices of goods in the market may discourage its consumption. Hence more consumers will tend to avoid purchasing the product affecting its demand and eventually affecting its production. The prices of goods in the market also affect distribution. In essence, the distribution of products and goods depend on the principle of willing buyer and willing sellers. The consumers of the product will determine the worth of the product with regard to its price and decide whether they will purchase it.Eventually, the prices will determine whether they purchase the good hence also determine its …show more content…
In the U.S individual can be divided into the upper class, middle class and lower class. The main difference within these groups is the lifestyle and economic capacities. Marketers also modify their products in terms of quality, price and marketing strategy to fit the social status of their target consumers. Psychological factors; Psychological factors are determined by the perceptions, beliefs, motivation and the attitudes of a consumer. The marketers target to improve the attitude of consumers towards their products or modify the products to meet the consumer’s perceptions and values. Individual factors; these are factors that are based on personality, gender disparities, age and self-perceptions. Marketers also modify their products to meet the individual needs of the society to increase consumption of their products in the market. Economic interdependence between
If you are working hard in this situation you will succeed. For example, the year of 2005 when hurricane Katrina occurred the owners of oil companies spiked there prices resulting in a price gouge. To help their companies succeed. To relate to that, the consumers drive economic decisions by choosing what to buy. To illustrate they use a graphing system and what results in this system is two things, one of them are if the prices goes up, the demand for the product will go down and the supply will go up again this results in a surplus.
In Cocktail Party Economics, scarcity, value, exchange, production, and comparative advantage are useful in understanding the demand and supply model and the concept of equilibrium. The first concept we can look at is scarcity. “Scarcity creates costly choices” (18). We must decide to go without an item or pay a higher price due to its scarcity. The price can continue changing until equilibrium is reached where the quantity demanded equals the quantity supplied.
This leads to consumers looking for cheaper substitutes for the product from other companies. Not only that, but with no competition, the value may go down if the prices are too high or too low. The consumer may not have the resources to purchase any other brand of the same product, but is forced to only purchase from the first company it came from. When the prices of oil go sky high, those who live in poverty may have to use every dime, nickle and penny that they have just so they can have the oil they need. It gives those who are struggling more pressure and tribulation.
The government of the United States is a massive and complex organization. Its purpose is to improve and protect the lives of American citizens, both at home and overseas. Because its functions are so numerous and varied, the government operates on several different levels--national, state, and local. At each of these levels the government makes certain demands on its citizens. But this is only to promote the general welfare of the society as a whole.
Governmental power is often held by a few, and this also leads to problems as citizens feel that their voices are not being heard. This inequality is not seen only between people and the government, but also different groups of citizens today (gender, race,
If a society relies solely on the government, the government will become too powerful. Such a government would take control and encroach in all aspects of the citizens’ life, including information, education, and jobs. When society sacrifices freedom in the name of safety, they turn control of their lives over
These economic concepts were scarcity and choice and self -interest. The first economic concept of scarcity and choice is seen when the authors discuss money as a limited resource. The limited resources which in this case is money by incomes that cause people to decline health insurance coverage. According to Sered and Fernandopulle, it is an individual’s choice not to get any health insurance because they cannot afford it. Sometimes it comes down to choosing to pay their bills or have proper health coverage.
Along with this particular social the issue, it is mandatory to suggest a few ideas on how the government
In larger and more developed countries like America and China, the government is more apart of their people’s personal and daily lives.
Society has been struggling to find order ever since its conception. The idea that perfection could be achieved has long been dismissed, but societies still strive for something at least resembling functionality. Some of the fundamental problems faced within the genesis of a nation stem from the establishment of a government. How would one control and provide for the citizens in an effective way? Why would anyone willingly submit to governmental control?
Political environment includes laws, government agencies, and pressure group that influence and limit various organizations and individuals in a given society. Economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Social factors include the demographic and cultural aspects of the external macro environment. In which demography is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics; cutural environment consist of institution of other forces that affect society’s basic values, perceptions, preferences, and behaviors. Therefore, these factors have an impact on customer’s needs and size of potential markets.
In order to compare and contrast varying types of government within two or more countries, one must have a clear definition of Government and know the purposes it serves. Therefore, I did some research and I have established that Government is a group that exercises dominant power over a nation, state, society or other body of people. Governments are commonly responsible for constructing and implementing laws, handling money, and defending the general population from external threats, and may have other obligations or privileges. All over the world, there are many different types of government within countries. Each kind has its advantages as well as disadvantages regarding the general well-being of its peoples and economy.
The demographic, physiographic and geographic characteristics help the company identify and target the potential markets and identify the desires of every category of a product to meet the customer’s wants. The company’s principal strategy is based on brand positioning and differentiation which helps it to understand each market’s value proposition. This helps in product differentiation in the competitive market to attract many new customers and keep
The market structure will affect how firm price their product in the industry. The market structure will affect the supply of different commodity in the market. When the competition is high there is a high supply of commodity as different companies tries to dominate the markets. A market structure will affect the barrier to entry for the companies that intend to join that market. A monopoly markets structure has the biggest level of barriers to entry while the perfectly competitive market has zero percent level of barriers to entry.
1.0 INTRODUCTION In an economy, there exists different market structures to accommodate different industries and firms. This study will be made to understand in further depth the market power of different market structures, and in particular an example of using case studies of agricultural sector of the French markets to explain how an ideal perfectly competitive market works. This will then be further strengthened with several references linked to the case study. 1.1 Monopoly market