• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss using examples why the problem of scarcity is central to the understanding of economics, Is it possible to solve the economic problem?

Extracts from this document...


Discuss using examples why the problem of scarcity is central to the understanding of economics, Is it possible to solve the economic problem? Introduction Most resources in the world are scarce this means there is a limited amount. There is a limited amount of land, labour, capital and enterprise. This is a problem because people are naturally greedy. A person's wants are definitely not scarce they are unlimited. These two facts pose a problem, there is not enough stuff to fulfil all the peoples wants on the planet. Through this problem the process of economics arises. There must be choices made about what is the best way to use these scarce resources to satisfy the wants of people. In this essay I will discuss, using examples why exactly the problem of scarcity is central to the understanding of economics. Also whether it is possible to solve the economic problem. Hundreds of thousands of years ago the people who populated the earth did not need any form of currency to assist their daily lives. The cave that they lived in was free, the animals that they ate were free and the water that they drank was free. ...read more.


These two competing systems of allocation make up the meat of economic science as they seek to deal with the problems of scarcity. They do this by tackling it in three different areas. These are what to produce, how to produce and who to produce for? A society will have to ask what to produce because they cannot produce everything due to the scarce nature of its resources. The society will have to make a decision over whether it's better producing food or shelter. Is it better feeding the population or protecting them from the harsh elements. The second question the society would have to ask itself is how to satisfy most wants of the people by using as little of its already short supply of resources as possible. Which process generates the highest output in relation to its input? Which production method is the most efficient? These are really important questions as resources are scarce in relation to unlimited wants. This question is more complicated than it first seems because of the potential ethical implications of the most productive methods of allocating scarce resources. For example, a very efficient method of picking cotton is to capture hundreds of uncivilised African people, transport them to the cotton fields then tell them that they are going to work from sunrise to sunset or else they will be beaten. ...read more.


This would cause a situation where the two high quality factors are forced to be useless because there is no tools for the people to use and nobody to tell them what to use them for. So far I have discussed, with examples, why the economic problem is central to the understanding of economics and that we only have the process of economics because we have the problem of scarcity. There is then the question of whether it is possible to solve the economic problem. There are two ways of solving the economic problem. The first way is to increase the amount of resources on the planet, the second way is to stop peoples want for things. Both socially are impossible to achieve. There will always be a limit on what resources are available, they may be able to improve the factors of production in some countries with good management but never to the extent where all the wants of people are satisfied. It would be even more difficult to put a cap on the amount of material goods a person wants. People are always looking to improve their quality of life by acquiring new possessions and partaking in activities. These wants will always increase, it will be impossible satisfy them all as new ones would appear. Peoples wants are continually expanding, developing and changing. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Human Resource Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Human Resource Management essays

  1. Human resources

    This data may include: * number and occupations of people seeking work * average rates of pay * numbers of full time and part time workers * supply of skills locally including the qualifications of school leavers and graduates entering the labour market * the proportion of the labour force

  2. Migration To Germany.

    Table 2: Unemployment Rate and Vacancies Between 1970-74 1970 1971 1972 1973 1974 UNEMPLOYMENT RATE 0.6 0.7 0.9 2.4 3.2 UNEMPLOYED PERSONS 149.000 185.000 246.000 273.000 582.000 VACANCIES 795.000 648.000 546.000 572.000 315.000 According to Nermin Abadan Unat new recruitment policy was as below: - The recruitment procedure for each

  1. 'In what ways, and to what extent do males and females have different experiences ...

    Gender of respondent and locus of control (defined by Spector's Work Locus of Control scale) are also shown to be related to rational bias discrimination. Suggestions are made for further development and resting of rational bias theory. KeyWords Plus: SEX-DISCRIMINATION, CONTROL SCALE, WORK LOCUS, MANAGEMENT, BEHAVIOR, WOMEN, POWER, ORGANIZATIONS, DETERMINANTS,

  2. Coastal County of Clerk Problem Solution

    A lot of issues could have been resolved quickly with some compromise if the employees were given a chance to debate the issues with Accord. The town hall should be run by a neutral third party so that it does not get out of control and become an attack on Accord.

  1. HR reactives to Economic downturn

    For example, to avert compulsory redundancy organisations in the automotive industry utilised a range of measures in which to reduce labour costs. Vauxhall introduced the concept of 'down days' where during times of low production, shorter working weeks were conducted.

  2. Immigration Policies and Unemployment in Switzerland

    Even if the level of unemployment didn't reach the same levels of other neighbour countries, Switzerland no longer seemed to be a Sonderfall (Bonoli and Mach 2000). The main cause of the end of Sonderfall was considered the immigration and immigration policies.

  1. Employment relation in the in United states of America

    system large numbers of rural women and children and many immigrants from Ireland, Britain, Germany and other countries. These factory workers did not unionize. This may have been partly because their pay was generally comparable to American farm earnings and higher than those of factory worker in Europe.

  2. Identifying and Solving a HR Problem at Hovertec Helicopter Builders.

    While the radically new method of assembling looms reduced the assemble time to two working days. 1. Technology * Cause of problem 1.3.1: Although the product line is complicated and high-risk error, the loom technicians do not have strong enthusiasm and lack of responsibility in carrying out the working process.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work