EconomicConceptsWorksheet - Economic Concepts Worksheet...

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Economic Concepts Worksheet Concept Application of Concept from Personal Experience Reference to Concept in Reading Scarcity and Choice This is an important concept and may be called as the core of economics. At the centre of all the economic analysis lies the idea that the resources that are used to produce goods and services are limited and so the products are also scarce making it necessary for us to make choices. We have to make choices in our daily life as to what we have and what we can get. We cannot get it all. Here in lies the concept of scarcity and choice. Depending upon the level of scarcity of the products and the resources used to produce them, a price tag is attached to the product. Depending upon the price that we can afford we have to make choices regarding what we can get and what we need to get. We usually have to let go of one thing to get the other. For example I would like (but I don’t need) to have a hi tech cell phone but due to high price tag attached to it, I would settle for a more basic phone that gives me all the basic functionalities without the price tag of the hi tech phone. Thus I made a choice of buying a low cost phone so I can use my savings for something else. “From our definition of economics, it is easy to see why economists view the world through the lens of scarcity.
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This note was uploaded on 10/15/2008 for the course MBA 501 taught by Professor Elhag during the Spring '08 term at University of Phoenix.

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EconomicConceptsWorksheet - Economic Concepts Worksheet...

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