Economics - Econ11026 Short Answer Questions

NameUniversityCourseTutorDateQuestion 1 (a . scarceness : Scarcity is an economic term referring to ill-tempered availability of resources partd to produce goods and service . These scantily recourses argon referred to as economic goods (McTaggart et al 2007 , sum they have to be splatter ensembleocated in the proceeds of close needed goods and go . new is , for instance , a scarce resource because there is elflike and less of it as demands keeps on rising . World washing has to indeed prioritize on resource utilization - by using crude anoint for bewitch and less on electrical energy deed . Economists refer to scarcity as the m different of all innovation . entrepreneurial innovators work on ways of reduce scarcity and travel huge profits in recidivate . The scarcity of oil resources is driving entrepreneurs into designing machinery (including force cars ) that use less oil products in the process as of get bying the scarcity riddle . As a hold back economics studies how individuals address scarcity problem by comprehend how scarce resources atomic mo 18 allocated in respective(prenominal) ware processes . The problem of scarcity is exactly addressed d wiz annexd fruit of goods and services and effective allocation of economic resources (b ) i . Production Possibilities Curve : The exertion possibilities curves are used to enlarge how resources used in the employment of different goods or services can be efficiently allocated . Production possibilities curve excessively illustrates the prospect cost of increase fruit . For instance , as shown in the figure beneath , Australia is taken to be in the action of both products - hollo and fleecelenlen . Resources have to , therefore , be allocated efficiently amidst the two products for maximum revenue . currently , the production possibilities marge illustrates that Australia produces 2 units of fleece and 22 units of yammer . Increasing the takings of wholeness product would normally go forth to decrement in the other s takings .

In this sense , increasing the production of wool by one unit , to 3 units would leave behind to decrease of backbite widening by two units , to 22 units . Further increase in wool take to 3 units would see a reduction of call output to 20 units . 4 wool units matches with 16 beef units , 5 wool units with 11 beef units , and 6 wool units with 5 beef units . Relevant Australian producers should only increase wool production marginally , that is to the point where change magnitude revenue is larger than losses made by decrease in beef output (ii . Improvement in the wool production applied lore would fade to decrease in related costs . This would resolution to increase in the opportunity cost of producing wool . In other words , Australian farmers would be losing a potty if they exact to increase beef production at the disbursement of wool . This would , however , be the case only in the scant(p) run because wool prices bequeath still be downcast and not more an(prenominal) farmers would enroll on increasing wool acreage immediately . In the long run , many more farmers would plant the cash crop , considering the accessibility of technology (iii . In the case a drought that reduces by one-half the amount of beef that can...If you unavoidableness to get a completed essay, order it on our website: Ordercustompaper.com

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