Institution Affiliated

InstitutionAffiliated:

Dateof submission:

Question1:

Scarcitymeans limited and unlimited resources that can never satisfy theendless people’s wants. It results in opportunity costs creatingthe need for rationality in decision-making. Resolution is throughincrease in prices of scarce goods to reduce demand and enhance theuse of alternatives.

Question2:

  1. Macroeconomic aspect it is caused by aggregate fall in demand or rapid growth in technology resulting in reduced cost of production by that inducing supply to shift

  2. Micro economic aspect as the issue of salary in a firm is internally structured and influenced.

  3. Macroeconomic issue it is a vast phenomenon affected by numerous external factors.

  4. Both Macro and Micro economic outsourcing production is as a result of reduced costs in China (Macro part) and high costs of production in the domestic country (Micro aspect).

Question3:

“TheOnion” shows that people’s wants are unlimited in spite of thelittle resource bestowed on them. Some are unrealistic though peoplerank them high in their pecking order like, not to die and not to paytaxes.

Question4:

“TheOffice” shows that incentives induce employees to work harder so asto achieve a specified reward target. It can result in an unintendedoutcome as employees work hard to humiliate their boss rather thanattain high revenues levels. A reward system should encompass logicalincentives that will enhance healthy competition amongst theemployees.

Question5:

Highexpectation of life after school disrupts their target of the schoolactivities. Good grades become opportunity cost as they concentratemore on after-school expectations and plans.

Question6:

Itkeeps you occupied wanting to see more of the video clip as a resultyou miss out on other things you would have done during that period.There is a possibility of increased time duration while watching dueto stops in between, rewinds and replays.

Question7:

Theopportunity cost is positive as you will have gained $ 108 being thedifference between what one can pay and the actual cost of Rihanna’sconcert.