How Might Scarcity Divide Our World Or Bring It Together?

CP Economics Final 2018 Task: For this final, you will be demonstrating your final skill goal of the year: creating an original argument and supporting it with relevant evidence. In addition, you will continue to demonstrate your understanding, analyze evidence, breakdown essential questions, and conduct relevant research. Essential Question: How might scarcity divide our world or bring it together? Final Exam Review: Connecting Concepts to Concepts In the summative, you will be using our economic concepts from this year to help you answer different essential questions. To prepare you, in this step, you will connect specific economic concepts to each other. You will explain their relationships. All explanations must be in your own words. You should use your slides from previous units to help you construct your explanations. 1 Scarcity and Economic Systems (free market economy, centrally planned economy, mixed economy) An economy has limited resources and unlimited wants. Hence, the amount of resources available will not satisfy all the wants which lead to the concept of scarcity. As a result, there is need to for nations to determine how to distribute wealth and trade good and services. In the process of determining what to produce, who to manufacture and where to manufacture in order to maximize the use of the scarce resources, the concept of economic system arises. In a free market economy, people have the freedom to make their own choices. However, in a centrally placed economy, all the decisions are made by the government. Finally, a mixed economy involves both the public and private entities. 2 Economic Systems and Economic Values (growth, freedom, security, efficiency, equity) Economic value is the measure of the amount of benefit derived by an economic agent from the good and services provided. However, the commodities that are distributed or traded needs to be measured in order to determine the entity that will manufacture them at the lowest cost and at the same time achieving maximum benefits. Hence, the relationship between economic system and economic values. 3 The Law of Supply and the Law of Demand The law of supply states that an increase in supply reduces price. While the law of demand states that an increase in demand increases price. Hence, the two laws relates to each other as they help in determining the equilibrium price and quantity of a product or service in a competitive market structure. 4 Market Structure (perfect competition, monopolistic competition, oligopoly, monopoly) and Government Regulation The relationship between market structure and government regulation is that the government sets rules that are applied in the market structure to avoid the exploitation of consumers by companies. The degree of government intervention depends on the kind of the market structure and how firms within the market structure exploit consumers through unhealthy business practices such as setting high prices. 5 Business Organizations (sole proprietorship, partnerships, franchises, corporations) and Labor Goals Labor goals are set by the organization of workers to improve the welfare of the employees. The organization negotiates on the amount of remuneration to be paid to employees and the nature of ...