Economics: Resource Scarcity, Opportunity Costs, and UK Examples

This essay provides a comprehensive analysis of resource scarcity and opportunity costs, focusing on their impact on individual decision-making and business strategies. It uses real-world examples from the UK economy between 2019 and 2021 to illustrate these concepts, discussing challenges faced by households due to resource limitations, including issues related to education, urbanization, financial literacy, and water scarcity. The essay also delves into cost-benefit analysis, explaining its application in both household and corporate contexts, and examines the role of incentives in economic decision-making. The document concludes by highlighting the importance of understanding these economic principles for effective resource allocation and achieving financial goals. Desklib is a platform where you can find solved assignments and past papers for students.

ECONOMICS FOR
BUSINESS

INTRODUCTION
Microeconomics is the defined as the small portion of the country's economy and also
having the significant aspects which also includes the various of ways and including determining
the given prices, commerce, judgement, market foreign and judgement. This focuses for the
individual's personal decision-making process also the domestic settings(Backhouse, 2020). It is
the decision-making process that is critical in various different ways throughout in order to
attains the best possible outcome from an company's strategy and the planning. This respective
report will cover how the opportunities cost & resource scarcity might affect the individual's
personal judgement process. Moreover, it will cover the various difficulties which is being faced
by the individual in their homes as a results of opportunities material and power limitation. This
respective paper will cover and discuss the motivation & cost-benefit analysis that affects the
individuals as well as the how the business employment a free-market system & consumer
advantages to attains the achieve corporate success.
TASK
Utilizing the MOD3327 module content & Krugman & Wells textbook, explain how resource
scarcity & opportunity cost.
Scarcity may be referred as that key of economic difficulty which is characterized
among the resources which are scare and unending requirements of the consumer. This assist in
improving the ability of an individual in order to take the decision in relation to the resource
relocation. It is very important to assess the depletion to meet the requirements. From the
economics point of view, the situation of scarcity is arises only when the consumption of the
goods has been increases in relation to supply. It has been identifies that because of scarcity
smart choices can be make by the consumer like how to spend in the resources in order to
satisfied all the needs and wants. In context to the business, resources can be influenced by
restriction which not only affect their performance but also influenced the decisions because the
scarcity may be internal or external. This directly influenced the behavior of the consumer
because it has both positive and adverse effect on the goals of the organization. With the help of
this effective manipulating and calculating the supplier can be possible to open. Scarcity also
make a huge impact on the financial asset of the company because individuals always made their

decisions on the basis of desire and needs and these develops consequences on the purchases
which are done within a company.
The value of losing at the time of deciding among more then two alternatives which are
called as expenditure. It is very important for an individual to paid focus on the opportunities
continuously because this not only influenced the decision making of the organization but also
influenced the behavior of the individual. This is identified due to the optimization of the
individual profits by focusing on cost and resources under consideration. The economic cost may
be defined as the ability of an individual to paid focus on the actions in which they are expert to
boost up the productions of the goods and services in the competitive marketplace which are
based on the dealing of goods and services. Due to a notion called as strategic edge,
specialisation in this way is very fruitful. As it is said, if the opportunity costs of two countries or
companies are different, the macroeconomic worth of the product is increased because all goods
are used to convert the requirements of scenario into revenue. Opportunities have a huge effect
on persons, as their attitudes change as a result of surrogate mother choices(Gans, 2020).
As a result, decision making changes to offers opportunities to increase the effectiveness
and profitability of individuals or institutions. This, also known as a real investment, enables all
possible responses to external and internal concerns of the firm. This also know as how to
properly approach fate and the present. It also provides the most efficient allocation for
maximizing profits. From a financial perspective, opportunity costs are known as external costs,
hidden costs, profitability, profitability, and economic benefits.

Figure 1Opportunity Cost Definition, 2019
The opportunity cost plays a very important role. Different types of factors are comprises
in this which assist in improving the significance of the opportunity cost. Some of them
discussed below: -
 If the government of the nation spend $870 billion on a war then this result in arisen of
price conflicts. These money cannot be spent on the medical services educations and
many more.
 Investing in new highways: -if the road is construct by the government of the nation the
money can't be used for the different purpose like medical and healthcare.
 Tax reductions – a reduction in the economic cost of tax has been seen which result in
that fund of the government can't be used in elements of public expenditure.
 Time – if 12 hour available in front of the company in a day then this can be utilized by
them for the completion of work. Watching TV in a day is the potential cost due to this
the manager of the company can't be able to study in a day.

Explain these economic concepts using real examples from within the UK economy &social
environments within the past three years (2019-2021).
Opportunity cost
There may be various pricing choices that use in place of a particular word. 20,000 $
are in the hands of Martha and she have two choices. she can either deposit it and earn 10%
annually, or use it in high school. Martha decides to invest in her future education as 12% of the
financial costs which will provide her with her annual income once she complete her study.
Resource scarcity
Resource depletion has been seen because of the COVID growing rapidly and vaccines
are needed all across the globe to save lives and enhance the immune defense system. However,
since each and every individual required the vaccine and at the same time, the vaccine not meet
customer needs. The vaccine took longer time than expected to produce because of the scarcity
of the resources.
Discuss the biggest challenge for some households in respect to scarcity of resources and
opportunity costs
Due to a scarcity of resources & its multiplier effect, an individual faces a variety of
problems.
 Education and Skills:- In today's highly populated world, it is complicated to find
trained and educated people in many professions because of the knowledge required to
achieve a company's goals. Management can also deal with it by providing the training
which are needed by the employees. This allows employees to be more responsible for
their tasks and to maximize their knowledge and skills in the right format. Individuals
who are illiterate and lack of knowledge they need to preserve money and resources for
future, which can affect an individual's personal budget.
 Urbanization - As per the density of population, land, police and water, this is seen as a
challenge for person and companies. These resources also impact on family and an
individual. It also affects households as prices, rents, and real estate prices increase due to
immense competition making it difficult for everyone to afford and as a result a large part

of their income is lost. It affects people's health, pollutes the environment and contributes
in increasing the violent crime.
 Financial illiteracy: It is the issues which can also be the barrier for the people as there
are individual who are not aware about the current value but how the money is being
spent and retained for the future usage or necessity. People who are uneducated of
various that can present them with the opportunities and assist them to results the
obstacles. As thee are some of the people will be unable to current official pay stubs,
there is certain of the vital paperwork that is being helpful. It is also analysed that who
are meeting the profile of the individual and they are not matching the financial illiteracy
the they are not saving enough for the future, purchasing goods and services based with
the purchasing power and committing other financial decisions which get the immediate
satisfaction in the expenses of long-term repercussions. The LIG & EWS are the certain
groups which are having the most difficulty in obtaining the traditional financing of
housing(Saviotti, &Metcalfe, 2018). There are certain aspects which is having the most
difficult getting traditional. There are various semi group which may leads to be help
them to get home loans.
 Cost of ownership: as it is known that the purchase price is defined as the sum total of
assets class purchase price & their operating cost. When the company is measuring the
overall cost of up keeping helps in taking a effective comprehensive look in the globe.
 Water scarcity: There is the major part of the population which is being impacted by the
national resources which includes water and it if quite tough for the people to manage its
life without that. There are many other things which get suffer with the results of water
shortage and it is the key primary resource scarcity of individual. This also has the major
impact on the personal food waste and its system.
Task 2
Using MOD3327 module content and the Krugman & Wells textbook, describe how cost-benefit
The expense analysis is defined as the structured method that is being used by the
company in order to analyse which action must made and hence, this must be avoided. The
expense analyst adds that the possible benefits is the action and it must takes away all the
incurring cost which is being generated on intervention. Benefit-cost analysis is the tool which

help the individual to evaluate the development's economic rewards such as the programs which
is being giving the certain amount of return which has the total returned in the specific work. In
relation to money, is is the word which examine the both public and private cost(King, 2018).
This cost being includes n internal cost that are quantified in units of money. On other hand,
external cost includes the exterior disturbances to the business environment, noise expenditure
which are being quantified in both financial as well as there is no measure of that. This
respective phrase is vital for both the household and the company since, it analyse the all the
incurred profit and costs can be created in the United Kingdom.
It basically estimates and analyse the money which is required for the financial
requirements of the people in their homes. This also connected with the life choice process and
also explains the certain benefits which help the people to obtain prior making their purchase a
home and can spend the money on family and their works.
Illustration 1: Economic, 2022
In context to the microeconomic theory, this helps is particular way as it includes the
inclinations which also favour the actions. In economic and finance, there are basically three
sorts of incentives that us straightforward, it includes all the unrealized gains and the second is a
social responsibility which is concerned with doing proper things by which they can stand in the
community(Datar &Rosén, 2020). The last aspects is comprises with the morality of conducting

the smart work that also includes the overall conscience of loss & gain. In the overall decision
process and that can be the intrinsic and the external influence are being used. Intrinsic
incentives defined as the independent aspects for people and for their personal benefit without
taking any extra stress.
This is being referred to the feeling of satisfied individual individually as they are also
getting the particular needs. Motivation is defined as the monetary benefits which also give the
exchange for having the job done. All the monetary incentives are being analysed in the account
that includes the incentives and this is also called as the tax benefits & tax reduction processes as
they are the fundamental strong incentives which is concerned to buy the particular things. This
also cover the economic incentives that are monetary advantages which are offered to the people
and are being used by the company to incentives their staff and they are being used by the
company to incentives which can increase the overall production levels. It basically cover the tax
breaks which emphasise renewable energy in that the individual experience environmental
friendly that means to have more power. It also analyse the free holidays, incentives for the sum
of huge money, safety rewards and this is concerned with the physical and mental health of the
people that are the good example of home incentives.
Economic concepts using real examples within the UK economy and social environments within
the past years (2019-2021)
Cost-benefit analysis
There are forthcoming assignment which are likely to estimated $8,000 &yielding
$12,000 in context to exchange on capital & other costing $11,000 &yielding $20000 which in
exchange on capital. The first development's ratio 1.5 while the overall second given projects
that was 1.81 & it is being estimated which undertaking two which would be more efffective
with the high cost benefits(Bates, Bradford and Seamans, 2018).
ti is the method which is the given method which is accessed by the regulating decision-
makers so that they can understand the cost and the benefits as a whole financial terms.
Individuals usually work on a CBA in order to attract the monetary value.

Describe how the market economy utilise consumer habits of cost-benefits analysis and desire
for incentives to drive their organsiation profits
Consumer behavior defined as the activities of the people and the decision-making
aspects as it buying consumer for the personal enjoyment. There are certain various advantages
to the employing the overall buying behavior that includes the consumer distinctiveness that help
in formation of the intended audience. It is also important to develop the relevant marketing plan
& programs which includes the advertisement in raising the organization's sale.
CONCLUSION
As per this report, it can be said that while making the decisions, this is critical to
consider the few things: resources that can be limited with the multiple effects and also influence
the variety of ways by taking different scenarios. This respective study also gives the various
illustrations of choices. This paper also discussed the various difficulties which people can has
the results of scarcity and rising externalities. This assignment also cost-benefit analysis which is
important in the choice possess and how they economy an assist to attains the overall
profitability.

REFERENCES
Books and Journals
Bates, T., Bradford, W.D. and Seamans, R., 2018. Minority entrepreneurship in twenty-first
century America. Small Business Economics, 50(3), pp.415-427.
Datar, R. &Rosén, C.G., 2020. Downstream process economics. In Separation processes in
biotechnology (pp. 741-794). CRC Press.
King, N., 2018. Economics &control in everyday school life. In Ideology &curriculum (pp. 45-
62). Routledge.
Saviotti, P.P. &Metcalfe, J.S., 2018. Present development &trends in evolutionary economics.
In Evolutionary theories of economic &technological change (pp. 1-30). Routledge.
Ughetto, E., Rossi, M., Audretsch, D. and Lehmann, E.E., 2020. Female entrepreneurship in the
digital era. Small Business Economics, 55(2), pp.305-312.
Backhouse, R.E. ed., 2020. Economics &language. Routledge.
Dustmann, C., Vasiljeva, K. and Piil Damm, A., 2019. Refugee migration and electoral
outcomes. The Review of Economic Studies, 86(5), pp.2035-2091.
Gans, J., 2020. Economics in the Age of COVID-19. MIT Press.
Simmons, S.A., Wiklund, J., Levie, J., Bradley, S.W. and Sunny, S.A., 2019. Gender gaps and
reentry into entrepreneurial ecosystems after business failure. Small Business
Economics, 53(2), pp.517-531.