[Solved]-MOD003327 Economics for Business (EFB)
1.0.
Introduction
Krugman and Wells
(2020, p. 6) indicated that every economic concern involves individual choices
and decisions. Besides, due to the scarcity of resources, households and individuals
are bound to make economic choices (Carvalho et al., 2016; p. 270; Krugman
& Wells, 2020, p. 6; Shafir, 2017, p. 134). Moreover, there are several
products available throughout the world and the United Kingdom (UK); however,
households cannot afford to purchase everything they might require; thus, they
must make individual choices. Based on this view, individual and household
microeconomic decisions are solely based on individual choice, and households
make economic decisions and choices since resources are scarce (Krugman &
Wells, 2020, p. 6). Ideally, due to the economics of individual choice,
households tend to give up specific items for the best alternative choice,
meaning that households and individuals frequently employ the principle of
opportunity costs to attain various economic aspects. Specifically, based on Krugman
and Wells s (2020, p. 498) analysis, households and individuals rely on
cost-benefit analysis and incentives to make individual microeconomic choices
in the resource scarce UK environment. From this perspective, the current report
aims to assess how resource scarcity, opportunity cost, cost-benefit analysis,
and incentives impact households and individuals’ microeconomic decision-making
in the UK. The report uses real UK economy and social environment examples to
explain these economic concepts within the past three years. It also analyses
and explains the biggest household challenge with respect to opportunity costs
and resource scarcity and how the market economy uses consumer habits of desire
for incentives and cost-benefits analysis to drive business profits.
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