Economics Essay
Everyone has affects and wants, needs are limited and wants are non. individually country has resources that enable its people to get both what they need and want, but these resources will run out so perpetuallyyone move have everything they want, this is called relative scarcity and is a problem in economic systems throughout the world.
Every time we decide on a good or service, there is something else we cant have. this is opportunistic cost and it is also a problem as the economy attempts to prioritise everyones needs and ever changing wants.
Every parliamentary procedure has three basic economic questions that they must address; what goods and function will be produced? How and how much are going to be produced? And who will be the consumers of these goods and services?
Different economies have evolved to address this problem, we will be smell at, traditional/barter, command/planned, free enterprise and Australias economy. We will be looking at how they deal with the three economic questions, addressing their characteristics, advantages and disadvantages.
The barter system is based on customs and traditions, though is not as common in todays world. goods are directly interchange for other goods and wants without the use of a common exchange building block such as money.
For example
If I were a cattle granger under the influence of the barter system, and I wanted/needed vegetables I would have to trade one of my cattle for, for example a lettuce, but how many lettuces would I get for one cattle? Surely one of my cattle isnt worth one lettuce, so there is the danger of nonequivalent exchange. In this economy, there is slight of a demand for goods as they will only be produced if they are going to be consumed.
Characteristics of this economy...
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