Question #1 – Scarcity

The problem of unemployment affects a significant proportion of the world’s qualified workforce. A troubled global economy has seen the number of unemployed people rise in recent years. Major world economies are still reeling from the effects of the 2008 global financial crisis that was marked by a shrink in global markets and loss of jobs. Unemployment is a macroeconomic problem across the world that is manifested through the inability to secure work, despite being qualified(Boyes & Melvin, 2015). The problem, as explained, arises from developments that impede economic growth, such as the global financial crisis of 2008. Mechanization has also seen the shrink of the market, manufacturing, and agriculture sectors, and growth of the service sector, thereby affecting the type of skilled labor in demand. Of course, this has doomed some qualified persons to unemployment, while offering others lucrative job opportunities. The problem of unemployment will continue to affect the world’s professional workforce soon.

Question #2 – Opportunity Cost

After a busy week, the weekend offers one the opportunity to relax and unwind. Having an activity-filled Sunday can, however, compromise one’s mental preparation for starting the week on the critical note. My friends usually like us to meet on Sundays for fun activities such as going to the movies or going bowling. However, since we live a little out of town, I usually find it quite disruptive having to meet with them on this day. By the time I make it back home, I usually find myself worn out and disoriented to the extent that a good night’s sleep is not sufficient to have me correctly refreshed for starting the new week. For these reasons, I have chosen to forego such get-togethers on Sundays, and instead dedicate this day to relaxing at home and preparing myself mentally for the week.

Question #3 – Comparative and Absolute Advantage

A productive economy ensures that the goods and services that one may require are readily available. These are the passive benefits of development in a particular location. It is an indicator of the quality of life attainable in a specific environment and increases overall satisfaction levels. Nonetheless, in an environment where there is no development, life is bound to be very challenging (Boyes & Melvin, 2015). It is the situation that Jack and Fred are presented within the island. The skills they possess can afford them no cumulative benefit other than ensuring that they survive. Fred can utilize his fishing skills to ensure that he does not starve to death on the island. However, since he also requires a shelter, he can also supply Jack with fish, so that Jack reciprocates by building him a refuge. Nonetheless, this will only ensure that they survive their predicament, and nothing more.

Question #4 – Market vs. Centrally Placed Economy

Retail spaces have traditionally been used for displaying goods and vending. However, technological innovation has seen the replacement of store assistants with robots and shelves with digital display walls. It has massively reduced operation costs by ensuring that only a limited staff is employed. An innovative idea would, therefore, be retail stores that function as spaces for advertising emerging micro-retail brands. It will eliminate the need for renting mortar shops and permanent buildings for emerging businesses (Gura, 2014). Although Simon Property Group has already developed such an idea, it can be expanded to include staffing solutions that can link potential employees with the business owners.

References

Boyes, W., & Melvin, M. (2015). Microeconomics (6th ed.). Boston, MA: Cengage Learning.

Gura, T. (2014). Scarcity Breeds Opportunity. Science, 78(4), 98-112. doi:10.1126/science.caredit.a1400084

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