Managerial Economics Individual Work wk1 Essay Example | Topics and Well Written Essays - 750 words

Managerial Economics Individual Work wk1 - Essay Example Some of these are discussed below: Scarcity is the excess of human wants over the resources he holds (Devlin, 2014). As the resources available to the world are limited while wants are unlimited, therefore we say that the resources are scarce in relation to human wants. Opportunity cost means trade-off of one desire for the choice of another. Since resources are scarce compared to human wants, every person needs to make choice of what he should purchase with his limited resources (ICAP, 2013). It is not possible for a person to buy everything with his resources. Hence if a person has two choices of buying a burger or some bread and he chooses to buy a burger, then the amount of bread he ignored for that burger is the opportunity cost of that burger. It shows those economic activities in which income earned by one factor is the expense of the other factor (Hirschey, 2008). For example, in a commercial organization, labor provides factor services and in return the organization pays the labor wages. These wages are income for the labor whereas expense for the organization. Market efficiency is directly related to property ownership. It may be explained as whenever there is a factor of property ownership in a specific region, there will be economic stability which will then lead to efficient markets. Let us take the example of America where property ownership is not very difficult. For this reason, the people in that region, after ownership of the property, look towards further investments in the region. It is a well-known fact that where investment increases, markets get more and more competitive leading to market efficiency. Illegal immigration means moving or living in a country without its citizenship or legal visa of the country. In almost all the countries of our world, illegal immigration is strictly prohibited. These countries quickly deport such immigrants as soon as they