Resources and scarcity, resources means to provide or equipment that is needed. Scarcity means limited or short supply. The definition by Lionel Robbins says that our resources are limited but humans need is unlimited. As a human we never get enough of things. For example, now i own a proton car but later, will wish to have other bigger car. As we all know humans have unlimited desire. And also it’s very hard to satisfy their wants.
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Economics is defined as a study of resources to satisfy humans’ unlimited wants. Economics plays an important role in our daily life. For example, if a price of a product increases it will affect the economics of the country and also the people there. It is important to have or maintain a stable economics in the country. Economics plays an important role in every individual.
Besides this, resources are important elements. There are few important elements which are known as the factors of production which are capital, land, labor and entrepreneur. Each element plays an important role in the country economics and also to satisfy humans unlimited needs and wants. The factors of production are divided to 3 main parts which is Humans Resources, Natural Resources and also Manufactured Resources.
Firstly, about Human resources, human resources is known as labor. Labor is known as employees who work to made or produce. It is important to know about the abilities of the labor or workers. We should understand their level of abilities and use their skills wisely. Labor help to improve the standard of the country and the satisfy of humans unlimited needs and wants. For example, there will be engineers with a lot of potential, so the employer should understand and use the employee skill wisely to improve and also maintain the production of the country and the economics too.
Secondly, i will discuss about land. Land is also an important element in the resources, without land there is nothing. Land is a place where we can get timber, minerals and also natural resources to continue living. By having land we can get all the natural resources. It also knows that in our country Malaysia we are rich in natural resoures, such as minerals and timber.
Furthermore capital is also one of the factors of production. Capital is known as a good or services. Example of capital is machines, tools and etc. It is important to have this machines and tools to further with production. Capital is to have a better produced of goods or services.
And entrepreneur an entrepreneur is an organize an also an entrepreneur is a person who introduces to new product, and techniques and also entrepreneur must be a person who willing to take risk.
These are the four main and important factors, but to fulfill humans needs and wants this is not enough cause humans always have unlimited wants and needs to be fulfill their needs. Moreover by the help of the three questions, it will be much easier to solve this problem. The questions are how to produce, to whom to produces and what to produce. By following this question human can make a choice of what they want.
For example, humans have to identify the wants and make a choice. Making a choice may be hard but humans have to make a choice, based on how much they have. How much can their afford.
Choice is an important decision that humans have to make. Choice in the food, goods and etc. By making a choice humans tend to satisfy their needs and wants.
Capital is define as a good that be used in a business to generate the income of the business. Capital is an important element in a business. Capital is also known as money or property that used in a business. Capital is a money that humans use to develop their business. Without capital there will be no way to develop or invest the business. Capital used to produce either goods or services. For example Capital refers to machines or tools in an company. Without the machines or tools cannot produce or create. For examples cars, there are machines and tools that had been created to make cars, without the machines the car cannot be created or made. Just with machines job is done faster and easily.
Capital also depends on what kind of capital that humans refers either in a form of money or machines. Money is also known as capital. To produce or start a business, we need capital in which in the form of money. To start a small or big business firstly we need capital, without a capital we cannot start the business. Even it is a small amount of money it is still considered as a capital. To start the business we have to have enough of money. Capital also can be property. If property that you own can be a capital. It can be a small piece of land which we can use to start a business.
Capital is always refers to something that you put in to get the output, as you can say by putting the input which is capital and you get a output. Without input there will not be any output. The input plays a major role in getting a good output. Capital is a strong and important element to start a business or to produce. We should have a enough of capital before we start to produce or starting a business. Capital is money or machines that have a value to get a good output in the process. Capital also can be identity as a income. For example capital is something that has a value by its own. Income is important in starting a business or doing any production.
Furthermore, land is defined as then surface of earth. Land is a beautiful nature resource. Land has its own advantages such as soil, land, and also minerals and timber. Land is important to start a business because without having a land it’s hard to start a business.
Land does not only refer to the upper part but land has its own minerals rivers and etc. In the four factor of production, land is known as one of the factor. The soil in the land has a high quality. Land is depending on which kind of land is it and also where it is located. Some land is really very rich with the minerals, which can be used to produce minerals and etc. Land of ground as be known as property, estate.
Business man who wants to open a factory of company will be looking for a land. For example a business man wants to open a shopping mall. The business man will be looking for a invest land or a land where is located in the centre or the town, it also will be a place to attract customers. For example the land owner can be use the land as a invest in it. Land is need for building or known as a property. Land is also can be say as a investments. Land in a good area will be a good investments place for business.
Labor is define as a employees or a worker. Labor is an important elements for work to be done. To identify labor the employer has to understand the workers skills and their liabilities and their knowledge of the job. It is important to known employees physical and mental effort on the job there has. Employer has to know his or her employee liabilities before a task.
Entrepreneur is define as business man who is willing to take risk in the business they are doing to have either profit of loss. As a entrepreneur he or she has to face the problem. A entrepreneur have to be a person who is very organizes person and also should have the creative in introduces new product. In the business world an entrepreneur has to be fast and also smart in handing problem.
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These are all the resources that we have in our Malaysia. All this factors are limited. And cannot produce more. But the needs and the wants of the humans are unlimited. As the say of Lionel Robbins which is true that humans always have unlimited of wants which is hard to satisfy. To solve this problem, by using the 3 question which is what to produces, how to produces and to whom to produces.
Humans have to make a choice on what they really want and what is really very necessary in their life. Humans have to make the right choice and be happy with it. Opportunity cost plays an important role here. Opportunity cost for example in choosing the right this in food or clothes. Make a decision whether can afford it or not. Make a choice based on the money have and it also must fulfill the needs and wants as well. And also have to do sacrifice one of the needs to fulfill the needs.
Opportunity plays a role in our daily life. For example in everything we have to make choice. From what we want to eat to what we want to wear we make a choice. Opportunity choice is made from what we can afford. To solve this economics problem humans have to make the choice cause it’s hard to satisfy everyone needs and wants with the limited resources.
Malaysia is mixed economy country. Mixed economy is known as government intervention in the country. Government intervention means governments interfere in the activities in the production and also distribution. Mixed economics is also known as a balanced economy. Mixed economy is government and markets take the decisions. Mixed economy is a good plan cause by the help of the government price mechanism is control.
Price mechanism is define as it’s a generally between the supply and demand. For example went there is more demand the price of that product will go up. And went the demand goes down the price also goes down too. Price is define as the market value, the price of purchase. Price mechanism is a change according to the demand and supply. For example during raining season the price of vegetables will increase because there will be demand for the vegetables cause during raining season it’s hard to get vegetables. And the seller will try to sell at the higher price here where government interfere and control the price.
Price is divided to two parts which is price floor and price ceilings. A Price floor is the lowest price. Price floor is done by government. Government will control so that the price of the product will not go very low. This is the way how government controls the price mechanism. Price ceilings are government puts a stop for the price of the product go too high and cannot be control. Government tends to control or put a limit to the price or the product. Examples of price floor and price ceilings are (rice, flour. petrol, sugar and etc.)
The ways governments interfere. Government intervention by controlling the price of the product in the country. Each product have a standard price and government help that the product are not sell in higher price. If the product is sell in a higher price, the buyers will feel hard to buy it, by the government intervention it will help to control the price of the products. For example the price of rice, if the price of the rice increase the people who have a normal salary will feel hard to buy the rice. It will affect the country economy as well.
In other ways government intervention is by giving pension to the employees after they at reach age of 60. Pension helps the employees who are retired. Besides this, government intervention by involves in social activity such as helping the (float victim) by giving them shelter and also basic needs such as food and drinks. Government also helps the poor. Government helps by giving them education. In Malaysia government gives education from standard 1 to right up to form 5.
Government also gives important to environmental issues such as reduced of plastic. For example in Malaysia government has introduces not to use plastics bags on Saturday. Besides this, government encourages to use recycle bags.
Government plays an important role to control the price mechanism by using the price floor and price ceilings. The price of goods rises because of the demand on the product. And also this will create a shortage in the market.
To overcome this problem government has to control the price the goods every time. Government has to put a price list to solve this problem. By controlling the price government also controls the waste. As Malaysia is a mixed economy the control of price is important. By the government interfere it will help the country to have a stable economy. And the people have a control economy in the country. To solve this problem government has to control the price mechanism.
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