Introduction
What Is Economics?
Economics is a social science that focuses on relationships between individuals, businesses, countries, and continents in terms of how the resources are being used in order to meet the wants of humans.
This subject can be divided into two major categories, in particular employment-government, and business-government relations. The first one is a study covering the economic factors that influence people and nations on a more individual level. The second one is a study of aggregate nature of the economy, and can be related to the factors that affect the economy as a whole.
Production Possibility Frontier sugar
When looking at the production of UK sugar, it is possible to see a significant decline. There was an announcement that several factories will be closed and others will be relocated. This is due to the economic crisis, and some international companies are changing partners. Some of the larger French and Spanish companies are merging, and their output will be enormous comparing to that of UK’s.
This leads to a competitive closure of factories and disseverment of funds and resources in the sugar production industry. This is much related to a type of monopolization where other nations will become dominant in the industry, bankrupting all other competitions. The modern UK government focuses on relationships between individuals, businesses, countries, and continents in terms of how the resources are being used in order to meet the wants of people[1].
Opportunity Cost and Trade
Cost and trade are critical to the economy and conduction of business. Regularly, the higher the cost, the higher the prices, and in case it costs more to manufacture a product than to sell it, then there is not enough output for the employer to hold an organization and pay salary to the workers. It is possible to decrease the price which will lead to more spending, and the total number of goods sold will be much higher[2].
Supply and Demand
The supply of a particular product or service greatly depends on the demand. It is dictated by individuals, society, government and other organizations. The demand for quality products always continues to grow, especially in the modern times of crisis. A transaction of such scale requires careful and appropriate accounting treatment, to deal with all the aspects of price fluctuation, as well as market demand for the product.
Elasticity
This division of economics greatly depends on the fluctuation of the market and the adjustment to the demand, as well as the environment. Elasticity is the change in the economic variables which will lead to a shift in other aspects of economical structure and processes. There are prospects of market exploration to determine what changes are needed, thus the focus will shift and criteria will be adjusted.
Utility
The needs and wants for a certain product, its use and functioning are greatly tied with the demand. The purchases made by the consumers and the cultural requirements are often aspects that determine utility. Popularity of a certain product or service, as well as its universality, lead to an increase in production and demand.
Monopolies
Monopolies have a negative rapport because of the lagging tendency. They control the demand and supply, and hence drive the economy either uphill or downhill. Nonetheless, we cannot have a perfect competition, as the curve will usually favor either the demand side or the supply side. For this case, it has to focus more on the aggregate demand side, as it injects more funds into the economy increasing the investments and eventually the whole economy[3].
Oligopolies
A number of small companies, compared to monopoly, are defined as oligopolies. The benefits for individual companies are greater, but the prices for consumers grow, thus negatively impacting the society. There might be direct cooperation between companies or it could be circumstantial where changes in one company will logically require changes in others[4].
Perfect Competition
Competition is defined by laws and maximization of profit. Perfect competition is the balance between all kinds of organizations and businesses which allow everyone to be profitable. As every business deserves a chance to exist and make a profit, preventing any ability for improper trading or abuse of the market will result in breaking the law and ethical codes[5].
Conclusion
The interdependent relationship between the environment, government and businesses leads to changes in economy and market. Economic stability is largely linked to the governmental institutions, in connection with the society and public demands. The intricate manipulations in the amount of products or services, as well as the scope of a business and governmental regulations, all play a role in economics.
Reference List
Gopal, N. Business Environment. New Delhi: Tata McGraw-Hill Education, 2009.
Mankiw, G. Principles of Economics. Mason, OH: Cengage Learning, 2011.
OECD. Sugar Policy Reform in the European Union and in World Sugar Markets. Danvers, MA: OECD Publishing, 2007.
Pride, W. Business. Mason, OH: Cengage Learning, 2010.
Throsby, D. Economics and Culture. Cambridge, UK: Cambridge University Press, 2001.
Footnotes
- OECD. Sugar Policy Reform in the European Union and in World Sugar Markets. Danvers, MA: OECD Publishing, 2007.
- W. Pride. Business. Mason, OH: Cengage Learning, 2010.
- D. Throsby. Economics and Culture. Cambridge, UK: Cambridge University Press, 2001
- N. Gopal. Business Environment. New Delhi: Tata McGraw-Hill Education, 2009.
- G. Mankiw. Principles of Economics (Mankiw). Mason, OH: Cengage Learning, 2011. By N. Gregory Mankiw