[Solved]-MOD003327 Economics for Business (EFB)

1.0.        Introduction

Krugman and Wells (2020, p. 6) indicated that every economic concern involves individual choices and decisions. Besides, due to the scarcity of resources, households and individuals are bound to make economic choices (Carvalho et al., 2016; p. 270; Krugman & Wells, 2020, p. 6; Shafir, 2017, p. 134). Moreover, there are several products available throughout the world and the United Kingdom (UK); however, households cannot afford to purchase everything they might require; thus, they must make individual choices. Based on this view, individual and household microeconomic decisions are solely based on individual choice, and households make economic decisions and choices since resources are scarce (Krugman & Wells, 2020, p. 6). Ideally, due to the economics of individual choice, households tend to give up specific items for the best alternative choice, meaning that households and individuals frequently employ the principle of opportunity costs to attain various economic aspects. Specifically, based on Krugman and Wells s (2020, p. 498) analysis, households and individuals rely on cost-benefit analysis and incentives to make individual microeconomic choices in the resource scarce UK environment. From this perspective, the current report aims to assess how resource scarcity, opportunity cost, cost-benefit analysis, and incentives impact households and individuals’ microeconomic decision-making in the UK. The report uses real UK economy and social environment examples to explain these economic concepts within the past three years. It also analyses and explains the biggest household challenge with respect to opportunity costs and resource scarcity and how the market economy uses consumer habits of desire for incentives and cost-benefits analysis to drive business profits.   

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