Problem

= 2. Economic concepts and theories = **Your task** 1. Press edit above 2. Move your cursor below your name (scroll down) - only work in the area under your name 3. Use Ms Stevenson's exemplar as an example

**Miss Stevenson's exemplar:** (note you can not use my topic! Go to your task sheet for more topic examples.)


 * **My Economic problem**: || Grandma has $1000 to spend on a pedigree dog to provide companionship, exercise and security. ||
 * ** Scarcity: ** || Describe how scarcity applies to the above problem ||
 * ** Opportunity Cost: ** || Describe how opportunity cost applies to the above problem ||
 * ** Circular Flow: ** || Describe how CFM applies to the above problem eg which sectors are involved and which $ flows are involved ||
 * ** Any others ..... ** ||  ||


 * David A**


 * **My Economic Problem** || Bruce is looking for a new aparment in the city because he believes it is convenient for his career job. ||
 * **Scarcity** || Scarcity relates to Bruce’s problem as he wants to live in the city. It is obvious that there is urban civilization in the city which indicates limited amount of area that is relatively close to the city. If a favorable demand supply occurs then results the price of property (around the city area) is increased.  ||
 * **Opportunity Cost** || Opportunity cost is usually defined as the cost of a missed opportunity. So if Bruce has two options, if he decides to live in the city where it is close to work but the price of the rent is high or where he can live away from the city where the price of the rent is low but his work is further away. Therefore, if he lives in the city the opportunity cost is the extra amount of money he needs to pay for rent and if he lives away from the city, the opportunity cost is the time and money needed to get to his work.  ||
 * **Circular Flow** ||  ||
 * **Any others** ||  ||