Group items tagged

The Minister of Education, Mr. David Laws, wants to reduce the national expenditure on school uniform. He believes that the inflated price of school uniform up to 52 million pounds per year is excessive. The schools in the UK have to reduce the opportunity cost of demanding overly priced uniform. This practice must be stopped. In implementing this policy, British families would be able to save 52 million pounds in one year, which is a sizeable proportion of many poor families budgets. In many lower income families in this period of recession, families who are depending on food banks will benefit from this opportunity cost of spending on uniform as they have a scarce budget. This will help them to shift their household expenditures to more essential items such as food. The opportunity cost of them budgeting a significant percentage of their limited income to an inelastic demand for uniforms may create problems of great scarcity to families with many school-going children. The guideline by the minister stated that the uniform must be purchase from the cheaper suppliers, which will reduce the opportunity costs. This will mean savings for the parents. The question is how do these new policies going to be effectively worked out because some rich parents with no scarcity problems will insist or prefer their children to wear higher quality and more expensive uniforms, some even tailoring them.

This is my article for this week. It connects to one of this week's key concept of Economics, Opportunity Cost. The concept of opportunity cost are reflected in the choice companies makes in relation to technology. For my full write-up, please go to: https://pamojaeducation-com.campuspack.eu/Groups/13.Y2.ST.ODP.MAY.ECON.SL.A/Nattanopthorns_Economics_Blog/2013/09/2-4_-_ScarcityOpportunity_Cost - Bee

This article "Opening the flood gates" illustrates the opportunity cost in building a dam on the yangzi river. The yangzi river contains a rare fish reserve as well as farmers reaping good harvest, the dam on the river will affect the good harvest from the farmers as well threaten several endangered species.

my article

This article is a very good example of how the idea of scarcity exists within Chinese banks.