Homework Sourse1Give an example of something that is a good for one person
1.Give an example of something that is a good for one person and a bad for someone else.
2.Explain the link between scarcity and each of the following:
(a) choice, (b) opportunity cost, (c) the need for a rationing device, (d) competition.
1.Give an example of something that is a good for one person and a bad for someone else.
2.Explain the link between scarcity and each of the following:
(a) choice, (b) opportunity cost, (c) the need for a rationing device, (d) competition.
2.Explain the link between scarcity and each of the following:
(a) choice, (b) opportunity cost, (c) the need for a rationing device, (d) competition.
Solution
1. Suppose a farmer has a farmland beside a lake. The farmer uses pesticides in the farmland to increase production and residuals of the pesticide gets washed away by rain and gets deposited in the lake. A fisherman catches fish from the lake contaminated by the pesticides. Here, the usage of the pesticide benefits the farmer but harms the fisherman. Therefore, the usage of the pesticide is good for the farmer but bad for the fisherman.
