Principles of Economics

Topics: Supply and demand, Economics, Elasticity Pages: 4 (1299 words) Published: May 24, 2013
Principles of Economics
According to Campbell, “Economics is the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants” (Campbell, 2005, p. 3, Para. 1). For example, an individual needs air; however, wants a lavish vehicle, which the vehicle becomes the economic want. However, economics is concerned with obtaining maximum satisfaction through the efficient use of scarce resources. Likely, economist view and study economics through the lens of scarcity. Scarcity is an economic theory that allegedly justifies limitations of output to assure profits (Merriam-Webster Dictionary, 2013). On the other hand, problematic issues arise within the United States affecting the economy such as alcohol and drugs abuse. According to the National Institute on Alcohol Abuse and Alcoholism (NIAAA) states, “The economic costs of alcohol abuse and dependence were $184.6 billion for 1998 (the last year for which figures are available), or roughly $638 for every man, woman, and child living in the United States” (NIAAA, 2013, p. 1, Para. 2). In a sense, problematic issues affect the increase and decrease of the economical market. The paper will summarize how an economist would approach the problem of alcohol abuse and provide solutions to the problem. Moreover, address how proscription drugs affect the demand and supply of other products and services within the United States. In addition, formulate a reason why the elasticity of demand is an important consideration when analyzing the influence of a shift in demand. Furthermore, analyze the increasing-cost of industries within the Georgia. Nevertheless, encapsulate how a perfect competitive market is economically efficient.

Approach of Alcohol Abuse
The Gross Domestic Product (GDP) is a measure of all the goods and services produced domestically (Merriam-Webster Dictionary, 2013). Moreover, according to Campbell, “There are a few things that could make a society...
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