8.1 Economics of everyday life

Economics of everyday life

Resources: Resources are the things used to produce or make goods and               services.  eg: Fishes, Underwater beauty, Sea, boats, engines etc.

Needs    : Needs are the things which are basic requrements of human beings without which we cannot live.
           eg: Food, Shelter, Water etc
           eg: Protein, Carbohydrates, Fats, Vitamins, Minerals.

Wants    : Things which are over expected by an individual after needs, without which life can not be in danger.
           eg: Computers, Fans, Motor cycles etc
           eg: we get protein from tuna, same type of protein we get from costly fish.
                  Getting protein form costly fish is want.

Scarcity : Having less resources to satisfy the needs and wants of the humans or an industry is called Scarcity.
           eg: Rice, Sugar, big land etc in Maldives.
           
Surplus  : Having more or more resouces than the demand or needs or wants of the people or an industry.
           eg: Sea area in the Maldives.

Specialisation: Having more skill or concentrating on a particular area of working.
           eg: Maldives is having specialisation in fish processing.
               India is having specialisation in paddy culture.

Opportunity cost: The given up value or The loss of potential gain from other alternatives when one alternative is chosen or The cost of an alternative that must be forgone in order to pursue a certain action.
            Eg: If a student selects to study higher level insted of joining Resort,   in this case the resort job is opportunity cost. Buying tuna insted of Grouper, in this case Grouper is opportunity cost.

Economic Forces: Economic forces are those that contribute to the success or failure of economy of a country, business ventures and individual products. These forces try to control may the rate of inflation, interest rates, stock market performance, the level of unemployment etc.
                 eg: Producers
                       Consumers
                      Regulators.

Producer    : A person, company, or country that makes, grows, or supplies goods or commodities for sale. or A person or thing that makes or causes something.
              eg: Fishermen, Fisheries Complexes, Small Scale fish smoking centres etc

Consumer    : A person who purchases goods and services for personal use. or
                           A person or thing that eats or uses something.
                           Eg: Commonman etc.

Regulators  : The Economic regulators are usually the agencies established by central government for the control of or intervention in the operation of markets, according to public interest, principles, religious reasons and criteria.
              

1. Explain how and why regulators influence the prices.
Ans: Regulators influence the prices by following different policies. Some times they try to increase the prices of goods, this is because to encourage the people to buy the goods  which are avilable locally, and to discourage people form buying same type of products  which flood in to the market.
     
     Some times Regulators decrease the prices. Eg: government give lot of subsidy on Rice,  sugar etc. This type of activity ensure less hungry people in the country.
    
     Some times governement maintain the prices. eg: Gas price, petrol price etc. By regulating the demand and supply in equal rate this can be achieved. This type of activity reduces over burden on people.

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