Daily 6

Daily Assignment 6 Scar is the shortage of resources that are needed to satisfy human needs and wants. Wealth reducesthe psychological impact of scarcity.
2. Quotas, seeking alternative sources of a good, and shifting to an alternative good are ways of solving the problem of scarcity. Prudent prioritization of needs and distribution of resources to offset inequality can help solve the scarcity problem. These solutions remind me of the quotas adopted during the Second World War and the fact that poor distribution of resources is at the root of scarcity.
3. Rural economies reinforce the element of tradition in society by emphasizing the place of the individual and kinship realties. Low productivity and simplicity of rural economies typify the element of tradition.
4. Slavery and free labour increased social surplus. The output was maldistributed because it went into the a few private pockets and as such, did not benefit common good.
5. An element of command in the U. S manifests during wartime when the government directs what is to be produced and regulates the flow of good in and out of the country.
6. An industrial society has highly specialized division of labour while an agricultural society has poorly defined division of labour.
7. Serfs were exploited by the lords. They received a place to stay and in return free serfs paid rent and those who were not free offered labour.
8. Guilds existed to fulfil the collective interests and privileges of their membership whereas modern businesses largely serve individual interests of their proprietors.
9. American social surplus keeps growing because Americans prioritize economic growth while upholding fair distribution of resources.
10. Itinerant merchants were stabilizers in the medieval society because they helped provide security and the things they bought helped towns grow. This made the prestige of the itinerant merchants to grow.
11. As cities began to form, itinerant merchants became more essential in the development of market society. This is because they were revered for their commercial affordability.
12. The crusaders initially viewed Venetians as part of them and this worked to their advantage. Byzantines were viewed as weak and non-military and this led to the loss of many of the Crusaders when they attacked them. The Crusaders triumphed but sustained many losses.
13. The wage labour stratified the feudal society because serfs could demand for better terms and move to places that paid higher wages. The manorial system led to the emergence of taxation that helped fund manorial courts.
14. The invisible hand refers to a natural phenomenon that regulates the way markets compete for scarce resources. The invisible hand eliminates the need for government intervention in business and leaves markets to adopt self-regulating measures.
15. Whereas Catholicism teaches that justification means righteousness, Calvinism teaches that justification means vindication and semblance of righteousness but not actual righteousness. Calvinism supported rational economic activity that led to maximum economic gain.
16. The inexpensiveness of slave labour slows the technical improvements in agriculture and manufacturing in countries that rely on slave labour.
17. Today’s underdeveloped world needs governance that will stimulate their populations to appreciate the intensification of industrialization. The industrial revolution there is still low compared to the one that took place in England.
18. The accumulation of capital maximizes the productivity of the worker to the point of exploitation. This is always in an attempt to make the most out of workers at minimized costs.
19. Not all investments require saving because credit can serve as an alternative. Saving leads lowers interest rates and leads to the adoption of new production processes.
20. Capital building in the U. S is directed by both the government and market. Public capital improves productivity and private capital.
21. Building a school, hospital and a housing project are investments but building a stadium is not. Investments have economic gains whereas consumption incurs costs.
Works Cited
Wessels, Walter J. Economics. Hauppauge, N. Y: Barrons, 2006. Print.