Xeco Week 1 Checkpoint

The economy has many current issues to discuss, but the first issue which came to mind is the current usage of materials such as food, forest products, metals and minerals. Food prices are rising because it is costing more to grow the food. Forest products are also rising because the cost of cutting trees has become very expensive. All of our resources are being used up, so the price to make more is rising. This current economic issue is closely related to the first principle of economics, people face trade-offs. People must make decisions to sell their products at a higher rate because the cost to produce the items have gone up.

Informal economy thrives in cities is another economic issue which is currently taking place. Informal economy means that people are forced to make decisions to produce goods illegally. The cost of producing goods has risen over the years, and people can not afford to buy goods. This forces employers to produce the goods and sell them illegally. This closely relates to principle two, the cost of something is what you have to give up to get it. Companies making the goods, and people buying the goods, both must give up something to purchase the necessary items. Companies may have to find cheaper parts to make the goods, and sell them at a lower rate. People may have to make a decision to give up something to afford something else.

The third issue in the current economy is the global economic growth. Each company must make decisions which will benefit the company financially. Jobs have minimized, but as the economy grows, companies must make decisions regarding how many people to hire, and how much goods to purchase, and how much the company should sell their goods to make a profit. This issue is closely related to the third principle in economics, rational people think at a margin. People must have common sense when owning and operating a business. Decisions must be made which will benefit the companies finances. The company may need...