Analyse the Different Ways in Which Countries Can Attempt

Firstly, the sparing occupation is split into trinity questions, which ar what to levy? How to win? Who to produce for? These troika questions can also be summed up as scarceness which is the inadequate come in of resources available. Consumers oblige insufficiencys which be unlimited they would always want more, but collectable to the stinting problem, scarceness, not ein truthone leave alone ram on that point want fulfilled, therefore causing a problem. Different countries can attempt to stamp down the economic problem in several(prenominal) ways which is to apply a diametrical providence system to their acres.Due to scarcity consumers entrust now arrive at to make a choice of what they want, by sacrificing the next out(p)flank alternative when making a decision, this is cognise as fortune cost. This is an example of an opportunity cost. Airport operators like the GMR-led DIAL and GVK-led Mumbai world-wide Airport Limited (MIAL) have argued that they could have invested the money raised in the mannikin of certification deposits from this land in some(prenominal) other venture they wanted. Vikas Dhoot. (2012). Airport operators want opportunity cost for land security deposits. Available http//articles. economictimes. ndiatimes. com/2012-01-27/news/30670362_1_security-deposits-airport-operators-airport-project. Last accessed twenty-sixth October 2012. Scarcity is fluctuated by the factors of employment, when there is minor factor of production the higher the scarcity and when higher the factor of production the scorn the scarcity level. Factor of production feature name well behaveds and services for consumers these factor of production consist of labour, land, capital and enterprise. Labour are the individuals/employees who are part of this project to create goods and services for consumers.Labours are awarded with wages/salaries for their serviceman effort in production. Land is the inwrought resource available, and this could be let out to soakeds, as the firm would pay them endorse via rent. Capital are assets used to produce goods, these are things as machinery, vehicle, factories. Finally, enterprise, someone who is initiative, luck needr and good leadership skill, as they are the one who created this project in basic mark to provide goods and service, whitethornbe in order to tap net. Example of good entrepreneur is Steve Jobs who was all behind the fundament of Apple and the success of it.Factors of production causes scarcity which in bends leads to people making choices due to the economic system problem in the country however countries do follow economy system to try and overcome these problems. These are melt commercialize economy interracial economy and command economy. All three handle with basic economic problem differently and are applied in many different countries. Free market economy is an economy system which is controlled by supply and demand and has very footli ng or non- disposal influence. Hong Kong has been one of the indigentst market economy countries in the world. This year, however, several government moves have sparked renewed debate as to whether Hong Kong is abandoning its individualism principles. Cathy Yan. (2010). Face Off Is Hong Kong Still a Free Market?. Available http//blogs. wsj. com/hong-kong/2010/12/20/is-hong-kong-still-a-free-market/. Last accessed 26th October 2012 whatever of the characteristics of the free market economy are that everyone is out there to make gains and tap on them gains. The firms will maximise profit and consumers would have gained a good or service that they wanted.Majority of countrys factor of production, land, are owned by a third party. They will be the backstage owner of the land which in turn they could rent out to a firm, to place their business in order to produce goods and service. The private owner would then get rent and will hope to maximise profit through the process, this also limits the governments role. Since there is little or no government influences in free market economy, firms are able to give anything they want but it is mainly productions of nodes want.Itll be a free enterprise so no absolutism telling labours where they have to work, labours can take any job they want. Also with no barriers to entry or exit it is voiced for competition to enter the market and it will be a highly combative market. Consumers will be looking for which firm can offer them the best paw on their wants whereas firms will be competing for customers and suppliers. Firms whitethorn have to give more to the suppliers in order to get them move ined to the firm and mitigate price in order to attract consumers.Having competition it may be sound to a firm as they may be able to get ideas from a rival firm and yet do better than them. Consider Microsofts standard utilization of absorbing any new and provoke technology into their operating system. In country 6 it w as disk compression. In Windows 3. 11 it was network file access. In Windows 98 the target was the web browser. In Windows XP it may well be streaming multimedia. Its very hard to exist in a marketplace when one of your competitors is more or less giving away your