Economic Concepts WorksheetConceptApplication of Concept from Personal ExperienceReference to Concept in ReadingScarcity and ChoiceScarcity and Choice, there exist only a limited supply of human and non-human resources that are available without sacrifice of something else.
My Psychiatric department is limited by the amount of funds it receives annually for staffing and the implementation of various healthcare projects and services. A recent change in the acuity and demographics of the psychiatric patient population has increased the necessity to hire additional nursing staff to maintain a high quality of services and care. Due to financial constraints, scarce human and property resources the Director has elected to use financial resources to execute critical changes that positively impact more than eighty percent of our patient population, as long as these interventions attract and retain patients and does not lead to substantial labor costs. Our department has become automated in an effort to enhance efficiency and delivery of services offered. As a result, additional nurses have not been hired, our psychiatric unit census and acuity is high and the Director has given the nurses the choice of working overtime hours, working understaffed, or seeking new employment.
There are predetermined and/or inadequate amounts of goods and services that can be produced for human consumption, all individual or societal needs and desires cannot be fulfilled, a scarcity in resources necessitates that choices be made from all existing options. " Scarcity limits our options and necessitates that we make choices. Because we "can't have it all," we must decide what we will have, and what we must forgo," (McConnell & Brue, 2004).
Marginal AnalysisMarginal Analysis is a valuable economic approach to validate if a particular want is worth satisfying.
I am a bargain shopper at heart; therefore, I often impulsively purchase merchandise when stores advertise "buy one, get one free" deals. When I take the time to compare the marginal benefit derived from my purchase, against the marginal cost I am empowered when I identify that my purchase gives me the most value for my dollar. When grocery stores, sell perishable items nearing the expiry date at discounted prices. I weigh the marginal benefit of purchasing fresher food at additional cost against the benefit of saving a few dollars and I do not make the purchase.
Marginal Analysis refers to the process of performing a cost/benefits analysis, evaluating economic efficiency and maximizing profits/utility "comparison of marginal benefits and marginal cost" (McConnell & Brue, 2004)MicroeconomicsMicroeconomics studies the output indicators of specific products, the price mechanisms and the distribution of resources and income.
In 2005, forty nurses currently employed by my...