Question

How we can apply economic theory to the rest of our lives, and also how we can use our experience to be better and more critical consumers of economic knowledge. Economics is an evolving field, and I encourage you to think about ways that you can expand.

• Does it make sense for people to wait in lines? To pay for seating in a restaurant or airplane? Why or why not?
• Should everything have a price?
• Will markets lead to better outcomes? Explain why or why not.

Answer 1

Ana. Before answering this question , I would like you to remember the two lines. ie Resources are scarce and unevenly distributed. People have unlimited wants.

Yes , It makes sense for people to wait in lines and to pay for seating in a restaurant or an aeroplane because resources are unevenly distributed across the economy and every person have access to different resources , and in order to avail the benefit of resources which we don't own , we have to pay for them or wait for them in lines.

Yes , it's essential for everything to have a price because pricing of different things helps us in knowing the value of different goods. Prices define the value of that good and it helps in differentiating the satisfaction provided by different goods too. If there are no prices , we would not know that service of a car is of more value than that of a bike. Pricing also helps the provider to show that how much value he or she attaches with that product.

The real motive of the market is to provide better outcomes only and it certainly leads to better outcomes because of bridging the limitation of inefficient allocation of resources. Now , there can be inefficient outcomes too , provided the market functions in a non perfect way.

Best of Luck !! !!