- Published: December 27, 2021
- Updated: December 27, 2021
- University / College: The University of Exeter
- Level: College Admission
- Language: English
- Downloads: 1
Economies of Scale Economies of scale For any country that produces many product output of a product, there is a very likely possibility that the country in question will have all the advantage in terms of producing the product and exporting it. For such a country, it would require that a certain product be produced in mass quantities and then sold at a much cheaper price depending on the country of export (Sowell, 2010).
Due to this, the country importing the goods will import more goods since they are cheaper. That way, the country importing the goods will have gained more by selling less to the intended market. Selling products cheaper enables the products to have ready market and are bought in large quantities than those that are expensive (Sowell, 2010).
Capitalism
The term capitalism in the economic sense of view means that it is an economic system that has been accepted by economists as one which is the quick method to gaining wealth. It is based on the privately possessing merchandizes, and also the means of production which leads to the creation of products that serve as goods and services. All this is done with the intention of gaining profit. There are certain elements that are associated with capitalism such as the accumulation of capital, market competitiveness and a price system (Sowell, 2010).
To the Biblical worldview individuals, capitalism is seen as a means to quick wealth and immoral since it brings about conflicts. Such individuals view capitalism as not looking out for the best interests and the common good of the people. With the passing on of capitalism in the economic market, it brings about inequality, waste, anti-socialism, lack of democracy, dictatorship, war and pollution. Biblical individuals see that as long as capitalism is present, then the above factors will continue to exist in society (Sowell, 2010).
References
Sowell, T. (2010). Basic Economics: A Common Sense Guide to the Economy. New York: Basic
Books.
