"Choices Are Everywhere:Why Can't We Just Have It All?"

"Choices Are Everywhere:Why Can
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Finance & Accounting
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Article Review Name: Institution: Course: Tutor: Date: Wolla, S.A. (2013). “Choices Are Everywhere: Why Can’t We Just Have It All?”Page One Economics Newsletter. Wolla’s article, “Choices Are Everywhere: Why Can’t We Just Have It All?” explores the concepts of scarcity and opportunity cost…

Introduction

Wolla argues that the fiscal cliff resulted from high debt level that emanated from wanting and purchasing more than what could be paid for. Dissecting to the article, debt reduction includes two difficult choices. The first choice involves reducing government expenditure on goods and services. However, this choice is surrounded by a difficult decision on which government spending to be reduced. The second choice of reducing government debt is through raising taxes. However, the question is who should pay more? One choice could be preferred over the other or the two choices could be blended. Wolla argues that these choices also apply to household budgets. Whichever choice one makes, basic understanding of economic concepts of Scarcity and opportunity cost remains imperative. In an attempt to clarify the concepts of scarcity and opportunity cost with regard to personal and household spending, Wolla uses a $20 gift card. The $20 is the budget constraint for the individual who receive the gift card. According to Wolla, wants are unlimited while the resources to satisfy these wants are limited. It is this situation of having limited resources and unlimited wants that he refers to as scarcity. According to the article, the $20 mark means that the card holder cannot have anything to spend more than the limit and thus, cannot purchase all that he or she wants. ...
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