Homework Week #2

Part 1:   Economists do not think as normal people do. They tend to think logically and do not include morals into their answers. For this reason economists tend to get a bad reputation. However in most cases their reasoning are very well thought out and are good ideas. They talk about scarcity, but not in the way you may think. Most think that if there is a little of something then it is scarce. Economists say that scarcity is when a resource has more than one valuable use. For example water, water is used to keep humans alive. It is also used to keep plants alive; therefore it is scarce. Now you may be thinking "Well what about oxygen? I need it to breathe and i need it for my fireplace. So is it scarce?". I personally would agree but, for reasons unknown, certain economists would tell you different; but I digress. Now many have yet to notice how McDonald's and street gangs are similar. They have the same structures, both have employees then bosses then managers and so on. Only the gangs have different names for it. But essentially everyone starts from the bottom and works up. Gangs just have a much steeper raise in income and they move up the chain. That is a hard decision, a street gang or McDonald's. Every day we make decisions, and although we do not realize it we weigh the pros and cons in every decision we make. This come in handy when we talk about finance. But I am not going to get into that because I was not there. Well thanks for listening and as always, stay frosty bros MD out!

Part 2: Nah just kidding. Which is more valuable? Water or diamonds? Without diamonds there is no more bling. But without water we die. Without water everything changes, plants and animals will all die. Personally this makes water pretty valuable. Diamonds and the other hand, are a luxury. Humans do not need them to survive, but they do help with the economy. People like their beauty so they buy them. That means more money into the economy and more jobs for workers. Even so, water is much more important in the long run. If we lose water then we start to die off. If we lose diamonds we just get sad because we no longer have our bling. However I choose survival over bling. For that reason I believe that water is more valuable than diamonds. Now I am done. Peace!