Pre-Assessments Are Your Opportunity To Practice Applying MO

Pre Assessments Are Your Opportunity To Practice Applying Module Cont

Pre-Assessments are your opportunity to practice applying module content before final submission of your Competency Assessment. First, take a moment to review the Rubric associated with this Pre-Assessment: Rubric Criteria: Describe key differences between scarce resources and free resources, including how they are allocated and what can cause a free resource to become a scarce resource, and 1 or 2 examples. LO1.1.1: Explain the role of scarcity in economics Does Not Meet Expectations Description of differences between scarce resources and free resources, including how they are allocated and what can cause a free resource to become a scarce resource, and examples are vague, inaccurate, and/or incomplete. Meets Expectations Response provides a clear, accurate, and complete description of differences between scarce resources and free resources, including how they are allocated, what can cause a free resource to become a scarce resource, and 1 or 2 examples. Exceeds Expectations Response provides an exemplary description of differences between scarce resources and free resources, including how they are allocated, what can cause a free resource to become a scarce resource, and 2 or more examples. Now, respond to the following prompt, which matches one in your final Assessment: What are the key differences between scarce and free resources? How are they allocated? What can cause a free resource to become a scarce resource? Provide 1 or 2 examples. A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer. Then, apply any feedback you may garner from your Instructor to improve and refine your responses. Note that you do not need to resubmit your Pre-Assessment to address feedback.

Paper For Above instruction

The fundamental difference between scarce resources and free resources lies in their availability and allocation. Scarce resources are limited in supply relative to demand, requiring conscious allocation decisions to distribute them efficiently. Examples include natural minerals, labor, and capital—resources that are finite and must be allocated based on economic priorities and market mechanisms. Conversely, free resources are abundant and available in unlimited quantities without cost, such as air or sunlight, which are considered free because their supply exceeds human demand at no direct expense.

The allocation of scarce resources involves market mechanisms, government intervention, or a combination of both, aiming to optimize their use and ensure equitable distribution. These processes are driven by factors such as price signals, resource demand, and policy decisions. For example, land used for agriculture or industry is allocated based on land value, government zoning laws, and economic necessity. In contrast, free resources like air are not typically allocated but accessible freely to all, although environmental concerns can sometimes limit usage.

A resource that is initially free can become scarce due to overuse, pollution, or increased demand exceeding supply. For instance, clean freshwater is abundant in some regions but can become scarce when pollution, over-extraction, or climate change reduce its availability. Similarly, sunlight is theoretically unlimited, but urban pollution can diminish its availability in some areas, effectively making it a limited resource. These examples highlight how human activity and environmental factors can transform a free resource into a scarce one, emphasizing the importance of sustainable management.

References

• Mankiw, N. G. (2020). Principles of Economics (8th ed.). Cengage Learning.
• Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill Education.
• Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach. W.W. Norton & Company.
• Olson, M. (2009). The Logic of Collective Action: Public Goods and the Theory of Groups. Harvard University Press.
• Tietenberg, T., & Lewis, L. (2018). Environmental and Natural Resource Economics (11th ed.). Routledge.
• Stiglitz, J. E. (2015). The great divide: Unequal societies and what we can do about them. WW Norton & Company.
• Hahn, R. W., & Mount, T. D. (2013). Economic Analysis and Policy. Routledge.
• Diamond, J. (2005). Collapse: How Societies Choose to Fail or Succeed. Penguin Books.
• Dasgupta, P. (2001). Human Well-Being and the Natural Environment. Oxford University Press.
• Arrow, K. J., & Rees, M. (1976). Environmental Preservation, Uncertainty, and Irreversibility. Journal of Economic Theory, 12(1), 1-26.