Friday, February 8, 2013

Topic 1: Big Question.

Choices end up determining what, how, and for whom goods and services because scarcity forces people to make choices. The producers will look at previous histories and their own factors of production to decide what to make that will benefit them most and the consumers will look into the products to decide buying which products, since they obviously cannot buy all of them, will best satisfy their needs or wants. If PAS is an economy and everyone at PAS is a producer and consumer, the goods and services produced are probably the human capital of knowledge. Each day we attend school to learn knowledge that we can perhaps one day use in our future career. Knowledge is produced by both the teachers by teaching the subject and the students for learning it well. The goods and services are produced by a teacher teaching the class and a student learning and understanding the material. Tis service and goods are produced for any careers in the future looking to hire. The parents and the school's headmistress collectively make the choices governing what , how, and for whom this service will be produced.
As Adam Smith has proposed, sometimes the best way to make sure the economics of a society work is by doing nothing and letting in the " invisible hand" of self-interest guide the economy to the right direction. Choices made in the pursuit of self-interest can almost always promote social interests due to the fact that resources are scarce and most industries and persons are only limited to doing one thing. Therefore, in order to produce a final product, you will have to collaborate at some point. This, however, is not always the case. If the " invisible hand" becomes " visible" as in the case of monopolies, the public can suffer. PAS has decided to host a basketball event by using the 6th floor court and have multiple groups play against each other.This event is built specifically for high school students. In this event, the basketball team benefit from the entrance fee students pay in order to participate in the event. The students also benefit from being able to spend a joyous afternoon playing basketball. PAS also has a student-council run convenience store that make money by selling products bought in Cosco to the student body in general. The self-interest of the Student Council is satisfied as they make money from their sell and the self-interest of the consumers are satisfied as they can get their lunches there or just a cool drink. The two situations reflect the social interest of convenience in general. The student body wanted to buy things or play basketball quick and fast, and the student council and basketball team wanted to make quick and easy sells with high profits. So,  self-interest in this case satisfied everybody and benefited society in general.

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