Do the citizens in North Korea have their rights?

North Korea is practising the command system.

Command system is also known as socialism and communism where the government answered all the basic questions. Basically, the government determines what goods should be produced, how much should be produced and at what price the goods will be offered for sale. The government  assumes that they owns the capital, labour and natural resources. Government will decides what is good for the economic and the market forces or firm have no control of it.

Because of that, someone feel that North Korea is notorious for its utter disregard of basic human rights.

Currently, The North Korean government’s release is titled, “We will destroy Imjingak, in its entirety,” The North Korea threatens to kill human rights group just because of attempt to launch balloons full of supplies from South Korea into North Korea on Saturday.

In my opinion,  the advantages of practising command system are more public goods will be provided, high level of savings and capital accumulation, distribution of wealth is equal and so on. The disadvantages are high cost in planning and no incentive to innovate.

Scarcity and opportunity cost in our daily life.

-what is scarcity?

Scarcity is a presumption that human wants are unlimited but resources aren’t. Scarcity arise because human desire more than resources can provide. So there is something called opportunity cost which means something you have to forgo to achieve something else when you desire both at the same time.

For example: After a wonderful soccer match, you’re very dehydrated as well as you’re hungry but you only have rm3 currently. You have to choose to spent rm3 on a bottle of drinks or a packet of nasi lemak. If you forgo nasi lemak for a bottle of drinks, hence that packet of nasi lemak is the opportunity cost.

-Indirectly we are applying economic term into our daily life.

In a real life scenario, we can take Singapore as a good example of scarcity because the land they have are limited and now they’re digging holes for underground to built more houses and shop lots that would go down about 30 storeys . “We already have underground train stations and malls, and there are already many buildings here that take advantage of spaces below ground so the real questions are how much time will one spend underground, what goes on there, and how far down from natural light and fresh air.” Says from a Singaporean. So many part of out life we faces scarcity and we have to make choices in order to proceed to the next step. Not only the underground is a scarcity for them, they even bought a huge amount of sands to expand their country. Marina Bay Sands is previously not a land but sea. They make choice and decided to use resources to fulfill their proposal.

-We faces scarcity everyday.

-We have to choose either only one goods or services and have to forgo the other goods or services.

-People think rationally before making a decision in daily life.

-This happens in firm as well when they have to make decision on which proposal to choose.

-People look for the highest perceive value.

In my opinion, making choice is always a problem in our daily life but we have to forgo something to enable us to achieve one another, this is known as opportunity cost. With this concept, we are able to achieve the highest value to satisfy ourselves.

References:
 http://newsinfo.inquirer.net/363211/land-scarce-singapore-looks-underground-for-space#ixzz2Yklb3y27

Perfect Competiton

Perfect  Competition

Characteristics

• Perfect Competition is an industry in which there are a large numbers of independently acting seller which sell their products.
• The firms sells identical products. Product from others firm will be perfect substitutes for each others product
• They are the price taker. They don't have the ability to exert control over the price of the product.
• The demand for each firm output is perfectly elastic.
• There are no barriers to enter the industry
• established firm have no advantage over new firms

Wet Market

There are a lot of markets out there which is applying perfect competition especially in the wet market. Wet market usually sells item such as fish , chicken , pork, vegetable , and fruits . They provide all kind of food and their customer are mostly from housewives. wet market is all over the world and there are many competitors selling the same product. Therefore, there are a lot of perfect substitutes.

The hawkers which set up their stalls at the wet market  are the price taker and they don't have the ability to exert control over the price of the product as when they change the price, their customers would choose to buy other substitutes from the competitors because the competitors are offering at a lower price.

Finally, anyone could easily enter into the industry and start their business as there are no barriers of entry. The market and established firm have no advantage over new firms so the new firms would  manage to survive in the industry.