How societies use and abuse resources and the consequence associated with it

How societies use and abuse resources and the consequence associated with it

Article one which deals with the microeconomic world, explains that there are transactions made during the exchange of goods and services in economy. Therefore, money is used in return for goods and services because many consumers, government agencies, and businesses have various wants and needs of resources for different usages. It further explains that in every market economy, if there is demand for resources, there must producers willing to supply it. Also in a market economy, all the resources have a price allocated to them, therefore, goods that are high on demand their prices are made higher than those goods that have low demand. This means that people will buy resources that are of low prices in plenty than those with high prices and as a result may lead to misuse or abuse of resources sold cheaply (Rudiger, 1998). This article on the microeconomic world further explains that, there are reasons that make people use certain resources more than others and this includes prices of other goods. For instance, if the price of chicken remained the same while the price of pork declined dramatically; the demand for chicken will decrease because pork is a substitute for chicken. Thus, this will lead to use of pork more than chicken to various consumers.

However, the second article that deals with macroeconomics emphasizes on the role played by the government in a capital economy. The article further shows that many people suffer because of the cost of government programs set to deal with poverty and its side effects. These costs are made to everyone and the wealthy people who abuse the resources are the ones that pay the largest share of the cost because of their large income taxes (Link, 1997).

Different factors lead to how people use various resources in the society. For instance, microeconomics article explained in details some these factors and they include, demand for the good, perception of future prices, and the price of other goods. Therefore, as a result of these factors, people tend to abuse some resources for other reasons and at the end leads to overexploitation leading to consequences such as scarcity which leads to poverty.

Reference List

Link, A. (1997). Macroeconomics and Microeconomics. New York: McGraw-Hill College.

Rudiger, D. (1998). .Macroeconomics and Microeconomics. Harvard: Usage