To explain the concept of scarcity and opportunity cost,let's take oil palm production as an example.Malaysia and Indonesia are producing oil palm at a very fast rate.This is because of the good weather conditions and availability of land.They produce oil palm because of the low opportunity cost as they have a comparative advantage. At the same time,production of electronic goods ,such as handphones and computers in Taiwan is very high as Taiwan has good labour and sufficient resources to support these industries.If Taiwan were to focus on producing palm oil,the opportunity cost would be very high.
Although Malaysia and Indonesia are very good in producing palm oil,there has been a hike in palm oil biodiesel production.This has caused Greenspace to oppose palm oil as it feels that this hike results in the clearance of rainforest land.This clearance would in turn result in the death of species living in these habitats. In this case,the opportunity cost of increase in palm oil production is the loss of species in the respective habitats.
Munisha Kumra
5X
I disagree with your last statement there. it is true that more rainfroest land will be cut down however i do not think that the opportunity cost would be the lost of the habitat for the animals. The opportunity cost would be the wood from those trees and the other reasources that can be found in the forest such as herbs, fruits etc. the opportunity cost could also be the land that could have been used to build other buildings or farm crops.
ReplyDeleteActually, you should address why the opportunity cost of Taiwan would be very high if they produce palm oil. By adding supporting points showing that Malaysia and Indonesia has more competitive advantage in palm oil production in term of weather and land, It might help.
ReplyDeleteYet, I love your last points which illustrates the trade offs between alternatives.
Firstly, your first post wasn't bad to me. Secondly i agree with Tracy, maybe u could elaborate more on the concept of scarcity and opportunity cost since you brought in the examples of Malaysia, Indonesia and Taiwan. The last paragraph didn't seem clear about what you are trying to bring about to the readers. However, you introduction paragraph was very clear and easy to understand. And i like that you compared the opp cost between more than just one country to make it easier for others to understand.
ReplyDeleteDarren Low 5w
A much better effort than your first attempt! However, you have only touched on the concepts rather briefly. Not many students have learnt about comparative advantage yet, so you may need to explain concepts such as how you link the production of palm oil having a low opportunity cost as Malaysia has a comparative advantage in it. Good linkage to loss of biodiversity as the opportunity cost!
ReplyDelete