KELOMPOK 10

1. Erhans Aldo Chandra / 12020223130052

2. Pratiwi Puspitasari / 12020223140104
3. Faris Adhif ar Rasid / 12020223140118
4. Damai Ariella L. P. / 12020223130040
5. Mujahid Abdul Karim / 12020223140088

QUESTION AND ANSWER

1. Explain, why scarcity impacts the economy and explain what opportunity cost is?
Answer:
 Economic Impact of Scarcity:
1) At every stage of economic activity, people and organizations compete for the
resources they need. Therefore, if one person is competing with thousands of
people for a needed resource, that person's control over the needed resource is
much smaller, and vice versa.
2) Universal, meaning that consumers, firms, and governments are constantly forced
to make trade-offs, having to sacrifice one thing to get something else.
 Opportunity cost is a way to measure exactly the value of what you sacrifice when
you pursue different opportunities

2. What is meant by economic expansion and explain why economic expansion can occur!
Answer:
 In economics, expansion is an effort made to increase economic activity as well as the
growth of the business world.
 Economic expansion occurs when the economy grows and consumers spend more
money, which stimulates employment and higher wages, which then stimulates more
consumer purchases.

3. How does the government's fiscal policy impact the free market dynamics?
Answer:
 Government fiscal policies, such as tax regulation and public spending, can have a
significant impact on free markets.
 Tax adjustments, such as cuts in income tax or corporate tax
 Can stimulate investment and consumption
 Encourage economic growth
 Create a more conducive environment for market players.
 However, if this policy is not regulated properly, it can cause inflation and budget
deficits. In addition, tapering fiscal policies can create market distortions and affect
healthy competition. Alignment between fiscal policy and free market objectives is
important to minimize negative impacts.
4. Are there political or social obstacles in implementing deregulation in the basic economic
sector and what solutions can the government take to overcome obstacles in
implementing the deregulation system?
Answer:
 The deregulation system is removing regulations to increase efficiency and economic
growth. The implementation of deregulation in markets/companies is a policy that
needs to be considered. One of the main challenges that may arise due to politics and
society is the long-term and short-term impact. There may be a positive impact in the
long term, but in the short term the changes that occur can affect the company and be
detrimental to several parties.
 To overcome political or social obstacles, the government and company officials must
begin to implement it and monitor the policies made and ensure that deregulation
policies are implemented correctly and responsibly.

5. Why is the lack of competition in a monopoly situation detrimental?

Answer:
 The lack of competition in a monopoly situation is considered detrimental because it
can result in high prices, low quality, reduced innovation, and limited choice for
consumers. Without significant competitors, a monopolist has the power to control the
market completely, so consumers tend to have to accept the conditions set by the
company. This results in consumers paying higher prices with no other options.