Question

based on the lesson, how are individuals and economies similar?

Answer 1

Answer:

Allocation of sources.

Explanation:

Economics has not played its role only in the market but it has a very important role in an individual's life.

When economies think of investing and try to bring something in a market, they think on different issues of allocation of sources. Sources allocation is an important factor in an economies life. If everything is not planned or not allocated well, it can cause a severe loss in business or market.

Similarly, an individual needs to allocate the sources in a well-mannered way to achieve the goals. If the things are not managed well, the result could be reversed or maybe the worse in shape of unbearable loss.

Answer 2

Both are similar because both of them must decide as to how to allocate the resources.

Further Explanation:

Individuals and economies have to pay attention to where there are allocating their resources. There are two types of resources: renewable and non-renewable. The same can happen with an individual. If an individual invests in some risky resources he can face losses. Sometimes the loss is such that the person cannot heal it or revert it. In Economies as well, the high-risk investment can cause unbearable consequences. They both need to maintain equilibrium so that the right balance can be achieved. There are some potential resources which can grow but there are not existing technologies present to utilize the fruits of those resources. Similarly, we humans have inbuilt potential within us which we have not realized and once we get an extrinsic push and motivation, then the results are remarkable. Then, at last, comes the security deposits that every person needs in their bad times. Similarly, in case of a slow-moving economy or a recession type of situation there needs to be a backup plan to recover the losses done to the economy. Economy is the backbone of any nation because everything relies on it. In general, we need to always avoid risks wherever necessary.  

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Answer Details:

Grade: High School

Chapter: Similarity between Individual and Economy.

Subject: Social Science

Keywords:

Attention, allocating, resources, high-risk investment, potential resources, security deposits.