Principles of Economics for Transportation-myassignmenthelp

Question: Discuss about thePrinciples of Economics for Goods an d Transportation. Answer: Introduction The purpose of this study is to analyze the relationship between economic goods and transportation. Economic goods refer to the goods or service, which has benefit to the society. It has some level of scarcity in relation to consumers demand. This scarcity in turn creates value for which the individual becomes eager to pay for it (Russo and Comi 2012). The economic good is usually categorized by physical characteristics, consumption level and its effect in the market. Some types of economic goods includes-consumer goods, complementary goods, replacement goods, public assets etc. Transportation refers to the movement of goods and individuals over time and space. It has linkage with cost of production of goods, producer and consumer. Discussion There are three main features of economic good, which includes- An economic good must provide utility or satisfaction to the consumer. Economic goods must be scarce in relation to consumer demand, which means that persons might not be willing to pay the amount for the good if it is available in plenty amount. It must be easily transferrable, otherwise it might not be possible for an individual to sell the product to another individual It has opined by Litman (2013), efficient transportation system leads to economic development of the nation. The reason behind this is that transportation contributes to effective mobilization of resources of the country and is important to successful implementation of development plans. However, well-developed transport system facilitates the movement of goods and services in the economy. This in turn is instrumental in enhancing the degree of production, distribution and consumption, thereby stimulating the economic growth rate. In addition, the system of transportation aids in the enhancing production and national income. Transportation system facilitates industrialization, thereby creating direct demand for the industrial goods. Furthermore, efficient and effective transportation enables the producers in keeping their inventories at low level and hence decreasing their investment in the inventories (Zhu and Levinson 2012). As a result, the total production cost declines and this benefits the business organizations. At aggregate level, effective transportation decreases cost in several sectors of the respective economy. The fundamental effects of transportation relates to physical capacity of conveying goods as well as passengers and the related cost for supporting mobility. This mainly involves setting of specific routes allowing new interactions among the economic entities (Tyunik, Nikishin and Pankina 2015). Additionally, transportation has huge significance in the industries as it helps them in accessing wider market base in which the economies of scale in distribution, production and consumption could be enhanced. However, this increases the total productivity as it leads to diverse input base including raw materials. Conclusion From the above study, it can be concluded that transportation has direct relation to the economic goods of the nation. The network of transportation makes the market highly competitive. It improves the process of resource allocation and hence broadens the opportunity for both the buyers and sellers. Speedy transportation permits the economic goods to be distributed in several market areas. References Litman, T., 2013. Transportation affordability: evaluation and improvement strategies. Russo, F. and Comi, A., 2012. City characteristics and urban goods movements: A way to environmental transportation system in a sustainable city.Procedia-Social and Behavioral Sciences,39, pp.61-73. Tyunik, O.R., Nikishin, A.F. and Pankina, T.V., 2015. Improvement of goods flow in current economic environment. InThe Seventh International Conference on Economic Sciences(pp. 7-10). Zhu, S. and Levinson, D.M., 2012. Disruptions to transportation networks: a review. InNetwork reliability in practice(pp. 5-20). Springer, New York, NY.