Article Brief 1 – World Cup Host

Article Brief #1       Syllabus Section 1           Word Count: 433       Written: Nov 20, 2014

Source: “Qatar Cleared but England Criticised.” BBC Sport. N.p., n.d. Web. 20 Nov. 2014. <http://www.bbc.com/sport/0/football/30031405>.

Concepts:   Scarcity, Trade-off, Opportunity Cost, Resource Allocation

Diagrams:   Production Possibilities Model

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Brief Summary of Issue: Recently there were the 2022 World Cup elections, which Qatar was elected to host. Shortly after it, there were rumors regarding bribery to FIFA officials for favoring the country to host with the number of votes. Within a weeks time, the claims were confirmed to be true and the article analyses the aftermath for FIFA officials and Qatar. Shocking however, the bans and fines don’t seem too be extreme at all. The elections of the 2022 World Cup will effect the economy of both Qatar and the countries that were not selected.

Economic Linkages: This article clearly shows the concepts of scarcity and trade-off which are central to economics. It also illustrates opportunity cost with the money Qatar has accepted to bribe with. In return for this, they won the elections. However, they may face serious consequences now.

Money is scarce; although not as scare as a natural resource like oil, the world population works for it. The trade-off and opportunity cost in the issue are presented with the money Qatar has bribed with – 3 million pounds. They have accepted this by assuring them winning the elections. The 3 million pounds seem to be worth it to host this massive event in 2022.

Application of Concepts:   A Production Possibilities Model, which shows the resource allocation of Money between money for Public transportation, and Money for Sports Facilities. For such as large event, these two are vital to have.

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Point A and point B on the diagram illustrate alternatives that could be considered “best” alternatives. The range and meet the maximum resource. They neither exceed nor are short.

Point B for example seems to be a very appropriate point because it divides the money between the two variables almost equally. 20 million ¥ to 20 million ¥

Points C and D however are certainly not the “best” choices. Point C shows how all of the resources are not being used and taken advantage of to their full extent; which is crucial in economics. Point D is using more than the available resource.

Evaluation: Choices and resource allocation is crucial in understanding and working with economics. This matter of choice and allocation meets in a common point known as opportunity cost, where sacrifices are made to get hold of another. It is the choice of the “best” or “next best” alternative. It is when society splits the resource in two or more different areas; this resource can range between grain to oil to money. As seen with the 2022 World Cup elections, Qatar was willing to give up 3 million pounds to host the event. Now however, with the bans and fines they will receive, the opportunity cost can be much different than they initially planned. Economics can help us see the consequences of our “best” alternatives as well as other ones, similarly to the bribery cost for Qatar.

Categories: Economics

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