Economic And Economic Development Of The United States

Economic And Economic Development Of The United States
Introduction Despite its status as a major economic power, the United States exhibits several
features that create cause for concern. Whereas the U.S. economy largely depends on adjustments in
capital structures over time, individual firms and industries play critical roles in determining an
economic future. Firm and industry leverage further depend on a reconciliation of debt and equity
flows. More broadly, economic policies rooted in the philosophy of neoliberalism influence the
macroeconomic factors of gross domestic product (GDP) and foreign direct investment (FDI) while
excess returns on investment (ROIs) promote instability in market functions by affecting
performance across firms and industries. Based on these observations, the economic future of the
U.S. depends on the shaping of fiscal and monetary policies that create space for uncertainty as they
would also guarantee more stable employment over time. Macroeconomic Conditions of the U.S.
The United States has macroeconomic features that pertain to capital structure and choice across
firms over time (Cook & Tang, 2010). Capital structures adjust because of how economic booms
and busts affect choice. Economic recovery after a recession depends on the speed at which capital
structures adjust. However, a condition for economic recovery in the U.S. depends on the size of
individual firms and how they define a debt ratio (Cook & Tang, 2010). Capital structures also have
a relation with labor especially concerning the
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Economic And Economic Impact Of The Great Depression
The Great Depression was a period in the United States between 1929 all through the 1930s that
saw many Americans lose their jobs and turn to the government for assistance. The Stock market
crush of the 1929 saw thousands of banks and financial institutions to their knees. With that many
lost their hard earned savings that had been in the Banks. The Great Depression was the period in
which America's long time economic policy of a free market economy went to its knees. It is
significant to note that America has always supported the Laissez Faire policy where enterprises and
other business entities are allowed to operate freely provided their actions are in conformity with the
government policies and procedures. The policy of Laissez Faire can ... Show more content on
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Economically speaking, it would have been better if the money was distributed in the hands of the
Middle and the lower class instead of saving it in Banks. Henceforth the Stock market crush of 1929
led to the loss of huge amounts of savings and wealth from the few tycoons in America. In
conclusion, it is worth mentioning that the Great Depression did not only affect the United States
economically but also socially. With the onset of the Great Depression, the Gross National Product
of the United States reduced drastically. As a result, the government was unable to afford offering
social programs to its citizens. Many lost their homes since they had no jobs to pay and offset their
mortgage loans. Agricultural prices of raw materials also increased hence farmers were forced to
spend much in ensuring

Economics
Problem Set 9 (75 points) 1. A student argues, "If a monopolist finds a way of producing a good at
lower cost, he will not lower his price. Because he is a monopolist, he will keep the price and the
quantity the same and just increase his profit." Do you agree? Use a graph to illustrate your answer.
The argument is incorrect. As the graph shows, a reduction in marginal cost will cause a monopolist
to reduce his price.
2. Economist Harvey Leibenstein argued that the loss of economic efficiency in industries that are
not perfectly competitive has been understated. He argued that when competition is weak, firms are
under less pressure to adopt the best techniques or to hold down their costs. He referred to this effect
as "x–inefficiency." ... Show more content on Helpwriting.net ...
Gardner using economic theory to justify your answer. Economic theory suggests that price should
be equal to MC to achieve allocative efficiency. P = 28 – 0.0008Q MC = 0.0012Q 28 – 0.0008Q =
0.0012Q 28 = 0.002Q Q = 14,000 P = 28 – 0.0008(14,000) P = 28 – 11.20 P = 16.80 c. Compare the
economic efficiency implications of (a) and (b) above. Your answer need not include numerical
calculations, but should include relevant diagrams to demonstrate deadweight loss.
In (a), the price is higher ($20 as opposed to $16.80), and quantity lower (10,000 as opposed to
14,000). The monopolistʹs higher price and smaller quantity result in a deadweight loss as shown
below.
5. A pure monopsony buyer of a resource has a marginal value curve for the resource expressed as:
MV = 100 – 0.4Q. Its marginal and average expenditure functions are: ME = 20 + 0.023Q AE = S =
20 + 0.011Q. a. What is the price and quantity that would prevail in a competitive market? The QC
is computed as follows: Equate S to MV. 20 + 0.011Q = 100 – 0.4Q 0.411Q = 80 QC = 194.65 PC =
20 + 0.011(194.65) = 22.14 b. What quantity is purchased by a monopsonist, and at what price? The
QM is computed as follows: Equate ME to MV. 20 + 0.023Q = 100 – 0.4Q 0.423Q = 80 QM =
189.13 PM = 20 + 0.011(189.13) = 22.08 c. Compute the deadweight loss that results when the firm
acts to maximize profit (that is, takes advantage of its monopsony power). Compute the height of
MV between HM and HC. HM = 100 –

Economic Development
Introduction Governments the world over have long been investing in infrastructure in the hope of
boosting economic development of their country. To study the relationship between infrastructure
and economic development, we compared two journals; Infrastructure and Local Economic
Development by Rives, J & Heaney, M. (1995) and Infrastructure and Economic Growth: The
Nigeria Experience 1980–2006 by Enimola, S (2010). We chose these journals as the journal by
Rives, J looked at the approach on a community/state level whereas the journal by Enimola, S
looked at it at a national level. Hence, we were able to look at the topic at a micro and macro level.
We compared the objectives of both journals, along with the methodological ... Show more content
on Helpwriting.net ...
DEVELOP = a + b1 INFRA + b2ln DSCITY + b3ln DSINT + b4 TOTAX + b5 EDUCATE + B6
MANEMP + b7 ln POP + E INFRA – average sewer capacity, average water plant capacity, state
highway and national highway. DEVELOP – median household income, percent of the labour force
employed, population change, assessed valuation per capita (property valuation) DSINT – Distance
to an interstate highway DSCITY – Shortest distance to the nearest regional centre TOTAX –
Property tax rate. This is measured because there is a negative relationship between tax rate and
economic development as firms tend to move to regions where the tax rate is lower. EDUCATE –
Percent of high school and college graduates. This measure is taken to account for the human capital
stock of the community. MANEMP – is the proportion employed in manufacturing. This is to
account for the agglomeration in the community. This is because agglomeration have been known to
promote economic growth through greater division of labor, cost saving in bulk purchases, better
communication and relationship between managers and the availability of alternative technologies.
POP – accounts for the size of the

Economic Growth And Economic Development
Economic growth refers to an increase in the capacity for an economy to produce goods and
services as compared from one period of time to another. It can be measured either in nominal terms
which include inflation, or in real terms that are adjusted for inflation. It is mainly influenced by
unemployment, inflation, technology levels, rate of investment, population growth rate, among other
factors. These factors are used further to explain the differences in the varying level of output per
capita between and among countries, and explain why some countries are economically growing
faster than others. These factors are best represented in both the theoretical and empirical forms
through the neoclassical endogenous growth models (Steil, 2013, n.p.).
Economic growth revolves around business cycle which include the following phases; depression,
growth or expansion, boom and recession. During economic downfalls such as recession and
depression phases, it is evident that aggregate demand for both goods and services might be
insufficient thus leading to unnecessarily high unemployment rates, low investments and potential
losses of economic output. At this phase the economy of a country goes down as some of the
investments and savings are used to cater for other basic necessities. Inflation also pins down the
growth further as the purchasing power of the current level of income is greatly reduced. As
explained by the IS/LM model in the general theory by John Hicks, there are some

Economics
1. What is the 'economic problem'? The fundamental economic problem is related to the issue of
scarcity. Scarcity means that resources are limited and short in supply in the world (e.g. diamond).
Because of limited resources and unlimited demands, society needs to decide how much to produce
and distribute these relatively scarce resources. The basic economic problem can be define as what
to produce, how much to produce and for whom to produce. Some countries are lucky to have great
natural resources, whilst others do not. For example Africa and South America have little
marketable resources. That means there are uneven distributions of resources. Sometimes suppliers
have issues with shortage and surplus. A shortage is to do with ... Show more content on
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The market mechanism is an alternative ( 選擇性的), for example, to having such decisions made
by government. Often the incentives that consumers and producers have can be changed by
government invention in the market. For example, a change in relative price brought about by the
introduction of government subsidies and taxation. Indirect taxes can be used to raise the price of
de–merit goods and products with negative externalities designed to increase the opportunity cost of
consumption and thereby reduce consumer demand towards a socially optimal level. Subsidies to
consumers will lower the price of merit goods. They are designed to encourage consumption (and
output of products with positive externalities. A subsidy causes an increase in market supply and
leads to a lower equilibrium price. Government intervention in the market sets out to attain two
goals: social efficiency and equity. Social efficiency is achieved at the point where the marginal
benefits to society for either production or consumption are equal to the marginal costs of either
production or consumption. Also, due to the intervention, competition brings price down and drives
up the quanlity of goods and services. However, there are also some disadvantages. The
disadvantages vary dependant on what method is used to correct the failure. For example

Managerial Economics
MBA 5600 Managerial Economics
Assignment #1
1. What impact will the prospect of deprivatization have on investment by managers of privatized
firms?
The impact will be:
– Loosing corporate focus;
– Missing planned CEO turnover;
– Affecting planned managerial objects and strategic efficiency
Obviously, normal managers invest in long–term projects, products and services, deprivatization
may come up with a different strategy that not aligned with corporate goals and its profit will
probably go to different parties.
Managers believe, in a privatized firm, in greater gains and therefore have different incentives to
implement long–term and in many case different strategies than in a deprivatization firm. In a
competitive market, ... Show more content on Helpwriting.net ...
The basic mechanisms and tools, which are used or can be used for the property alienation from the
today's private proprietors. Three basic directions of transferring the private property to the state are
pointed out in the report: 1) Deprivatization – partial restoration or the state control strengthening
above the already privatized firms; 2) Reprivatization – repeated privatization of the enterprises
where the previous proprietors have not executed the necessary investment programs (in fact it is
the proprietor change); 3) Nationalization.
Mechanisms for property alienation for the benefit of the state
Deprivatization
Reprivatization
Renationalization
State –owned share reassessment(intangibles)
Shares purchasing in a free market
Debt structuring by the shares mortgage
Shares in exchange for state investment
Debt converting(to the state–owned share)
It means strengthening not the "protective state", but "productive state" (Buchanan,1975). Besides it
can be covered with the patriotic slogans (strong Russia, Great state etc.) or with communist ones
(struggle with poverty, social inequality etc.) "Democratic deprivatization" In case of the

"democratic deprivatization" there will be another way of the development which means regrouping
of the property rights to reach maximum efficiency of the market economy.
Who is interested in the restoration of the power–property system or, on the contrary, in the
development

Economics : Economics Of Business
HND Accounting
Economics
FINAL REPORT:
The Economics of Business
DUE DATE: 20 May 2015
Catherine Macintosh
11006620
For the attention of Sarah Sutherland
Word count: 1,243 (Excluding Acknowledgements, Abstract/Executive Summary, Terms of
Reference, References & Appendices
TABLE OF CONTENTS Page
1.0 Costs 3
1.1 Total costs 3
1.2 Average costs 3
1.3 Marginal costs 4
2.0 Games Console Market 4
2.1 Oligopoly 4
2.2 Oligopoly market structure 4
2.3 Companies behaviour under oligopoly conditions 5
3.0 An Alternative Market ... Show more content on Helpwriting.net ...
Costs ATC
AVC
AFC

Minimum level Productivity
In the short run, the average total cost will decrease initially as Sony begins manufacturing their
new controller, due to the modification in the amount of total product increasing for each following
unit of variable input. This will continue until reaching the minimum level and will then start to
increase. This is due to the modification in the amount of total product decreasing for each
following unit of variable input and as the number of employee's increase the amount of total
product for each additional employee will decrease more than the amount of total product for the
previous employee. This begins altering the marginal cost so consequently the average variable and
total cost.
1.3 Marginal Costs
Marginal costs are the amount that the total cost will alter for Sony by manufacturing one additional
unit of productivity. Marginal costs are generated by variable costs only. The law of diminishing
infers that Sony's marginal cost will increase as productivity increases. Sony's increasing

Managerial Economics
|Managerial Economics |
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|UNIT –I |
| |
|[Pick the date] |
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| |
Concept of Managerial Economics
The discipline of ... Show more content on Helpwriting.net ...
– Spencer and Siegelman:
"concerned with application of the economic concepts and economic analysis to the problems of
formulating rational managerial decision." – Edwin Mansfield
SCOPE OF MANAGERIAL ECONOMICS
The scope of managerial economics includes following subjects:
1. Theory of demand
2. Theory of production
3. Theory of exchange or price theory
4. Theory of profit
5. Theory of capital and investment
6. Environmental issues, which are enumerated as follows:
1. Theory of Demand: According to Spencer and Siegelman, "A business firm is an economic
organisation which transforms productivity sources into goods that are to be sold in a market".
a. Demand analysis: Analysis of demand is undertaken to forecast demand, which is a fundamental
component in managerial decision–making. Demand forecasting is of importance because an
estimate of future sales is a primer for preparing production schedule and employing productive
resources. Demand analysis helps the management in identifying factors that influence the demand
for the products of a firm. Thus, demand analysis and forecasting is of prime importance to business
planning.
b. Demand theory: Demand theory relates to the study of consumer behaviour. It addresses
questions such as what incites a consumer to buy a particular

Economic Indicators : A Economic Indicator
Introduction Economic Indicators are pieces of data that is usually of the macroeconomic scale that
is used by investors to calculate current and future investment opportunities. They also help them
decide the health of an economy. An economic indicator can be anything the investor chooses, but
certain kinds of data that is released by the government and non–profit organizations are widely
followed (Investopedia, 2015). Economic Indicators An economic indicator can have one of the
three types of relationships to the economy. These would be procyclic, acyclic, and coutnercyclic.
Procyclic economic indicators move in sync with the direction as the economy. A countercyclic
economic indicator is the opposite of procyclic where as ... Show more content on Helpwriting.net
...
When output rises the GDP increases and when the output decreases, the GDP will as well. This is
known as the business. Real GDP tends to take pricing increases into account as well as providing a
more accurate result of a production increase. This type of GDP is usually used to forecast sales,
stock prices and earnings which are based on a quarterly review on most current information or
data. Information that is provided in the GDP would be current supply and demand of durable and
nondurable goods, services and structures. Starbucks is a company that provides both goods and
services to the consumer. Every business relies on the GDP for many reasons. Investors use these
reports to prepare the company for future planning. Representing close to 70% of the GDP,
consumer spending for services and goods like those produced by Starbucks has been the fuel that
propels US economic growth. Starbucks would was at 6% in 2014 in the overall GDP for the United
States and 7% in China. Starbucks relies on the GDP to help investors better analyze trends and with
making recommendations for the overall health of the company. The US GDP is a large contributing
factor for investors, companies that helps them with their decision making. When Starbucks decides
to invest in a company or product, the GDP is one of the main sources that are viewed for retaining
information to help them make the big economic decisions. Unemployment Every company is
affected by

Economics: The Definition Of Law And Economics
I. Introduction
The essay explains about law and economic. Before we begin our outline about law and economic,
it is useful to know what is the definition of law and economics or economic analysis of law. David
Friedman an American economist and legal scholar wrote that the definition of law and economics
is an application of economic theory (specially microeconomic theory) to the analysis of law.
Economic ideas are used to describe the effects of laws, to measure which legal rules are
economically efficient, and to predict which legal rules will be enacted. Further, law and economics
can be interpreted as the application of economics theory primarily microeconomics and the
fundamental ideas of welfare economics, to observe the formation, structure, processes, and
economic impact of law and legal institutions.
The essential characteristic of economic analysis of law is the economist's hypothesis of rationality
that individual have objective and be likely to act in the way that shall get them. In the case of law,
which assumption applies to all of the people implicated criminals, victims, plaintiffs, defendants,
attorneys, judges. Moreover, the connection between law and economics is not new. The economic
approaches can be found in the writing and work of American Institutionalist at school. Currently,
the economic approaches occurred in the ... Show more content on Helpwriting.net ...
Positive legal economic analysis explains what is, and there are two elements on this analysis in law
and economic. One element tries to arrange a description of the factor and forces governing the
determination of economic welfare in society. It includes explaining the connection between the
economy and authorities and the ongoing rebuilding of the economy. The second instrument
comprises applying economic theory and the equipment of econometrics to estimate the direct and
indirect effect of alternative legal doctrines, legal rules, and property

Economics
MF 7701 Managerial Economics
Quiz #1
Fall 2014
Instructions:
1. You may work on this quiz alone or with as many other students as you wish. If you work with
other students, please submit only one (common) answer.
2. You may not talk about this exam with anyone outside of the two managerial economics sections.
3. You may work with people from the other section if they are taking this course. In all cases,
please submit only one, common answer.
4. You must e–mail your final answers to: holderness.quiz@gmail.com by 5 p.m. on Friday,
September 19, 2014. Late submissions will not be accepted. Please do not send the quiz to either
Tom or me.
5. Please save and submit your answer as a Word document.
6. All ... Show more content on Helpwriting.net ...
Watson enjoys playing golf at the country club. An 18–hole round generally takes him out of his
office for about 4 hours of relaxation and exercise. He works hard during most of the week but likes
to play on Wednesday afternoon to avoid the 3 patient visits per hour (at $30 per visit) he otherwise
would have received. Since he is already a member of the club, he makes only a small out–of–
pocket expenditure of $10 to the club each time he plays. [NB. all parts of this question combined
count the same as one of the other questions.] a. Do you think his cost of playing golf is $10 per
week? Why or why not?
b. Suppose that if he didn't work or play golf on Wednesday afternoon, he would play tennis (also at
the club). Tennis require only a court reservation–no additional fee. Suppose you coaxed Dr. Watson
into admitting that an afternoon of tennis is worth $100 to him. Now, what is his cost of playing golf
on Wednesday?
c. Last year, Dr. Watson purchased a new set of golf clubs for $500. Not only were they excellent

clubs to use, but he also discovered they held their original value remarkably well. In fact, he
discovered that even after a few rounds of use, he could resell them and get his full $500 back. How
much did the purchase of the clubs cost Dr. Watson?
d. Suppose on one particular Wednesday, Dr. Watson's game was not up to par. In fact, an errant tee
shot or

Economics
Managerial Economics MIDTERM Exam
What changes can you envision to the real economy, should Rifkin's vision of a zero marginal cost
society, become reality?
For me, Jeremy Rifkin is a great social theorist. I'm mostly agreeing with him, with his conclusions
and visions of the future economy. They looks like perfect and definitely it's a "think big" way of
delivering the information. His book "The Zero Marginal Cost Society" is must read, of course.
Trigger is a zero marginal cost.
I'm completely agreed with his "Internet of Things" thoughts. It is sort of intelligence brain.
Communication Internet create a new technology platform that connects everything and everyone.
Nowadays, there are a lot of platforms, that are connected to ... Show more content on
Helpwriting.net ...
Even in my city in Russia, there is a innovative factory, it's called "Sun Innovations", as I remember
– and they has got this 3–D printer. Thanks for the "big thinker" Politian Anatoly Borisovich
Chubais. He is Russian politician and businessman who is bringing innovative technologies into life
from 2003. With this innovative technology you can easily get what you want, just in record time,
with removing the expenses of transporting, construction and opportunity costs.
Economic profit formula is when you take your Revenue and subtract from it the cost fixed, variable
cost per unit and opportunity cost. For Accounting profit Revenue should be subtracted with the cost
fixed and variable cost per unit.
In conclusion I want to add, that the real economy is a possibility of a technological revolution that
might bring marginal costs to near zero with the using of this intelligence brain also named as
"Internet of things". It's a big engine that drives people to something new, to the new opportunities
in their life. You just have to catch up the speed. In the case of expanding markets, growth finds
itself in the economic spectrum and for the speed of fast markets people need a language for them,
they should follow this economics movements and listen for zero marginal cost theory.
Bibliography: 1. 2014, The Zero Marginal Cost Society: The internet of things, the

Economics Of Immigration
July 05, 2016
Introduction
When touching upon the topic of immigration and the United States economy, one must
acknowledge that the impact that immigrants have on the economy can be perceived as both
negative and positive. For years there has always been an ongoing debate whether the benefits
outweighs the costs. One can be led to believe that immigration increases a nations overall
productivity. Therefore, leading to an overall increase in profits. However, other factors such as the
cost of migration, complementary versus substitute labor and illegal immigration do impact the
nations average labor wages, American businesses and politics on all economic levels. It is often
easier to assume that immigration, especially when it involves undocumented ... Show more content
It's easy to argue that illegal immigrants are stealing the jobs that a typical native–born citizen
would have. However, immigration in a sense where supply and demand can be applied benefits the
economy because it generates more production. Immigrants are more open to lower wages,
therefore reducing the cost of production and the cost of products for businesses and the average
consumers. In addition, one may argue that immigrants lower the average wage when in fact it does
not affect the "skilled worker" which is often referred to as the native born. Lastly, when it comes
taking jobs as opposed to providing them, it is easy to stem away from the fact that immigrants are
complementary resources as opposed to substitute ones. Immigrants can generate more jobs and
prevent businesses from going more automotive. Although politically, immigration is seen as an
economic strain, it also keeps the economy

Economics
Economics – Assessment Task 1
1. Total cost is the figure that describes the total cost of production for an organisation. It is made up
of both fixed costs, which are costs that are fixed in relation to output, and variable costs, which are
costs that vary depending on the level of output. Before production commences, the total costs of
the organisation will be the same as the fixed costs, as no raw materials or labour have been utilised.
Although when production increases, variable costs will also rise, meaning the total costs will
increase. This can be shown by the diagram below:
Average cost is the production cost per each unit of output. This can be calculated by dividing the
total costs of the business by the number of units ... Show more content on Helpwriting.net ...
This means that firms must take into consideration the possible reactions of all other competing
firms. Another characteristic is that products within an oligopoly will be similar.
In an oligopoly market, prices are stable. This is because firms within this market fear a price war
occurring. When it comes to lowering or increasing price, oligopoly firms will consider the
likelihood of competing firms doing the same thing, in order to avoid triggering a price war.
3. Another market structure is a monopoly. This is a situation in which a single company owns all of
the market. It is defined by a lack of competition meaning high prices being charged by the solitary
company operating in the market, and the restriction of other producers entering the market. In their
attempts to maximise profits, these firms will charge high prices and rarely respond to consumer
needs. This is because consumers have no other choice in terms of competition, so they will buy
from monopolist firms regardless.
There are several characteristics of a monopoly. Firstly, extreme economies of scale are available to
monopolist firms, giving them a huge advantage over any other company. Because of this and
relatively low costs despite large product ranges, supernormal profits are achieved. Another
characteristic is the inelastic demand for these firm's products.

Economics Paper
Economics Paper
University of Phoenix
ECO365
May 6, 2013
Economics is a tool that we use in our daily lives even if we don't always realize it. As people we all
have things that we want, and things that we need. This includes things like food, clothing, and
shelter, but it is not limited to those things. In order to get those things, people have to spend money.
The issue is that everything that people need and want costs money. More often than not, people do
not have the money to do both so they have to decide which things are important for them to have
right now. This does not only apply to families, but businesses as well. This paper will address
different types of economics and some of the factors that contribute to its changes. ... Show more
content on Helpwriting.net ...
Businesses will increase the production of goods and services that cost more money because they
will be able to increase their profit margins. In the same way, when prices decrease they will scale
back the production of those products because they will not be able to as much of a profit.
Companies will always do what is best for them, and the number one reason for them being in
business is to make money. What the consumer wants will always dictate they type and price of
goods and services that are supplied. When a certain type of product comes out or starts to increase
in sales it directly affects the market for that product or service. An example of this is when iPods
came out and got very popular. The price of the product was high initially, but they were still selling
very well. Apple increased its production because they were able to make greats profits from it.
After this happened there was an influx of other mp3 players from a plethora of other electronics
companies. Since they had new found competition, Apple was forced to lower the price of the item.
Consumers still preferred the iPod over many of the other mp3 players on the market, and because
of their presence, the iPod became much more affordable. In economics the law of demand states
that "all else equal, as the price of a product increases, a lower

Advantages And Disadvantages Of Market Economics:...
Market Economics
Market economics is an economics system in which economic decision including the production,
distribution and the pricing of goods and services are determine by the private company and
business. This economics system is a free market economics that the price are determine by the
demand and supply of the products. In other word, the price of goods and services are freely set
between the buyer and seller by consent. If the price of the goods and services set by the seller are
too high then the buyer are free to choose not to buy it or buy from other sellers. This will bring the
pressure to the supplier when they set the price. Therefore they will keep the price low and set a
reasonable prices based on law of demand and supply. In ... Show more content on Helpwriting.net
...
For example, the government restrict monopolies to control the market. The government will
balancing the economy of country by reducing the unemployment rate and collecting tax from those
who have more income then use it to help those people who suffering in economy problem.
Government provide public good such as national defense that the private company has not effort to
provide. The goods and services provided by the private company are private good such as a
restaurant provides foods to its customer. There are some advantages to market economics. People
have more freedom and have the ability to voice out in the market. This is because government are
only involves a small part in this economy system. Since this is free market system, the most desired
product are produced because buyer are only willing to pay higher price for the thing they want.
This also make those company become more efficient because they need to produce more product to
earn more profit. Besides that, there will be more new products being created to meet the needs of
consumer in a more efficient way. There are some disadvantages in this economics system. Those
people who are rich start to earn more money by exercise a unreasonable

The Economic Downfall
The Economic Downfall 1
"The Economic Downfall"
Franita Roberson
COM/220
May. 1, 2011
Dani Mclean
We are in a mist of depression, both economically and emotionally. Even though the government
can't make a stance in this economic crisis, we won't recover because of unemployment, gas prices,
funding for housing, human development, and health care for the aging and disabled.
Unemployment has increased to an all time high in the year of 2011. The government is at a
constant battle with each other, while we as Americans are in a struggle to survive. It has been
reported by the (U.S Bureau of Labor Statistics) that the unemployment rate has risen by 11.8%
from the year 2006 to 2011. ... Show more content on Helpwriting.net ...
All actions that they take affects every American and should not be taken likely. Protest have been
made about these hikes every where. But, what no one is realizing there has not been an increase in
diesel, kerosene, liquefied petroleum. Seems to be that no one is winning in this battle.
The Economic Downfall 7 Health care is an endless issue that we are facing. Health care is needed
to prevent, treat and manage illnesses. But, managing the United States economically makes it hard
for funding of our health care. There are many advantages to our health care system. Having
Medicare or Medicaid helps fund our individual medical costs. Both of these insurances are funded
through our government for every individual that cannot afford to pay for health care for
themselves. The cost of medical care is very expensive to individuals. Unexpected trips to the
emergency room, having to visit specialty physicians, hospitalizations and treatments. It was
reported that in 2008 the U.S spent $2.3 trillion in health care cost.
(U.S.healthcarecostbackgroundbrief–aspx) Everyone suffers from health care coverage such as the
government, employers, and all consumers. Fortunately, our president has made cost control the
focus of health reform for our country. The rising of the federal deficit is causing major burdens on
the funding for our health care. Realistically, it is hard

Economics For Business Administration : Economics
Richmond The American International University in London School of Business and Economics
Master in Business Administration ENT7100 Economics for Business Assignment 1 "The GDP is an
appropriate measure of economic activity and wealth." David Longbottom 000055846 November
2014 Table of Contents Executive Summary 4 1.0 Background 5 1.1. Macroeconomic Issues and
Policy Objectives 5 1.2 Circular Flow of Income 7 2.0 Analysis 8 2.1 Measures for National Income
and Output 8 2.2 How is GDP Calculated? 12 2.3 Arguments for GDP 13 2.4 Arguments against
GDP 14 2.5 Comparative Case Studies 15 3.0 Conclusions 17 3.1 Modern Thinking 17 3.2
Summary 17 4.0 Bibliography 18 3.1 eBooks 18 3.2 Websites 18 ... Show more content on
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The assignment includes: Major economic issues and government policy objectives Measures for
national income and output Arguments for GDP as an appropriate measure Arguments against GDP
as an appropriate measure Comparative case studies Conclusions and summary of alternatives The
assignment focuses on United Kingdom [UK] GDP in comparison to major European Union [EU]
countries, the United States [US] and the rest of the World. 1.0 Background 1.1. Macroeconomic
Issues and Policy Objectives Major issues that change depending on the nature of the economy are:
Economic growth Unemployment Inflation Balance of payments and exchange rate Governments
aim to achieve steady economic growth that can be sustained over a long period of time. The rate of
economic growth is defined as the percentage increase in national output over a 12 month period1.
It is important growth is monitored and controlled to prevent the risk of recession. An economy is
determined to be in recession if two successive quarters of negative economic growth are reported,
as measured by GDP7. There are large differences in growth rate between individual countries over
different periods (Figure 1). Governments also aim to control inefficiencies within the economy by
reducing unemployment, keeping inflation low and avoiding balance of payment or exchange rate
problems. High unemployment is considered a waste of

Economics : The Economic Thought Schools
The Economic Thought Schools: From the Beginning to the Present Some economists believe that
economics is the study of the universe and how everything in it works. Since economics still has not
answered the question of how to make the world perfect, there is no right way to run an economic
system. This means everyone has different opinions of what the economy is and how it should be
managed. The world can agree on one part of economics though. It is primarily based on money,
jobs, production, and consumption. International political economics also has a great deal to do with
trade. The way that these points are organized is different for every society and has made the
emergence of three important economic thought schools; mercantilism, liberalism, and Marxism.
None of the schools has the "right" way to run an economy but, I think one of the schools has the
best philosophies for today's societies. The ideas of the liberalism economic thought school apply
best to society today. In The Wealth of Nations, Adam Smith wrote, "to lay extraordinary restraints
upon the those particular countries with which the importation of goods of almost all kinds from
balance of trade is supposed to be disadvantageous, is the second expedient". When saying this, he
meant that free trade was necessary for a strong country. Countries should value other countries
resources that they can buy and, other countries will benefit from one's own nation's resources.
Adam smith also wrote, "The greatest

The Economic Principle Of A Financial Economics Degree
In the past, I engaged in a very specific economic principle. The economic principle that once
applied states that, everyone is better off with trade. I still remember when I was younger, studying
at Jerome Middle School in Jerome, ID, where I conducted trades. My parents were proud owners
of a Hispanic store. When I was younger I would take candy that was on sale at my parents store,
bring it to school, and sell it. By doing this, I was conducting a trade with my consumers. I now
notice that the principle stated above, everyone is better off with trade, is true. At the end of the day,
I would leave with my earnings of the day, and my consumers would leave with their candy, well
that's if they haven't ate it yet. Now that I've continued my studies at Northwest Nazarene University
in pursue of a Financial Economics degree, I've studies economic issues that many economics have
studied around the world. One in which I relate my story of when I was a child. The issue of poor
countries is a popular one. Many like to question, "Will poor countries stay poor, if not, how can
they become rich?" I look at this question, and think of when I was a child. Referring to my past
story, I noticed that I was a child with no capital. I soon found capital finding a supply, candy,
finding demand, my fellow classmates, and sell the product with a marked up value, and finally
creating revenue. This is what poor countries need to do in order to improve their countries
economic situation. After

Economics For Business Assignment : Economics
Economics for business assignment
This is a two sided argument which needs complex and in–depth analysis to make a final judgement.
The degree of government intervention may depend on many factors affecting the economy as a
whole, a specific market and the businesses operating within it. The nature of different government
regulations may have a restrictive nature, however some government action may have a beneficial
effect on business activity and positively impact their objectives. It is essential to look at this
argument from the businesses perspective to determine the government impact on their
performance.
It could be argued that the business would be able to be more prosperous within the free market
economy where the resources are allocated solely by the forces of supply and demand without any
government regulations. Businesses could benefit from economic freedom and transparency, they
will not be burdened by government regulations and bureaucracy. One of the main burdens of a
regulated economy for businesses is the excessive bureaucracy resulting from over–regulation.
Considering "Barack Obama 's health–care reform of 2010 which had many virtues, especially its
attempt to make health insurance universal. But it does little to reduce the system 's staggering and
growing complexity. Every hour spent treating a patient in America creates at least 30 minutes of
paperwork, and often a whole hour." (http://www.economist.com/node/21547789 , 8/11)
This suggests how

Economics
Assume a consumption function that takes on the following algebraic form: C = $100 + .8Y. Assume
that Y = $1000 what is the level of consumption at this income level.
C = $100 + .8($1000) = $100 + $800 = $900.
1. Using the above figure calculate the marginal propensity to consume between the aggregate
income levels of $80 and $100. Also explain why this consumption function is linear.
The marginal propensity to consume is equal to $15/$20 = .75. The consumption function is linear
because the marginal propensity to consume is constant and therefore the slope is the same
throughout all income levels.
2. Assume consumption is represented by the following: C = 400 + .75Y. Also assume that planned
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Therefore, if people have more money then they are likely to purchase more goods – potentially
ones from our country, thus exports will rise and the value of net exports will increase. If disposable
income abroad is low then exports will fall and the value of net exports will fall.
Disposable income at home. This refers to how much money people at home have available to spend
on luxuries. The more money people have at home, the likelier they are to spend – which can result
in a rise in imports. Rising imports will have a negative effect on net exports on the overall
aggregate demand. Vice versa.
Exchange rates. These play a large part in the value of net exports. A fall in a countries exchange
rate will reduce the price of exports and raise the price of imports, thus exports should rise and
imports fall – resulting in an increase in net exports. A rise in a countries exchange rate will raise the
price of exports and make imports cheaper, therefore making exports fall and imports rise. The
overall effect will be a fall in net exports.
8. Explain the accelerator theory.
The accelerator effect is when an increase in national income results in a proportionately larger rise
in investment
Consider an industry where demand is rising at a strong pace. states that if there is a small change in
the production output of consumer change, there will be a much greater change in the production

The Methodology Of Islamic Economics And Positive Economics
Introduction
Methodology of economics has been an essential part in constructing the fundamental economic
theories and hypotheses. It has been a subject of research by economists and become their interest in
answering empirical problems of human beings. It becomes a main framework of positivists in
developing their thought on economic system. The methodology also utilized in developing Islamic
economic to build self and distinct system than the existing conventional economic due to several
differentiations of its worldview and primary sources. The differences in sources and characteristics
between two disciplines lead to a different methodological framework.
This study will attempt to discuss the distinction between the methodology of Islamic economics
and positive economics. The study will start from defining each system, followed by comparing the
similarity of the methodology, and finally contrasting of both methods.
The Definitions
There are two descriptions of definition from each system. Siddiqi (1992) notes in Chapra (2000)
that the definition of Islamic economics is "The Muslim thinkers' response to the economic
challenges of their times. In this endeavor, they were aided by the Quran and the Sunnah as well as
by reason and experience." The definition of economic as a positive science as revealed by
Friedman (1966) that it is "a body of tentatively accepted generalizations about economic
phenomena that can be used to predict the consequences of changes in

The Theories Of Economic Economics
Imagine a peaceful world where nobody argued about anything and everyone was at peace. That
would be nice, but not possible in reality. There is at least two sides to every story, or in this case
two sides to every subject. Economists' have different views on the world, and they cannot agree on
a single viewpoint. There is the popular, mainstream economists, known as the neoclassical
economist and there are the heterodox economists' which covers the nonmainstream views.
Although the mainstream economics is the one taught in school, its assumptions are there to achieve
a certain outcome. The heterodox economist's assumptions are based on the fact to eliminate
extraneous factors. I believe that heterodox economics will start to be considered more in the world
of academics and may take the place of the current mainstream economics.
The theories of consumption have different viewpoints. Neoclassical consumer theory is the
explanation of how consumers allocate incomes to the purchase of different goods and services. In
other words, it is how individuals make choices given their income and the price of goods and
services. This is how the neoclassical economist is able to understand tastes and how income
influences the demand curve. This view is the one that all major textbooks use and the type of
economics that students' are taught. In the viewpoint of the neoclassical economist, consumers are
rational decision makers. The consumer behavior is best understood by

Economic Policies And Economic Policy
In every country there 's a government and economy. Each counties government helps or tries to
help recover, stabilize, and grow the economy. First thing we need to look at is economic policy.
Economic policy refer to actions the government makes in the economic field. For example the
taxation, the government supply, money supply, interest rates, along with the labor market, and
national ownership. Inside the economic policy you will find all sorts of things that help make the
policy stand on it 's two feet. The three main parts that tie into economic policy are supply–side
economics, demand–side economics, and monetary policy. Each of the three economic structures
will also help define and show what all the economic policy is and does and how it all works.
The first "branch" of the economic policy is the supply–side economics. Supply–side economics is
simply the macroeconomic theory, which deals with the arguments of the economic growth.
Economic growth can be most effectively created by investing in capital and by lowering barriers on
the production of goods and services. Now the macroeconomic theory is a branch of economics
dealing with the performance, structure, behavior, and decision–making of an economy as one big
market, rather than individual markets. When Ronald Reagan was our 40th president he saw the
supply–side economics was more known as "trickle down". Meaning that Ronald Reagan had
thought that if he cut the tax for entrepreneurs and

The Economic And Economic Growth Of China's Economy
2016
Coming out of a lackluster 2015, GDP growth slowed to 1.5%. Confidence of investors and
consumers was unable to make significant gains as a result of the Presidential election and global
uncertainty. The outcome of the 2016 election had a great affect on the US economy and the fiscal
and monetary policies that could be put in place. Uncertainty over taxes, regulations, and trade
following the election have led to a slowdown of growth.
Consumption and government spending both increased from the previous year. The big weaknesses
for Real GDP growth came from business investment and exports decreasing from the previous
period.
Consumption's gains were based on trends continuing from 2015 including consumer confidence
growing ... Show more content on Helpwriting.net ...
This shows that businesses are not confident about the state of the economy and are not investing.
This leads to stagnating wages, job creation, and production, which lowers overall Real GDP.
Exports have been affected by global events. Most importantly, "Brexit" added to fears that the
European Union is unstable and other countries may follow the UK and leave the union. The EU is a
major trade partner of the US and China, which could disrupt global trade. Brexit has caused major
volatility in global markets as well. This could trigger consumers to stop spending and save more.
Brexit also hiked up the US dollar 6.3% against the British pound. This continues the trend from last
year of low exports and revenues in the manufacturing sector further impeding profits and limiting
their willingness to invest.
2016 monetary policy continued the trend from the previous year by keeping rates low and only
increasing rates once during the year. The Fed raised rates to a range of 0.50–0.75% in December.
Confidence in the economy is up and is anticipated to continue into 2017 with more frequent rate
hikes.
The stock market was greatly affected by the election of President Donald Trump. The S&P 500 and
DJIA both fell around 4% immediately following the election, however, the market quickly
rebounded and all major indexes have recorded all–time highs. Financial sector stocks

Economics of Information
Introduction
There have been discussions among scholars in developed countries regarding economics of
information. Developed countries includes Australia, New Zealand, United States, Ireland,
Germany, Japan, Canada and many more are countries that have a high level of development
according to some criteria. The criterion is income per capita; countries with high gross domestic
product (GDP) per capita would thus be described as developed countries. Another economic
criterion is industrialization; countries in which the tertiary and quaternary sectors of industry
dominate would thus be described as developed. More recently another measure, the Human
Development Index (HDI), which combines an economic measure, national income, with other ...
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Information goods and services can be shared and consumed with other consumers at the same time,
cannot be easily returned, perhaps these properties make information economics different from other
forms of economics. For instance more than one person can enjoy a movie in a theatre
simultaneously, more than one person can read the same book, view the same television program,
and use the same web site. This property of information makes it a public or shared good. Usually it
will involve high fixed costs of production but the cost of reproduction is just at lower marginal.
As we know, information managers make economic decision every day for their organization
management. Each decision is a choice among competing alternatives, for example, a good manager
must be good at choosing how to allocate and make use a fixed budget among employees, suppliers,
computers, and many more expenditures. If a manager spends more money in one expense category,
it will result in less to spend in another for instance, a public library director must choose whether to
buy a new computer or a new photocopier. Besides, he or she may decide to open the library on
Sundays or the extra money spent on staff and utilities to keep the library open could have been
spent purchasing more books to support the library collections and holdings.
Information has played an increasingly more important role in several economies, particularly in

Economics
what are externalities?
Externalities are common in virtually every area of economic activity. They are defined as third
party (or spill–over) effects arising from the production and/or consumption of goods and services
for which no appropriate compensation is paid.
Externalities can cause market failure if the price mechanism does not take into account the
fullsocial costs and social benefits of production and consumption.
The study of externalities by economists has become extensive in recent years – not least because of
concerns about the link between the economy and the environment.
PRIVATE AND SOCIAL COSTS
Externalities create a divergence between the private and social costs of production.
Social cost includes all the costs of ... Show more content on Helpwriting.net ...
If we assume that the producer is interested in maximising profits – then they will only take into
account the private costs and private benefits arising from their supply of the product. We can see
from the diagram below that the profit–maximising level of output is at Q1. However the socially
efficient level of production would consider the external costs too. The social optimum output level
is lower at Q2. This leads to the private optimum output being greater than the social optimum level
of production. The producer creating the externality does not take the effects of externalities into
their own calculations. We assume that producers are only concerned with their own self interest.
In the diagram above, the private optimum output is when where private marginal benefit = private
marginal cost, giving an output of Q1. For society as a whole though the social optimum is where
social marginal benefit = social marginal cost at output Q2.The failure to take into account the
negative externality effects is an example of market failure.
NEGATIVE CONSUMPTION EXTERNALITIES
Consumers can create externalities when they purchase and consume goods and services. o
Pollution from cars and motorbikes o Litter on streets and in public places o Noise pollution from
using car stereos or ghetto–blasters o Negative externalities created by smoking and alcohol abuse o
Externalities created through the mis–treatment of animals o Vandalism of public property
o

Economic Recession
Economic Recession of 2007
William Mwangi
Class title and section
Professor's name
Due date of Assignment: 26th August 2011.
William Mwangi
Economic crisis Class
Professor's name
24th August, 2011.
Economic Recession of 2007: What caused it and what were the after effects? Can we predict
another major recession?
Thesis Statement: Although the recession that dates back in 2007 is still long and deep and surely
has shown some recovery, the potential that it will completely recover is still vague.
I. Causes of the 2007 recession
A. Inflation
B. Housing Prices
C. Oil Prices
– Recovery measures
A. Cutting Production cost
i. Caused unemployment
B. Increase Interest rates by the Federal reserves
i. ... Show more content on Helpwriting.net ...
Current Account Deficit," he explained that economic crisis has its background way back – a decade
ago, as the developing countries had modest trade and account deficit of which was financed by
borrowing from the rest of the world in order to invest more than save, bringing about financial
crisis i.e. they will be rich in future by constructing infrastructures but face recession in present.
Housing prices was another contributing cause to the recession. In the decade going towards 2006,
housing prices spiraled up by more than 25% due to high demand, decline in lending standards, and
low interest rates in the 2000s. Between 2000 and 2006 large number of borrowers took out
mortgages as they were lured by the prevailing favorable rates. This had the effect of fetching all
and sundry including those individuals with bad credit records. The Federal Reserve began to raise
fed funds thus interest rates cropped from 1.25% to 5.25% – a reasonable level to fight the inflation
level as well as overall loans between banks. Expensive repayment on loan had the effect of
softening housing markets since borrowing was costly.

According to Bernanke, "by August 2007, nearly 16% of mortgages were in default," (qtd. In Jones
6) this explains the advancement in the problem due to low housing prices that led to defaults and
further lowered housing prices even further in a vicious cycle. In addition,

Economic: Economics and Correct Answer
Tu oi, minh co 2 bai Quiz 4 day. Quiz 3 thi de minh tim da nhe, hinh nhu khong luu thi phai.
Linh
Question 1 10 out of 10 points
A monopoly will usually produce
Answer
Selected Answer: where its demand curve is elastic.
Correct Answer: where its demand curve is elastic.
Suppose a firm is currently maximizing its profits (i.e., following the MR=MC rule). Assuming that
it wants to continue maximizing its profits, if its fixed costs increase, it should
Answer
Selected Answer: maintain the same price.
Correct Answer: maintain the same price.
A firm that seeks to maximize its revenue is most likely to adhere to which of the ... Show more
Suppose its average cost is $15 and its average variable cost is $8. Its contribution margin (i.e.,
contribution to fixed cost) is
Answer
Selected Answer: $30.
Correct Answer: $30.
Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR

Which of the following products is the best example of perfect competition?
Answer
Selected Answer: apples
Correct Answer: apples
2010/1/26 Linh DoQuy Workmail <linhdoquy@gmail.com>
Question 1 10 out of 10 points Which of the following conditions would definitely cause a perfectly
competitive company to shut down in the short run?
Answer
Selected Answer: P < AVC
Correct Answer: P < AVC
Question 2 10 out of 10 points Which of the following products is the best example of perfect
competition?
Answer
Selected Answer: apples
Correct Answer: apples
Question 3 10 out of 10 points Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR
Question 4 10 out of 10 points When a firm produces at the point where MR = MC, the profit that it
is earning is considered to be
Answer
Selected Answer: Not enough information is provided.
Correct Answer: Not enough information is provided.
Question 5 10 out of 10 points Assume a profit

Economic Impact Of Economic Freedom On Economic Growth
Introduction: In the last three decades the concept of economic freedom have dominated the
economic theories as the best way to economic development, Many economists and politicians
believe that economic freedom displays a significantly positive effect on economic growth, while
others believe that the increased freedom will have a negative effects on economic growth. In
addition, all of the international organizations such as the World Bank and the International
Monetary Fund (IMF) encourage developing countries to follow the freedom economic policies.
"Basically, the myth is that America has been founded on the free market; the government has done
very little; it has thrived under free trade. But actually, if you look at the history, this is actually the
country that has succeeded most with protectionist policies" Ha–Joon. Consequently, some countries
achieved good results and could improve their economies. However, others became in the terrible
situation. This casts some doubts about the economic freedom as the perfect way to improve
economic activities. Hypothesis The paper tries to show whether the economic freedom policy to
improve economic activity in developing countries or not. Based on the economic theory, I offer the
following hypothesis and alternative hypothesis: Hypothesis (H0) Economic freedom increases
economic growth. Hypothesis (H1) Economic freedom does not increase economic growth.
Methodology: In this paper, we

The Economic Impact Of Canada's Economic Crisis
Canada is one of the wealthiest companies and have a strong import and export to United States and
other countries. The country is rich in nature resources and a strong economy. During the Economic
Crisis Canada was not hit as hard as their counterparts such the United States because they have a
strong financial banking system and most of their loans are traditional and not sub–prime loans.
They were impacted in import and export because the countries they had contracts with was
impacted.
Canada is one of the world wealthiest nation and has the 11th largest economy according to GDP,
gross domestic product. Also, the 20th largest GDP capita based on purchasing power parity (PPP)
and a member of the Organization for economic ... Show more content on Helpwriting.net ...
The organization provides a trade strategy and objective on a global scale. (Canada and the World
Trade Organization, 2017) The climate in Canada is varied. The climate depends on the time of
years and if you live in the North of Canada where it is above freezing a few months out of the year.
However, on the Southern borders the cities in Canada have the same seasons as United States, hot
summers, crisp in the fall and mild springs. (Your Canada Newsletter, n.d.) One of Canada's largest
ports is the Port of Vancouver which is located southwest coast of British Columbia.
The port extends from Roberts Bank, Fraser River up to Burr and Inlet. This port support more than
170 economies around the world and operates across five sectors which include automobiles,
breakbulk, container and cruise. In 2016, cargo valued at $200 billion moved through the port and
95 percent of the port's total volume serves Canadian import and export. (Port of Vancouver, n.d.)
The global economic crisis of 2007–2008 had minimal impact on Canada. The financial banks did
not require a bailout and the banking system was relatively strong. Canada is ranked first among
more than 140 countries for banking stability because they have totally avoided systemic troubles.
They have performed better than most G–7 economy during the global recession and the recovery.
Canada sub–prime loans accounted for less than 5% because the majority of the were traditional

The Advantages Of The Economic Definition Of Economic...
TFP is the essence of economic notion of productivity and is used as a measure of technical
progress. It shows the efficiency with which all inputs are used in a production function and is
defined as the measure of increase in output not due to different input choices but due to increase in
marginal products of factors of production.
TFP= %∆ in total output – α* %∆ in capital – (1–α)* %∆ in labour engaged
Purpose:
TFP measurement helps unravel the direct growth contributions of labour, capital, intermediate
inputs and technology. This is an important tool for reviewing past growth patterns and for assessing
the potential for future economic growth.
Advantages:
Total factor productivity tries to capture the efficiency with which inputs of capital as well as labour
are used. If workers are given better machines and equipment, this will automatically boost output
per man–hour, even if there is no gain in overall economic efficiency once the extra capital spending
is taken into account.
Investors should look at total factor productivity ... Show more content on Helpwriting.net ...
Amongst its functional form (the formula) this method holds a heavy advantage i.e., it does not need
to refer to a particular kind of production function. Thus it is not dependent on the unrealistic
assumptions on which total factor productivity is based. Furthermore, to quantify labour
productivity one has not to rely on the distributive shares in output, which are strongly influenced
by market power, and such a measure of productivity encompasses all kinds of technical change –
embodied and disembodied (Reatti, 2001). The relative influence of these two types of technical
change can be measured separately by splitting the formula of productivity of labour into its
components − the degree of mechanisation (the capital/labour ratio), and the 'productivity of

The Economic Policies Of Supply Side Economics
Ever wondered why you have to pay those extra couple of cents at the grocery store? Or why gas
prices seem to be constantly fluctuating? The answer lies within a nation's economic policy.
Economic policy is the actions taken by a government to influence its economy. Types of economic
policy actions can include setting interest rates through a federal reserve, regulating the level of
government expenditures, creating private property rights, and setting tax rates. Economic policy
hopes to accomplish economic growth and a stable economy. More specifically, the federal
government hopes to accomplish stable prices, economic growth, and full employment by its
economic policy. Economists debate over three economic policies: supply–side ... Show more
The methods that supply–side economics uses to improve economic growth are to lower marginal
taxes and less government regulation. Under President Ronald Reagan, Congress passed a plan that
would slash taxes by $749 billion over five years. As a result, Reagan was called a great advocate
for supply–side economics and was praised for his great leadership. Although supply–side
economics is based on the idea of encouraging people to work harder, it also seems to not always
work. For example, Congress passed the cut in tax rates after Reagan was elected, but tax revenues
did not rise. This goes to show that other economic policies need to be examined in order for the
economy to be successful.
Demand–side economics is based on the belief that the most important thing affecting economic
activity and thus resulting in the most stable economy is consumer demand for goods and services.
Also called Keynesian economics, demand–side economics was developed after the Great
Depression when supply–side economics fell through. Demand–side economics was founded by
John Maynard Keynes and is based on aggregate demand. Aggregate demand is the total level of
demand for desired goods and services, which is made up of the sum of consumption expenditure,
investment expenditure, government expenditure, and net exports. Demand–side economics utilizes
methods such as increasing the buying power of the lower and middle classes, which increases the
demand for more goods

Economics Essay
Definition of Topic: Economics is the study of supply and demand. It defines the ways that human
beings allocate resources and how resources are distributed amongst a market. It allows you to see
trends in current market places and predict what may happen in the future. Many different subjects
were once regarded as a part of economics. Political science and even sociology were once
considered part of the field. These subjects still play a major role in understanding economics but
are also completely separate disciplines today. History: Since ancient times, humans have
contemplated basic economic problems. Many great minds have tried to master the subject. Aristotle
and Plato were probably the first to document such studies. Both ... Show more content on
Helpwriting.net ...
For Marx, capitalism's fatal contradiction was between improving technological efficiency and the
lack of purchasing power to buy what was produced in ever larger quantities. John Maynard Keynes
was a student of Alfred Marshall and an exponent of neoclassical economics until the 1930s. The
Great Depression bewildered economists and politicians alike. The economists continued to hold,
against mounting evidence to the contrary, that time and nature would restore prosperity if
government refrained from manipulating the economy. Unfortunately, approved remedies simply
did not work. In the U.S., Franklin D. Roosevelt's 1932 landslide presidential victory over Herbert
Hoover attested to the political bankruptcy of laissez–faire policies. New explanations and fresh
policies were urgently required; this was precisely what Keynes supplied. In his enduring work The
General Theory of Employment, Interest, and Money, the central message translates into two
powerful propositions. Existing explanations of unemployment he declared to be nonsense: Neither
high prices nor high wages could explain persistent depression and mass unemployment. Instead, he
proposed an alternative explanation of these phenomena focused on what he termed aggregate
demand–that is, the total

Economics
Tutorial 1 Questions (based on Textbook End–of–Chapter Questions)
Question 1
Refer to Q1.1 Chapter 2 (Page 118)
What do economists mean by opportunity cost? According to this definition, is there anything that
does not have an opportuntiy cost? Question 2
Refer to Q1.2 Chapter 1 (Page 78).
What is scarcity? Why is scarcity central to the study of economics?
Question 3
In a paper written by Bentley College economists Patricia M. Flynn and Micheal A. Quinn, the
authros state:
"We find evidence that Economics is a good choice of major for those aspiring to become a CEO
(Chief Executive Officer). When adjusting for size of the pool of graduates, ... Show more content
a. Why might firms that provide workers with health insurance pay a lower wage to obese workers
than to workers who are not obese? b. Is Bhattacharya and Bundorf's findings relevant to the
question of whether health insurance provides people with an incentive to become obese? Briefly
explain.
Based on Jay Bhattacharya and M. Kate Bundorf (2009), " The Incidence of the Health Care Costs
of Obesity," Journal of Health Economics, 28(3), pp. 649–58.
Question 6
Centrally planned economies have been less efficient than market economies.
a. Has this difference in efficiency happened by chance, or is there some underlying reason? b. If
market economies are more economically efficient than centrally planned economies, would there
ever be a reason to prefer having a centrally planned economy rather than a market economy?

Additional Questions for Home Practice
Question 7
Refer to Q1 and Q2 of Thinking Critically Chapter 2 (Page 117).
Question 8
Refer to Q1.7 of 2 (Page 118).
Suppose we can divide all the goods produced by an economy into 2 types: consumption goods and
capital goods. Capital goods such as machinery, equipment, and computers, are goods used to
produce other goods.
a. Use a production possibilities frontier graph to illustrate the trade–off to an economy between
producing consumption goods and producing capital goods. Is it likely that the production
possibilities

Economics
A market failure is when there are not enough resources that are inefficiently allocated due to
imperfections in the market mechanism. When a resource is inefficient it means the resources are
not used in the best distribution by firms or organizations. An ETS is executed when the
environment has been polluted and the government intervenes in order to control the pollution by
providing economic encouragements towards the firms and organizations to reduce the amount of
pollution emitted in the environment (Brown* 2001). When ETS is implemented it reduces the
pollution of the environment caused by different firms thus making it its main goal. The type of
market failure the ETS is addressing is the negative externalities.
An externality is ... Show more content on Helpwriting.net ...
This causes an equal amount of harmful amounts being emitted by the firms.
A fee or tax that is set on the pollution that a firm or source produces is called pollution charge
systems (Pigou 1920). This will cause the charges for marginal cost to increase and supply to
decrease. This will cause the consumer or producer to focus on the externalities thereby improving
the price mechanism of the failure. When the consumers or producers of the goods or services pay
for part of the negative externality that they have caused towards the third party; the private cost
increases thus turning the whole situation into an allocative efficient economy. An example of a
pollution charge is the deposit refund where an individual buys a product that can cause harm to the
environment and gets a refund when the individual has recycled or disposed the product to an
approved center.
A tradable permit is when the firm or organisation avoids the problem by reaching the same cost
minimizing allocation of control burden as a charge system (Crocker 1966). Firms that reach this
target can be able to offset excess emissions in other parts of their facilities or sell their surplus
permits to other firms.
When the government authorities remove existing explicit or implicit barriers to the market activity
is called a market barrier. Barrier reduction, liability rule and information

Economics
Firm Behavior, the Organization of Industry, and the Long Run Real Economy
Instructions:
1) For each topic area studied (and listed below), respond to one or two problems (equal to a total of
10 problem responses for module three) and post to your group discussion board. Note: Please copy
the entire question you are responding to at the beginning of your responses.
2) In addition, as you know by now, please discuss your group members' postings and respond to the
comments made on your postings during the discussion period (see the course syllabus for the due
dates and a more detailed discussion of the course grading scheme).
The Costs of Production
Select one or two of the following questions to answer.
1. What ... Show more content on Helpwriting.net ...
Why might the government create one? Give an example. Also, what is the defining characteristic of
a natural monopoly? Give an example of a natural monopoly.
2. In the market for "home heating" consumers typically have several options (e.g., electricity,
heating fuel, natural gas, propane, etc.) yet we often think of firms in this industry as behaving like
monopolists. Using your understanding of monopoly, discuss the context in which your electricity
provider is a monopolist. Is this characterization universally applicable? Carefully explain your
answer.
3. There has been much discussion of deregulating electricity and natural gas delivery companies in
the United States. Using your understanding of monopolies, discuss the likely effect of deregulation
on prices in these two industries.
4. Explain how a profit–maximizing monopolist chooses its level of output and the price of its
goods.
5. Graphically depict the deadweight loss caused by a monopoly. How is this similar to the
deadweight loss from taxation?

6. What is the deadweight loss due to profit–maximizing monopoly pricing under the following
conditions: The price charged for goods produced is $10. The intersection of the marginal revenue
and marginal cost curves occurs where output is 100 units and marginal revenue is $5. The socially
efficient level of production is 110 units. The demand curve is linear and downward sloping and the
marginal cost curve is linear

Economic And Economic Development Of The United States

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