Essay About Economy

Economic Growth Essay
Economic Growth Economic growth refers to the rate of increase in the total production of goods
and services within an economy. Economic growth increases the productivity capacity of an
economy, thereby allowing more wants to be satisfied. A growing economy increases employment
opportunities, stimulates business enterprise and innovation. A sustained economic growth is
fundamental to any nation wishing to raise its standard of living and provide a greater well being
for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced
over a year. It is the total value of production within the economy. The total value of production is
the total value of the final goods or services less the cost of...show more content...
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A
more reliable measure of economic growth is real GDP per capita; this measurement takes into
account both the total production of the nation and the total population. Real GDP per capita
measures the real income per head of the population.
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP
/ Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic
growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an
essential foundation to economic growth. Combined with the other resources of capital, labor and
enterprises, natural resources can be developed and organized to increase the productive capacity if
the nation. Consequently the quality and size of the labor force is a major determinant of economic
growth. Education and vocational training are essential the growth potential of a nation. The
promotion of education and job training schemes increase the knowledge, skills and flexibility of the
workforce that contributes to potentially higher levels of productivity and efficiency. Whether from
natural increase or immigration population growth can cause a higher level of economic growth. An
increasing population requires increased public spending on housing, education and other social
needs while businesses expectations of
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The Global Economy Essay
The global economy is a complex and multi–faceted system. When one variable changes, such as a
dramatic increase in the New Zealand dollar, the spin–off effects can be detrimental to some while
increasing the wealth and living–standard of others. This essay will discuss the global economic
system we have in place today, and the consequential distributive injustices as a result of this
structure. These perceived injustices arise as a result of the ethical debate of reducing poverty via
economic growth versus creating a sustainable environment.
The origin of the capitalist economy we have today can be linked back to the industrial revolution
between the 1750s–1850s. As the economy began to display signs of rapid growth, global population
...show more content...
The idea of the capitalist market is in contrast with that of the socialist market. The aforementioned is
characterised by private business ownership, free entry into the market, profit as the ultimate goal,
consumer choice and the government acting as a type of economic regulator. A socialist market is
more typical of a government–planned economy where distribution of income and wealth is the key
to obtaining social gain. The Washington Consensus is a set of policy based themes its author, John
Williamson, believed necessary for the recovery of Latin America after the financial crisis of the
80s. Williamson provides a set of capitalist ideas which the IMF, World Bank and US Treasury
Department use when setting policies (Williamson, 2002). The Washington Consensus is proof that,
for the most part, the economy is still in a capitalist form. However, recently there has been a huge
push by socialist economies such as China and Russia as they become increasingly powerful in an
economic sense, although in a way they are also becoming increasingly westernised. The problem is
evenly distributing the world's resources when increasing amounts of people want more than they
actually need. Socialist state economic systems but with Americanised consumerism is setting the
scene for an interesting start to the 21st century.
The changing economic landscape comes at the heels of an ever–expanding and expending Chinese
economy – an

Essay On Us Economy
The United States Economy The US economy is still the largest and the most important in the world
which represent about 20% of the total global output and is ranked as 6th highest per capita GDP.
The US economy features a highly–developed and technologically–advanced services sector, which
accounts for about 80% of its outputs. Large American Corporations also play a role on the global
stage with a huge amount of their companies are located all around the world. The US is also the
2nd largest manufacturing in the world and also has an important manufacturing base and is the
main hub in producing high–value products. They have access to almost any natural resource and is
the world's largest agricultural exporting country with sophisticated...show more content...
Still, the US economy faces many challenges in its way in the coming years. The Chinese
Economy China economy experienced an incredible growth in the last few decades that made the
country the 2nd largest economy in the world. When China started the program of economic
reforms in 1978, it ranked 9th in nominal GDP but 35 years later it's now ranked 2nd in the
nominal GDP and been the world's manufacturing hub. In recent years, China's modernization
propelled the tertiary sector and in 2013, it became the largest category of GDP with a share of
46.1%, while the secondary sector still accounted for a sizeable, 45% of the country's total output.
Meanwhile, the primary sector's weight in GDP has shrunk dramatically since the country opened
up to the world. Since 1993, China has experienced uninterrupted trade supplies and in 2013, China
has overtaken the US as the world's largest trading nation. As an economy highly integrated into the
global trade system, the country benefited from a steady improvement in its term of trade since
2000. The country has multiple bilateral and multilateral trade agreements that opened new markets
for its product. A Free Trade Agreement (FTA) between China and ASEAN nations which came into
effect in the beginning of 2010, created the world's third largest free trade area in terms of nominal
GDP. China established FTA with nations like Korea, Peru, Pakistan, Singapore and etc.

Essay about Economic Conditions
To analyze an economy, certain statistics can be used to predict the economy's future. This is
important because it helps prepare people for prosperity or hard times. Certain indicators can be
used to determine the future of aggregate demand and others can be used to determine aggregate
supply. Using eight aggregate demand indicators and four aggregate supply indicators we developed
a prediction for the economy in the near future.
Changes in aggregate demand are reflected in changes of GDP. To find valuable indicators of the
future aggregate demand is to find statistics that tell about change in the components of GDP
(C+I+G+Nx). Aggregate supply is influenced by the costs of production to producers and the advent
of new or better factors...show more content...
In general, they are a good indicator of the economy and public sentiment for it. If people are
confident in an economy, they will invest more in stocks, but if they are wary of an economies
future, they are more likely to save their money. Stock prices have been falling after a year of
record gains, indicating that the period of economic growth is either slowing or coming to an
end. The Industrial Production Index is a good indicator of the I in GDP. This index will reflect
growth for producers, whether they are making profits, and if new jobs are being created. After
several years of steady increase, Industrial Production is down, hinting that aggregate demand
may soon be too. Unemployment is another indicator of aggregate demand. If unemployment is
low, many people have jobs, and they will probably be spending, adding to GDP. Unemployment
has been at a record low, but recent layoffs in the auto industry as well as other have driven that
number up to 4.2 from 4.0. This is still a low figure, but if it continues to rise, that may impact
GDP greatly. Disposable personal income reflects how much money people have to spend.
Obviously, the more money someone has the more likely that person is to spend it. After many
quarters of positive figures for real disposable personal income, those numbers have been dropping,
even registering as negative in the last few months. Less income will mean less spending, a lower
GDP, and a

Essay about Us Economy and Gdp
1.In 4–5 paragraphs, discuss the history of the US economy including productivity, growth, markets
and government regulations.
2.In 2–3 paragraphs explain GDP: what items are included & excluded and why intermediate goods
and services are usually not included directly in GDP.
3.Rank, i.e. list, the following in order of increasing (from negative to positive) cross – price
elasticity of demand with coffee. Explain your reasoning.
– Bleach
– Tea
– Cream
– Cola
4.In 3–4 paragraphs, provide examples and discuss how the "Rules of the Game" impact the US
economic growth and productivity. What current US economic Rules of the Game are impacting
economic growth today?
5.In 2–3 paragraphs, discuss how markets coordinate the...show more content...
Millions were out of work. The government began public works projects to help bring growth back
to the economy
World War II brought the US out of this period of slow growth. The military needed tanks, planes,
guns, and everything else needed for the war effort. People were either back to work or overseas
fighting. Production and growth rates reached new highs.
At the end of the war, growth continued through the seventies. People were seeing a better standard
of living that ever before. Highways ran across the nation, and people bought cars to travel for fun.
Later, the seventies brought an economic downturn, which did not last too long. Technology was no
the horizon, bringing things like the mini transistor, and eventually the microchip. This brought on a
new revolution. Companies promised paperless offices and copy machines replaced secretaries.
Eventually computers increased production in offices and factories. Growth opportunities in
semiconductors spawned new markets and even new areas like Silicon Valley.
The most recent breakthrough is the internet. It brought any information to anyone, in an instant.
Productivity skyrocketed in areas like research and development and for researching mid term exams
on economics, particularly on questions about the history of the US economy.
While this is a quick recap of production and growth over the past 200 years, it is not over.

Macroeconomics Essay
"Macroeconomics is a branch of economics that deals with the performance, structure, and behavior
of a national economy as a whole. Macroeconomists seek to understand the determinants of
aggregate trends in an economy with particular focus on national income, unemployment, inflation,
investment, and international trade" (Wikipedia, 2007). Government tends to use a combination of
both monetary and fiscal options when setting policies that deal with the Macroeconomic.
According to McConnell & Brue (2004), governments make adjustments through policy changes
which they...show more content...
dollars into gold at $35 per ounce, has made the U.S. and other countries' monies into fiat
money–money that national monetary authorities have the power to issue without legal constraints.
Money is used in all economic operations; money has a powerful effect every economic activity. The
increase in supply of money put more money in the hands of the consumers and increased spending.
When the money supply continues to expand and the prices begin to increase, particularly if the
output growth reach to the capacity limits as the public begin to expect the inflation, lenders insist on
higher interest rates to offset and expected decline in purchasing power over the life of their loans.
Contradictory results happen when the supply of money falls, or when the rate of growth cries off.
The U.S. money supply comprises currency–dollar bills and coins issued by the Federal Reserve
System and the Treasury–and various kinds of deposits held by the public at commercial banks and
other depository institutions such as savings and loans and credit unions. On June 30, 1990, the
money supply, measured as the sum of currency and checking account deposits, totaled $809 billion.
Including some types of savings deposits, the money supply totaled $3,272 billion. And even broader
measure totaled $4,066 billion

Essay on Economics in My Life
Economics in My Life
When I was first given this assignment I was extremely perplexed at how I would even begin to
finish it. I had no idea how economics related to my life in anyway. I hadn't thought about it
critically and I struggling terribly. Thanks to some much needed help from a fellow classmate, he
allowed me to get an idea of things from his own essay. After reading not one, but two other
essays, I was so surprised at how oblivious I had been. I never realized that just about everything
that goes on in my daily life is, in fact, economics. I never realized that from the things I buy to the
money I earn from working is all economics. The things I miss out of while working or going to
school is a complete opportunity cost. Or even...show more content...
Certain books that were unbelievably hard to find were in the higher price range because they were,
in a way, rare. As appose to a book that was so common could easily be found at a cheap price.
They say that there is always something lost at the cost of another. Opportunity cost is something
that I always consider before most decisions. For example, I work weekends as a server, including
Fridays. That Friday shift is one of the best days to work to make good money, but almost every
winter and summer class is Monday through Friday. It's also a full eight hour shift so it makes it
extremely difficult to find even later classes. In my whole two years at ECC I've only been in one
sit–in winter class. Other than that I'm left with online classes. The opportunity cost for the much
need money I make on Friday sets me back enormously in school, because not every class is
available online. Work stands in the way of a lot things in my life. Because I go to school
Monday through Thursday I really only have Friday through Sunday to work. It's hard for me to
go on vacations or even hang out with friends at the beach during summer because I get off later
in the afternoon. Staying out late with friends is also an opportunity cost because I work early
mornings. So you can see that I give up a lot for work but I know that if I work hard now it won't be
so hard later in life. That's when I'll stay out late and go on vacations.
This was first year that I actually had to fill taxes and I

Economic Systems Essay
Introduction
Economic systems are organized way in which a state or nation allocates its resources and
apportions goods and services in the national community. An economic system is slackly defined as
country's plan for its services, goods produced, and the exact way in which its economic plan is
carried out. There are three types of economic systems exist, they are command economy, market
economy, and mixed economy. Command economy is also sometimes calledplanned economy. The
expectations of this type of economy is that all major decisions that related to the construction or
production, distribution, commodity and service prices are all made by the government. However,
in market economy, national and state governments play a...show more content...
Businesses can decide which goods to produce and in what quantity and consumers can decide
what they want to purchase and at what price. The role of the state is limited to ensure right
precision in the prices charged by the sellers. Prices also have the function to allocate and
distribute a country's resources. Market leads to complete effectiveness bringing about the best
possible distribution of a country's resources in a perfect world. This would only happen in a
state of equilibrium and there is a unique price for every commodity. But in a realistic world
which is imperfect by nature, prices are never at equilibrium and very unstable depending upon
the vagaries of the market forces. This generally harms people living below the poverty line. It is
impossible for them to pay high prices in cases of demand shortage. Thus, the free market model
is not a viable option in developing countries which has a large number of poor. Besides, producers
are aim to minimize profit and maximize rent of production. Examples of countries that are using
this economy system are Hong Kong, USA, and UK. Many developing countries like India and
China are moving towards totally free–market economy. The command economy is government
directed. The market forces have very little say in such an economy. There is no private property.
On the other hand, a command economy aims at using all available resources for developing either

business economics Essay
Table of Contents 1.INTRODUCTION 2.MAIN BODY 2.1THE NATURE OF RESOURCE COST
STRUCTURE AND THE PRACTICAL SIGNIFICANCE OF DIFFERENT COSTS 2.2THE
FACTORS INFLUENCING OPTIMUM SIZE AND THE SIGNIFICANCE OF DEMAND AND
SUPPLY RELATIONSHIPS 2.3UNDERSTANDING OF THE RELEVANCE AND
LIMITATIONS OF ECONOMIC THEORY TO MANAGE DECISIONS 3.CONCLUSION
1.INTRODUCTION: From the economic perspective, there are a full range of wants from
individuals, firms and government but there is only a few number of resources or factors of
production such as land, labour, capital and enterprise. The raw material will come from land,
taking the example of oil, gas. The labour relates to the individuals able to work. The capital covers
machinery,...show more content...
Equipment, everything used to bring all the materials together, for example, cranes, welding sets,
computing time, mobile offices. It is also important to know how much money committed to spend
at any point in time. 2.1.1The microeconomics perspectives: This focuses on the market behaviour
of individual consumers and firms to help understand the decision making process of firms and
households. This is at a level of individual buyer and individual seller, meaning demand and
supply. How much to produce and how much to charge for it. The law of the demand is that the
demand decreases when the price increases and the demand increases when the price decreases.
Also more demand of a product results in an increase of the price the price of that product. (See
graph below). 2.1.2The macroeconomics perspectives, focuses on the big picture of the national
economy as a whole and provides a basic understanding of how things work in the business
environment. The macrocosmic policy goals will be achieved by the monetary policy and the fiscal
policy. The monetary policy is the management of the nation money supply, the decision of the
interest rate and the banking system to promote economic growth, lower unemployment and
inflation. 2.2The factors influencing optimum size and the significance of demand and supply
relationship: The demand and the supply are two main concepts of the economy. Demand is what
quantity of product or service

What is Economics? Essay
Many people think that economics is about money. Well, to some extent this is true. Economics has
a lot to do with money: with how much money people are paid; how much they spend: what it costs
to buy various items; how much money firms earn; how much money there is in total in the
economy. But despite the large number of areas in which our lives are concerned with money,
economics is more than just the study of money.
It is concerned with:
В·The production of goods and services: how much the economy produces; what particular
combination of goods and services; how much each firm produces; what techniques of production
they use; how many people they employ.
В·The consumption of goods and services: how much the population as a...show more content...
There are three types of resources:
В·Human resources: labour The labour force is limited both in number and in skills.
В·Natural resources: land and raw materials The world's land area is limited, as are its raw materials.
В·Manufactures resources: capital
All inputs into production that have themselves been produced: e.g. factories, machines and tools.
One must bear in mind that our wants are virtually unlimited, while the resources available to
satisfy these wants are limited. In other words when society demands more of a product than can
actually be produced to fulfil those wants we have a problem of scarcity. An example of this would
be the OPEC oil price shocks between 1973 and 1980. Yes, it is true that the price of oil rose and
some individuals used substitutes but the economies of oil importing countries like Germany and
Japan fell because OPEC now had more buying power since they had the control over a scarce
resource. We can therefore think of oil as having become scarcer in economic terms when its price
rose.
Earlier I stated that economics is concerned with consumption and production. We can look at it in
the terms of demand and supply. It is simply the quantity of a good buyers wish to purchase at each
conceivable price. Three factors determine demand:
В·Desire
В·Willingness to pay

В·Ability to pay
Whilst supply is the quantity of good sellers wish to sell at each conceivable price. Supply is

Essay about The British Economy
Explain and illustrate the effect of this shock, and the courses of action the Government and the
Bank of England are, in your opinion, likely to take as a consequence. Discuss the implications for
business of both the initial shock and the following Government and Bank actions. You should
assume that the Government of the day has committed itself to full employment, "prudent" public
spending, and no major tax increases. The Bank has an inflation target of 2.5% pa.
A long run equilibrium is one in which the aggregate markets – financial, product and resource, are
in equilibrium simultaneously This is made possible by flexible wages and prices and is
represented by the intersection of the AD (aggregate demand) curve and the LRAS...show more
content...
As seen in Fig 2, cost–push inflation occurs with a leftward shift of the aggregate supply curve,
which is independent of any movements in aggregate demand. Because the demand for oil is
highly price inelastic, producers know that they can pass on the increased costs of the oil directly
to the consumer, without the need to absorb them at the firm level. They may also cut back on
production slightly in the short term in order to avoid a current surplus, however, as the demand
for oil would not be expected to drop significantly, this approach would be a cautionary one. A rise
of the price of oil by 15 percent would stimulate a single shift in the AS curve, which is known as a
supply shock – whereby there is a temporary inflation taking place while the price rise is passed
through the economy. A stabilisation of prices will then take place, and thus inflation will subside. A
blanket increase in the price of oil is hence known as import–price–push inflation, where the 'import
prices of a commodity increase independently of the level of aggregate demand'
In general however, good–price inflation has tended to be lower than service–price inflation. This is
as a result of the fact that there is a 'higher rate of growth of productivity in goods markets relative
to services markets. Goods are traded internationally to a greater extent than services and capital
equipment tends to replace labour to a greater degree in the production of

Economics Reflection
. Through the process of reading, I learned many things about the economy. First of all, I learned
that it is a much more difficult decision to come to in regards of how much government
involvement in the nation's economy is enough, how much is too little, and how much is not
enough. I also learned that trying to keep the economy stable and productive is a constant and
difficult struggle, and that it is often difficult to even know what needs to or can be done in order to
stabilize it. While I find economics to be somewhat boring (I am a music major and largely
emotionally driven, which means that my entertainment is usually emotionally involving somehow),
I actually enjoyed how Wheelan explained economics in this book. While I would not read it for
fun, reading this book as an assignment was not painful.
Having government involved in the economy has its pros and cons. One of the Pros is that the
government can help prevent or discourage harmful behaviors or actions. Government regulation can
prevent man–caused shortages. Fishing regulations are often put in place to prevent overfishing.
These regulations prevent or discourage fishermen from fishing too much in one season, which
allows the fish to repopulate and remain available in the future. In the book, Wheelan mentioned
how the government can also tax bad behaviors to encourage behaviors that benefit health and/or the
environment. An example of this is a tax on gasoline and/or larger vehicles, or a tax on cigarettes.

Essay about U.S. Economy
The United States economy is currently not looking very good. Over the past couple of months
the economy has taken a turn for the worst and we could be headed into a recession in the coming
months or years. The biggest problems are in the real estate and mortgage markets. In 1999,
housing prices rose at huge rates and lenders began offering riskier mortgages, which caused
homeowners to keep piling up huge debts. People were taking out loans and balloon mortgage
payments that they really could not afford. The problem began in late 2007, when housing prices
began to fall and the system fell apart causing huge numbers of defaults on home loans and
foreclosures. Currently, 5.6% of mortgages are delinquent, the highest rate in 21 years, and...show
more content...
The housing crisis that I mentioned earlier and resulting backlash through the entire economy has
been building for awhile now but it has just came into the forefront in the past couple of weeks.
We really haven't faced a downturn like this since the Depression. Last Tuesday, January 22, the
Dow Jones industrial average fell almost 600 points and was already down 9% in 2008 (Gross 1).
Immediately the Federal Reserve took action and cut the interest rates three–quarters of a percentage
point, the biggest cut in 24 years. Today, not even a week later, the Fed again cut interest rates, this
time by a half–point (Aversa 1). This move is an effort to keep the economy out of a recession by
getting money back into the banks and encouraging them to keep lending credit to turn the
economy upward. Whether or not it will work remains to be seen in the coming months. The
government also announced another move to a couple weeks ago to help get the economy going
again and avoid or slow down a recession. President Bush and the House are currently developing a
$145 billion stimulus plan that would give tax relief to citizens by sending them individual checks
for $300 and up. The plan would put over $100 billion into the hands of consumers and the
government hopes that money would be spent and put back into the economy (Wolf 1). While all
these things are good news for the struggling economy, most economic experts believe that a
recession of some kind may be impossible to avoid

Essay About Economy

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Essay About Economy