Economic Growth and Happiness
Economic Growth Can Lead to Healthier and Happier Societies
More Availability of Goods
Increase in Tax Revenues and Better Welfare Programs.
Increase in Purchasing Power
Health Industry Benefits
Business Sector Benefits
Economic Growth Can Lead To Healthier and Happier Societies
Economic growth has long been termed as the precursor to any society's success, and in this paper, we shall be looking at various aspects of economic growth that are directly correlated to happiness in the society, as well as those that negate this causality leading us to wonder whether all the technological progress in the world can eventually lead to happiness.
There are various factors that impact happiness where geography is a consideration in the sense of the location of a country has an important part to play in terms of its cultural values, and the manner in which happiness is defined in the culture. The progress that the country has made in terms of the economic bloc it belongs to as the U.K. has being part of the EU; its history also plays an important part in how happiness is defined. (Megan, 2009) Consider that U.K. is one of the most advanced nations of the world and its economy is among the most progressed, therefore their criteria of h happiness includes towards a better, healthier environment; whereas, countries that are emerging keep economic empowerment as their premise for happiness.
Similarly there are variables that are indicative of economic growth are: higher availability of goods, higher income, and technological advancements, each of which are discussed in further detail below:
More Availability of Goods
When we consider economic theory, all experts have taken the basic assumption that a wider variety of choice available to consumers in terms of more goods and services available to them leads to a better standard of living and in turn makes people happier.
However it has to be seen whether the availability of goods on its own accords has been able to make societies happier. Consider the example of an economy where there are a higher number of goods available, but there is huge class divide so that five percent of the population has more…… [Read More]
Economics is defined as the study of how society allocates limited resources and goods (Encyclopedia Britannica, 2009). Resources include inputs such as labor, capital, and land and are used to produce goods. Goods include products such as food and clothing, as well as services such as those of barbers, doctors, and firefighters. Often goods and resources are deemed scarce because of society's demand for them vs. their availability (Stapleford, 2012). Economics, then, becomes the study of how goods and resources are allocated when scarce. It also allows us to anticipate the outcomes of changes in governmental policies, company practices, or population shifts, and so forth.
The market system is one avenue economists use to allocate scarce resources. A market is defined as any system or arrangement where trade takes place (Encyclopedia Britannica, 2009). In the U.S. there are several markets trading at all times. The study of the market system falls into two branches - macroeconomics and microeconomics.
Microeconomics is the study of the economic behavior of individual firms, consumers and industries and the distribution of total production and income between them (Encyclopedia Britannica, 2009). Microeconomics allows economists to analyze the market to establish the average price point for goods and services. This analysis also aids in the allocation of society's resources among all potential uses (Funderburk, 2012).
This branch of economics first emerged when economists began analyzing consumer decision-making processes and outcomes in the early 18th century (Stapleford, 2012). The first in-depth explanation of the discipline came from a Swiss mathematician named Nicholas Bernoulli, who laid the groundwork for microeconomic theory by suggesting that consumer choices are always rational. In the late 19th century, London economist Alfred Marshall proposed examining individual markets and firms as a way to understand the broader economy. It was then that microeconomics became formally established as a field of study.
In the mid-20th century, the concept of market failure led to the modern definition of microeconomics (Funderburk, 2012). Market failure refers to situations in which market operations prevent the efficient allocation of resources. Today, microeconomists are primarily concerned with analyzing market failure and suggesting ways to prevent or mitigate it (Stapleford, 2012). This is typically…… [Read More]
An economic system is basically described as specific set of principles that addresses the production, distribution, and consumption of products and services. The involved parties in the production, distribution, and consumptions processes are usually determined by or dependent on the economic system. Throughout the history of humanity, different types of economic systems have evolved because different societies have placed varying emphasis on distinctive goals and priorities as part of their efforts to obtain answers to certain economic questions. In addition, the difference in economic systems is fueled by the tendency by different societies to develop very broad economic approaches to manage their resources. One of the main reasons for the development of different economic systems is to address the challenge of scarcity. The challenge of scarcity is an essential problem that confronts individuals and nations. While there are four major types of economic systems recognized by economists, there are still huge disagreements on the system that effectively addresses the challenge of scarcity.
Types of Economic Systems:
As previously mentioned, there are different types of economic systems that have been developed by different societies to deal with the challenge of scarcity. The four basic types of economic systems that are generally recognized by economists are & #8230;
Traditional Economic System:
A traditional economic system is basically fueled by customs and inheritance through which skills and techniques are passed down from generation to generation ("Economic Systems," p.2). As a result of inheritance of skills and methods, the entire community works toward the realization of a common good. Moreover, individuals' activities, the production of goods and services, and the exchange and use of resources tend to follow long-established patterns in the traditional economic system. Unlike other economic systems, the traditional economic system is not very dynamic to an extent that it's characterized by static standards of living. This characteristic emanates from the fact that individuals do not enjoy occupational or financial mobility since their economic relationships and behaviors are predictable.
With regards to resolving resource allocation issues, community interests take precedence over the individual in the traditional economic system ("Types of Economic Systems" par, 5). As a result, people may be expected to merge their efforts and share equally in the proceeds of their labor…… [Read More]
Economic Final Report
Types of economic systems
Economic systems vary from one nation to another. Traditional economic systems refer to an economic system founded by tradition. The services and goods that people provide through the work they do, how people exchange and use the resources are trends that follow permanent patterns. These are not dynamic economic systems because there are minimal changes. In this economic system, people live on static standards. They do not enjoy much occupational mobility and financial mobility (Gregory and Robert 19). However, it is possible to predict economic relationships and behaviors. People are aware of what they are expected to do, why they trade, they know what others should give to them. In traditional economic systems, the interests of the community are of great priority than individual interests. People collaborate at work and labor proceeds are shared equally. However, in some traditional economic systems, individuals respect some personal privacy. However, it comes with restrictions as such individuals are given a strong obligation set, which they owe to the entire community. In the current world, traditional economic systems are being applied in the workplace among Aborigines of Australia and other minority groups (Conklin, 15).
The next economic system is the planned or command economic system: in this system, the economy is under government control. The government makes decisions about how to distribute and use resources. The state regulates wages and prices. The government determines the form of work an individual will do to some extent. In the past centuries, the state assumed different levels of controlling the economy. In some systems, the government exercise control exclusively on major industries. This means that the state exercises great control on the country's economy. A good example of this economy is the Soviet Communist Union. In 1980s, the collapse of the bloc of communist led to the halt of a variety of command economies across the globe. However, Cuba is the only country holding onto its command economic system (Gregory and Robert 43).
From the market economies, individuals make critical economic decisions. Companies and individuals interact in…… [Read More]
Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization?
Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel Wallenstein's World Systems Theory, the political economy of Third World economies and developed economies of the West are mutually dependent. Wallenstein's conjecture is that the growth and expansion of Third World economies relies on constant interaction with Western developed economies seeing as the world is characterized by a structural division of labor where the developing nations of the Third World provide cheap labor and raw materials while the developed economies are the holders of capital and controllers of the market. Economic experts have argued that even in the midst of the global financial meltdown in the U.S. along with the ongoing Eurozone economic crisis, economic globalization remains intact. This has become possible through the decision by the governments to rescue companies from the debt crises.
While globalization revolves around breakthrough in the fields of science and technology, cross-border division of labor (market liberalization), economic globalization centers on growing economic interdependence between national economies globally through economic integration, cross-border movement of commodities, services, capital, and technology. Economic experts espouse that economic globalization commenced several hundred years ago since the inception of trans-national commercial engagements in Europe, the Americas and parts of Asia. Some of the historic trade arrangements include the Trans-Saharan trade and the Trans-Atlantic Slave Trade. While trans-regional trade engagement began centuries ago, it escalated towards the end of the 20th century under the auspices of trans-national trade regimes such as the World…… [Read More]
The revelation of the financial crisis that unfolded in United States in 2008 is considered to be the worst economic crisis since the Great Depression, 1929. The distinctive causative factors that have contributed to the U.S. economic crisis 2008- 2009 are differentiated by aggravated financial control, higher risks in capital investment, the housing bubble phenomena in relation to the brisk credit expansion. The aggregation of these factors in the U.S. economy directed the economy towards the de- leverage and credit crunches as the bubble burst. The following paper shall be discussing about the degree of correlation between the tax implications policies with respect to the financial crisis in U.S.. The precise review of strong linkages between the taxation and economic crises is the explicit explanation of the crisis that shook America. The paper also highlights the key factors that demonstrated their abilities and rescued U.S. In the economic crisis.
The recent financial crisis reported in U.S. has followed the roots of the antecedent financial crisis that took roots in 2007 as the crisis of U.S. housing market. The crisis had a multiplier effect and the adverse consequences were reportedly spreading throughout the world, and proved to catalyze the economic crisis of many countries from developed to undeveloped and underdeveloped countries. The crisis unfolded in U.S. And reached an astonishing level by September 2008 when a number of eminent U.S. financial institutions, including AIG and Lehman Brothers collapsed (Hendrickson & Nichols, 2010).
In order to understand the root causes of the economic crisis in U.S. 2008-2009 this is important to illustrate the factors that triggered the materialization of crisis that stated from the disintegration of the housing bubble and the contribution of the complexity created by the financial policies and instruments that distorted the scheme of asset price correction that proved an agent of the noteworthy recession and global and domestic economic turnaround.
More importantly the paper discourses the response of the concerned authorities towards the rehabilitation of the economy of U.S.. The area of central focus is the response generated before and after the crucial…… [Read More]
Economic Crisis Policies
US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans swallowed the banks and financial markets such as falling of Lehman's brothers and other Banks and blow to rest of economy happened as the whole economy was relying on banks and ultimately it slows down investment in the country and capital flows to other parts of the world like China and India. Bank losses cause reduction of bank capital which in turn requires capital reduction thus saving bank from lending. It is estimated that every $100 loss and reduction of bank capital would cause $1trillion reduction in bank lending. (ISR international socialist review, 2009)
Critical Analysis of the Causes of Current Economic Crisis
The current depression is said to be biggest since the great depression of 1930's.There are many causes of current economic crisis. Some of them are discussed below.
At the macroeconomic level we have seen that consumption has increased over last two decades, aggregate household consumption represents more than 70% of gross domestic product. Consumption increases due to relaxed credit policy for real estate sector which ultimately results in low saving, which puts strain on governments' revenues because of increased investments and results in budget deficits. (Journal of accountancy, 2009)
Another major cause of downturn of U.S. economy is decline of rate of profit in U.S. economy as a whole. From 1950 to 1970 the rate of profit decreases about 50% and around 22 to 12% in onward period. This decline in profits is due to decline in general trend during this period.
Marxist theory while explaining this decline says that this decline further…… [Read More]
This economic indicator can be used to determine inequality within a given region or area. It can also be view the capacity for individuals within a particular nation to consume
b. Rate of Value- $41,560
c. Source of Information- "Per Capita Personal Income U.S. And All States." Per Capita Personal Income U.S. And All States. Bureau of Business & Economic Research, 12 Oct. 12. Web. 02 Feb. 2013.
d. Date of information- September 2012
6) Housing Starts-
a. Economic Indicator- Housing starts are usually indicated by the number of privately owned, new houses, under construction within a given period. This data is usually comprised of three, very distinct components of single family houses, condos, and apartment buildings. Housing starts are very important economic indicators as housing is a substantial component of the middle class family's net worth. Home ownership is also a means by which are other industries are successful. Aspects such as carpet, brick, appliances, lawn care, and others, all benefit from a robust housing market. As such, housing, and housing related industries comprise a substantial amount of the overall nations GDP. Housing starts, therefore, indicates future demand for housing related goods and services.
b. Rate of Value- 780,000 units started in 2012 which is a 28% increase above 2011 levels
c. Source of Information- U.S. Department of Commerce- Cooper, Stephen. Census.gov. U.S. Department of Housing and Urban Development, 17 Jan. 2013. Web. 2 Feb. 2013.
d. Date of information- January 17, 2003
7) Unemployment Rate
a. Economic Indicator- the unemployment is the number of individuals out of work who are actively seeking work. This number does not account for individuals who have given up searching for work altogether. The number is calculated by dividing the number of unemployed by those who are actively in the labor market. The unemployment is a key economic indicator as it relates to the overall supply and demand for goods and services. When demand is relatively low for services, the supply of is usually too high. Those massive layoffs occur as companies adjust to the prevailing…… [Read More]
Economic Impacts of Regulation
Regulation is a written instrument that contains rules with the force of law (Ogus, 2004). Regulation as a process involves monitoring and enforcing rules, established through primary or delegated legislation. Regulation usually creates, constrains or limits a right. In addition, regulation creates and limits a duty besides allocating responsibilities (Ogus, 2004). Regulation may take several forms depending on its application. These includes legal restrictions made by the government, contractual obligations, which binds several parties together, self-regulations by industries, third party regulation, co-regulation, market regulation, certification and accreditation
Regulation made by a state tries to produce outcomes that might not occur (Ogus, 2004). In addition, it attempts to prevent or produce outcomes in various places to what might occur. Through this, regulation becomes an implementation object of policy statements. Examples of regulation include controls on prices, market entries, wages, pollution effects, employment of particular people within certain industries, development approval, the military forces and services and production standards for particular goods (High, 2001).
Public services usually encounter conflicts between procedures of maximizing profits and people's interests on these services. Therefore, most of the governments have various forms of control or regulation for the purpose of managing these possible conflicts (High, 2001). This regulation ensures deliverance of appropriate and proper service. The regulation does this without discouraging the proper functioning as well as development of the business. For instance, regulation in most countries controls the sale of prescription drugs and alcohol (Amato & Laudati, 2001). It also controls key sectors in the economy such as a food business, public transport, and provision of personal and residential care, film and TV. In addition to these, the regulation controls monopolies and the financial sector of the country (High, 2001). With regards to this, the objective of this paper is to identify the impacts of regulation on various sectors of the economy.
A wide variety of literature review indicates that regulation frequently has significant impacts on the economy. However, it is not possible to generalize prepositions about the impacts of economic regulation (High, 2001). The literature review indicates that the nature, as well as the magnitude…… [Read More]
Mexico; How Interest Rates Can Be Used to Manage an Economy
The management of the economy, undertaken with strategies from the government and decision fro the central bank, is usually undertaken with the aim of promoting and supporting a stable economy, balancing the desire for sustainable growth with the need to constrain inflation. This is an issue faced by almost all countries; inflation can be harmful to an economy, impacting not only in the internal stakeholders, but influencing the exchange rate. The control of inflation, often through the use of interest rates, may also help to stifle growth. This can be a conundrum, as stimulating growth and constraining inflation requires a very careful balance of economic policies. Mexico has been faced with this issue and in March 2013 the Banco de Mexico
made a surprise decision to reduce their interest rates from 4.5% to 4% (Trading Economics, 2013), and then hold the rate at 4% in April (Hughes and O'Boyle, 2013). Management of the economy is a tricky balancing act, and when the country had a growth rate substantially above that of many western countries in the post global recession period, one may wonder why there was a reduction in interest rates. Looking at the situation of Mexico and the use of interest rates it is possible to examine the reasons for the decision and how the rate reduction may be good for Mexico's economy in the long-term.
Mexico has performed relativity well over the last few years; the economy has been showing positive growth well above rates in the more developed countries. In 2012 it was estimated that the real rate of growth in the GDP was 4%, in 2011 it was 3.9% and in 2010 it was 5.6% (CIA, 2013). Three years of growth has been beneficial to the country. With an official GDP of $1.163 trillion in 2012, which equated to a per capita rate of $15,300 in purchasing parity terms (CIA, 2013), it is also apparent there is likely to be more room for growth in the economy.
The results would appear to indicate that there is not an issue with growth in the economy. The strength of the economy explains why the interest rates in Mexico have been higher than nations such as the U.S., the UK and Japan.…… [Read More]
The Keynesian economic theorists follow an economic model that considers three factors in macroeconomic growth. These are income distribution, savings, and investment functions. These factors are derived from the theory's determination of equilibrium in the economy as determined by the relationship between employment, prices, and gross-domestic-product (Padalkina 18). The theory suggests that the economy does not have full employment, autonomous demand-component affect rate of growth, and investment decisions are not dependent on savings. Therefore, the theory suggests that for the economy to experience growth there must be enough demand to push the economy to full employment (Padalkina 18). In addition, the economy experiences growth when there are increases in demand, increasing returns, externalities, and productivity growth.
The Keynesian economics have advocated that discretionary government measures and interventions are necessary in promoting economic growth, increase standard of living, and employment stability. The theorists believe in the use of government intervention, and the use of social policy development. This is in addition to the use of income maintenance programs improves the management of the economy, thereby leading to economic growth (Padalkina 18). The Keynesian theory believes the financial or market-based systems require government intervention and control to reduce destabilization. To carry out this task the government has to use fiscal and monetary policies to stimulate employment and domestic output to motivate economic growth (Padalkina 18).
The monetary theorists like Modigliani believe that macroeconomic growth is achievable by focusing efforts on the role of financial and money markets. These markets are believed to determine the dynamics of aggregate price level, output level and the role of monetary policy in economic fluctuation stabilization (Free 382). This theory believes that the control of money using monetary policies will determine the exchange rates, assets, and value of the economy aggregates. The monetary theorists suggest that to grow macroeconomics requires the control…… [Read More]
The production possibilities curve represents the maximum level at which a country can produce. Freer trade, such as what the EU has promoted since its inception, allows countries to do two things. The first is that it allows them to produce at their production possibilities curve. This occurs because the country under free trade conditions is going to produce those goods in which it has a comparative advantage. This improves the efficiency of production because the country is producing goods at which it is better at producing, and as it produces more of those goods than it otherwise would the country will also have better economies of scale. A country will produce at a higher level of efficiency after free trade than it did before, bringing it closer to the production possibilities curve.
The other thing that happens under free trade is that the production possibilities curve is that it gets pushed outward. The improved efficiency from free trade is likely to increase the production capacity of the nations engaged in the trade. As a result, not only with the countries involved meet their old production possibilities curve, but they will see their production possibilities curves move as well.
2. An economy that is operating inside its production possibilities frontier is not operating at its capacity. There are issues within that economy with respect to efficiency. This economy should be able to increase production of any good at this point, a new good or existing one, because there is unused productive capacity in the economy. The country has resources that are being unused (Investopedia, 2011). If those resources are used, then the country will be in a position to experience economic growth up until the point where the production reaches the production possibilities frontier.
3. There are a number of reasons that the production possibilities frontier is pushed outward. Two of the main ones are improvements in technology and the exploitation of more…… [Read More]
Economic Principles and Purchasing a House
Economics Principles and Purchasing a House
This essay discusses principles of economics as they apply to making decisions about purchasing a home. The essay also reviews the decision making process and how it is affected by marginal benefits and marginal costs. The health of the economy and also international trade are factors to think about too, along with looking at conditions which could have lead to making a different decision.
Supply and Demand
Buying a home is one of the single most important economic decisions that most people make. Because it is such a big decision, it is important to look at all the right considerations. The way to do this is to understand how economic principles apply. One principle that affected my decision was the law of supply and demand.
The number of homes available for sale is influenced by supply and demand. On the supply side, how many homes are for sale is influenced by the selling price of homes. If people see that they can sell their homes for higher prices, more of them are willing to sell, with all other things being equal. The converse is also true; more people are discouraged from selling when prices are low, as they are today.
The unemployment rate also affects the supply of homes. The more people there are out of work, the more people there are who fall behind on their mortgages and cannot afford to keep their homes. These homes add to the overall supply either through voluntary short sales or through involuntary foreclosures. The U.S. currently has a high number of homes available for sale. As of January 2012, the total existing-home inventory in the U.S. amounted to a 6.1 month supply at the current sales rate (RealEstateABC.com, 2012). This rate does not take into account what analysts call the shadow inventory, which includes distressed inventory that is being kept off the market. Experts believe that shadow inventory will continue to keep prices low for years to come (Time, 2012). Knowing that home prices will not increase significantly in the next few years means that I didn't have to buy right now to get the best price.
On the demand side, a large number of people looking to buy homes would drive up the prices. This situation is called a sellers' market and is a normal part of the economic…… [Read More]
Economics: Application of Concepts
An Analysis of the Economic Situation in the U.S.
In the last five years, we have seen the U.S. economy expand but at a pace that is seen as being relatively moderate. In conducting an analysis of the current economic situation in the U.S., I will largely limit myself to inflation, interest rates, and unemployment.
Although the current economic situation is better than it was five years ago, there are signs of uncertainty that continue to suppress economic activity. This is more so the case taking into consideration the prevailing unemployment rates. For the most part of year 2008, the unemployment rate was stuck between 5% and 6% (Bureau of Labor Statistics, 2013). As at January this year, the nation's unemployment rate stood at 7.9% (Bureau of Labor Statistics, 2013). This is an indication that in comparison to five years ago, the total unemployed labor force increased significantly.
Standing at 1.6% on January 1st of this year, the U.S. inflation rate during a similar period five years ago stood at 4.3% (Multpl, 2013). The relatively high inflation rate five years ago can be attributed to the adverse effects of the 2007 -- 2010 financial crisis. It is however important to note that in the recent past, the cost of imported raw materials has fallen and labor costs have stabilized. This has helped rein in inflation.
When it comes to interest rates, it should be noted that in an attempt to stir economic activity and neutralize the effects of the recent downturn in economic activity, the Federal Reserve has in recent times attempted to keep interest rates low through the maintenance of near zero interest rates (Board of Governors of the Federal Reserve System, 2012). In comparison to five years ago, the current performance of the stock market as well as GDP growth can be regarded impressive.
Strategies the Federal Government Could Implement to Encourage People to Spend More
The federal government could make use of a number of monetary and fiscal policy tools in an attempt to encourage individuals to expand their spending. In this scenario, I propose two fiscal tools that the government could utilize.
To begin with, the federal government could in this case increase its spending. This would ordinarily be through an increase in the acquisition of goods and services including but…… [Read More]
In the first phase, the price of coffee increased and thus lured producers into the market. This caused the supply to move up the curve. The increased supply caused the demand to decrease and thus caused the overproduction. The mechanism is shown below graphically.
The graph shows the coffee market at an equilibrium price of 3.25. The increase in price caused the supply to rise and the demand to fall. This lead to an over production of Q3-Q2.
As the demand was unchanged, an overproduction occurred and the price began to come down. The suppliers began to cut down the supply and the price became lower than the equilibrium price. During all this confusion, coffee houses began to open up in the areas of high income earners and they started charging a premium for coffee. This brought the market to equilibrium but new firms had started entering the market. These firms enjoyed abnormal profit as they were charging a price higher than market price. The demand also increases as a result of the establishment of these firms as the high income groups get attracted towards these coffee houses due to their good taste.
The market returns to equilibrium with a price less than the previous one. The quantity traded, however, increases.
With the price constantly going down and an inelastic demand due to high income, the coffee houses were the most benefitted party in this scenario. As the price of the coffee comes down, these retailers get more and more profits. The high price has very little effect on the demand of the product because of the preferences and high income of the consumers. So, the gourmet coffee houses charge more and more premium. The demand and supply are affected to a minimal extent as the coffee houses target groups with high…… [Read More]
Jim Hargrove, CEO
Neptune has over 60 days' worth of inventory and is faced with some interesting solutions to address this issue. This memo will analyze the issue and the proposals put forth by the management team. The memo will conclude with a recommendation for action.
New fishing rules and new technology investments have allowed Neptune to take bigger catches. Despite record sales, the company is still accumulating inventory. There are two proposals on the table for addressing the inventory issue: launching a budget brand and decreasing fleet size.
Analysis of Underlying Issues: The solution should reflect the underlying problem. The company has increased its fleet with new additions. This increase in capacity is permanent. The government's new regulations are also pushing us into richer fishing grounds, again representing a permanent increase in capacity. Other firms in the industry are also facing a long-term increase in capacity.
Recommendation: The company should decrease the size of its fleet, rather than launching a budget brand. A price war is not sustainable and there is no evidence to support that price reductions will dramatically increase consumption, particularly if those reductions are matched by other firms within the industry.
The two main factors affecting supply have both been discussed. Each of these factors can be considered to be a long-run issue, and will be shared by other firms within the industry. The industry is characterized by monopolistic competition, so the price is expected to decrease somewhat, to a new equilibrium point. In order to maintain a higher price, the industry as a whole must cut production. Demand is impacted in part by the price of fish, but also in part by the desirability of fish products in the marketplace (consumer habits and preferences). Recent evidence shows a social trend towards healthier eating, but this has not had a significant impact on fish sales. Fish is typically a premium-priced source of protein and many consumers have responded by simply not incorporating fish into their diets.
The market is characterized by monopolistic competition. Many competitors are not differentiated, however, choosing instead to compete as cost leaders. These firms sell a mix of house and private label brands. Neptune competes…… [Read More]
" (Kee, 2001, p. 139)
To further this discussion of short- and long-term production and cost one must at least briefly understand the just-in-time model. This model was developed by the Toyota Motor Corporation to mirror the ability of certain suppliers to provide just the amount of a product that a market demanded at the time it was demanded. To apply this model to manufacturing one must have a careful set up for short- and long-term goals of production, and potentially this model can effect short run production and be ignored by cost cutting that attempts to buy raw materials in bulk to meet the demand of a bottleneck in the early life of a product. (Ohno, 1988, pp.26-33) Just-in-time has become a goal of many in manufacturing, as they seek to carefully organize short-term and long-term production and cost issues. In the short-term, procurement is lower and waste is less, and in the long-term the firm is not left with surplus with regards to either raw materials or unwanted or slow selling finished products.
Short-term goals of production and cost often revolve around the idea that the most important job of the manufacturing team revolves around how to procure the most raw materials at the lowest price and how to effectively cut costs of production of a product while retaining or even raising its market price. Long-term goals on the other hand have to do with assessing the quality of a product and attempting to prevent product failure in the future, so as to reduce long-term loss from attrition and/or in the worst case scenario recalls. ("Value, in Economics," 2004) Both sort and long-term decisions and plans must be in place and balanced for a product to meet the demands of profit, no matter the industry or the size of the firm. (Hegji, 2001, p. 17)
Short-term production and cost goals, revolve around the attempt to most immediately recuperate the cost of research and development as well as…… [Read More]
The outlook was very negative in August and September -- there were some serious issues such as the debt ceiling debate that could have been responsible for the strong negative outlook. The outlook has turned slightly positive of late though, an encouraging sign.
Overall, the data provides a mixed signal about the state of the economy. The major headline numbers -- GDP and unemployment -- are improving. This is supported by the FOMC's statement, which has shown that rates are going to stay low. However, there are some mixed signals in the other data, including CPI, real earnings and durable goods orders.
The type of number of course is important. Some of the numbers are more sensitive than others, and some are better indicators of the economic conditions of the country. The Philadelphia survey, for example, is regional and subjective, which makes it a less useful indicator. Such data is important to have, but it is not as important as the hard quantitative data that is nationally based. That type of data is typically more important for determining the course of the U.S. economy. So once some of the less important data are excluded, the headline-type numbers show a generally improvement trend in the U.S. economy. Even the decline in the CPI might not be bad, because if that is the result of lower gas prices rather than actual deflation, then that is something that will benefit the economy overall as well.… [Read More]
The English premier league has a large television audience and inspires a large amount of devotion among fans that might not have the interest of the sporting world. The English premier league is well-known from London, to other parts of the world.it is very hard to find someone who does not have a favorite football team within the English premier league. Despite all this the we4alth that has come with the famous competitions does not go down to the fans. For instance the lucrative TV deals do not trickle down to the fans. There exists a situation that is very troubling when it comes to the ticket prices. The ticket prices a have gone so high such that even the most loyal fans are no longer able to afford them. For example a ticket for an Arsenal match costs a whooping 126 pounds and there are instance it can go up to $200.the English premier league was once a workingman's game but from the trend it is slowly becoming a form of entertainment that is excluding people.
There is a large income gap that exists between fans and teams which goes ahead to clearly show the financial inequality that exists around the world. The worst part of the situation is that fact that the reasoning behind these exorbitant tickets does not add up.as a matter of fact the fans across England are now demanding a stop to the increasing costs of tickets. Something should be done to this increasing prces.in economics we can look at this situation with the income elasticity of demand. This measures how responsive demand of a particular thing is to a change in the income of those who are in demand of the good. When we look at the income of people around the world we can say that du to the economic changes the incomes…… [Read More]
"The explosive growth of the global economy threatens the natural systems that sustain life on Earth. Despite some significant successes in reducing industrial pollution and increasing efficiency, globalization is devastating natural habitats, speeding global warming, and increasing air and water pollution" (Anonymous). It is in the nature of such an economic globalization to cause negative effects. Globalization has its benefits as well which hold substantial weight.
Advocates for economic globalization state that it is aimed at removing poverty and increasing wealth among the poor. This has been seen not to be entirely true and the gain of wealth is seen only in the upper or elite classes. The rich are getting richer while the poor are getting poorer. Although food has increased, hunger rates have also increased. It is seen that the top class is becoming multibillionaires and today there are more billionaires than yesterday. However the lower class is now facing days without any food. The largest economies in the world today are corporations. Names like General Motors, Mitsubishi rank among the first thirty largest economies. It is now known that these names have a larger economy than countries like Finland, Chile, Saudi Arabia, Denmark, Turkey etc. The list is endless. Larger corporations do not mean greater and more job opportunities. The fact is that such large corporations employ about 0.5% of the combined workforce of the world. Reason being that they have advance technologies where their machines are mostly robotic in nature and thus lower workforce is needed.
Recently "thousands of protesters flooded Washington on Saturday to stage dual demonstrations against the U.S.-led war in Iraq and economic globalization" (Lisa Lambert). Hence we see today that a large number of people are against the economic globalization because they have realized it ill effects on the people. Wealth gets concentrated among the social elite while others have to suffer with hunger strikes. The elite who know of the benefits that economic globalization brings to their personal selves…… [Read More]