Such processes are expensive and time consuming. In the case of the temporary staffs, the processes of selection and recruitment are less complex as they would revolve around referrals from current employees, who would recommend a teenage child, a friend or another acquaintance looking for a temporary job. Still, in the case of the third alternative, such problems and complexities would not be raised at all.
d) Employee skills
The general assumption when hiring temporary staffs is that they do not possess the skills and commitment of permanent employees. In such a context then, the company would have to hire permanent employees in order to best capitalize on their skills and knowledge, to invest it in and to ensure employee loyalty and performance. As the complexity of the job increases, the skill requirements also increase, further increasing the need for permanent staffs (Bragg, 2011). In a context in which the…… [Read More]
lags are when it comes to enacting and applying fiscal policy. The second question asks about the notion of a political business cycle. The third question asks about how the expectations of a near-term policy reversal weakens when tax rates change. Finally, there will be a description of what is called the crowding out effect.
When it comes to "time lags" with fiscal policy, this basically refers to the fact that there is a time lapse between the time that a piece of fiscal legislation is passed and point in which results can be seen or measured. For example, when the fiscal stimulus passed (the AA) in 2009, there was expected to be a gap between the time it was passed and the time it showed any sort of demonstrable effect on the economy (Economics Online, 2015). As for the political business cycle, Auburn University describes that term as meaning…… [Read More]
He would be faced with deciding whether he must spend all his available resources on goods or services, or whether he must save some of his income so that he would be able to finance some of his needs of his future. When he is taken as a labor resource, he must make the decision whether he must use his time in working for his pay, or whether he must spend it on sleeping and other leisure time activities. ("Decision making using marginal analysis," n. d.)
Similarly, when he is a labor resource, he must decide how much of his time he must spend on education, so that he may be able to maximize his life earnings. On the other hand, if he were an entrepreneur, then he must make the decision on how many people he must hire, or how much he must spend on acquiring a new product…… [Read More]
If I was in Congress, I would not vote for such a tax. From an ethical perspective, such a tax is simply punitive. The oil companies are not strictly to blame if the price elasticity of demand for oil is low and they take advantage of that. Consumers have no inherent right to dirt cheap oil. The argument could be made that there are benefits to monopolistic profits such as further exploration, but that argument is actually a bit soft. First, drilling is already included on the income statement -- these are profits above and beyond what the companies need to sustain their business. And that is why they drill -- to sustain their business, so they're going to do it anyway. The reason you don't vote for such a bill has nothing to do with finding ways to make oil companies more profitable or less profitable; it is…… [Read More]
The economic policy tools that were employed just after the war subsequently underwent some changes. From 1947 to 1950 direct controls on wages and distribution were eliminated followed by removal of trade controls in 1958. However, the government continued to maintain its hold over prices and credit distribution which made it different from many of its neighboring states in the postwar period. The French Ministry of Finance exerted greater control over the economy than the Bank of France. This led to a greater predilection to resort to devaluation when external equilibrium resulted due to the state failure to control incomes. In France, the period between 1945 and 1975 was known as the "thirty glorious years" because of the phenomenal economic performance. During this period, the average growth rate of GDP was around 6.8% which was quite remarkable considering that Britain's average GDP growth rate was 2.4% and Germany's…… [Read More]
Purchase of any item may be an ordinary activity for most people, but in economic terms, it is probably one of the most significant activities that govern and shape the business cycle and affects the economic conditions of any organization or country. Purchasing is directly connected with the concept of consumption. The more a person purchases, the higher is the rate of consumption and vice versa. But purchasing or consumption, for that matter, doesn't take place in isolation and several different concepts come into operation when a single consumption activity takes place.
Let us illustrate this with the help of an example. Suppose a couple decides to purchase a car. On the surface this might be an ordinary everyday transaction where money goes from one party to another as the result of which ownership changes. The car becomes the property of the consumer while his money becomes addition…… [Read More]
Product Differentiation in the Competitive Open Market of Today's Economy
Product differentiation is one of the most difficult things for a firm to achieve in a competitive, open market. In a market with a large number of potential product competitors, it is difficult to convey to the consumer what makes a particular product unique. The problem of product differentiation highlights the fact that it is not simply enough that a consumer wishes to buy more soda, for instance, to increase sales. Rather it is important that the potential consumer wishes to buy a specific company's soda, one's own particular brand of soda, and only that brand of soda. For consumers to demand a particular product, there must be a sense of 'specialness' conveyed to the product produced by one's own firm as opposed to other firms. This sense of specialness can be a uniqueness of cheapness, quality,…… [Read More]
Why Do Consumers Make Irrational, Decisions?
In economics there is usually the underlying assumption that people who make choices will act in a rational manner, weighing up the costs and the benefits and determining a course of action dependent which choice provides them with the greatest benefit. The assumption may appeal to logic, and is seen in rational choice theory, but the reality is many consumers will not act in a rational manner, making choices that result disadvantages or costs rather than benefits. There are a number of influences which may explain how and why consumers do not always make the rational or optimal choices in economic terms.
One of the key aspects of rational choice theory, which dictates individuals will make rational choices are the underlying assumption that individuals making the choices will be in possession of perfect information regarding the choices and the potential outcomes, and that…… [Read More]
S. exports, but only reduced them, to increase imports from Mexico, to stimulate the opening of manufacturing plants in Mexico and to lead to the loss of jobs for the American population
Ultimately then, the free market is a beneficial theoretical model, but its practical implementation has only proven profitable for the corporations in the highly developed western economies.
3. Are impediments to economic and financial reconstruction worse in a particular region of the developing world?
The tumultuous world history has impregnated its effects upon all players. And these effects are multiple and depend on various other features. On the other hand, they can be used to explain the contemporaneous stages of economic development presented by each state. While some countries enjoy the benefits of high levels of economic growth and development, others still strive to make do. And the differences are not only obvious among the groups of developed,…… [Read More]
Firm, Labor Markets, and Imperfect Information
Perfect Competition and Monopolistic Competition
A perfectly competitive market does not have barriers to entry or exit and is characterized by many producers and many consumers, all of whom are price takers -- a term that means the suppliers and the buyers cannot effect the price as they do not have market power ("Competitive Markets," 2014). Monopolistic competitive markets are do have some barriers to entry and exit. Consumers can find substitutes for all of the goods in a competitive market, whereas high product differentiation is seen in a monopolistic competitive market ("Competitive Markets," 2014). Indeed, one of the reasons that a firm can achieve a monopoly for a product is that the business has been successful in its efforts to differentiate a product, as perceived by its customers. The ability of a business to make profits in the long-run is referred to…… [Read More]
According to Economic Darwinism principle, people will prefer to replace the alternative with the lowest potential (in terms of return, profit, solvability, etc.) with another random solution, which may it could turn out to be more successful than the initial option. In the project evaluation process, all alternatives receive different points according to the criterions and requirements of the company. Of course, that only the investments with a positive return will remain in the battle for the best alternative. Every such alternative will be further on debated, in order to see which of the project solution best fit the company's development policy.
The principle of Darwin applies both to economic and social aspects of life, as we have seen in this report. The two pillars of the principle are present in the everyday activity of managers, especially in the field of project selection and management.
1) Article on…… [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. hile there are four major types of economic systems recognized by economists, there…… [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…… [Read More]
Looking at the economy from a macroeconomic viewpoint means looking at a more broad approach to individual economic factors, weighing those factors, and making a determination as to whether the economy is stable and improving for the populace. Sustainable growth is one of the goals of economic development, and while there are peaks and valleys, the overall level and growth filters down to many factors. A booming economy, for instance, will create money and produce goods and services while affecting GDP, unemployment, inflation, interest rates, and prices. Policy can change these factors, increase or decrease confidence and spending, and the movement of money. However, in the 21st century, economic health is tied not only to countries, but to global issues of import and export, health of other economies, and the combination of factors that has become even more complex (Alesenai, 2003).
In the U.S. economy, most scholars see…… [Read More]
If there is a risk that one of the family members will lose his or her job, that will add risk to the purchase decision. The riskier the purchase decision, the lower the price will need to be in order to compensate for that. Another factor here is the expected change in housing prices or interest rates. Buyers are inclined to enter the market if they believe that the cost of home ownership will be higher next year, but they may delay purchases if they believe that costs will be lower next year.
ith new home sales last summer, the dip could be in part due to worries about a double-dip recession. The summer was characterized by an inane fight over the debt ceiling, something that shattered confidence of many in the political system, and some of the key actors within that system. A fractured political system is one that…… [Read More]
Unfortunately most growth oriented economic policies such as "supply-side" economic policies tend to exacerbate inequality. A greater role of the government in the economy such as increased taxation on the rich can reduce inequality. Inflation and unemployment are usually inversely proportional in most economies, i.e., increase of money supply through deficit financing reduces unemployment but increases inflation while tight monetary policies reduce inflation but increase unemployment. According to a number of analysts, a major cause of terrorism in the world is an acute sense of deprivation among a large section of the population. Economic measures can, arguably prove more effective in rooting out terrorism than military action.
What, How and for Whom to Produce:
In 'free market economies' decentralized decision making by individuals and firms based on consumers' desires (which determine the price of goods) and the profit motive determine what goods are produced and in what quantities.…… [Read More]
Economic indicators are used to measure the financial health of the economy. There are many methods and tools for measuring the economy and every economist has his favorite method. The health of the economy is measured by tracking certain indicators. Different economists use these indicators in various combinations. Some economists place more or less weight on different ones in making their predictions about which direction the economy will go. It is important to note the differences in measurement when assessing the opinions of popular economists of today.
This paper will be primarily concerned with the indicators, which would indicate whether we are currently in an inflationary economy or a deflationary economy. A recession occurs when real GDP declines for two successive quarters. However, the National Bureau of Economic Research (NBER) officially defines a recession as a "significant decline in activity spread across the economy, lasting more than a few months."…… [Read More]
Sorkin's book does a good job of giving the details on what happened among Lehman Brothers, Barclays, JP Morgan, Goldman Sachs, the Fed, and Big Gov following the collapse. Essentially, everyone had egg on his face -- but some of the bigger powers had the muscle to save face -- and sink competitors at the same time: which is exactly what Goldman Sachs did to Lehman. Goldman had been placing its cronies in the hite House for years -- and it would now go through the hite House to see who got bailed out and who did not. AIG got one -- because it owed a large chunk to Goldman (who had figured out the game ahead of time and started betting against itself by buying insurance through AIG). Sorkin's work is a work full of the kind of details that other writer's like Taibbi and Lewis do not take…… [Read More]
The people. The faces
At the doors. Then my own face at the door.
No work, man. The pavement beneath my feet.
I can feel the cardboard in my shoes and once Only the finest of leather would do. From living
It up putting on the Ritz in the Big Apple
To selling Apples and eating Ritz crumbled
In charity stews. FDR says
Big government will provide big jobs
And once again I will spend, and America
Will spend, and all will be well again.
But it's hard to believe,
What you read,
On paper, in the papers
After losing your money, your shirt, and everything
You are and own on paper -- paper lies, paper money
Paper words, are cruel.
So sir, that's how my Great Depression began.
That's why I learned not to spend. To save string.
To hoard, like a rat, what I earn, burning with anger…… [Read More]
One of the other key measures of our economy is the unemployment rate. This measure provides something of a counterpoint to a growing GDP. The unemployment rate increased in October 2008 to 6.5%. The ability to find meaningful work is a key component of GPI, yet the GDP can grow even if unemployment is high. One of the reasons is that the GDP does not measure wealth distribution. The wealth gap has increased over the past eight years. Average household wealth has increased, but the rate of increase is faster in the top quartile of households. Real wealth in the lower quartiles has stagnated. Again, the GDP would measure the wealth as having grown nationally. But over the past eight years wealth distribution has worsened. hile this clearly constitutes economic success for some individuals, it does not constitute economic success for the majority.
The current account deficit has continued to…… [Read More]
The need for the preservation of these resources is because of the fact that it is finite or limited. Abused utilization of these resources will deplete it and will eventually endanger the future inhabitants of the earth, leaving them nothing for the production of their own needs. Without the resources, there will be nothing to work on in the first place. Achievement of economic stability is the first step in order to achieve the other social goals. Since there are resources, there can be economic efficiency whereby goods can be produced at a lowest possible cost because of the availability of resources. Economic freedom or the right of a man to engage in voluntary economic activities, economic equity or justice particularly in terms of taxation and welfare economics, and economic security or security in employment can be settled between the government and the people in order to achieve them. All…… [Read More]
Energy costs increased substantially and the yen's exchange rate was shifted to a floating rate. The eventual recession reduced expectations of future growth and reduced private investment. Economic growth went down from 10% to 3.6% during the period 1974-79 and to 4.4% in the decade of the 80s. ut despite the oil crisis and its consequences, Japan's major export industries stayed competitive through its cost-cutting policy and increasing efficiency. It reduced industrial energy demands and allowed the automobile industry, along with other industries, to improve. y the late 70s, the computer, semiconductor and other technology and information-intensive industries entered a period of rapid growth. During this high-growth era, exports continued to support Japan's robust economic growth in the 70s and in the 80s. However, the problems encountered on account of its growing balance of payments surplus urged for the opening of domestic markets and a stronger focus on domestic demands…… [Read More]
The national unemployment average was 7,591,000 in 2005. Therefore, an addition of 8,500 people would represent a.11% change in unemployment. Factor in additional domestic job losses from the closing of that company, and it is very possible that the closing of Pratt & Whitney would be enough to cause a reversal in the current trend, which is a decline in unemployment rates.
Connecticut's unemployment compensation would experience the most immediate and dramatic impact. For example, if all of Pratt & Whitney's employees are entitled to full unemployment benefits, then the first unemployment cycle for those employees would result in over $4 million in unemployment benefit payments. If all of those employees remain eligible for unemployment for the full benefit period, those payments would total over $104 million. Those estimates may be high, because not all employees would qualify for the full benefit payment or for the entire benefit period. In…… [Read More]
Economic Events: 1980-1989
the decade of greed. The era of onald eagan when the rich got richer and the poor got poorer. Despite this common wisdom, 1980 started off auspiciously. On May 8, 1980 the World Health Organization hailed "one of the century's greatest medical accomplishments," the final and total eradication of smallpox (Dickson 247). But how quickly times change - barely a quarter century has passed and this same disease is making headlines once again.
Attitudes change also. While many in this day and age would still agree that the 1980's was a selfish period in American history, a sea-change has occurred in the rhetoric issuing forth from Washington D.C. In a very fundamental way, party politics has been thrust aside as concerns for homeland security take precedence over petty partisanship. Michael Barone notes this in his analysis of a speech made by Democrat ichard Gephardt in the Summer…… [Read More]
However, Bernanke remains unwilling to use his power to lift economic growth and reduce unemployment. One reason for not wanting to take active steps to speeding up the U.S. economic growth is a worry that the financial markets are fragile. So, it seems that the Federal Reserve are simply willing to accept high unemployment rates for years to come, instead of risking a perhaps worse situation of market panic, a rise in long-term interest rates, and even higher unemployment.
) Mulligan, Casey B. "Don't Fear Inflation, if it Comes," 2 June 2010. http://economix.blogs.nytimes.com/2010/06/2/dont-blame-the-next-inflation-on-politicians/?ref=economy
Inflation occurs when the demand for goods increases more than the demand for dollars and other related assets. Economists have no doubt that the significant deflation that occurred in the U.S. In 2008-2009 was the result of a "flight to quality," as opposed to a sudden reduction in the demand for goods and increase in demand for…… [Read More]
That is, international financial organizations, such as the World Bank and the International Monetary Fund and which controlled by core states, decide that, in order to grant financial aid to undeveloped countries, these states should comply with some rules that are, in the end, in the detriment of their own economy. For example, Africa pays more to the IMF and World Bank, than it collects in credit from them, and this leads to low living standards, poor education and health systems and undeveloped infrastructure.
Besides financial institutions, transnational corporations have a saying in the economic development of a country. Although one might be tempted to say that a corporation, by creating a branch in an undeveloped country gives that economy a boom, it is actually all about personal gain.
Working in a corporation might be considered the best thing that could happen to a person, on a professional scale. You…… [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…… [Read More]
This is a pattern that is relatively consistent over a long time period (Clayton & Spletzer, 2006). The only difference in 2005 was that unemployment claims did not rise in the fourth quarter with the drop in jobs, as they had done in the past.
It is difficult to draw definitive conclusions as to where these employees went in the fourth quarter of 2005. To do so would be filled with generalizations that do not account for all of the factors involved. However, it can be surmised that in the fourth quarter of 2005, workers in New Orleans went elsewhere and were dispersed into other economies. Statewide numbers do not support a change that is significantly different from other years. Therefore, it does nor= appear that this diaspora had an impact on a state or national level. The only reasonable explanation is that unlike other years, where workers filed unemployment…… [Read More]
Economic Value Added (EVA) Accounting Practice
Although Economic Value Added (EVA) is not a new concept in economics and financial theory and is based on the 19th century concept of "economic profit," it has only been widely adopted recently by business firms as an accounting practice. In this paper we shall describe what EVA is, and look at its pros and cons from the point-of-view of the company adopting the practice and the investors. We shall also discuss how EVA differs from some other emerging accounting practices and the major issues relating to EVA as compared to other commonly used accounting principles. Finally, the possible problems and opportunities that a company adopting EVA principles can face shall be examined.
What is Economic Value Added (EVA)?
Economic Value Added (EVA) is the after-tax cash flow generated by a business minus the cost of the capital it has invested to generate that…… [Read More]
These decisions necessarily entail that some potentially productive opportunities are sacrificed in order to make what is estimated as the most productive choice.
Supply and demand refer to specific products and services, the ability to provide these, and the level at which they are desired by the target market. uyers desire a product or services, and therefore demand a certain quantity of these at a certain price. The relationship between the price and quantity of desirability is the demand relationship. Supply is the actual quantity of the product or service that the market can provide. The concept of supply relationship is the correlation between supply and the price received by the supplier, who is willing to supply a certain amount of products at the price received.
The dynamic in the relationship between demand and supply has a direct influence on the efficient allocation of resources within an economy, as well…… [Read More]
Economic Challenges Canada Faces
In recent years, the challenging economic condition in Canada has emerged as a concern for citizens, policy makers and the government alike. Canada faces challenges in terms of creating a more innovative society, as the country continues to experience a significant productivity gap compared to other advanced industrial economies. The Canadian industry appears to be slower in successfully developing, applying and marketing innovative products, processes and services than a majority of other nations. This lack of innovation is the cause of Canada's low productivity growth and competitiveness, and therefore must be addressed in order to increase employment growth, a higher standard of living and an improved quality of life for all Canadians.
Current research predicts that although Canada's economic performance will gradually strengthen out of the recent mild slowdown into a better pattern of growth in 2004, Canada's economy still faces the longer-term challenge of increasing…… [Read More]
e. no standardization) b) Diamonds: good medium of exchange
Peaches: perishable, differences in quality (i.e. no standardization) d) Grade a Honey: differences in quality (i.e. no standardization), difficult to transport e) Ice in a warm climate: perishable, difficult to store a. Over the long run, what is the primary determinant of the price level? Supply and demand, with price acting as an equilibrator b. Over the long run, what is the primary determinant of inflation?
The supply of money as compared to changes in productivity.
c. How is inflation related to the nominal interest rate?
Expectations of future inflation are one of the key factors in determining the nominal interest rate, the other being the 'core' interest rate, or the inflation-free level at which one is willing to lend money (which differs according to the issuer and associated risk premium).
4. Describe each of the following financial institutions. If it…… [Read More]
Economics impacts on many areas of life subsequently it will impact on many areas of professional life. eflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge.
The first indicator of the lessons and concepts taught in the class being absorbed and developing into transferable knowledge has emerged with an increased understanding of the way that the economy operates and the influences which are present in the economy that are driving up prices.
There are many examples of the economic concepts; one example is the way that supply and demand has impacted on oil prices which has had a knock on effect in the economy as…… [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. ate 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 esearch, 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.…… [Read More]
Total revenue represents all the company income. Total revenue is calculated by multiplying the price of products with the quantity sold. Typically, total revenue is calculated as follows:
Total revenue = price x quantity
Where price (P) and quantity (Q).
As being revealed in Table 1, total revenue is calculated by multiplying price with quantity, when firm produces 2 quantities of goods, firm's total revenue is $10, however, when a firm produces 3 quantities of goods, its total revenue is $15.
Marginal revenue is an additional revenue that a firm generates when a firm sells additional unit of output. The marginal revenue plays an important role in the perfectly competitive firm where a perfectly competitive firm maximizes its profit when marginal revenue is equal to marginal cost. The formula used to calculate marginal revenue is:
Marginal revenue= Change in total revenue/Change quantity.
The average revenue is calculated…… [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…… [Read More]
Economics of International Trade China
Exploring the Economics of International Trade: China
"Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has really took off in becoming one of the world's biggest producers and exporters of a plethora of different goods. China has grown tremendously as nations like the United States have become their biggest trading partners. In response, China has helped refuel this growth with the manipulation of their currency and their heavy investment in the U.S. dollar, which ensures them a more competitive position for their exports.
For generations, China had closed itself off to trading and interacting…… [Read More]
Economics in the United States
Macroeconomics in the United States
Macroeconomics deals with the general economic systems, which have a larger scope compared to individuals and markets. Essentially, microeconomics is mainly used in the determination and forecast of a country's national income. This is done by analyzing the factors of the economy that represent trends and patterns and in most cases influence each other. Economic factors affecting macroeconomics include the rates of employment and unemployment, positions of balance of payments, trends in Gross Domestic Product (GDP) and inflation. Macroeconomics is controlled by the monetary and fiscal policies, which are implemented to control economic factors. Levels of investment and consumption of products and services is also determined by fiscal and monetary policies.
Microeconomic situation in the United States
Figure 1.1: Trends (in percentage) of Unemployment in the U.S. -- 2012
Changes from April to May
Total for…… [Read More]
Presently the government manipulates the books around in order to compensate for any tax cuts that they give. In reality, the vital thing for the government to do is to discontinue spending money. While this is not always reasonable, it is essential to make sure that the people and corporations of the nation can flourish. Tax cuts, when put into practice for long-term consequences, will offer a momentous increase in the market (How Do Tax Cuts Help the Economy, n.d.).
Due to the model of fairness, cutting taxes is by no means an easy task. There are two distinct notions that are at play. These are horizontal equity and vertical equity. Horizontal equity is the scheme that all people should be taxed uniformly. An instance of horizontal equity is the sales tax, where the quantity paid is a proportion of the object being bought. The tax rate remains the…… [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 anks 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. ank 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…… [Read More]
It will be fun to follow Bershire Hathaway because Warren Buffett is a mastermind at selecting companies in which to invest and I have never had the time to really learn about his holdings.
Berkshire Hathaway, Inc. is a publicly owned investment manager in the property and casualty industry of the finance sector (Yahoo Finance, 2011). Essentially, the firm is a holding company with a variety of businesses across the globe (Yahoo Finance, 2011). In the beginning, the company was just a group of textile mills, but Warren Buffett got the controlling shares in the mid1960s and began to divert cash flows (float) from the core businesses and invest the money in other types of businesses (Yahoo Finance, 2011). Berkshire Hathaway's subsidiaries engage in the business of insurance and reinsurance of property and casualty risks (Yahoo Finance, 2011).. The firm was founded in 1889 and is…… [Read More]
In terms of output and growth, Canada's real GDP was 2.96% higher than it was a year ago, but the growth trend is slowing down from a growth rate high of 3.81% in Q3 2010. Japan's economy has contracted in Q2 2011 by 0.76%. It's rate has been volatile, growing rapidly over the past year only to contract again. The UK's growth rate is 1.63%, and that country has had fairly stable, if sluggish, real GDP growth. The current GDP growth rate in the United States is 2.33%. Real GDP growth is on a downward trend in the U.S. But has maintained healthy levels since Q4 2009.
All four countries were affected by the recession. Each experienced real GDP declines during the 2008-2009 period. Japan was the hardest hit. Yet each nation recovered in 2010, only to see the rate of economic growth slow again in 2011.
Canada…… [Read More]
Economic Impact Study: Students at Schreiner University
An economic impact analysis is designed to estimate both the direct and indirect effects on the economy that are associated with any given type of expenditure. In other words, an increase in the demand society has for a product sets in motion a series of various expenditures from the companies and organizations that provide what is needed to make that product. The parts and labor have to come from somewhere, so the economic impact is not just on the company from which the product was ordered, but on that company's suppliers and their suppliers, all the way down the chain. When it comes to services, though, such as would be seen with higher education, the economic impact analysis is somewhat different. Since the student is not ordering a good or a product of any kind from the school, there is more to the…… [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…… [Read More]
The industrial age was an age of giant, mega corporations that were often bogged down by inefficient and outdated distribution, innovation, and production techniques. y contrast, the information age of the past 20 years or so has brought forth a new business form, a fluid congregation of businesses, sometimes highly structured, sometimes amorphous, that come together on the internet to create value for customers and wealth for their shareholders. This phenomenon has been commonly referred to as "digital capital," "information technology revolution," or "new economy." However, as both the Dow Jones Industrial Average and the Nasdaq soared to historic highs and record volatility in just a few short years, a widespread and quite fundamental disagreement emerged concerning whether or not the high-tech boom was nothing more than one huge bubble.
This paper analyzes and examines the present condition of the United States economy. Part II discusses what phase of…… [Read More]
The wage subsidy idea - combined with training and technical placement - could work well, even though it may be seen as a "government hand-out" to some. To those who cannot find work, public employment, if handled well, increases the labor supply ("net job growth") and reduces the amount of money paid out in unemployment benefits.
The answer to the question of how to increase the labor supply is perhaps simpler than increasing the demand: to wit, by increasing the number of immigrants one also increases the labor supply; the downside to that is that wages for native-born workers tend to decrease. A second way to increase the labor supply is to raise the age of retirement for workers, and/or raise the age at which pensions for older workers kick in. In either case, more workers remain in the market.
hy do our political leaders favor exports of U.S. goods…… [Read More]
Even though the housing market is slowing, the article speculates that it may take six to eight months before sellers accept that the market has softened and reduce their prices. This demonstrates the economic theory that the supply relationship is a factor of time. Suppliers do not always react quickly to a change in demand or price, but eventually they must. The article suggests that demand will decline 3.5% next year, but that median home prices will still increase by 5%.
Suppliers are beginning to react to falling demand through a decline in price increases and incentives which are really indirect price decreases. That's why this is referred to as a "cooling off" period in the article which mentions that some condo buyers are being offered a car to make a purchase of a condo. The use of incentives may be viewed by the suppliers as a way to mask…… [Read More]
Countries that are just getting started often use tariffs, quota, and embargos to protect their industries until they can compete without government help. The difficulty with this infant industry argument in support of trade restrictions is that it is not always possible to foresee which industries will do well. For this reason protection frequently lasts long after the industry has matured (Trade estrictions and Their Effects, n.d.).
Governments are enthusiastic to protect what are called strategic industries. These have included in the past industries, such as steel, cars and chemicals. Today, they are more often the high tech, high wage industries like commercial aircraft production. One way of assuring that they remain strong is to protect them from foreign competition. Agriculture is another area that a lot of governments try to protect. Tariffs help make sure that domestic farmers can earn enough profits to continue farming. The decision to use…… [Read More]
The following graph represents the supply and demand curves for the product in question:
What this means is that as the price increases, more of the good will be supplied and less of the good will be demanded. The price sensitivity of consumers will be reflected by the slope of the Qd line. The price sensitivity of the producers will be reflected by the Qs line.
The supply curve has an upward slope because producers will produce more as the price increases, because the higher price allows more producers to be profitable. The demand curve is downward sloping because consumers buy less of the good as the price increases. This is because the higher the price, the fewer consumers will get postiive utility from the product and be willing to pay the price.
For Good A, the equilibrium point is the price point where the demand and supply are…… [Read More]
Is the U.S. really recovering faster than the EEC and Japan-Asian trading partners?
The economic climate improved for all during the second half of 2003. owever, the U.S. recorded a more accelerated upturn during this period that many attribute to extensive tax cuts. Expansion in private consumption has been dramatic and business spending has also increased recently.
Japan's economy grew for a seventh quarter in Q3, 2003 the longest expansionary phase since 1997. Real growth came in at +.6% q/q, double the forecast. The economy expanded by 2.7%. In 2003, driven by exports and private capital investment. owever, deflation is set to continue, albeit at a lower pace, and the general government deficit is expected to exceed 7% of GDP for the next two years.
The performance of the Western European economy was weaker. After a prolonged phase of stagnation, signs of a gradual economic recovery became visible in…… [Read More]
The downward spiral of deflation, the collapse of countless banks and other financial institutions, and the unprecedented levels of unemployment all demanded that something be done.
The programs that constituted President Franklin Delano Roosevelt's New Deal were not entirely unknown in the pre-Depression world. Various European countries already possessed social welfare schemes to some extent, but in the United States this was largely new thinking. The changes wrought by the New Deal reflected as much the uniqueness of conditions during the Great Depression as they did the undercurrent of new attitudes and ideas that had gradually been taking hold among America's intellectuals.
FDR's planners acted in the context of changing values, an evolving set of institutions, shifting political and economic circumstances, and the ebb and flow of planning opportunities to create a distinctly national, American form of planning.... They were part of a wide-ranging national debate over how to create…… [Read More]
t is explained that the "fiscal cliff" itself refers to the end of Bush-era tax cuts and large spending cuts that will occur at the end of the year if Congress can't agree on a way to cut $1.2 trillion in debt over the next decade. This would lead to income tax and payroll tax increases for almost everyone, with an immediate negative impact on spending and thus on the economy, and with a rising unemployment rate through 2013. The article also cites Ben Bernanke as saying the Fed would not be able to counter or even effectively mitigate the effects of going over this cliff, yet the politics will have to play out before any action is taken by anyone.
lluminating the issue still further, John D. McKinnon, Kristina Peterson, and Josh Mitchell's "Most Households Face 'Fiscal Cliff'" from the November 21st edition of the Wall Street Journal present…… [Read More]
Economic Environment of a Business
The objective of this work is to summarize the economic environment of a business including information relating to microeconomics, macroeconomics, and international trade aspects
The business organization is a "micro-economic unit" and the business environment is that which makes provision of the "macro-economic context within which firm operates." (eddy, ) The business environment can be categorized into the 'economic' and non-economic' and the 'micro- and macro-environment. (eddy,, paraphrased) The firm is an economic institution in a market system with the behavior of the firm reflecting the result of the decisions that were economic in nature that the manager of the firm made.
The economic environment of a business in today's globalized business society is complex in nature. There is an inherent link between the business sector and it relationship with the government, capital market, household sector and the international business sector -- all of which…… [Read More]
4. The role that the FDA plays in setting food safety requirements is inherently costly to the economy. The function is not based on economic concerns but rather public health concerns -- the FDA's mandate dates to Congressional concern about the Elixir sulfanilamide disaster and traces its roots to Upton Sinclair's The Jungle, which documented meat production in Chicago at the turn of the 20th century (FDA.gov, 2009). Thus, decisions about FDA regulations are not made on the basis of economic good, but rather public good. Increased regulations would impose increased costs on business. In classical economics, these costs would act as a form of tax, increasing risk and discouraging investment. Eliminating these requirements would lower these costs, which would allow for an expansion of the food business. It could be argued that the threat of litigation today would counterbalance the need for regulations, but that claim has not been…… [Read More]
hen I understand what drives people to buy bottled water, I will be in a better position to forecast demand. I expect disposable income, distribution saturation, cleanliness and taste of tap water and price of bottled water will all factor. ith this information, I could understand the price elasticity of demand, for example, or the elasticity of demand relating to any other variable. Going international I would focus on the same, but I would also understand the currency exchange dynamics and the image that my country or region has overseas. In general, however, the types of information I need would be mainly the same, with respect to marketing. ith respect to culture (marketing message) or other such variables unrelated to the economics of the decision, there are undoubtedly some different forms of information that I would need.
Second student: I would want to know what the trends are for bottled…… [Read More]
00). This is below the EU, where they have a rating of 42 or a PPP of $32,500.00. (Czech epublic 2010) 1 When you compare the two numbers, the purchasing power is lower in the Czech epublic in comparison with the EU. This means, that labor costs are much lower in relation to the rest of Europe. When you put this together with the increases in the GDP over the last two quarters and the fact that the banking sector, was undamaged from the financial crisis; means the Czech epublic has outstanding opportunities for addressing the needs of the company. As the country's costs, the business friendly atmosphere and prudent practices of government policies are creating the ideal environment for a European call center to flourish.
Despite the obvious advantages, there are risks of relocating to the Czech epublic the most notable would include: the underlying cost structure. While…… [Read More]
When unemployment is high, companies may decide to delay the release of their new updated phone as a means to maximize profit. By withholding the release of the phone, not only does demand build but the ability of more consumers to enter into the market to purchase the phone does occur. At this point, the profit maximization curve peaks earlier and is likely to have a prolonged parabola at the top of the curve which is a short-term profit maximization curve.
With a low employment rate, the likelihood of the smart phone market to do very well is limited by the low employment rate and is subject to constraints when considering the smart phone market and the consumer's ability to pay.
Supply & Demand
Law of demand and substitutes how the demand of these phones are very high. Which again ties back to scarcity but how substitutes are so readily…… [Read More]
Economic crash can be viewed from a number of perspectives ranging from causes and effects to the 2008 Crash's resemblance to the Crash of 1929, which began the Great Depression. This paper will consider the 2008 recession from the standpoint of the financial banking industry, which, according to economic journalists like Matt Taibbi (2010), played a major and significant role in the crumbling of the nation's economy -- just like it did in the Lawless Decade also known as the oaring Twenties.
Big Banking Meets Big Government
What has now become known as the Era of De-egulation actually had its beginnings in the 80s decade known just as much for its rampant excess as the early 20s were known for their unbridled lawlessness. Yet, while the latter enjoyed the snubs-to-the-law bootlegging speakeasies, the former enjoyed the merging of the financial sector with the political -- which began during eagan's tenure…… [Read More]
First and foremost, I intend to major in Economics. From quite an early age, I have grown up admiring successful business leaders. I envisaged such individuals as living relatively fulfilling lives based on the wealth they had amassed from investments. One of my main personal heroes in business and investments has always been Benjamin Graham, an astute investor and economist who passed on in 1976. Graham who in my opinion remains one of the most rational investors of all time came up with some of the most priceless yet simple investment principles. Having developed a keen interest in the investments field at an early age, I have been an avid reader of any available literature on Ben Graham. Based on these readings, I remain convinced that to make sound investment decisions; the need for a well-founded understanding of economics cannot be overstated. Further, over time, I have come…… [Read More]
Bush implied unemployment figures were declining and Kerry touted very high unemployment figures. In hindsight, it appears that the labor department statistics concurred with the Kerry camp. When Bush still won, unemployment trend indicators seem to be coming true now and there seems to be more problems on the horizon for the economy. The Bureau of Labor Statistics indicated recently that new jobs being created in the economy were the types of jobs that cannot fuel economic growth. Thus, the economy is and will continue to lose jobs to cheaper labor markets around the globe.
The Federal eserve has dictated the cost of capital for businesses to borrow. Trends show that cash shortages in corporate American are increasing and borrowing heavily will be a likely result. Therefore, future actions of the Federal eserve impacts a major aspect of America's future. Trends to observe by the Fed relate to consumer consumption…… [Read More]