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Labor Economics is the study of labor force as a factor of production. The labor force in the broad sense of the term refers to all those who work for a definite gain that includes employees, employers, self-employed and also includes the unemployed seeking of jobs. The labor economics involves the study of the factors influencing the efficiency of labor, their deployment, determination of their wages, etc. Geographical factors, mobility of labor, climatic and environmental conditions are a few of such important factor that affects the efficiency of labor and determination of the wages. The revolutions in information technology coupled with globalization has given rise to a new concept of usiness Process Outsourcing which facilitated electronic mobility of the labor without actual movement of the laborer reducing the influence of the geographical factors in labor economics.
The development of internet technology wiped out the distance between employer and employee, the…… [Read More]
That is, if the foreclosure is the only black mark on a person's credit rating, that credit card holder may be able to "rehabilitate their record and garner better loans and card rates in 24 months," Ulzheimer goes on, attempting to clear the air in a very cloudy, confusing and even toxic credit card dynamic.
The third consequence of foreclosure, according to Melia's narrative, is the struggle waiting for those wishing to buy another home. Fannie Mae, for example, relates the bleak realities for those who have foreclosed their homes and who hope to purchase another one. For those borrowers who "have made reckless debt decisions," they can't get a new mortgage for a new home until 5 years has passed. It was 4 years previously but in this time of economic recession, money is tight so if the investigation into a person's credit shows Fannie Mae that "reckless" financing…… [Read More]
Source: McDonnel, B.M., Chapter 5, p. 130
Short-un Demand for Labor: The Perfectly Competitive Seller
Under the conditions imposed by the perfect seller, meaning that the market is characterized by perfect competition, the marginal revenue product equals the value of the marginal product. This then means that the labor supplies decreases. The situation is best revealed by the chart below, which presents how the VMP and MP curves, with their decreasing marginal productivity, generate a reduced demand for labor:
Source: McDonnel, B.M., Chapter 5, p. 136
Short-un Demand for Labor: The Imperfectly Competitive Seller
This situation is the most common one in the actual market place and it basically means that each economic entity has the right to establish its retail price based on organizational determinants, unlike the case of the perfect competition, where the price is set by the market.
The demand for labor in this situation is directly…… [Read More]
It would have repeated the 1986 bill, though on a grand scale -- ten million illegals granted amnesty -- another magnet for yet another increase in the rate of illegal immigration into this country? The purpose of the bill, as with IRCA was to eliminate immigration, but, as with IRCA, no wording or regulations contained in the bill would have accomplished this goal (Rector). There is little reason to believe, based on its contents, that'd. 2611 would have had any different consequences other than to increase federal welfare roles by magnitudes and, due to the enormous scope of the bill, increase poverty in this country (Rector).
Effects Different For Men and Women?
Would the amnesty provision for undocumented foreign workers in the U.S. Immigration Reform and Control Act (IRCA) of 1986 affect outcomes in the labor market for those workers, and if so, were the affects different for men and…… [Read More]
In case of a competitive market model, the implementation of the minimum wage for all workers would result in a decreased demand for labor force. Therefore, the reduced employment would generate increased unemployment. If the demand and supplies are extremely elastic and sensitive to the legislation modifications, the increase in unemployment would be tremendous.
In the situation of a monopsony, the monopsonist will tend to correlate his employed staff with the established minimum wage rate. As such, if the government sets a minimum wage higher that his implemented salary, he will also tend to increase the number of employed personnel members. This behavior can be explained by the fact that the monopsonist sees himself in a competitive market.
Occupational Health and Safety egulation
The Occupational Safety and Health Act of 1970 is the most important document regulating the internal conditions at the workplace. The importance of this act is given…… [Read More]
The labor productivity rates are expected to maintain their ascendant trend throughout the next period.
The increases in productivity can be explained through the combined actions of three forces:
improved quality of the labor and superior performances of the human resource increased quantities of organizational capitals higher efficiency of the labor process, including such forces as technological developments, socio-cultural changes, the creation of scale economies or the reallocation of labor
Cyclic Changes in Productivity
However it has been established the generalized growth tendency on the long run, the study of short terms presents the reader with evidence of cyclic behaviors in labor productivity. To better understand - the labor productivity decreases during times of economic difficulties and increases in periods of boom or economic recovery. There are various reasons why the cyclic trend is revealed in the short run; the most important three such reasons are the modifications in using…… [Read More]
However, other factors must also be considered. They refer to age, family, education, distance and unemployment.
The age factor points out that younger people are more likely to migrate than older workers. This can be explained by the fact that the elderly have fewer years in which to benefit from the migration investment and that they often possess skills valuable for their current employer. The familial forces reveal that the risks associated with moving increase with the size of family; otherwise put, a family of two is more likely to move than a family of five. The educational features highlights that the higher educated the subject is, the more chances are he or she will migrate. The distance force points out that while the distance is short, the worker will vote in favor of migration; on the other hand, if the distance is longer, he will manifest reticence to moving.…… [Read More]
This being the key player in the economy of the country, it is crucial to revive it as the priority towards reduction of unemployment in the economy. Structural reforms within the export sector involve the introduction of multinationals to supplement efforts of inward investment or revolution. The rate of impact differs in attempts to alleviate unemployment incidences (OECD 2011, pg 91-131). This is because multinationals proves to deliver an increase in the levels of output while inward organizations and entities still struggle to emerge from the effects of the economic recession. In order to reduce the levels of unemployment in the republic of Ireland, it is critical to adopt the three-pillar strategy to address the persistent problem in relation to the Irish labour market. Within the three pillars, the first motive should be welfare reforms. This should ensure that workers obtain better payment for their skills and services within the…… [Read More]
Labor is a commodity that needs to be purchased for business activity. In the uncivilized world of the past labor could be exploited to the extreme, but in modern times trade union movement, increased public consciousness, health, safety and environmental regulations and labor regulations have meant that the near slavery condition of the past are totally unacceptable.
Nevertheless, labor remains a commodity requiring efficient, humane and cost effective management to increase profitability and balance human rights and investors' interests. This effort has resulted in labor economics developing as a branch of microeconomics. This paper reviews labor economics and its importance in the modern day economic and business activities.
Important Components of Labor Economics
Labor Supply and Demand
Quality of Labor (Investments in Human Capital)
Non-Wage Labor Costs
Pay & Productivity
8. Economics of Discrimination
9. Social Accountability
10. Trade Unions…… [Read More]
he intersection determines the amount of investment in education / productivity factors by all individuals and institutions.
he major criticisms to the Neoclassical model come from the assumption competition holds, namely that individuals act to maximize profit in all scenarios; factor mobility is unlimited; marginal returns to labor don't increase with wage rates, and other simplifications which rarely hold true in the workforce. Nor are all workers the same to the firm (discrimination), and workers' productivity and labor supply decisions change at different wage levels. hen we have to consider frictional unemployment; information asymmetry; product substitution; any number of real constraints that complicate the pure "Marginal Demand for Labor" theory (Kaufman & Hotchkiss, 2000, p. 31).
he main counter to the Neoclassicals arose in the early-mid-20th century Institutional school after Veblen, Commons and Mitchell, ironically at the University of Wisconsin 1920-30. Institutionalist focus on real evidence counters the Neoclassical theory…… [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…… [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]
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]
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]
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 Impacts of egulation
egulation is a written instrument that contains rules with the force of law (Ogus, 2004). egulation as a process involves monitoring and enforcing rules, established through primary or delegated legislation. egulation usually creates, constrains or limits a right. In addition, regulation creates and limits a duty besides allocating responsibilities (Ogus, 2004). egulation 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
egulation 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…… [Read More]
Labor, GDP and Firm
Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm? Explain.
The three types of unemployment include: structural, changes in technology and shifts in tastes. Structural is when there is a lack of demand for workers with particular skill sets. Changes in technology, takes place when innovations and scientific breakthroughs are leading to a shift in the way businesses are operating. This is the point when there is a decrease in the total number of employees working for a particular firm. Shifts in taste are occurring when consumers want to purchase a particular product or service based on the underlying amounts of popularity. During times when there is a change in tastes, is the point that sales will decrease and those employees…… [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]
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]
The change in the United States Real Gross Domestic Product (GDP) ratings has shown both ups and downs in the U.S. economy over the last two years. In the most recent quarter, the first quarter of 2011, the U.S. GDP increased over 2%. hile the GDP has increased every quarter since mid-2009, the quarterly increase in each of the last four reported periods was weaker than the quarterly increase between mid-2009 and early 2010. Overall, however, the recent increases suggest the U.S. economy is recovering from the recent recession.
In 2008, as the United States was entering a period of recession, the real GDP decreased in three of the four quarters of the year, and increased only slightly in the fourth. The GDP trended downward from the beginning of the year, where the real GDP decreased by around 1% in the first quarter, to the end, when the…… [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]
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]
Thus, a region or nation experiencing economic depression will be unable to use the interest rate lever to boost the economy. Similarly a country with high inflation will be unable to independently raise interest rates to contain inflation. Moreover, Islamic countries, which form a large part of the geography, do not believe in interest rates.
Political barriers -- Political differences between nations make it extremely difficult for them to adopt a common currency. It can lead to a loss in political sovereignty as monetary interests would need to surpass political interests. This is unlikely to be acceptable to most of the nations and the idea of a single currency may be difficult to implement (Gimp, 2008).
Will Pros and Cons change Over Time? Depending On the Country?
The economic conditions to determine a monetary union depend on: the openness and size of the economy involved to trade; the free movements…… [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]
Another concern is represented by the fact that the massive imports from China materialize in cheaper consumer products, which render the domestically produced items less competitive. Other issues include currency fluctuations which impact the fiscal stability of the countries, as well as security concerns, as the Chinese gain more access to American resources (Singh, 2012).
The economy of the United States is shaped by a wide array of elements, such as political measures, the economic recession, the access to credits, the socio-demographic changes and so on. One important piece in the economic puzzle is represented by the state of international trade operations completed by the country. In this sense, the current project has assessed the issues of international trade as they relate to the impacts on employment, unemployment, incomes and equality, as well as the national concerns regarding the country's trade partners (Japan, Mexico and China).
At the…… [Read More]
There are a number of different metrics that can help to measure the health of an economy. The GDP is one of those numbers, and can be obtained from the Bureau of Economic Analysis. Following a decline of 2.6% in 2009, the GDP grew in 2010 by 2.9%. GDP rates fluctuated by quarter, with a low of 1.7% in Q2 following by escalating growth in the last two quarters. This represents a slow recovery from the steep declines of 2008-2009. Another measure of economic health is unemployment. The current unemployment rate from the Bureau of Labor Statistics is 9.0%, a decline of 0.4 percentage points from December. This rate is historically high, it is lower than at any point in the past year, again showing a sign of slow recovery. A third measure of economic health can be found in the inflation rate. The best measure of inflation 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]
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]
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]
This program is focused onto the following directions:
Generating stability with exchange rates
ebuilding confidence in the monetary policy
Better managing and restricting public debt
eforming and restructuring the banking sector to insure more transparency and the implementation of internationally recognized policies (The Icelandic Government Information Center, 2008).
4. Short-term forecast for the economy
The 2008 has severely impacted the Icelandic economy. In light of the dramatic effects as well as the efforts put into the reconstruction and reconsolidation of the Islanding economy, major growths are not expected. In other words, it is generally assumed that the country will regain its stability through small and gradual victories, which will, for the time being, only manage to stabilize the economy. Growth rates are expected to remain low and for 2010 for instance, the growth rate of the gross domestic product is expected to be close to zero (Central Intelligence Agency, 2010).…… [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]
There are several factors that could contribute to increased demand for owner-occupied housing in the United Kingdom. Given that this demand is presently suppressed by a poor economy, most of the conditions under which demand would increase involve finding ways to boost overall economic performance. One normal policy prescription, lowering interest rates, is effectively off the table with the current rate at 0.5% and the Bank of England expected to maintain this rock bottom rate for the foreseeable future (Oxlade, 2013). Banks could lower lending rates to buyers, but these rates are usually based on spreads relative to the rate at which banks borrow, so there might not be much flexibility for banks to lower rates profitably.
One way would be to boost the economy through fiscal stimulus, government putting money into the economy instead of taking it out. This would create better demand conditions, and would also give…… [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]
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]
Source: The Financial Forecast Center, 2009
Increases in unemployment rate mean that the gambling industry will be faced with fewer customers. This in turn will materialize in reduced sales and profits. If the situation continues to aggravate in the years to come, several players in the gambling industry might have to close their casinos. One must also notice the exceptional situations in which out of job individuals will gamble in the hope of winning some money. However, these instances are reduced and not able to modify the indirect relationship between the evolution of unemployment rate and demand for gambling services. Vice versa, when the unemployment rate decreases and the population enjoys more sources of revenues, the demand for the services of casino clubs increases.
2.3 Inflation rate (consumer price index)
The inflation rate represents the "percentage increase in the price of goods and services, usually annually" (Investor Words, 2009). Within…… [Read More]
According to Burrow, Verard and Kleindl (2007), "a market economy is an economic system in which individual buying decisions in the marketplace together determine what, how, and for whom goods and services will be produced." Hence in any hypothetical pure market economy, the government of the day does not take an active role in deciding what products the citizenry should buy and in what quantities. A pure market economy is however taken to be a theoretical ideal. Burrow, Verard and Kleindl (2007) on the other hand note that "a command economy is an economic system in which a central planning authority, under the control of the country's government, owns most of the factors of production and determines what, how, and for whom goods and services will be produced." In such an economic system, the government of the day largely dictates the mode of utilization of the various factors of…… [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]
An analysis of the latest figures for key economic indicators and the factors which have affected these indicators. This should include the figures for unemployment, inflation and economic growth.
The unemployment rate is a very important indicator of the overall health of the economy. Currently the unemployment rate is at 7.8% (Office for National Statistics, 2012). However, this figure does not affect the population equally. Different segments of the population have different employment rates. Furthermore, the unemployment rate does not include people that are not actively seeking employment. In the chart these people are considered to be "inactive." Another interesting item listed in the report is that the unemployment rate for the youth demographic was falling due to a record number of 16 to 24-year-olds being enrolled in some type of educational program.
Employment in the UK has suffered from recession. In 2008 there was a…… [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]
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]
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]
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]
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]
In order to understand this idea about inventories, it is necessary to understand that if the prices were to change and not be rigid, then it would be the prices and not the inventories that would guide companies in their decisions about production. For example, if prices were increasing, a company would know that their product is popular and that they should increase the production of it. And if the prices were decreasing, the company would know that their product is not selling well and that they should probably reduce its production. In an economy though where the prices are fixed, companies need another way of deciding whether they should increase or decrease production. This is where Keynes came to the conclusion that the key is to observe the changes in the inventories in order to drive production (hat Causes a Recession to be a Recession, n.d.).
Over the…… [Read More]
The nation will enforce law and order to protect its public property, regulate monetary frameworks and correct market failures. The government will be responsible for protecting private life of its citizens and property (Grant & Vidler, 2000).
Market and Competition Forces: the country's economy should be designed in such a way that it will promote competition. This is because competition means a fair deal in obtaining results. The government should increase sellers and buyers in the market because this would promote competition thus increasing the quality and efficiency. With competition, the country will be able to control and manage different functions of its economy (Grant & Vidler, 2000). Demand and supply are the prime market forces determining the production of a country produces and the suitable ways to do so.
Market equilibrium, price and output, are determined by market forces. Therefore, I would recommend that any least developed nation to…… [Read More]
the country aims for the working population that had been estimated to be 125 million in 2006 to reach 147.8 million by 2020 (Economy watch, 2010).
elationship between unemployment and Brazil's economy
Unemployment in Brazil directly affects the economy of the country in several ways this include economic costs; rates of unemployment being persistent in Brazil indicate that there will be market failure in the country. Unemployment is an indication that resources are being wasted thus leading to loss of potential output and eventually a reduction in allocative efficiency. Brazil's economy will then be seen to operate below the maximum output that the country has potential of.
Unemployment also affects the economy of Brazil through financial costs. The Government of Brazil and the entire nation suffers some costs due to unemployment. There are some benefits that the government has to pay the unemployed and therefore the higher the rates of…… [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]
Economic Concepts That Affect Strategic Planning: Comparative Advantage and the Importance of International Trade
The concept of free trade vs. protectionism is based upon the concept of securing comparative advantages. A "comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower" (Comparative advantage, 2014, Tutor2U). For example, it makes little sense for the United States to try to grow bananas, given the excessive cost this would entail, versus importing them from the Southern hemisphere. In their strategic planning, companies choose to produce goods and services which they can do at a relatively lower cost than their rivals abroad. This enables them to price their goods and services lower, benefiting the consumer at home and abroad as well as the corporation.
However, not all aspects of comparative advantage are so salutary. One source…… [Read More]
Increases in manufacturing reveal benefits early, one can track the benefit at all stages and report the benefits to the public quickly. According to a statement released by the Center for American Progress, "solar panels don't install themselves. Wind turbines don't manufacture themselves. Homes and buildings don't retrofit or weatherize themselves. In our industrial society, trees don't even PLANT themselves, anymore. eal people must do all of that work." The public wants a quick fix, they want to start hearing that the economy is doing better and a focus on manufacturing will accomplish this. Additionally, there has been increasing pressure on the White House to focuses on alternative energy sources. Such a policy would gain favor with democratic and liberal environmentalists.
4. Do you consider your views to be more aligned with a classical or Keynesian approach to economic thinking? Explain. (There is no right or wrong answer). See module…… [Read More]
Discuss the similarities and differences between at least three labor organizations discussed in Chapter 3.
The Knights of Labor was a standard labor union comprised of individual workers across the nation. They were inclusive in terms, employing both skilled workers in crafts industries as well as unskilled laborers such as coalminers. (Rayback, 1966, p. 168). They had limited political objectives such as the eight-hour workday and the prohibition of child and convict labor. Their broader objectives were social: to improve the image and social status of the working man.
The AFL was not a labor organization, but a federation of affiliated labor unions. (Dubofsky & Foster, 2004, p. 138). The AFL was exclusive, accepting skilled workers in crafts industries and skilled workers in industry. The AFL's goals were economic, they provided financial and political support for affiliated labor unions in contract negotiations with employers. (Dubofsky & Foster, 2004,…… [Read More]
Labor Negotiating Practices
The issue of labor negotiating practices is one of the most important issues that companies must address. This is because the sensitiveness of labor problems is reflected in their legal implications. The battle between employers and employees becomes more and more difficult and requires advanced negotiation skills.
Company's Stance towards Labor Issues
The company that is analyzed in this case is represented by the companies that joined their forces in order to purchase Twinkies and other important brands from Hostess in their attempt to invest in their revival. These companies are represented by Metropoulos and Co. And Apollo Global Management. The potential of these brands has been acknowledged by the two companies that are interested in opening up new production plants. This means that they will hire a large number of employees. However, the issue in this case is that these companies are not interested in allowing…… [Read More]
Both Keynes and Kalecki use Marx's theories as a starting point but quickly moved into new ways of thinking, particularly with regard to effective demand being oriented toward the demand-side. Marx had remained rooted in supply-side demand function, rejecting Say's Law only to note that demand did not necessarily meet supply.
Marx, K. (1867). Das kapital: A critique of political economy.
Mandel, E. (1995). Marx's theory of crises. International Viewpoint. Retrieved April 24, 2010 from http://www.internationalviewpoint.org/spip.php?article289
Argitis, G. (2003). Finance, instability and economic crisis: The Marx, Keynes and Minsky problems in contemporary capitalism. University of Crete working paper no. 0307.
Green, F. (1991). Marx, Malthus and wages: A comment on Cotrell and Darity. History of Political Economy. Vol. 23 (1) 95-100.
Magdoff, F. & Magdoff, H. (2004). Disposable workers: Todays' reserve army of labor. CBS Marketwatch. Retrieved April 24, 2010 from http://findarticles.com/p/articles/mi_m1132/is_11_55/ai_n6137106/
Sebastiani, M. (1989). Kalecki and Marx…… [Read More]
Transfer payments include welfare ($5) and UI ($2). Thus, net taxes are 12-7 = $5.
A c) Total planned investment is the new capital stock, so the increase in capital stock, plus depreciation. In this example new capital stock = 103-100 + 7 = $10.
A d) Real GDP = (C + I + G) / (1 + r) = (50+10+5) / (1.06) = 61.32 e) Total savings = Disposable income - consumption. Disposable income = GDP - Net Tax. Thus, DI = 65-5 = 60. Total savings = 60-50 = 10 f) Total leakages = Net taxes + Savings = 5 + 10 = 15 g) Total injections = I + G = 10 + 5 = 15
8-5) if the capital stock decreases, workers will be less efficient, which will reduce the production function. However, companies will adjust be reducing demand for labor. This will increase worker productivity.…… [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]
5.3 A. Increase; decrease
6.0 D. All of these arguments provide reasons for why productivity could be higher for union workers.
1.1 D. Hungry
1.2 Plot each Quintile number one through four for each country using the appropriate color for each country.
1.3 D. Brazil
2.0 C. The ratio of the total income of the lowest quintile of the income distribution to the total income of the highest quintile of the income distribution in higher in France than in Germany.
3.0 A. Workers are being paid too little in this labor market, and the best way to rectify this is to train them to be more productive.
4.1 B. 40%
4.2 C. High school students, retirees, undergraduates, graduates, professors
4.3 C. There is not enough information to make a conclusion.
5.1 D. No evidence of
5.2 D. 40%
5.3 B. 20%
1.0 B. Risk of default
2.0 B. RNE should…… [Read More]
This implies that an increase in the wage of one member of the household gives rise not only to changed incentives for work on the market, but also to a shift from more to less time-intensive product on and consumption of goods produced by the household. But as noted by the Nobel-prize winning 20th century University of Chicago economist Gary Becker, as real wages increase, along with the possibilities of substituting capital for labor in housework, labor is released in the household, so that it becomes more and more uneconomical to let one member of the household specialize wholly in household production (for instance, child care). As a result, some of the family's previous social and economic functions are shifted to other institutions such as firms, schools and other public agencies. This creates more jobs, but also means that more luxury jobs may become necessities, such as maids. (Gary Becker,…… [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]
Similarly, the average total costs curve also increases, implying additional costs.
A main theoretical specification that must be made here refers to the long-term relationship between the MC and the average cost curves. This basically states the following:
- if the average cost in decreasing in the quantity produced, or the output, the marginal cost is lower than the average costs
- if the average cost increasing in terms of produced quantities, the marginal cost is larger than the average costs
- if the average cost remains constant, the marginal cost equals the average cost; the situation is similar when the average cost is minimal
- in the case of scale economies, the average cost decreases as the produced quantity increases
- in the case of diseconomies of scale, the situation is reversed as the average cost increases with the increase of the output (Zhao, 2008)
2. Factors in Favour…… [Read More]
It is thought that the pace of the recovery will be slowed by people's desire to rebuild wealth, still-tight credit conditions facing some borrowers, and, despite some tentative signs of stabilization, continued weakness in labor markets. With considerable resource slack continuing to suppress cost pressures and with longer-term inflation expectations stable, it is thought that inflation subdued for some time (Monetary Policy eport to the Congress, 2010).
The Federal eserve has continued to support the functioning of financial markets and promote recovery in economic activity doing a wide array of things. The Federal Open Market Committee (FOMC) has maintained a target range of 0 to 1/4% for the federal funds rate throughout the second half of 2009 and early 2010. They have also continued to purchase Treasury securities, agency mortgage-backed securities (MBS), and agency debt in order to provide support to mortgage and housing markets and to improve overall conditions…… [Read More]