Principle of Economics Question one Despite the tremendous performance of its economy, China is still a developing country because of several reasons. In terms of per capita GDP, China is yet to achieve a developed country status because it does not exceed US$10,000 that is required of a developed country status…
For example, this figure is equivalent to 9% of the German and 8% of the United States’ per capita GDP. Furthermore, in terms of nature of resources, China has somewhat a small holds of resources based on per capita criteria, which is not even comparable to a developed country of a modest character. These facts reveal the extent of the economic gap between China and the developed countries, which sets it trailing behind (Wolf, 2005). To sustain the country on an economic growth path, the Chinese Government has the responsibility of making significant policy adjustments. These policies should be aimed at transitioning the country from middle-income to high-income status. This includes finding measures to address the social and environment imbalances, improving the access to healthcare and education, setting targets to reduce pollution, expanding social protection, and increasing the country’s energy efficiency (Wolf, 2005). The government should also make efforts to discover a new road to industrialization, and modify the approach of economic development by developing a circular economy, changing the industrial structure, improving the traditional industries and supporting the strategic and emerging industries. The government of China should also promote use of information technology to support industrialization, which in turn can spur the country’s competitive advantage especially in respect to its expansive manufacturing industry. It would also be extremely important for the government of China to continue focusing on its regional development strategies, including turning around the tendency of widening regional economic gap such as supporting the development of the western regions. The idea of supporting development on certain priority zones can be achieved by setting the national spatial development in an orderly and coordinated manner, which should also include coordinating between urban and rural areas development (Sun, 2003). Question 2 When we say that we are engaged in a ‘global economy’, we mean that we are engaged in economic activities that are beyond a particular country’s borders. This includes a situation where international corporations stop relying on production within the mother country and extend their activities to many countries around the world. The global economy is concerned with globalization of production in areas such as finance, markets, labor force and communications (Ernst & Ozawa, 2002). When we talk of free trade, we are referring to a situation where the government of a certain nation eliminates all the artificial barriers to trade, which are usually established to protect the domestic producers from competition from the international market, particularly originating from the trading nations. Free trade is known to increase production because nations are given an opportunity to concentrate in production of those products that they have a competitive advantage. This enables countries to enjoy efficiencies that come from increased output and economies of scale. Free trade also promotes the efficiency of resource allocation hence spurring production efficiency. This is because individual countries are able to exercise efficient use of resources, which potentially results to higher output (Ernst & Ozawa, 2002). On the other hand, despite the many benefits, there a number of disadvantages associated with free trade. This includes creation of structural unemployment as a result of removal of trade ...
Cite this document
(“Principles of Economics Essay Example | Topics and Well Written Essays - 750 words - 4”, n.d.)
Retrieved from https://studentshare.net/business/87902-principles-of-economics
(Principles of Economics Essay Example | Topics and Well Written Essays - 750 Words - 4)
“Principles of Economics Essay Example | Topics and Well Written Essays - 750 Words - 4”, n.d. https://studentshare.net/business/87902-principles-of-economics.
You own a local sub shop in a college town. You primarily serve two groups of people: local residents (both students and other local residents) and visitors to your town. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.
It is rational to argue that an economist is concerned with the optimal distribution of scarce resources. Concerning the issue of alcohol abuse, an economist will try to sculpt the action or behavior. The main purpose is to find patterns and apply this to predict potential results of alcohol abuse.
220). Their dominance is evident through their control over prices of the goods or services they provide and the barriers that they set to make it difficult for new firms to join their industry. This “fewness” results to firms be mutually interdependent because each has to consider the possible reactions of its competitors to its price, marketing and product innovations or development.
In the past, people used to indulge themselves in such practices without having the basics on the principles of economics. As a result, economic development was not achieved which necessitated the improvement in the approach to the operation of business by individuals as well as institution.
The fists solution to economists is to have the price of alcohol increased. From the theory of demand, an increase in price would lead to a decrease in the quantity of a commodity demanded. To increase the price of alcohol, economists would formulate policies that increase the excise tax charged on the alcohol.
Economists’ way of approaching this problem would be trying to establish costs brought about by alcoholism. The second approach would be trying to understand all costs involved into alcohol consumption. This is because alcoholism costs cannot be measured directly since a dollar cannot be easily placed on any loss of production.
The economy is continually growing at a rate of 1.8 percent annually (World Factbook, 2013). The country is currently on its way to recovery from a recession although the present situation is better than it was in 2007 and 2008. The unemployment rate to date is estimated to be 9 percent which is high as compared to the recent past (World Factbook, 2013).
sales) of the produced good and the opportunity cost of that good. A choice is non-improvable if the direct reward is higher than the opportunity cost. There is an equilibrium between these two.The PPC is a very useful diagram as it can be used to demonstrate many economic concepts such as opportunity costs, Pareto efficiency, comparative advantage and the law of increasing costs (Rodda, 2005)
Economics is the field of study that deals with such activities as coming up with goods, distributing and usage of the goods. It involves how one uses the resources in the environment, which have a characteristic of being scarce. Individuals or a household have to utilize the scarce resources available in the economy.
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Principles of Economics for FREE!