Macro & Microeconomics Essays

In a nutshell, self interest creates a provision for a substantial foundation on the notion that was developed on nations’ wealth. To add to that, as Smith’s work forms a bedrock for economic science in the modern world, self interest turns out to be the primary principle in economics.

The crisis threatened to spill over to other major economies in the trading block, which would cause a major issue for other global economies. The Eurozone crisis was mainly centered on Greece, which had the biggest levels of public debt and the highest budget deficits in the Euro region.

This dominance has been of tremendous benefit for the financial system of the U.S. and her consumers. The U.S. government has gained tremendous influence and power around the world because of use of the dollar. Today, the U.S. dollar accounts for more than 60% of foreign currency reserves in the world.

It demonstrates the rate at which prices for goods and services rise as purchasing power of the target population falls. It is the duty of the central bank to stop severe inflation, control it for purposes of lowering excessive growth of prices. Most notably, inflation is a major factor in the world economy where it affects economies of scale and factors of productions.

Practical events that indicate the country’s vulnerability to the gas industry include the Libyan crisis and the Fukushima tragedy in Japan. In fact, the latter suddenly affected local electricity consumers who had to bear the high bills. The structure of the market entails global suppliers, power companies, and consumers.

The article mainly focuses on the trade-off between higher growth rate and employment and the increase in export volumes (Lamont). This paper is aimed at providing a critical review of the article. According to the author, since many years, China is facing significant pressure from the foreign countries to devalue its currency or to let it market-determined.

 In promulgating ideas, writers and authors use various types of rhetorics to persuade or convince their readers to agree or favor the point of view they are trying to espouse.  The approach may differ depending on the circumstances and the audience type. 

There have been debates for and against the idea, but no closing conclusion has been reached yet. Most arguments provide that, in the foreseeable future, the closest the world can get to an SGC is to have currency zones such as the U.S. zone, Eurozone,  and the Yen zone (Volcker 8). Local markets are the key factors that created such zones.

Australia: Terms of Trade. Discuss the reasons for the main movements in Australia’s terms of trade over the last decade The terms of trade mean the quantity of imports, which are buyable via sale of a quantity of exports that is fixed. Improvements in a country’s TOT are positive for the country since it can buy more for a given export level.

Recently there has been a considerable increase of corn prices across the globe. The prices have increased by 74 per cent within one year. (Source: Riley, 2011). Rise in price of corn has decreased the demand for the product in developing economies. This has resulted in creating numerous people going without food, in the poor countries.

Even though the prices of the houses, which have moved upwards seems to suggest that the quantity demanded of the home shall go down. However, that has not been the case due to the overall shift in the demand curve. Moreover, due to governmental policies, there has also been an effect on the supply side on which we will elaborate. (Neate, 2013)

The price of coffee in Cote d’Ivoire will tend to be high locally while in Vietnam, the prices will be low as much will be imported. The law of one price will hold in the case of rice traded freely in the US and Canada. For the law of one price to hold, the market should be free from any trade barrier. The relative price is less than one (1/1.04=0.9615).

China’s economic breakthrough has had a number of challenges dating back from its early trade with the rest of the world in the pre modern trade; before the end of the Dark Ages. It pre-modern this time that China’s success in commerce also expanded to its military base, owning the world’s best navy at that time.

At the store, I visited there were available roughly 10 different brands of Smartphones. The salient models included HTC One, Apple iPhone 5, Samsung Galaxy S4, Nexus 4, Sony Xperia Z, Samsung Galaxy Note 2, Samsung Galaxy SIII, Nokia Lumia 925, Nokia Lumia 820, Nokia Lumia 620, iPhone 4S, Motorola RAZR HD, HTC 8X, Huawei Ascend Mate, etc.

Essay Overview Antitrust is primarily concerned with the structure of markets along with the bargaining that goes on within the market. Consequently, the absolute cost of redistributing various resources is as vital as the transaction costs of arranging for their movement.

The scholarly articles chosen for this analysis address issues that are related to China’s social security. The three articles are consistent with the general trend exhibited in the discipline and will thus form the backbone of this analysis to cut across the discipline.

These raise are increasing frequency and moving up even at pace of twice a month. The rise is simply witnessed as buyers’ are coming back from the housing fall to get theirs little in the marketplace. This article revolves around the state of competition in Manhattan construction.

The modern era of technology has both positive and negative facets. This means that though technology has made economic production faster and increased the scale, it has also led to a huge level of automation in the industry. The inequality in the distribution of income in the economy of the UK is increasing.

Markets and the Economy. Increased federal budget deficit resulting from a recession helps stabilize an economy During a recession the federal budget deficit can increase due to some automatic stabilizers in the economy and/or due to deliberate higher government spending to boost the economy.

The focus of the research will be to explain if there is any relation between the current account deficits and the growth crisis. The research concludes that import of final goods as well as the foreign demand played the strongest role in the development of exports during the Euro zone crisis between 2008 and 2009. The paper will also take into account the causes behind the crisis and the impacts it sheds around the globe.

All throughout its life, the generation that was born following World War II (baby boomers) has had a great impact on the workplace, public policy, and society. This generation of approximately seventy-five million children was born in the period between 1946 and 1964. Today, the United States has a baby boom generation of about eighty-three million, comprising of those born in other countries but are now living in the US.

It is a well-known fact that most American citizens with health coverage obtain their insurance via health programs that are provided by the companies for which they work.  However, the majority of these citizens acquire their coverage through non-group insurance. It is projected that about 46.3 million or 15.39 percent of the people in the US lack health insurance coverage.

Economics involves the study of scarce resources. In addition, how the scarce resources can be used in terms of allocating them to the vital economic sectors to help in the realization of positive economic impact. When resources are allocated properly depending on the needs in the various economic sectors then a bust in the GDP of the country is easily realizable.

In a free market economy, demand and supply interact with each other to determine the market equilibrium, i.e. a price at which the number of goods demanded equals the quantity supplied. The property market also operates in somewhat a similar manner. The main factor outlaying the demand for property includes the demographic structure of a society.

“When a company wants to increase its market share, usually the easiest way is to reduce prices, which increases product sales” (Price war, 2011). The above strategy will force competitors also to reduce the prices of their products. The price war is a phenomenon in which organizations compete with each other by reducing the prices of their products.

The two farms provide large amount of jobs that lead to increased employment rates. Growing revenues provided by the two companies increase the country’s gross domestic product. Competition between the two farms leads to great innovations as a response to market demands and adjustment of their business plans to suit market demand.

Both local and international economic performance exposed to the two systems of the market that Wal-Mart deals in characterize the managerial considerations. Most of the markets in which Wal-Mart has set up shop are run on the free market, which is driven by the market forces of demand and supply, and the international market is characterized by globalization unification factors that define global trade.

The researcher will give insights on the markers of economic stability such as increasing unemployment rate, poverty and decreasing annual gross domestic product and the countless possible ways of reversing or sustaining the aftereffect of economic threats through finding researched trends and strategies. 

These fundamental human behavior virtues cannot and will never be ignored on any of the social scenes. Consequentially, experiments tend to disagree by suggesting that the intentions presented by other-regarding preferences only present impacts that are narrow and limited.

For instance, household’s main objective is to provide basic resources of production. Examples are capital, land, and labour. These production basics generate their rewards as interest, rent, and wages respectively (Williamson, 2005). However, the firms’ main objective is to supply goods and services for both local and foreign consumption.

The main participants in the real estate market are owners, renters, developers, renovators, and facilitators. The demand side of the market comprises the owner and the renter while the supply side comprises the developer as well as the renovator. To analyze the demand and supply factors, several modifications need to be implemented.

This theory also focuses on the role of exchange and circulation of commodities in the creation of wealth (Vaggi 2003, p.6). Vaggi also notes that Mun saw domestic trade as a way of redistributing the acquired wealth. The first notable mercantile ideal was the need to acquire overseas colonies.

The official cash rate has the potentiality to influence the price of borrowing money. The Reserve Bank also uses this method in order to influence the level of inflation. The market rate of interest tends to follow the official cash rate. With increase in the interest rates in the market, the people tend to spend less amount of money while higher interest rate involves the opposite behavior.

A company Research In Motion is said to be destined to fail if it cannot provide the products required, that is, mobile phones. Research In Motion provides services and products that mainly depend on their relevance to the current market needs (Chopra & Meindl, 2001). It means that if the taste and preference of the customers shift from a product, the demand for it also diminishes (Klein, 2003).

Why can the United States not just reduce the amount of goods coming in from all other nations, as well? It is tricky to limit imports from other nations, mainly in a country such as the United States, whereby there is a large group of customers who want products from other nations (Colander, 2010).

It is essential to state that considering the application of the prisoner’s game in economics, during the advertisement, the advertisement effectiveness of Firm A is determined by Firm B’s advertisement.   On the other hand, the profits obtained from Firm B would be affected by Firm A’s advertisement.

Austerity is cutting back on spending particularly on the number of public services and benefits. Austerity policy is usually used by governments to reducing defecate spending. A major characteristic of austerity is an increase in taxing. Stimulus is where monetary policies are used to positively stimulate the economy. This is normally done by quantitative easing and the lowering of lending rates.

However, this is not the case as Leibenstien established in his analyses of a snob, bandwagon, and Veblen effects. From his analyses, Leibenstien established that not all goods obey the law of downward sloping demand. In his analysis, three effects disobey this law. These effects are the snob effect, the bandwagon effect, and the Veblen effects.

At the quantity q* the price Pm would be set where goods produced by the firm are supplied at the minimum average total cost i.e. P=MC. This is called Productive Efficiency where the long run equilibrium is reached by the firm in a perfectly competitive market.

This has been the trend in spite of the fact that its banking system is full of weaknesses. Everybody agrees that it is among the fastest growing economies in the world. Scholars mention the growth rate of the private sector in China as evidence that it provides an alternative support to the country’s economic growth through financing and governance mechanisms (Chan, 2007, P.

MACRO AND MICRO ECONOMICS Command/ Centrally-planned Economy Introduction A command economy one in which the coordination of economic activities (supply and price) are controlled through administrative means rather than market mechanisms. The economic agents particularly the production organizations operate as directed by the governments in place; the government decides which goods are produced the amount, as well as distribution.

The essay will critically analyze an article in Gulf News that relates to the situation of the BP Oil Spill which is claimed to be the biggest accidental oil spill in the economy in the petroleum industry. The context of the say will not be brief about the facts and features of the article. Rather the researcher would be analyzing the ways in which the circumstances in the real world indirectly indicate the different microeconomic theories.

That is why real estate owners construct houses of different quality and different sizes, with an aim to cater for every citizen of a country. With the constructors work done, it is up to the owners to decide on house prices, depending on the quality, location, and prestige among other factors.

Another definition states that crime is “any act or omission proscribed by the criminal law and thus punishable by the state through the criminal justice process” (Davies, 40). Both describe crime in its broadest sense but it does not tell us what constitutes a crime. More than the definition of crime, citizens are concerned about what makes it a crime.

The author analyzes different segments of the hospitality industry. At the end of the paper, the researcher comes to the interesting conclusions and gives his recommendations. Thus, the author thinks that the cruise industry segment could be the most interesting field of the business in the next couple years.

Considering the case, where the two companies work individually, the optimal output and price of each company are obtained by first obtaining the profit equation. Profit can be defined as what remains after deducting total cost from total revenue (R. Thomas, C.

The indicators can be local, directional or timed. The most common indicators of the economy are; Growth Domestic Product, Growth National Produce and Purchasing Power Parity.

Multinational corporations are large firms operating in more than one country. They usually have their headquarters in one country mostly the mother country. There are many multinational corporations in the world today. For instance coca cola, Barclays, shell, Guinness Breweries, DHL, IBM, MTN and others.

More than often, choices made when opting to buy or lease a car are influenced by economic and managerial decision-making factors. In most cases, a comparison of the purchase price and lease payments, and a comparison of present value and ownership at the end of the leasing period influence the decision undertaken.

Poverty is the shortage of the basic things a person needs, such as food, clothing, and shelter. Nowadays, the majority of individuals are haunted by poverty across the globe and not much has been done to eradicate it. A great amount of human suffering has been generated by global poverty. In addition to that, it has been unmatched by some tragedies in remote or recent times.