Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

The economy in California - Essay Example

Comments (0) Cite this document
In order to understand such effects analytically, this paper is going to discuss the various implications that inflation poses for the economy, with focus on the positive, and, more importantly, the negative outcomes of inflation to an economy. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
The economy in California
Read TextPreview

Extract of sample "The economy in California"

Download file to see previous pages In the course of this assessment and analysis, various factors are considered in light of their effects and implications on the economy. These factors are divided according to their level of influence and their scope in regards to how each individual entity can deal with them (Melvin & Boyes, 122). As such, economics as a social science incorporates aspects of creation, circulation and utilization of commodities and services within an economy and the various factors that affect this cycle. For a proper and more insightful analysis of these factors, the concepts of micro and macroeconomics are introduced to deal with varying perspectives of the way in which various dynamics impact on the economy. Microeconomics often deals with aspects that are within a given economic entity’s scope, and refers to factors that the entity has control over. On the other hand, macroeconomics lays emphasis on factors that an economic entity has little or no control over, especially factors that have a national, transnational or global scope. An example of a factor that affects the economy on a national perspective is the inflation rate, or the level of inflation within the economy. As such, the analysis of this factor forms an insightful upshot from which the impact of macroeconomic factors can be viewed in relation to the economy.
On a general platform, inflation can be described as the gradual increase in the prices of commodities and service provision within an economy over a given period. This is occasioned by the value of the currency dropping, whereby the financial might of a unit of currency drops and it is able to purchase lesser and lesser items as the level of inflation increases....
On other platforms, inflation refers to an average increase in the money circulating within an economy, as occasioned by the value of the currency dropping warranting the need for more legal tender to complete a transaction (Melvin & Boyes, 134). Inflation is caused by a number of factors, ranging from government expenditure exceeding the revenues, or the private sector causing shortfalls in output resulting in demand exceeding the supply of goods and services. Moreover, increased production costs also result in increased prices of goods thereby resulting in inflation. The measure for inflation is carried out through the price index that monitors the overall pricing of consumer goods and services over a given period. The general percentage change in price roughly implicates the inflation level within the economy. The impacts of inflation can be both positive and negative in some instances. However, its negative force is more impacting than the positive effects (McEachern, 187). There are levels of inflation, with low levels of inflation generally considered not as harmful. However, zero and high inflation are considered harmful to any economy. The major impact of inflation is that it creates a financial shortage for individuals who are surviving on a fixed income. This is occasioned by the lack of income dynamism in relation to the rate of inflation (McEachern, 222). The amount of disposable income for such individuals decreases, thereby leading to less expenditure, further enhancing the inflation rate. This results in minimized savings, as more money is used in purchases that were previously less straining on the financial muscle. However, inflation can also result in hidden tax raises especially in ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The economy in California Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
The economy in California Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(The Economy in California Essay Example | Topics and Well Written Essays - 1250 Words)
The Economy in California Essay Example | Topics and Well Written Essays - 1250 Words.
“The Economy in California Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The economy in California

Tomography of the Lithosphere in Southern California

The geologic structure of Southern California is closely tied to the convergent boundary between two lithospheric plates.
In fact, Southern California spreads out on the boundary between two pieces of the lithosphere, the North America Plate and the Pacific Plate. The generally northward movement of the Pacific Plate against the North America Plate along the San Andreas Fault is the main cause of all earthquakes happening in the region /Hauksson, 1989/. Besides, the tectonic collision between these two plates causes large masses of rock to break, bend, and travel according to the immense forces.
The boundary between these two converging plates is the San Andreas Fault Zone is approximately one hundred kilometers wide and...
6 Pages(1500 words)Assignment

Chinese Economy

As the Chinese government opens its doors to the outside world, China, with its vast lands and the huge supply of labor, is fast becoming one of the world’s most favorite places for investors.
At present, China had developed a hybrid economic structure where half of the economy is still controlled by the government through state ownership of different business establishments and half is now an open market. As one of the world’s leading manufacturers, China is gaining ground. Foreign Direct Investment (FDI) had increased dramatically over the two decades since its economic liberalization began. However, there are important consequences that China must face as its FDI increases. First, China must accelerate integrat...
9 Pages(2250 words)Assignment

History of Gas Prices and their Effect on the Economy

The relation of inflation within a society with the ever-changing oil and gas prices is pretty much significant and one must understand that there is a strong bond present between the two. This strong linkage allows for prices to shoot up whenever there is a sudden upward trend experienced in the oil and gas prices and whenever the gold rates have increased on the global front. With so much at stake and economies coming to a standstill with the uprising trend in the oil and gas prices on a global level, one can only expect problems coming to the fore of the common man and woman present on the street. The worst possible explanation given by experts in the field of oil and gas prices’ regimes is that these are done to benefit...
9 Pages(2250 words)Coursework

An Outlook of U.K Economy

The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth, then slowed to 1.7% in 2005 and 2.7% in 2006. “ (, 2007)

The most prominent characteristic of the capitalist economy is the control of few people on a large amount of Capital. These people...
6 Pages(1500 words)Term Paper

Growth Performance of Indian Economy

This percentage is expected to rise to 70% by 2030 - the largest in the world, according to a report titled Destination India- from the Investment Commission of India.” (Hood).
We all know that for more than a century, the United States has been one of the largest economies in the world. However the past few years showed major development in some countries, and the focus moved to Asian countries like India and China which were progressing very fast.

According to the experts, share in the total world GDP of India will rise from 6% to 11% by the year 2025. The GDP of India rose to 9.0% during the year 2005-06 again to 9.4% in 2006-07. The projection reports say that India will be 60% the size of the US economy...
6 Pages(1500 words)Assignment

Organizational Behaviour, Types of Ownership, and Mixed Economy Issues

...Organizational Behaviour Task Explain what is meant by the term ‘mixed economy’. A ‘mixed economy’ is referring to the economic system wherein both the private-owned companies and the state-owned companies are present. The economic activities1 of a ‘mixed economy’ normally functions through a combination of capitalism and socialism or both. (Bullock & Trombley, 1999: p. 535) It means that the production of goods within the country is manufactured by both the private and public sector under the control of the government. Task 2: Two friends who work at the same factory are soon to be made redundant. One of them already runs a small business as well as working full time at the factory. Knowing they are likely to receive a quite large...
8 Pages(2000 words)Assignment

The Importance of Tourism to the World Economy

Since the eighties, perceived risk research has been of ongoing interest to tourism researchers, Dolnicar (2005) and Dickson, Chapman, and Hurrell (2000)  states. Contributions often include those which investigate positive risk as a factor in increasing tourists who are seeking a thrill. On the other hand, there are also those who view these risks as something negative, thus avoiding the destinations which are haunted by different risks such as diseases, terrorism and other forms of political instability (Dickson & Tugwell, 2000).

The current qualitative research inquired about the risks perceived by young people as regards both domestic and international traveling. A sample of 23 was interviewed for this purp...
15 Pages(3750 words)Research Paper

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

The Chumash California Indians

He previously referred to Indians as “dull, stupid people, of the ordinary stature and far from comely.” After he saw and observed the Chumash, however, he remarked that they seemed to be “a race of people quite distinct from the other aboriginals of the country” (Rawls 47). Today, the Chumash Indians have dwindled in number, many of whom live in a reservation in Santa Ynez. The Chumash are trying to remember their past by keeping Chumash traditions but their growing susceptibility to a fast-changing world can barely be kept with the trappings of modernity, like a casino resort, right in the middle of their community.
The Chumash, also known as the Santa Barbara Indians, originally established themselv...
7 Pages(1750 words)Assignment

The International Political Economy of Nursing

Surveys involve the formulation of questions that assist in the gaining of evidence. Other clinical methods such as testing the hypothesis are applied in the collection of data for the formulation of evidence. Evidence-based practice is a vital approach in the field of clinical practice because it does not only put into consideration the current state of the patient but also the previous data and experience on the issue. To understand the connection between evidence-based practice and clinical appraisal, some past information is necessary for consideration. Evidence-based practice can historically be said to have started from the field of medicine, with an earlier name of evidence-based medicine. The simple application of this pra...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The economy in California for FREE!

Contact Us