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

Economics Coursework - Essay Example

Comments (0) Cite this document
Economics Coursework (1450 Words) 1. It has been observed in the last quarter that the demand of houses has been on the rise due to various factors. Even though the prices of the houses, which have moved upwards seems to suggest that the quantity demanded of the home shall go down…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Economics Coursework
Read Text Preview

Extract of sample "Economics Coursework"

Download file to see previous pages Affordability of the customers: As mortgages have become less costly, the affordability of an average citizen has therefore gained growth. Moreover, mortgages are more readily available than before and therefore a consumer is more likely to avail himself a loan and increase his overall set of choices. Thus resulting in an increase in the demand shift of the consumer. (Neate, 2013) b. Recession: The pressures have double impact on the demand shifts. Not only it has reduced the purchasing power of a consumer but it has also taken away many sets of choices where a person used to invest. As recession is around, most of the investments are found to be riskier while these are also not expected to earn high returns. Therefore, potential investors, especially the large ones look at housing as a safe avenue for investment as the returns that it earns are quite stable while the capital gains are also a part of the investment. This also influences the demand curve to shift to its right and increase the overall demand of the house owning. (Neate, 2013) (O’sullivan, 2008) c. Herd Sentiment: It shall be noted that the growth of house prices has already outgrown the rate of growth in the loans extended in the form of mortgages. Such only reveals a point that the general public is following the trend. This can be due to reasons such as the fear of inflated home prices after the boom that these prices have received. Moreover, its cause may also be in the form of those investors who have looked it as a golden opportunity of capital gains and thus creating an artificial bubble of price inflation that will sooner or later burst out. (Rowley, 2013) d. Expectations: As prices have surged up so are the expectations of the people. As suggested in a recent article, the cost of average home may go up by 50,000 pounds in the course of the next five year. Moreover, keeping the sentiments in mind, the government’s recent move to provide interest free loan up to 600,000 pounds has only shifted the trend further and have once again given raise to the demands of the masses. (Lambert, 2013) If we point our attention to the factors that have may have impacted the supply side of the UK’s house owning phenomenon, the most important factor that grabs has shifted the supply curve includes the impact of exports whose disappointing performance has impacted the supply side of the above mentioned phenomenon. Since then, the government has focused more and more on supply side by encouraging the construction of more houses. Moreover, the lenders have been too lenient not only towards buyers but towards the sellers as well, since by supporting them in financing their projects they are pushing the supply curve as well, which in this case is toward its right. In a recent move, the government launched funding scheme which allowed banks to avail themselves inexpensive financing that allowed the lowering of the interest rates whose impacts were also seen on the demand side. (Rowley, 2013) 2. As one can see in the table below that the profits will increase to 40,000 pounds if the fare is decreased from 10 pounds to 8 pounds: Fare Demand Total Revenue New Cost Profit 8 6 480 440 40 10 4 400 410 -10 12 3 360 400 -40 (O’sullivan, 2008) a. Below are the calculations required in case of price elasticity’s of demand by the midpoint formula method as well as percentage change ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Economics Coursework Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Economics Coursework Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from
(Economics Coursework Essay Example | Topics and Well Written Essays - 1500 Words)
Economics Coursework Essay Example | Topics and Well Written Essays - 1500 Words.
“Economics Coursework Essay Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economics Coursework


... Project Economics and Law: The Scottish Parliament Introduction All project managers always aim at implementing their projects within the required project management indices. These are idyllic benchmarks that ensure that the project meets and satisfies the entire needs of the clients. A successful project has distinct characteristics that range from effective and efficient cost, to good quality, and completion within the expected timeframe. A project that meets the abovementioned provisions always satisfies relative objectives as well as the expectations of the clients and is therefore regarded to be of high quality. Conversely, one that does not meet the preceding provisions is considered to have failed. In the recent past, clients...
16 Pages (4000 words) Coursework

Macro economics

...UK Economy For every country to grow economically, it is important to increase the capa of the goods and services produced in that country. The UK can grow its economy by producing more and increasing its exports in order to boost its net trade. By reducing on imports and increasing the exports, the UK will be in a position to reduce its trade deficit, which is a problem that has been hurting the economy for many years. When the UK increases its share of exports, it will be in a position to grow its local industries. This is because the increased demand for UK exports accelerates local production, and this helps grow local products and jobs. For instance, this will help boost the manufacturing sector which has faced competition...
2 Pages (500 words) Coursework

Economics Perspectives and Policy

...American and UK companies. Borios study (2007) confirmed this view and he cataloged firms in Anglo-American economics as "low leverage" and firms in Japan and continental Europe as "high leverage". The capital structure differentials across countries have been wildly and deeply studied. Rajan and Zingales (2006) (RZ) achieve different results with previous studies. They analyze G-7 countries and find that the German and UK companies have the lowest leverage level and other countries have almost the same leverage level. RZ (2006) claim that the differences between their results and previous one may due to four possible reasons, including differences in measures, different adjustments to correct for differences in...
6 Pages (1500 words) Coursework

The Main Features of Real Estate Economics

... relevant factors which determine investment decisions of consumers across various sectors. As the real estate market is becoming increasingly international, it is important to understand the operations in national markets and their interrelationships. This project tries to identify and find similarities and differences across different markets and provides a framework to explain how these national markets converge. Recently, there has been extensive study using empirical and theoretical research on real estate using methodologies of economics and finance. This research includes the market structure and its workings, the role of institutional arrangements, risk management and valuation, public policy and regulations by the Government...
7 Pages (1750 words) Coursework

Features of Minimum Efficient Scale in Economics

...) As has been clearly noted, the smalled firm where the maximum efficieicny has been obtained is referred to as the minimum efficient scale. This has a major impact on the struture of the industry and can determine the competition in the markets to a great extent as well. For example a simple illustration as, If the output of the industy is 1000 units for a product and the minimum efficient scale is at 200 units, then the industry will be an oligopoly with a total of (1000/200) = 5 firms (Sowell, Applied Economics: Thinking Beyond Stage One 2008). Where there are five firms in the markets, the competitive level will be very high and thus the long run average cost curve will be ‘flat bottomed’. The profits in this case will increase...
7 Pages (1750 words) Coursework

Business Ethics and Moral Economics as a Social Stigma

...the cultural implications and other values to be questioned with concepts such as international conditions. For businesses, the ability to create a sense of community development and values through moral economics is providing a change in the concept of helping those who are disadvantaged to gain a sense of power. The concept that has been approached by businesses then allows some of the resources and finances to be given back into the community (Weinberg, 2010). Even though there is a specific level of moral value to the business ethics in helping impoverished nations, there are also several questions over the legitimacy of the acts. Currently, the use of having community responsibility is not only for business...
10 Pages (2500 words) Coursework

Urban Economics, Successes and Challenges of Bangkok

...Urban Economics Introduction: Bangkok is the capital of Thailand's and the center of its economy and the nation's primary port. Bangkok is the nation's budgetary focus, home to in excess of one-third of Thailand's banks, and the Bangkok Stock Exchange. Thailand's fundamental unit of currency is the baht, with the conversion scale at roughly 40 baht for every U.s.$1. The majority of the production lines in Bangkok are small in size and a significant number of them family-possessed. Sustenance transforming, materials, and the creation of building materials are the head assembling ventures. Different businesses incorporate concrete, hardware, petroleum refining, and tourism. [UNUnd] Bangkok is a significant provincial city, yet it has...
9 Pages (2250 words) Coursework

Economics as a Social Science

...Economics as a Social Science By Due What is meant by ‘competition’ in the economy? Is it always desirable? Competition refers to a rivalry among sellers in a market where every seller attempts to outdo their competitors and maximize their profits, sales volume and market share. According to the classical view, competition is actually a very healthy practice. There is an “invisible hand” that makes competition work for the benefit of the market and makes it stable even though all the participants are driven by their own self interests. According to Smith (1776), “Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed...
7 Pages (1750 words) Coursework

Economics and Logistics in Short and Deep Sea Market

... that come with the mega vessels. Cost constraint is yet another factor that will limit the constant increase in the size of container vessels. Increasing the size of the container vessels will translate to a corresponding increase in the cost of operating those vessels. Since these vessels are managed by individual business entities they will ought to increase the size of their vessels until a point will reach whereby increasing the size of the vessels will not be economically viable for the firms will not be financially capable of footing all the operational cost that are associated with those vessels hence the process of increasing vessel size will stagnate. Conversely, maritime business is a delicate business venture that always comes...
11 Pages (2750 words) Coursework

Applied Statistics for Finance and Economics Project Report

...APPLIED STATISTICS FOR FINANCE & ECONOMICS PROJECT REPORT Abstract The aim of this paper is to apply the econometrics knowledge learnt in the practical application. Two main variables of interest were used. STATA software was employed for the analysis of the data. Results showed that there exists a positive relationship between log returns of the variables y (‘dly’) and that of sap (‘dlsap’). Introduction We began by declaring the data as a time series data. This was followed by generating the log of the variables y (‘ly’) and sap (‘lsap’). We also generated the log returns of the variables y (‘dly’) and sap (‘dlsap’). The other sections present the results of the analysis starting with the descriptive statistics. Summary (Descriptive...
9 Pages (2250 words) Coursework
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 Economics Coursework for FREE!

Contact Us