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

Macro & Micro economics - Essay Example

Comments (0) Cite this document
Summary
There are varieties of dolls that are produced in the modern consumer goods market. Though there are certain machines that help to shape up dolls, the production of dolls is majorly a labor intensive method production that requires more of laborers than capital machinery equipments. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.2% of users find it useful
Macro & Micro economics
Read TextPreview

Extract of sample "Macro & Micro economics"

Download file to see previous pages With the rising income levels of most of the economies, the demands for entertainment products like dolls have substantially increased. In the modern age, dolls are often made of rubberized plastic materials. These materials comprises of crude oil and national gas in them. There are special machines that help to give shape to standardized pieces of doll parts in the manufacturing process. Nowadays to park more potential buyers, doll manufacturing companies use special chemicals to produce dolls of various skin colors to make them attractive to various types’ customers belonging to different global zones. Car Production Process Unlike doll production, automobile industry or car production process is highly labor intensive in nature. Mercedes, Honda, Tesla, BMW etc are the various companies manufacturing cars. With the growth of per capita income levels and the improvement in the rate of urbanization in most of the economies in the world, the proportions of cars demanded in the market have increased significantly. However it should be considered that manufacturing of cars requires high state of technology and exclusive machineries. It is clearly observed in the video that the level of car production process takes place via various steps, where there are huge modern machines automatically executing the manufacturing process. Thus unlike doll industries, car manufacturing industries requires large amount of electricity and petroleum for its working. Hypothetical Input Output Matrix Industry Input Costs Toy Industry (manufacturing dolls) Automobile Industry (manufacturing cars) Cost of Labor Input $153 million $85 million Cost of Capital Input $ 60 million $200 million (Source: Authors Creation) The above hypothetical input industry 2x2 matrixes clearly shows that the gross cost of labor input is more than capital input in the toy industry producing dolls. On the other hand, the automobile industry manufacturing cars require more expensive capital input cost than labor cost. Thus it is quantitatively proved that the toy industry is a labor intensive industry and the car manufacturing industry is a capital intensive industry. Factor Intensity and Factor Abundance China is the most populated nation in the world. Perhaps this is the reason for which the country is rich in terms of labor resource. The nation always concentrates in labor intensive modes of production. It is a labor abundant nation, where the size of its labor force is 937.27 million as recorded in 2011. On the other hand, U.S. is a nation rich in terms of financial resources. This is the reason for which the country is a capital abundant nation that is rich in terms of technological knowhow. The following section of the essay will concentrate on the factor endowments of the two countries and the factor intensities of the industries in a graphically represented Hecksher Ohlin model. Figure 1: Hecksher Ohlin Model Car Production Doll Production The production Possibility Frontiers (PPF) shows the two combinations of two goods that can be produced with the given amount of resources and state of technology1. The steeper PPF is of U.S., signifying capital abundance and intensity in production. The flatter PPF is of China, signifying labor abundance and intensity in production. The convex lines are the isoquants that show the different combinations of inputs that can be utilized to produce the same amount of output. B and E are the points inside the PPF of U.S. and China respectively, showing situations where all the resources are not efficiently used. A and G are the autarky or non trading positions of U.S. and China ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macro & Micro economics Essay Example | Topics and Well Written Essays - 1500 words - 2”, n.d.)
Macro & Micro economics Essay Example | Topics and Well Written Essays - 1500 words - 2. Retrieved from https://studentshare.org/macro-microeconomics/1488236-writing-assignemnt
(Macro & Micro Economics Essay Example | Topics and Well Written Essays - 1500 Words - 2)
Macro & Micro Economics Essay Example | Topics and Well Written Essays - 1500 Words - 2. https://studentshare.org/macro-microeconomics/1488236-writing-assignemnt.
“Macro & Micro Economics Essay Example | Topics and Well Written Essays - 1500 Words - 2”, n.d. https://studentshare.org/macro-microeconomics/1488236-writing-assignemnt.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macro & Micro economics

International Business Economics

According to Adam Smith, the absolute advantage would be realised as long as the cost of production differed from between countries, one or both countries would gain by trading. An example to illustrate this is a situation where we have two countries A and B which produce two similar goods X and Y. The figures show labour cost in hours for producing one unit of a good

David Ricardo formulated the theory of comparative advantage and argued that even if one country is more productive in both lines of production it would be still profitable to trade. Country A is more productive in both lines of production but it will still be profitable to trade with country B, this is shown by first stating that country A is more advanta...
6 Pages(1500 words)Assignment

Macro Economic Policies of the French and German Governments

In contrast, the Socialist Partys Ségolène Royal has made large spending promises which would cost, according to estimates by the Economist (2006), €49 billion per year by 2012. That is almost a third more than the expenditure planned by the current government, and there are questions as to whether the faltering French economy will be able to support such levels of expenditure.
In the three months to September 2006, the quarterly GDP growth rate was zero, when the Bank of France had forecast growth of half a percent. Many economists believe that the flat growth in the third quarter of the year was merely a correction from the 1.2% growth in the second quarter, a view that was born out by 0.7% growth in the...
11 Pages(2750 words)Assignment

Business Economics: Small and Medium

The entry of small firms into the global markets has proven to be the main aspect of the creation of economies of scale. Markets are fast evolving to the needs of varied tastes and customer preferences, so necessary knowledge and technology asset has a major role to play for small firms to rise and to match up to the situation. However, small firms are characterized by “smallness of the market share (a large number of similar-sized firms) and hence lack of individual market power, corresponding to the theoretical concept of Pure Competition.” (Waite 1973. P. 154).

They need to overcome the handicap of smallness by strategic alliances and mergers with larger or technically more competent entities. Small firms...
10 Pages(2500 words)Assignment

Issues in Applied Economics

A major issue then, becomes the convincing obligation by the polity not to abuse its force. Because institutions are planned by people with different bargaining powers and not for sake of effectiveness, some models may be less competent than others and due to path dependency, may continue for a long time, resulting in sluggish economy. The shortage of realistic commitment by the state not to suitable property human rights accounts for the incompetent institutions that have developed in different countries. To humor, such situation provides disincentives to investment in socially profitable enterprises, and generates groups with vested interests in preserving the status quo constraints.

Institutions present the fundament...
6 Pages(1500 words)Term Paper

Economics or Ethics

Several CEOs in America have in coalition with top managers deviated from the norms of corporate governance and caused immeasurable woes to the stakeholders. Using their power and ego they chased the wealth for personal gains without any concern for the shareholders or other stakeholders of the company. Enron, the world’s largest energy trader at one time, had to file bankruptcy under Chapter 11 when about 5000 workers lost their job (Bhattacharya, 2004). Arthur Anderson, one of the big five auditing firms was charged to have colluded with the management to misappropriate funds and project a picture different from the reality. Income was inflated and then all concerned papers were destroyed. The leadership at Enron was conce...
6 Pages(1500 words)Assignment

Managerial Economics and Business Environment

Once the above said subject matter is clearly sorted out, the next emphasis would be on the concepts like the opportunity costing, incremental principle, marginal principle, discounting principle, the principle of time perspective, and calculation of economic profit as the guidelines to the scope of managerial economics. (Surender. V, 2008).
To start with, we consider a firm for which different processes have to be carried to achieve its objectives of profit maximization (assuming that all the organizations work with the view to maximize profits). If firms from different sectors are identified simultaneously, then the working of the economy as a whole could also be analyzed which in turn is useful in the decision-making proce...
15 Pages(3750 words)Assignment

Economics in Business

...Economics in business Introduction: The purpose of this paper is to analyze the business objectives as best applicable to the Southampton Solent University. Herein, it is essential for the author to analyze the competitive landscape that the university finds itself and try and identify the forces which are governing the business decisions of the university. Further, the author aims to complete understand the simplex of competitive market forces and subsequently make recommendations for better future functionality of the university. PESTLE Analysis The author feels that it is applicable to use a PESTLE analysis due to the fact that the Political, Economic, Social, Technological, Legal and Environmental aspects of this model...
6 Pages(1500 words)Assignment

The Key Macro Factors that Have Influenced the UK Grocery Retailing Industry since the Early 1960s

...1. Assess the key macro factors that have influenced the UK grocery retailing industry since the early 1960s. The concept of organisational change is inherently intertwined with external threats and opportunities, which businesses must adapt to as part of strategic planning to continue long term growth. Senior and Fleming argue that the concept of organisational change has many faces, namely “convergent changes and transformational change that is organisation wide and characterised by radical shifts in strategy, mission values and associated changes of structures and systems” (In Thompson & Martin, 2005, p.41). Moreover, Johnson et al highlight that external macro-economic factors intrinsically impact strategy management and without...
13 Pages(3250 words)Assignment

Economics Perspectives and Policy

...Running Head: ECONOMICS PERSPECTIVES AND POLICIES Economics Perspectives and Policy of the of the Economics Perspectives and Policy Macroeconomics and Microeconomics The field of Economics has two branches that are microeconomics and macroeconomics. The learning of the whole economy in the world is called Macroeconomics, including inflation rate, business cycles, business growth and the rate of unemployment. On the other hand, Microeconomics is the study of individuals and how their choices influence the flow of the economy. (Giannetti, 2003, 190) Microeconomics and Macroeconomics are linked with each other. For example, the price of gas in California is about 10% higher than the national average. California is one of the largest states...
6 Pages(1500 words)Coursework

Macro and Microeconomics Factors in the UK Housing Market

The housing industry is divided into residential, commercial and industrial segments. Economists define supply in terms of service units, that is, a physical unit can be deconstructed into the services that it helps provide. These housing unit services are considered as an unobservable theoretical construct. Housing stock depreciates making it qualitatively different from a brand new constructed building.
The owner, user/owner and renter comprise the demand side of the housing market while the renovators and developers comprise the supply side of the market. In order to implement the simple demand and supply analysis to the housing markets, several modifications have to be made to the standard microeconomic procedures and ass...
8 Pages(2000 words)Research Paper
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 Macro & Micro economics for FREE!

Contact Us