Economic Discourse Communities - Essay Example

The use of lexicons is a common phenomenon in discourse communities, which entails the use of particular specialty words to refer to events and entities in the areas of interest. These terms and references are used to enhance and increase effective and efficient communication between the members. Lexicons enhance and improve communication between discourse community members, and help them further their understanding of the different phenomenon in their areas of interests. In economic discourse communities, members use various terminologies to ease their mode of communication and understanding between members.

Absolute advantage is the ability to produce goods and services at relatively cheaper costs than other producers or countries (Mastrianna 7). Germany can be said to have an absolute advantage over the United States (US) in automotive technology. Division of labor is observed when workers specialize in one particular task in the process of production (Mastrianna 12). Division of labor makes significant contributions to the development of technology. Monetary policy is characterized by control over money by the state’s central bank, which also includes control over interest rates and credit conditions (Mastrianna 8).

The current monetary policy by the US Federal Reserve shows the potential of reviving the ailing economy. The excise tax is a tax placed on particular goods and services with an example including gasoline and cigarettes (Mastrianna 5). Excise duty on alcohol only works to fuel the illegal trade in contraband. Wages are payments or resources offered to workers in exchange for their labor. The minimum wage is a contentious issue in the US.