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According to the article, the counties with the highest level of poverty had a Gini coefficient greater than 0.43. Approximately, fifty-nine percent of the counties in the south scored high rates of poverty and income inequality (Shah). Historically, poverty and income inequality were in Appalachia, the Deep South, and portions of California, as well as the Southwest.
The federal government has applied all possible measures to solve the current economic crisis. However, the problem is still far from attaining a complete solution. This is because the measures applied by the federal government focus on large-scale economic problems and neglect the immediate domestic problems.
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Entrepreneurship is a process of creative innovation. A combination of innovative entrepreneurs and larger more established firms that bring forth mass production of entrepreneurs leads to successful economic growth in a country. A consumer is an economic driver. A consumer is not necessary a people but a systematic set of preferences.
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The chapter proves to be very educative as it gives the reader finer details on the state and changes in political economy during the colonial and revolutionary period. It helps an individual understand how trade was being carried out with the rules and regulations set by the British that ensured within its colonies favored the British economy.
Scholars define technology as the sum total of the knowledge of using the other two determinants, labor, and capital, to influence production. To me, therefore, technology stands out as the most critical determinant of long-run growth in an economy. With knowledge, then an economy would be able to engage the other factors of production to grow the economy for a long period of time.
These are the people who live under one roof. They demand goods and services from firms (product markets) and also help supply factors of production that include; capital, labor, land, and entrepreneurship skills to the existing resource markets. Economists assume households to be single decision-makers and rational utility maximizers.
However, he puts emphasis on the fact that stock markets are unpredictable even to those that are experts in the field. This information being as dire as it is in the financial market the author uses humor to lighten the dapper of the entire situation. The line, “If I knew anything good about a company, that news would be incorporated into the stock’s price before I had the chance to act on it,”.
With that in mind, I would like to say that reading Macroeconomics 3rd Edition helped me to understand much about these concepts. Before encountering this book, I thought that a trader would just decide to supply commodities to the market without having any consideration. However, now I know that no such thing could be done.
Baron (2009) documents that, although consumers are often harmed by protectionism policies, the harm is typically small in relation to the per capita; hence consumers often do not take non-market actions to oppose protection. Importers are, nonetheless harmed hence often take up initiatives to oppose protectionism.
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The existing economic and political ideologies majorly consist of capitalism and socialism. In the chapter under consideration, the rape script is analogous to the deep-seated negative effects of capitalism. The author points out the corporation's strategic positioning within the context of globalization and the emerging socio-economic and political counter-productivity.
Turnbull, suggests that a commercial broadcaster can save money by preserving its program budget. On the other hand, a public broadcaster saves money by cutting programming and canceling new series and shows. This is considered to be an easy and lazy way that public broadcasters use to cut costs.
The situation highlighted in the article is that of the minimum wage. Usually, a measure to eradicate the level of inequality in a society, Senators voted against the increase in making the minimum wage to $10.10/hour from the existing $7.25/hour because they believe that it will increase the cost of hiring, leading to a widespread lay-off trend which could impact the job market negatively (Koff).
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Many scholars have used the concept of racial formation as a framework for gaining more insights into the meaning of race (Hosang and Daniel, 303). One of the major tasks faced by scholars in the field of social sciences prior to the 1980s was addressing the changing meaning of race in diverse social settings and over historical time.
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Dumenil and Levy explain how the 1979 Federal Reserve increases in interest rates were beneficial to lenders who earned huge inflows of interest. Additionally, transformations in corporate governance led to the distribution of dividends, which together with hikes in stock-market indices led to increases in income for the upper-class capitalists.
The article titled ‘Have we solved too big to fail’ is written by Andrew Haldane. The article talks about how financial markets have not learned from the economic recession of 2008. The main thesis of the article is that more reforms are required in order to overcome issues that caused the economic crisis of 2008.
The report was undertaken and authored by Guido W. Imbens, Bruce I. Sacerdote, and Donald B. Rubin. The theory predicted among those who won lotteries, money won is assigned randomly thus resulting in the reduction of labor earnings. It was also predicted that such income increased consumption and savings.
Almost every manufacturing units start to lay off the workers while the thousands of inhabitants unemployed. The prediction and ranking of the international experts and analysts become vain. The top-ranked business-like top five banks of the US become bankrupt which was A and A++ rated by the Moody’s previously for the long term investments rates (Steve Crabtree, 2011),.
An amount of USD 4 million was paid out by New York hedge fund Scopia Capital Management LLC for a 45% stake in the United States facility that was capable of extracting the starchy part of the leguminous seeds and this is ground into a powder that is used for thickening the shale. Things did not turn out as expected after the deal in 2012 and the processing facility ended up in bankruptcy.
CBO (a nonpartisan agency) calls for legislation for financial matters to be settled by the government. Some Presidents of the US, such as Obama and Mitt Romney ever focused on the solutions of budget plans to settle the foreign ownership debts. Tax reforms are also one of the priorities of the US government (Politi, 2012).
Countries at risk of losing access to the market need an increase of official resources through different actions including the massive ECB action, Eurobonds, and the European Financial Stability Facility (EFSF) so that such sovereigns as Italy and Spain can be saved from a disastrous run (Roubini).
Dialectical discourse communities are formed among individuals who hold a common interest in any given sector of life, and it can be established by both professionals within any particular field of expertise. They come together to form a group, where they exchange ideas, explore controversial topics affecting their profession and areas of interest.
Myer Holdings Limited is an Australian firm that deals in a wide range of products including cosmetics and fragrance, apparel, homeware, electrical goods, toys, footwear, handbags, and general merchandise. The company has been in existence for over a century and has its headquarters in Melbourne, Victoria (Myer, 2015).
A recent theory siding with the Fed indicates that the Federal Reserve has the ability to improve growth in the short run but at the same time unclear on its ability to do the same in the long run. Traditionally, the Fed is capable of influencing how demand changes in the end but not the long-run tendency itself.
A few proportions of the multinational companies have lagged behind in investing in the developing world while some have completely abstained from the activity. Many multinational companies have increased their investments in the developing nation thereby helping them increase the gross domestic products(GDPs), their employment rates, and their foreign exchange earnings (Poel, 2011).
This research will begin with the statement that in the context of macroeconomics, the monetary policy has a lot of influence on the exchange rate of an economy. This research tells that any change in the variables that control the monetary policy would have an effect on the exchange rate in the economy.
This research tells that FDI plays an important role in the open and effective operations of the global economic system. It can provide the firm which intends to invest in another country with cheap facilities of production; cheap raw materials and labor force, new channels of marketing, and markets and access to current technology, skills, products, and services.
These caused a great loss in terms of life and money. The top-level politicians of many countries in Europe realized that the solution would be uniting the countries in terms of trade, commerce, and other variables. The first step towards this was the setting up of the European Coal and Steel Community with six countries as its members.
This acts as an incentive for farmers to produce more corn and sell at a high price as the law of supply states that price of a good is directly related to its supply; if price increases, quantity supplied increases. The supply of corn also depends on the availability of resources or inputs such as land and labour, prices of substitutes.
According to the research findings, it can, therefore, be said that MNC’s and host nations will find it difficult to act for the long-term good of the world in regards to the oil political economy. In the Red Line Agreement, the US found it more profitable to drop their position on the open door policy and cooperate.
The United Arab Emirates was mainly created in 1968 to safeguard the oil reserve which was projected to be the backbone of the economy. The economy of the UAE was boosted by its openness to trade globally. In essence, it is one of the few countries in the world carrying out trade internationally with various countries and partners. In this regard, the economy of the UAE has been growing steadily.
Efforts to unemployment are likely to increase inflation, and efforts to reduce inflation are likely to increase unemployment” (Hinshaw2). Many economists in Canada at the time believed in the Keynesian school of thought that, “Keynes’s General Theory revolutionized the way economists think about economics.
However, the positive side of this theory is that it seems to be confirmed by the reality on the ground. For instance, in nations where the economies and industrialization have matured, the nations seem to do better than in those nations which have underdeveloped economies. The government has little to contribute to national competitiveness.
According to the research, it can be said that for many years, broad money was assumed to be the only item that affects the passing of macroeconomic policies as drawn out by the IS-LM model. The researcher states that unfortunately, the supply of money does not capture all aspects of monetary macroeconomics.
Increasing price would lead to inflation, and would definitely embark that there is a loss of international competitiveness from the producer’s side; this would in-turn imply that unemployment would prevail in the import and export competing industries. The government would develop policies for countering this inflationary impact.
This study is focused on identifying the impact of students’ demographic characteristics demand for higher education. It also examines the types of occupations. The higher education sector in the UK comprises of universities, university colleges, specialist higher education institutions, and other higher education colleges.
The gross domestic purchases had a sharp increase in the price index and this ensured prices paid by U.S residents by 2.0 percent in the third quarter, 0.1 percent more than the second estimate. The real personal consumption saw an increase of 1.7 percent in the 3rd quarter, and this was an improvement from an increase of 0.7 in the second
This paper analyses the international business environment in regards to Mexico, showing its potential of a good place to make the investment for an international British business company to investors. In doing this, it uses the Porters Diamond model, which is one of the widely used assessments methods for the international business environment.
Venezuela captured the attention of international investors when it became one of the best performing equities markets in the world in the early half of this decade. The company registered 8% economic growth, mainly on the back of its petroleum exports at a time when international prices of crude were at all-time highs.
According to the discussion, policymakers can accurately time an exit strategy from their recovery policies is based on the assumption that banks and markets are decipherable from the perspective of a central planner. History demonstrates, after all, that the post-Great Depression government and Federal Reserve were wholly unsuccessful.
The author concludes that slavery was not a new thing to the Africans even before the Europeans had changed the course of their living. The domination of the Europeans and the discovery of the New World have altered this natural way of life and turned it into something profitable. The word is business
Apple asserted that Samsung made their devices so identical that customers could perceive those products, produced by Samsung, as made by Apple. A Research carried to this effect, based on witnesses’ testimonies indicated to the court that a substantial number of consumers has confused Samsung tablet computers and smartphones as Apple products.
From the above graph mass, acidification, and global warming have the different effect depending on the amount of the mixture of organic fuel produced in the United States. The data depicts that from the nearly 66% of the energy being produced only a small portion of nearly 25% is converted into electricity that is used for various aspects of the country.
The conclusion from this study states that growth is not the only merit that determines welfare, but prosperity would provide a better approach to the question. In this perspective, the author is right to postulate the need to devise better methods that incorporate critical aspects of human development.
The subsidy of $8,000 received by all first time homebuyers in the US will, therefore, lead to a reduction in the price paid by the buyers but will lead to an increase in the price received by the producers. Subsidies are Pareto efficient as they cost more than they deliver benefits.
The country has been hit by a financial crisis in 2008, and since then there has been tremendous growth as Fed injected stimulus packages in the financial sector. For this reason, the action of the Federal Reserve is to observe that the economy is fully out of recession.
The reasons suggested by them included reduction of savings and a need for the government to invest in improving the living standard of people instead of making the economic investment. Obviously, schools, hospitals, cinemas and theatres all have limited capacity and have to be expanded or created to accommodate a larger volume of people.
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This is clearly illustrated in the interview with Byanyima who confirms that this inequality brings about bad governance. Byanyima also confirms that there is inequality by comparing a 1% population of the rich to own same as what 50% poor people own. This gap has grown over time with an example in the UK.
The experiment aims at showing the effect of the tax on the selling of apples on a small scale. In this experiment, the participants are in two equal groups of buyers and sellers. The participants then involve in buying and selling of apples in the different sessions. The objective of this experiment is to find out the effect of the tax on demand and supply of goods in the market.
As the paper outlines, government investments depend on the state of the government and world interest rates and in this case, it will remain unchanged. An increase in government savings will have the appositive impact on trade balance and thus it will rise. In addition to that, such an increase in savings will cause a decrease in the exchange rates.
The author states that the consumer has the ability to rank them according to their affordability. When the consumer is just satiated consuming the bundle of x goods as compared to the satisfaction he would have earned consuming the other bundle of y goods, according to his own preferences, then it is said that the consumer is indifferent.