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The theory of demand and supply is one of the most conventional theories in the discipline of microeconomics that has been the reference point for many to determine equilibrium prices. The intersection between the points of demand and supply forms the basis for the determination of the equilibrium price.
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Ibn Khaldun clearly envisages the effect of tax on enticements and productivity he appears to understand the concept of optimum taxation. Ibn Khaldun appears as a forerunner of the prominent American economist Arthur Laffer whose suggestion complements that high rates contract the tax base since decreasing the economic activity.
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The government has set a target of 4.5% for inflation. The current rate of inflation is much more than the target. This is why the government is increasing the interest rate prevalent in the country. The IMF in its recent report in April estimated that the country’s GDP will likely decrease due to the strong fiscal and monetary policies of the government.
Goldman’s role in the Tech stocks bubble is evident in the internet era where it took advantage of the investors not knowing about the changes in regulations regarding control of quality standards. It did not observe the new underwriting guidelines and often manipulated
R squared refers to the coefficient of determination and it indicates the extent to which a given data set fits the econometric model. The measure helps in the achievement of accuracy in predictions of some phenomenon. The coefficient of determination is used during hypothetical analysis. The value represents the total number of variations of the model used.
The statistics displayed in this particular representative form specifically imply that during the great depression i.e. around 1932 Private sector investments were the lowest hence taxation policies bringing revenue into the country were very small giving a lower annual GDP and in turn resurrecting a crumbling economy.
The United States is too dependent on oil imported from foreign markets for its energy needs. For many decades, a greater percentage of the crude oil refined in the United States was obtained from domestic oil fields but currently, most of it is imported. This paper will review the information that shows that the United States is too dependent on foreign oil.
The bank’s CEO, Jamie Dimon stated that this debacle was resulting from a combination of several discrepancies including sloppiness in their reporting and bad judgment. Much of the wrath for this detriment is directed to Mr. Bruno Iskil, who heads the London segment of the investment bank. This is majorly due to the magnitude of the transactions he usually undertakes and this has given him a new name “the London Whale”.
In horizontal merger, there is the possible consequence of reduction in the number of participant companies in a sector of business activity, which results in reduced competition. In
Gross Domestic Product (GDP) is the monetary value of all the final goods and services that are produced within a country. In the paper, the data was obtained from the World Factbook. According to the records in the book, it is clearly seen that the Gross Domestic Product of the 22 Arab League members was 2649.6 billion US dollars.
Generally, the circular flow model attempts to explain the circulation of income between households (consumers) and firms (producers) as well as the link between money and resources. Basically, firms employ households (workers), who are compensated for their labour contribution to the production process.
Macroeconomics a branch of economics that deals with the behavior, structure, and decision-making of an economy as a whole has made significant changes worldwide. It is evident that the widespread Ebola, the existing Russian crisis with Ukraine and the Islamic State terrorism will have a negative impact on the global economy in 2015.
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It employs the Generalized Methods of Moments (GMM) methodology which facilitates control over unobserved effects that may be specific to a particular State. These effects may result from the joint endogeneity of some of the independent variables in the model. It is important that this is controlled in order to obtain reliable results.
The shrinking and aging of the population of Germany remain to be one of the greatest demographic challenges facing the country. With the lowest fertility rates (1.4 per lady) and highest life expectancy rate (80 years) in all of Europe, this promises to be the main the concern for the labor market in the coming decades.
The author states that one problem with the public education provision system is that it may lead to crowding out in private education provision.The crowding out the problem can be solved using educational vouchers. These vouchers are fixed amounts of money offered by the government to families with school-age children to spend it on any school.
There are important distinctions between these terms which give each term a unique meaning. The invention is about discovery and the creation of something novel that did not previously exist. Innovation, on the other hand, carries invention further with the commercial realization of the value of the invention or the receipt of an economic return.
Monetary Economic growth is generally thought of as one-dimensional and is measured by an increase in income. Monetary Economic development involves structural and functional changes and an appropriate system of the money supply. In the absence of effective measures, the latter stages of development are estimated by the growth of income.
ity popularity and reputation, incompatible celebrity images and overriding popularity of stars over the product being promoted render them as ineffective marketing strategies.
Celebrity endorsements benefit new brands by quickly establishing their credibility in the market. By
Important features for the inflation targeting are transparency of policy that exist and this is increased by communication and being clear on the plans and also the objectives of policymakers. Also increased accountability in the central bank
Indeed, the aspects of consumption inculcate a vast array of economic, social and cultural dimensions in which case it is more appropriate and worthwhile to focus on the topic as a single affair (Lockie & Kitto). In this case, the consumption-production relationship becomes out of the question as the separate models gain different analyses.
The countries have inflexible market structures that do not have a progressive record. For instance, many of the markets concentrate on particular goods and services. The sale of such goods and services is a rampant idea in the market that makes people adhere to the business. Incepting new ideas in the market is a retrogressive idea that does not bring out any importance.
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Moreover, once the employment opportunities are created, the household income increases and people like to purchase more and save more. Ultimately the demand increases and so
The oligopoly market results when a few numbers of firms control the market. Mostly, these types of market experience a high level of competition from the other firm.
The demand for coffee brand A will decrease as more people prefer brand X whose price is low. Also, the supply will decrease due to low demand.
b) Demand for coffee brand X will increase due to fair market price, while supply will increase as well so as to meet the increased demand.
a). the supply will also decrease because there are fewer sellers.
The dollar has gained 3.2 percent against the euro and 8 percent against the yen. The gain creates expectations that the economy will grow at a higher rate than Europe and Japan. Currently the dollar went higher. The dollar now trades against several currencies at a four-year
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Chicago is one of the cities in the US that still faces the same sort of racial issues it used to face more than 75 years back. African Americans face the same types of work and disparity in income problems, and it does not seem that anything has changed regarding the racial issues in this part of the US.
About the subjects, monetary and fiscal policies that were critical in analyzing short-run fluctuations in the 1970’s are no longer effective. Similarly, as concerns the environment, a key
The 2008/2009 financial crisis affected many parts of the world, although it emanated from the US. This shows that the global economy is actually interconnected such that a major shock in one region could trigger ripple effects in other regions. So, countries within the same geographic regions or with similar economic conditions have formed regional bodies for various purposes.
Generally, this paper discusses information given in an article published in “The Economist” on the topic of unemployment in America. This article is available at the following website: http://www.economist.com/news/finance-and-economics/21596529-americas-labour-market-has-suffered-permanent-harm-closing-gap.
The scarcity of resources or rather the finite nature of the world as explained by Garrett Hardin explains the inefficiency of the invisible hand. According to the theory of ‘tragedy of the commons’ each
The paper was published in Journal of Law and Economics Vol. 3 (October 1960): 1 – 44 and is available from the CMS.
A farmer plants crops in his farm in order to harvest them and obtain
Science and technology have put the poor in an awkward position because they have lost control over their lives and become targets of complex scientific practices (38). Science is portrayed to work in favor of the rich while keeping the poor immersed in their state of poverty. Thus, science and technology raised a crucial humanitarian concern.
Nowadays China is one of the world's top exporters and is attracting record amounts of foreign investment. In turn, it is investing billions of dollars abroad (BBC). Although China was a reasonably developed nation from earlier times, it went into an active mode of economic expansion after World War II, particularly in the 1970s.
The perfect example of a country that has benefited and still bound to benefit from international trade in future is Canada. The future economic growth and development of Canada hugely depends on its international
The logic behind the fixed number of firms in the short-run is that this period is too short to lure new firms enter into the industry if it is making a profit as there are a lot of setup costs and capital expenditure that have to be incurred to join this industry. This capital expenditure takes time which cannot be completed in the short-run.
This is because product development is a result of several challenging stages of invention and research. This paper gives an empirical representation of how IP
The author states that it is commonly believed by economists and the common public that the London Stock Exchange is as near to a perfect market as there can be. The basis for this belief lies in the fact that the stock and share prices in the Exchange are extremely susceptible to the factors of supply and demand in the market.
In his theory of wages and profits, Adam Smith stated that labor wages do vary with the labor skills, and ease or hardship of the work done (Smith, Edwin & Lerner). Human capital, as an investment, requires a cost and, at the same time, payment for any return over the monetary or non-monetary lifetime.
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In 1970, economic discussions were dominated by oil price shocks and a rise in other agricultural and mineral products that played a big role in that decade. In early 1980 any discussion on alternative monetary regimes was not complete without the consideration of the gold standard and proposals for other commodity-based standards.
High unemployment inflicts significant social costs on the country. The social costs of unemployment in both the USA and Canada are similar in most cases; nevertheless, there exist instances where they differ. Long-term unemployment in both the USA and Canada creates numerous long-run social costs in these nations.
Market structures depict the difference in conditions or characteristics of a given market, which interrelate to determine the degree of profitability and competition in a given market in the economy. Different market structures resulting from different market characteristics include monopoly, oligopoly, perfect information, and monopolistic market
The aim of economic structures adopted by the west was to industrialize the countries making them some of the best in the world. The goal was to recreate a platform for the realization of better economic and living standards for the people. Countries in Asia, more so India and China have shown a resilience that even the west struggles to grasp.
The loans have enabled the U.S.A to sustain its current account deficits. According to Summers (2004), the United States had a fall in its rate of savings and a rise in the rate of domestic investment. Nations with high saving
The high prices will make the existing firms earn a high profit that attracts more entry. As they enter, the supply of the cinemas increases to accommodate the excess demand. The result is more ticket sales in the market represented by a movement from Q0 to Q1. Increased quantity lowers demand making the ticket prices reduce.
The conclusion from this study states that geopolitics and economic necessities have been dictating the oil prices for a long time. Tight control of production volumes by OPEC countries, the worsening political situation in the West Asia region, the downturn in the US economy are all factors that are leading to rising in prices of oil and weakening of the US dollar.
According to the paper Monopolistic competition is clearly seen in industries such as banking, electronics, fashion and garments, food manufacturing, fast food retail, and almost all personal and professional service industries like hair styling and grooming. There are many suppliers whose products are easily substituted for each other.
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For quite a number of people and even experts, the answer is yes. Or more precisely, the blame is on the requirement of mark-to-market accounting. In his letter to the US Securities and Exchange Commission or SEC dated Oct. 29, 2008, William M. Isaac, former chairman of the US Federal Deposit Insurance Corporation.