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Macro & Micro economics Introduction This paper presents an analysis of an article named “China economic growth lower than forecast” published on 15 April 2013 by BBC. This report explains that China’s growth rate has been lesser than the growth rate that the country had experienced in last three months of 2012 (in the first quarter of 2013 Chinese economy grew at the rate of 7.7% while it was 7.9% in October-December quarter of 2012).
This growth in the economy was observed after a flat performance over the last 18 months. The marginal growth has been due to the progress in the services sector than contributions from the manufacturing industry. This was positive news but the policymakers have struggled to register even a modest pace of progress of the country’s economy.
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Keynesian economic policies derive its name from the proposed ideas of the British economist John Maynard Keynes. The economic theory of Keynes was based on the circular flow of money which attained great significance during the golden age of capitalism in UK. The golden age of capitalism is the period after the Second World War.
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During the Great Depression, people out of their natural reaction started hoarding money. Lack of money spending stopped the process of circular flow of money and it resulted in the stagnation in the economy. Keynes had prescribed that the solution to this problem would be government interference with tax cuts and increased spending.
The aspects discussed in the three videos were not restricted to United States of America; were common worldwide. The three videos had common aspects and differences too. The paper therefore discusses the common aspects and differences found in the video.
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Twin deficits also known as the double deficits are a brief introduction to two associated economic challenges, the state budget deficit and the global trade or current account deficit. The government budget deficit refers to the variation between state revenue (majorly taxes) and state expenditure.
The worldwide crisis in the U.S financial markets and also the sluggish growth rates in the emerging markets like China are slowing down the trade. This has become a hindrance to the global economy; thus the baby booming generations have become highly concerned about the retirement income security.
While supply refers to the amount of goods sellers, are willing and are able to bring into the market at any one given time (Brown 2010). This is at the current prices in the market. This brings in the fact that the market has two major players. The buyers and sellers.
The rising costs are an outcome of the general level of inflation in the countries of Europe. Many big companies, particularly those, that are conducting operations across several countries in the world are now carrying out research aimed at weighing the probable influence of the theatrical increase in prices of crude oil on their businesses.
Oil prices are determined by the help of other countries especially Latin America and Europe. Therefore oil prices in these countries affect Bahrain’s economy. Inflation in Bahrain is affected by goods such as food, beverages, tobacco and services such as medical car, transport and communication.
Thanks to globalization of trade, the prices of goods and services in the market are being driven by the global prices. Globalization has allowed for stiff competition in the market which has led to people choosing the best prices of goods. As result, people who sell their goods at extremely high prices have been forced to tone down by the market forces reading to creation of uniform prices of goods.
The calculations for the changes in Total Variable Cost (TVC), Average Variable Cost (AVC), Worker’s productivity and Average Total Cost (ATC) along with the losses incurred, in cases A and B have been illustrated below. Fig. 1: Losses to be incurred in Case A Fig.
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The debates involve discussions about how reforms can be brought about in this sector. This point of view takes care of the economic objectives of the reforms in the health care system but obscures the other portion of the purposes of providing efficient health care: the morally vital attributes of the medical profession and the health care provision.
This essay analyzes that Merger is not easy to do an activity and involves incorporation of two big organizations. A company could decide to merge because of many reasons, like provide capacity utilization, to gain economies of scale, to gain access to new suppliers, distributors, customers etc. Although Merger is not always helpful to the society.
For instance, the journal updates the readers on the current economic matters and trending business, politics and its drama among others. This article provides a thoughtful discussion on the trending economic issues like inflation and house prices, entrepreneurship ups and downs, and unemployment.
As mentioned in the article, both FOMC and the FED is much concerned about increasing or lessening their respective pace of buying bonds or securities owing to the reason that different fiscal policies are restraining financial growth by a greater level and most vitally weakening the economy at large (Cafariello, “Fed Stimulus Stays Strong”).
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The airline industry is a huge industry that offers a wide range of services. This industry provides air travel services to people that need to travel from one destination to another by air. Similarly, the airline industry provides freight services and cargo ferrying from one destination to another at a fee. Large airline companies have large aircraft that transport large cargo and many passengers.
There are four primary laws of supply and demand. First, if demand rises and supply remains unaffected, there will be a shortage causing a higher equilibrium cost. Second, if demand lessens and supply remains unaffected, there will be a surplus causing a lower equilibrium cost.
In the month of May, the Chinese economy realized an overall growth despite the decline in the development of certain sectors. There has been a substantial growth of the Chinese manufacturing industry in May 2013 whereby, the economy’s PMI (government-purchasing managers’ index) recorded a 0.2 % rise in May 2013 (from 50.6% in April to 50.8% in May), which was contrary to the forecasts and expectations of many economists ((Teso 2013; Standing & Chiang, 2013; Hubbard, 2013).
Michelle grows 200 pounds of potato and 50 chickens per year. Thus the opportunity cost of potato producing is (=50/200), i.e. 1/4 chicken per pound of potato. Answer 2 The opportunity cost of chickens producing for Michelle is (=200/50), i.e. 4 pounds of potato per chicken.
At this juncture, austere fiscal policy is highly debated and is projected to further impair the development activities in the country. Social security faces the largest question. The harsh realization of these activities as realized by the common domestic citizen is that Social Security and Medicare might not be available any further for the generation that is in their twenties in the current decade.
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Russia is a country which was once a super power along with USA which is now considered as a developing nation due to their economic and living standards. If we define developing nation, it can be described as one which provides a healthy living environment for its citizen along with much advanced economic status.
The Gulf Cooperating Countries (GCC) are among the fastest-growing regions in the world. The GCC is made up of six countries: Oman, Kuwait, Bahrain, Saudi Arabia, Qatar and the UAE. This region collectively owns 54% of the total reserve of conventional oil and gas reserves in the world known to date. Scientists expect to find large additional quantities of undiscovered and unproved reserves.
To put the discussion into perspective, a brief profile of each of the companies will be given. To begin with, BP is a renowned international gas and oil company operating in over 80 countries as reported by Fisk, Swint and Calkins. Its two segments deal with exploring and producing gas and oil products and refining and marketing these products.
Focus would be on demand, supply and market equilibrium, aggregate supply, the financial panic of 2008, gross domestic product, economic growth and unemployment. The gas industry is one of the key industries globally as it provides the energy source necessary for carrying out activities in the other sectors of the economy.
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Coming from a background with hard academic excellence coupled with a solid experience of a working economy spanning from Kings College to Cambridge University [the heart of knowledge], right into the money control systems of the British Treasury, Keynes was an economist of real economics, recognizing so early in his life the need to convert theoretical prescriptions into politically relevant, workable plans able to assist an economy in need.
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Unregulated open fisheries in the Pacific Ocean created a common resource for the fishermen. Both local fishermen and foreign fishermen exploited these resources with the aim of maximizing private profits. This decreased the total reserve of fish in these areas and at one point of time the cod population became extinct (“Fish Stock Depletion”).
U.S. government policies on economy
This paper will look at four policies developed by the US government to influence economic growth and productivity. Also, it will assess whether each item has improved or reduced life quality, and make fitting recommendations that may enhance the policies.
The up-gradation process will encompass radical changes to the current business processes, alterations in current jobs as well as new positions. The management of the enterprise strongly believed that with the up-gradation or the development of its legacy billing system, the enterprise can attain huge profitability.
The article by title “India cuts interest rates for the third time this year” has been published online on BBC News on 3rd May 2013. The report says that the Reserve Bank of India (RBI) has reduced interest rates in the country from 7.50 percent to 7.25 percent with the aim of introducing fresh waves of economic growth in the economy in the face of sluggish economic growth.
In 2008, the United States experienced an unprecedented economic meltdown that spiraled to several nations across the globe. The documentary Inside Job, released in 2010, explores the factors and events leading to the collapse, one of them being the mismanagement by the banking sector in collaboration with the federal government.
This essay mainly focuses on identifying effective sets of macroeconomic policies for achieving major macroeconomic objectives, set by the government. The macroeconomic objectives include labor productivity and high levels of capital investment. The rise of the European market and globalization impacted the long term objectives of the government.
The laws of antitrust prevent anticompetitive business practices; they promote and foster competition within the market. In 1890, Americans benefitted from the first antitrust law through the Sherman Act. This act played a major role in combating the business trust of the United States economy (Utton, 2003).
The issue of commercial property has been in the economic circles for a long time. With the growing global population, business expansions, and need for higher living standards in the world, the demand for commercial properties has been rising at a significant rate. Commercial properties form and rely on macro and microeconomics.
A European debt crisis buffeted European nations, also impacted the other side of Atlantic. Fiscal policy failure owing to its weak basis, level of sovereign debt, lack of competitiveness arising out of higher labor cost and an inherent balance of payment crisis that was eroding the economic soundness of the EU to long are some of the reasons.
Name: Instructor: Task: Date: Macro & Micro Economics Economic Issues that Arise in the Decision to Get a Haircut Decision-making is a continuous activity that individuals partake on a day-to-day basis. It is common for managers to make decisions when seeking solution to problems that face organizations in the corporate world.
This essay focuses on the economic views of global economics editor of WSJ, David Wessel, pertaining to the important economic issues, that is, central banks, easy money, asset purchases and bubbles. His article, “Easy Money: Too Much of a Good Thing” is about these issues, that are considered drivers behind the stock-market gains at that moment.
The global financial crisis and the debt crisis in Europe had severe impacts on the economy of Europe that melted down into other economies all over the world. The main bloodstream of Europe is the interbank credit system that enables the banks in Europe to avail credits from other banks of the European Union.
Video game industry in North America Name Institution Date Video game industry in North America Introduction The video game industry in the North American continent is an industry that has offered employment opportunities for many on the global scale through the creation, distribution, and the sale of video game products.
The UK, the third largest economy in Europe (Simeon, 2012, p.203) continues to struggle to come out from the economic slowdown, with the prospects for swift growth hampered by the ongoing European sovereign debt crisis, and significant structural reforms are still desirable (the United Kingdom, 2013).
Macroeconomics and microeconomics vary in the scope of study, so macroeconomics covers the aggregate study of various units combined together, while the microeconomics handles a particular unit of an economy. In the overall economic phenomenon of macroeconomics, it handles issues of aggregate investment, consumption, savings and production.
An oligopoly is best defined as a market structure in which there are is small volume of sellers that dominate the industry (Hirschey 2009; Hirschey and Pappas 1995). The sellers involved in the oligopolistic market structure are usually quite large, therefore their actions and strategic intentions strongly impact the market.
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This caused a problem in the U.S. oil supply. The U.S. oil dependence on other countries has significantly increased over the past decades. This should have been just fine. However, the problems lies in the fact that while more and more of the U.S. oil supply is being imported, the suppliers are becoming more and more from “politically and economically unstable” nations (p.3).
Since then the world economy has passed through several stages of crisis including inflation, debt crisis, housing market crisis, financial recession, etc. The weaker performance of the economic index led to rising demand for gold and the prices of gold increased. The recovering signs of the world economy led to the fall of gold prices.
The heritage foundation report indicates that half of the household heads of unlawful immigrants have less than a high school degree while 25 percent of the household heads have a degree from high school. Generally typical unlawful immigrant household has only a 10th-grade education. Consequently, non-immigrants have low-paying jobs and pay less tax.
This present paper is an essay that largely focuses on macroeconomics and it covers five critical areas pertaining to this subject. The areas covered by the essay include the definition of the term macroeconomics, secondly, the objectives of macroeconomics, and thirdly, the essay will explain why macroeconomic objectives are significant in the United Kingdom.
The last twenty years saw Dubai grow into a major item for tourists. The global airport remained launched in 1959. Stimulated by the realization of oil in 1966, a few young hotels started to open to cater to the requirements of Dubai’s developing economy. In the middle of the 1980s, the formation of major organizations began that came to force the growth of the Dubai tourism group.
China has followed the export-led path of growth which has brought admiration for the economy from the international sphere (Razmi, 2009, 1). Since the net export is a part of the gross domestic product, a considerable rise in exports has led to a significant rise in the GDP of the country. This in turn is reflected in the higher growth rate of the economy.