Macro & Microeconomics Essays

It is essential to state that duties, tariffs, quotas, excises, subsidies, customs and other such concepts do not exist there and foreign investors have a great deal of freedom to start up their business in these areas, often accompanied by tax breaks, less paperwork and few restrictions (Noack, 2007).

Gross Domestic Product (GDP) is widely used as a means to gauge the economic development of a particular country. It has been a broadly prevalent measure that has been in use for nearly a century. The alterations in a country’s GDP are considered to depict or indicate the growth of a country at large.

According to Swan, the Deputy Prime Minister and Treasurer of the Commonwealth of Australia, the country’s policymakers also specifically focus on monetary policies which may ease inflation pressures. However, budgetary forecasts indicate that Australia still needs to wait for 2-3 years to achieve a budget surplus. 

In the course of developing its business both across national and international borders the companies need to conduct certain strategic activities. The firm in regards to developing their business or idea needs to largely market or promote their products or services.

The country has acquired new loans in order to clear off previous loans and this has built up the burden on the economy as a whole. The documentary has suggested that this has been because of the poor economic system prevailing within the country and such an economic system can never be referred to as a Capitalist or Socialist system.

Oligopoly mostly resembles monopoly where a company puts control over large portion of the market. In the oligopoly market, however, there are at least two firms which exert control over the market. For instance, the retail gas market is an example of an oligopoly since a large part of the market is under the control of a few firms.

Despite the fact that the depression had taken its roots in the United States, it rapidly spread to other industrialized countries across the globe and had a devastating effect on output and employment levels. The cultural and social effects of the great depression were also profound, requiring an immediate response.

The US Federal Bank invested a grand amount of capital into the financial markets. But nothing could help avoid the crash of the stock markets and the banking sector. The government proposed a $700billion rescue plan but failed to pass it on objections that taxpayer money was being spent to save Wall Street, investment bankers. 

The term economic growth refers to growth of some economic factors rather than the uneconomic ones. The GDP do not take into account the disparities in income levels between the rich and the poor. Since GDP shares a link with the economic growth this is a very important drawback.

After Obama won the election in 2008, there were high hopes of revival of the US economy. After four years in power, Obama had little impact on the growth of the US economy. This four-year term aspired to the former dynamics employed by Abraham Lincoln and his cabinet where the US was revived by former antagonists and competitors during the civil war.

The fall of the Canadian currency results from the reduced oil prices due to the market shocks. These are attributable to attacks such as Iran. According to the country’s expectations, the increase in oil prices would lead to positive outcomes as far as the country’s currency is concerned. However, this resulted in the dominance of the risk themes (Dmitrieva 10).

It has become a fact throughout the world that beauty and looks influence one’s performance and the way people perceive him/her. Psychologists have already emphasized the importance of beauty in non-economic setups. In recent years, the impact of looks has been observed on one’s financial and economic conditions as well.

It cannot be ignored that the rate has remained historically high. It has also been volatile. The high rate of the terms of trade plays its part in increasing the real income level. The rate also acts in keeping the rate of inflation at lower levels. The ratio between the prices of exports and imports is defined to be the terms of trade.

Though in the 1960’s Japan, Germany and the United States were the only car manufacturing countries, globalization has changed this fact. Though first sources of auto parts for these countries, South Korea, Mexico, and Spain among others, have upgraded their production and some now even compete with traditional producers.

The two axes represent savings and investment, as well as the proportional increase in the interest rates. It is clear that an increase in tax rates presents a proportional effect on interest rates represented with the curve marked (r). This leads to low investment because it is a function of the negative function of interest rate.

Classical economic theories focused on consumer welfare, introducing the concept of utility maximization. Chapter 14 offers an in-depth coverage of the ideas propagated by classical economists. The chapter offers readers a glimpse of the radical transformation that capitalism underwent in the 18th century occasioned by the rapid industrialization and emergence of giant corporations and cartels.

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 government gives this payment on a monthly basis. This payment comes in two forms namely: National Child Benefit (NCB) and Child Disability Benefit (CDB). NCB is given to low-income families with children under the age of 18 while CDB goes families with children who have physical and mental disabilities.

From the question, increased demand for Tuna Fish fueled by Americans, Europeans and Chinese who are switching to more healthy sources of protein causes a rightward shift in the demand curve. At the same time, in the labor market for fishermen, the increased number of vessels and fishermen represents a movement along the supply curve.

The government along with the introduction of such policies should ensure that illegal trading practices do not take place in the country. If the companies are unable to communicate with the consumers through branding they would take a cost advantage strategy and would be offering the product at much lower prices. Thus the price differentiation strategy would prevail in the market.

The log-log model was found consistent with the economic theory. For example, the coefficient of own price was not significant while the coefficient of output price was negatively correlated in the linear-linear model. Cost minimizing farmers’ input demand, should be positively correlated to the output price, i.e. with increasing output price.

By black swan events here are meant events that have blindside consequences, are not expected, and which are impervious to being predicted successfully, or foreseen. Another element of black swan events is a rarity − something that is so rare as to not be expected among the probable set of possibilities for a given system.

The global financial crisis of 2007-08 affected many countries of the world. Even the world’s leading countries, like the USA, were struggling to cope with the sudden changes in market trends. This report discusses the impact of the global financial crisis in Qatar. The case study is reflected in comparison with the situation in other countries in the same region.

Since business often borrows money to invest, and interest is the cost of borrowing, these higher interest rates will reduce investment. Describe why this scenario is likely to be bad for the macro economy. This scenario runs counter to a sound fiscal policy.

This essay will be divided into three phases. The first part deals with costs associated with ground work and includes excavation cost and the factors to affect its success or failure to meet the set deadline. The second phase deals with cost to be associated with brick purchasing and installing of the same at the site. The last phase deals with roofing and cladding of the walls.

The idea behind the weekly update is to identify possible threats in the financial market and to handle them. This paper is a review of Weekly Market Update posted on 5 April 2012. It discuses market developments, economic trends and their implications, focus ahead and major moves.

The persistent decline in the economic activity therefore attracted the attention of the Government as well as the Federal Reserve System. Government took both the fiscal as well as monetary measures in order to stimulate the economy. These events however, led Federal Reserve System or FED to intervene into the economy in order to take some measures to correct the economic situation.

Information and knowledge are intended to be shared with others. In the same way, sharing of business data and information with clients and employees is necessary for every kind of business. With the arrival of business networking and electronic commerce, the majority of businesses depend on the information they collect using the internet.

Joseph Stiglitz in his book Freefall talks about the failure of the markets (economy) to function on their own. He also talks about how the government has failed to play a supporting role in the economy during the recent crisis. This book analyses the causes and consequences of the financial meltdown that started in 2008.

It takes a number to years for a company to create a name in the industry and a specific brand that would catch a particular following in the market. However, despite the quality products and services, these companies may not be able to make enormous profits in the long run.

It was found that nearly 2000 people died in this mishap and it had left the nuclear power reactors of the nation at risk of meltdown. Furthermore, it left most of the people without power and shelters. It was evident that in most of the developed countries the industries halted their production since they were not receiving their raw materials for the production.

Capitalism and communism are based on different philosophies. Capitalism focuses on free-market and liberalization where every player has a right to earn profits. Government control and intervention are only nominal in a capitalistic economy. Communism, on the other hand, aims at a classless society where everyone is equal and the state is extremely strong.

A crucial role is played by the federal government in supporting the construction of housing financially and offering ownership as well as rental support for households with lower income since the 1930s. In the recent period, numerous programs are being funded by Congress in order to meet up to the housing requirements for the population that is poor and susceptible.

When the two lawyers bought up the entire potato industry, they were able to establish a favorable playing ground suitable for them to choose the best course of action. By hiring a management firm to guide in the best course of action, the owners are aiming at ensuring that the business maximizes its profits and that their concealed purchase of the potato industry does not affect the company negatively.

Changing market conditions can create up and down fluctuations in the value of a mutual fund. Stocks can go up and down in the same manner according to changing market conditions. When considering how and where to invest, do your due diligence and research. It’s important to compare the differing costs of differing funds before investing. 

The company was listed in 1997 on the Toronto Stock Exchange. The blackberry line of products was launched in 1999 and it served as a personal digital assistant. As the Blackberry devices become more popular, cell phone services were incorporated. The Blackberry phones grew to become the mobile phones of choice for business executives due to their versatility in handling electronic mails and office applications

This essay puts emphasis on monopoly power. The impacts the monopoly power can have on the consumers and the impacts it can have on the operation of the markets are the topic of analysis. A market structure that does not satisfy the assumptions of perfect competition is regarded as the market of imperfect competition.

  The increased energy prices threaten to destabilize the market structure because the dependence would be based on alternative energy sources. However, Antarctica’s position is based on the exploitation of the natural reserve to increase the stock within the economy. SRAS would be massively affected because most goods produced rely on oil prices.

The voucher system should be introduced in a more competitive environment for the skill development of the students. For peer group effectiveness, the school administration must be well organized in channeling the funds in the most optimal areas trying to develop a homogeneous community with the scope of full identity development.

Therefore, Baldwin and Daria further suggest that this could also be attributed to the rapid decline of the trade values. However, the issue of immense price declines cannot also be overlooked. Thus, following research, the Great Collapse can be attributed to sudden, global synchronization of postponement of purchases.

b) Graph of demand and supply curves-when there is a decrease in disposable income When there is a decrease in disposable income, then, there will be a decrease in supply since supply depends on production cost-how much it costs to produce a commodity. Decrease in disposable income lowers the amount that is to be used in production thus affecting supply as there is no enough money to facilitate efficient supply of the corn.

One of the tools of the central bank to influence the amount of money in circulation is via Open Market Operation (OMO), this comes under Fed’s monetary policy tools. This is an activity by a central bank to buy or sell government bonds to commercial banks and agents.

Peru decided to exploit the opportunity and export guano to the countries of Europe and United States. The guano was utilized as fertilizer in those countries. The availed opportunity made Peru into a transformed economy and the country emerged as a leading borrower in London capital market.

The costs of inflation are numerous and diverse: inflation devalues money and assets; redistributes income from lenders to borrowers; deteriorates the balance of payments; creates uncertainty and plunge in investment; produces money illusion; may lead to unemployment, and misrepresents the price mechanism.

In a variety of third world nations, such as Liberia, Ethiopia, and Yemen, there are no established laws that restrict businesses from polluting the environment. Why is this? In these countries where the gross domestic product (GDP) is substantially low compared to other developed nations, the government simply do not have the economic resources available.

Even developed countries and rapidly emerging countries are not free from the problems generated by inflation. China is the most rapidly developing country in the world at present. Yet, “China's inflation rate hit a 10-month high in February, as Lunar New Year festivities drove up food prices.

The cell phone industry is observed to be one of the rapidly growing industries throughout the world. With the advent of new technological features and innovations in a sustained manner, the industry has grown significantly with the increase in the number of buyers and market size. Certain key features such as affordable mobile phones.

The author asks the most intriguing question of “what is price really made of.” Throughout the analysis, the author considers prices of commodities to be the links between marketers and customers (Bade, and Michael 132). Indeed, success in determining the market price determines how successful a product is.

Developed by the Cleveland Clinic of the United States, the clinic provides the Abu Dhabi people with rare health care and medical attention services. Developers describe the clinic as aiming to provide people with a range of tertiary medical services, bringing world’s highest medical services to Abu Dhabi.

Microeconomics is concerned with the interaction between the individual buyers and the sellers and the factors which impact the choices the sellers and buyers make (OTTERMAN page 1-2). Microeconomics looks at the big picture hence the name micro which focuses on the national economy and there is provision of basic knowledge and how things are conducted in the business world.