Macro & Microeconomics Essays

There is notion that competitive market has the ability to achieve the efficient resource allocation automatically, market efficiency depends on the process that will eliminate excess supply or excess demand. Productive efficiency is given by the equality between price and average total cost.

The characteristic of a monopoly market that gives a natural monopoly a kind of special leeway to charge a price premium is the existence of economies of scale in the provision of services of such a firm, which are large in relation to the market size (Berg and Tschirhart, 1988). This characteristic is directly related to the monopoly cost structure of operational networks.  

Globalization refers to the convergence of global markets and global competitiveness among the firms resulting from new inventions, innovative product designs, and communication and information technology that has created a world of greater transportability, faster communication, and vanishing borders across the nations.

Any type of business ownership is supposed to be consisting of any of the three major types. They are: a) Sole Proprietorship, b) Partnership, and c) Corporation. The main distinguishing features between these types of business ownership and its major advantages and disadvantages have been discussed below (Kurtz & Boone, 2008, p.167): Type of Ownership No.

Generally, the world is full of people running various businesses, organizations and even governments that deal with money all through different structured levels. They all have different interpretations in the event that money is in their pockets; wealth, power and contentment in nature among others.

The author of this research informs that political partisanship plays a critical role in the formulation and implementations of monetary and fiscal policies in the U.K. Arguably, every political party pursue different monetary policies. Politics therefore plays a critical role in influencing and enacting financial policies of a state.

The results show that both the intra-industry trade and inter-industry trade do not exist. By definition, intra-industry trade arises when a country imports and exports related types of goods or services simultaneously. Considering two countries as an example, Germany and France, if Germany exports cars to France and simultaneously imports cars from England, then intra-industry trade occurs.

Moreover, numerous factors influence production and growth in a country. However, the main factors are determinants of both productivity and growth, which will be discussed in details. Nevertheless, there is need to realize mutual influence of growth and productivity in order to foster a substantial understanding of this topic.

The author contends that much of the damage that was done to the economy was as a result of the systematic undermining of the principles of good corporate management and the twisting of financial policies in ways that served the short-term interests of banking institutions and other connected players in the money market (Ferguson 26).

The FED also keeps business running in the nation through supply of currency, coins, and services payments such as check clearing and electronic funds transfer (Solow & Taylor, 2008).The paper will look at the U.S Federal Reserves monetary policy in detail addressing various issues.

The film also centers on him while he was Treasury Secretary in President George W. Bush’s regime, how he settled critical resolution of allowing Lehman Brothers be unsuccessful financially. Besides, he points out how he managed to persuade congress to approve nearly $1trillion in bailouts of AIG, Fannie & Freddie as well as Wall Street firms (Paulson).

Relevance of exchange rates in monetary policy making. Monetary policy making is the act of any national monetary authority of a country to establish the size and rate of growth of money supply and, therefore, influence the interest rates in promoting a nation’s economic growth and stability.

The great depression (1929-1939) was the longest, most widespread, deepest and most severe period of economic slump in the history of the United States, and indeed, the entire industrialized world.  Economic historians attribute the 1929 sudden and total collapse of the stock market as the primary cause of the great depression.

Unemployment is an economic problem that leads to poverty due to lack of income. Unemployment contributes to both economic and societal problems, which have negative impacts on the individuals such as depression, divorces, and lack of self-identity, among others.

Political events influence many sectors of the country such as the defense, the trade, movements, manufacturing and production. Rallying of parties influences money generation and behavior of people in a different culture. Potential and actual effects of political events in a state may be both harmful and also suitable.

As a Chinese company, it adopted a hybrid internationalization model (hence the claim of “new way” and “next generation” in its self-description) that is typified by the Chinese socio-cultural characteristics such as collectivism and long-term orientation in tandem with conventional methods of international expansion and strong state intervention.

The roles delegated to the parties involved in PPP are different from each other. The government plays the role of strategic planner and the role of the private sector is to design, provide the financial support as well as the construction. The private party has to take the responsibility of financial, technical and operational risks in the task.

Pfizer provides pharmaceuticals for the health and well-being of humans and animals. Pfizer is interested in providing quality, safety, and value in the development and manufacturing of its products. Their global healthcare includes “human and animal biologic and small molecule medicines and vaccines” (Pfizer 2011).

On the contrary Australian government has proposed to compensate for such a price mechanism to the low income households by exempting tax benefits. Objective of the paper is to analyse the impact of such a price mechanism on the following parameters: 1. Impact of high energy prices on the economic wellbeing of households.

Both the employers and the employees work in such a pattern that their individual goals collide with each other i.e. the employer would be asking for improved quality and productivity at the cheapest possible price whilst the employee would ask for higher pay with reduced work pressure.

Currently, the hospitality industry is facing boom in the business, which is the result of increased global trade that has necessitated traveling. However, there are a number of challenges that hinder the otherwise rapid growth of the industry. This paper will discuss the current challenges faced by the hospitality industry and their effects on the operation of individual industries.

The strengthening of the dollar can lead to an increase in imports and hence a trade deficit. The solution for the wine industry may lie in increasing the supply and hence neutralizing the effect of increasing the demand of the dollar. The government also needs to respond to the needs of the wine industry before Australian consumers become used to imported brands.

But due to political interests, the hegemonic powers such as UK and US have been terminating the gold standard era and modernizing the economy by making the pound sterling or the US dollar the standard mode of exchange all over the world. The prices of gold have been remarkably stable for long periods of time.

According to the essay, the deficit financing is good during crisis times to bring the economy out from stagnation but harmful if it is employed in a sustained basis year after year for the unproductive causes. Still, the underlying causes for which deficit budget is made certainly matter, regardless of the state of the economy.

Marx perceives the potential of determining the maximum length of a day of labour through a class observes that “during the greater part of the 18th century, up to the epoch of Modern Industry and mechanism, capital in England had not succeeded in seizing for itself, by the payment of the weekly value of labour-power, the whole week of the labourer

This study will also seek to address the role of identity politics and Diasporas in the global economic system and development of India. For this study to give out the relevant analysis of globalization of India, it will examine the extent and nature of integration of this country into the global economy along different dimensions that will include flows of capital, goods, services, and migration of people.

While most countries are battling the challenges of inflation and unemployment, the case in Canada is rather mild with respect to these fundamental parameters. It is therefore realized that the country has managed to pull through the effects of the economic meltdown without much struggle as realized in most developed countries.

The main aim of the essay is to show how the countries economy has changed after SAP adoption. Structural Adjustments were a set of policies implemented on developing countries by the IMF and World Bank. These policies targeted areas like reducing expenditure, focusing on economic growth and output, increasing trade liberalization and stability to increase foreign investment etc.

The table referenced has a much narrower range of incomes, from the low thousands to the ten thousands of pounds annually, representing the quartiles of income in the UK. Beyond these market forces, however, there is a large range of other forces that have a drastic impact on final income in the United Kingdom. 

He proposed relevant solutions using theories and models to solve the prolonged financial crisis. Fisher was born in 1876 and received his Business Administration degree and Ph. D at Yale University. As a professor of economics and mathematics, Irving Fisher developed extensive concepts concerning money supply and price fluctuations.

The recent economic report of Pylas and Rising (2013) is related to one of the macroeconomic principles -- recession. For instance, countries worldwide may withdraw their investments in Germany, as they believed that the latter’s economic frame is unstable, and would just compromise their own problem.

However, of great concern is the notion that as other parts of the world faced the economic downturn, Nigeria was not spared. The country boasts of very rich economic development opportunities in oil industry and agriculture sector among others. Indeed, the country’s economy has experienced challenges since 1980’s.

Federal Open Market Committee (FOMC) has been making a move towards increased purchase of mortgage assets from the public as a tool for increasing its financial base which would then make the economy expand in terms of expenditure and significantly raise the national income bar with regulated prices so that inflation is subdued.

The cargoes included soft drinks, steel axes, matches, medicines, clothes, and umbrellas (Diamond 7). The question verged on the differences between the power and technology advances between the European people who arrived in New Guinea and the New Guinea population. The focus of the discussion included the superiority of the European civilization over the New Guinea residents.

By lowering the discount rate, the Fed will decrease the money supply and vice versa. However, discount rates are used by the Fed for direct changes in the monetary policy rather than controlling the money supply. The discount rate is described as the interest rates charged on commercial banks' borrow reserves by the Federal Reserve banks.

The order is further implemented by the Raisin Administrative Committee. In the case of raisins, the committee comprises of 47 raisin farmers and packers, as well as the sole members of the raisin-eating public. It is worth noting that the government is not come up with the market orders without consultation but the orders are issued by USDA.

Accordingly, rather than viewing these processes in something of a one-dimensional aspect, it will be the purpose of this author to discuss and analyze both the pros and cons of outsourcing as a means of providing a more realistic and nuanced understanding of how this practice impacts the economy as well as the individual shareholder within society.

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.

On the other hand is monopoly in which the market is controlled by one single firm and there is no existence of competition and the market seems to be operational in an inefficient manner. The issue of what, when, for whom and where goods and services are going to be produced is decided by the forces of demand and supply in perfect competition and in monopoly, the decision is made by the single firm in the market.

Although economics is a rather complex science, it is nonetheless simplistic about the main theories that constrain behavior. As a function of understanding this to a more complete and well-nuanced degree, the following analysis will discuss how the economic principle of consumer choice and dictating the equilibrium point in supply.

Even though the intended initiative has very strong econometric justification and backing, it cannot serve as an end to a means. Rather, it will be worth it if the bank sees a reduction in interest rates as a means to an end. It was established that existing interventions of economic redemption and revival.

The main focus in the essay is on the measures, introduced by the Brazilian government to help curb the unemployment. The actions included cutting of a large corporation’s tax and offering free classes to the public. This measures together with other economic policies, helped the economy from undergoing a deepened recession

The article that has been chosen for this paper is titled “Reason and the end of poverty” and is written by Chief Economist and Senior Vice President of the World Bank, Kaushik Basu. The central issue of this article highlights the fact that poverty is an evil that the global economy should fight against.

The White House along with the past and present presidents of the country has always had a strong stance against the legalization of Marijuana due to the perceived ill effect the Cannabis plant can have on the health of people. Regardless of the official position of the White House though, 16 out of the 50 states have already legalized the use of marijuana within their borders to hugely positive results.

The main forces of the market are the forces of demand and supply. The interaction between these two forces develops the price mechanism in a free market economy. The price mechanism refers to the method interaction that occurs between the decision of buyers (consumers making decisions), and sellers (businesses allocating scarce resources).

2) Emphasize our exports by lowering our dollar value or forcing our trade partners – China – to regulate more accurately its currency.3) having a balanced budget amendment. i) Identify the notable political advocates of all three positions. The first political advocates for all the above three position discussed above were the republicans followed by President George W.Bush, president Obama in 2010/2011 and members of republican.

In the ancient Robinson Cruise economic system, goods and services were supposed to be exchanged in terms Barter System. Over time ‘money’ came into existence and was used as the medium of exchange for all goods and services. With the rise in commercial activities the concept of ‘market’ came into subsistence.

The Economic and Monetary Union is a set of policies, that stipulates some economic and monetary measures for the member countries as decided upon by a Governing Council and implemented by the European Central Bank. The main area of the working of the Union is the formulation of the larger monetary objectives of the Eurozone.

Two separate regressions are run for each hypothesis. In each case this paper tests to see has there been a structural break in both data sets from Q1 2004 - Q2 2011 at the point of the policy implementation. Using a dummy variable when regressing the time-series data, results show that as forecasted.

Information technology allowed consumers to go on the internet, and extract all pertinent information regarding their desired product or service. Since customers are now in a position to compare one service or product provider with its rivals, they can engage in negotiations. It made businesses more customer and competitor oriented.