Macro & Microeconomics Essays

These types are differentiation, low cost, and best value. Each of these generic strategies, depending on how they are used goes a long way to consolidate the competitive advantage of the company or business establishment in question. Mind Tools (2012) explains that generic strategies are in place purposely because of the presence of competitors.

Given the criticisms and the contradictory relationship of what the fair trade, World Bank, IMF and Washington Consensus aim for and what their impacts are the fair - trade is only constituting to a real alternative to Washington Consensus if the trade liberalisation is really fair for both the developed and developed countries.

IKEA is conducting business in more than 41 countries with (Ikea, 2012) and sales from stores worldwide generated 26 billion euros in 2011, and this figure has increased from 22.5 billion euros in 2008 and almost 24 billion euros in 2010 (LaFranco, 2012). At IKEA, the heart of every activity has a goal to ensure the availability of well-designed functional home furnishing products.

Daily profit in China on the same basis without imposed tariff would be Ł 546,67, while with imposed tariff would only be Ł 373,33. However, as probability of imposing import tariff is 30% I calculated 70% of the number without tariff and 30% of the number with tariff and come to bigger final number than if production is based in Scotland at Ł 465,33.

In economics, competition is mainly described as the power that an individual firm has to influence the price in the industry. In perfect competition, no single individual firm has the power to influence the price set in the industry. According to Bilas, “the perfect competition is characterized by the presence of many firms.

The death penalty continues to be practiced and justified, specifically because it has been written into the Constitutional framework as justice when an individual has committed a crime, such as murder. The idea of punishment by death is now questioned because of the belief that one doesn’t have the right to take another life.

The target market of Toyota is customers who have average incomes and want to buy durable and reliable cars. It caters to the demand of the medium-income group of people. It sells its cars in a lot of countries all over the world and also has manufacturing plants in many countries. Toyota's operational environment is becoming extremely tough every day.

Following strong economic growth in the eighties extending until 1991, the Japanese economy began its long run of stagnation so much so that during the entire decade from 1992 to 2002, Japan saw its real GDP growth rise more than 2% in only 2 of the 10 years. Due to this severe economic stagnation, this period is also known as the “Lost Decade” of Japan.

Fig. 2. Shift of demand In Fig. 2, we see a new demand curve that is a result of substitute of soya milk. Here we see that the original demand for milk is DA, and a shift to substitute milk leads to a new demand curve which is DB. This means that the demand for milk will be reduced.

Barack Obama who signed the bill after four days of passing it and formed it as a law. The act was formed with the purpose of direct response to the crisis that America was facing then (Environmental Protection Agency, 2011). The objective of this paper is to study the goals and objectives that were set to be achieved through successful implementation of this act.

It shows how a research was performed and analyzes the results in form of tables, illustrates the trends in parking on hourly basis. The study was preformed in the month of June because in the beginning the financial year, the results were later compared with other year’s reports to bring out a basis of comparison in relation to price elasticity.

In the past, people used to indulge themselves in such practices without having the basics on the principles of economics. As a result, economic development was not achieved which necessitated the improvement in the approach to the operation of business by individuals as well as institution.

A typical consumer demand curve shows, with all other factors constant an individual, will consume more of a good or service when its price falls and lesser of it if the price rises. Consumer choice is a basic way of analyzing how the equilibrium between preferences and expenditures can be achieved by consumers by maximizing utility in regard to their budget constraints.

Broadly, rises in the overall price level of an economy is called inflation. The term stems from the fact that such rises in the price level increase the nominal market value of the real output and thus inflates the nominal GDP. Inflation is typically measured through changes in price level indices of an economy.

Using demand management policies to promote economic growth in the United Kingdom There are some reports citing evidence that the economy will fall drastically in the initial four months of 2012. On another note, this may change to an increase in the coming months.

Unemployment might be defined as the number of person searching for job with their full initiative yet not getting one. People averse of working at any existing wage rate, for any reason what so ever, are considered as "economically inactive". Hence these people do not fall amidst the domain of Unemployment.

In order to achieve the objective or aim of this discussion, the paper uses questions and answers method with respect to the March 2012 budget. Questions and Answers 1. What is the macroeconomic situation? Despite the long span of economic stability, the financial crisis or 2008 and 2009 exposed an unbalanced as well as unstable economic growth in the United Kingdom.

The author states that the recession of 1920-21 declined as unemployment jumped from 4 percent at the beginning of the year to 12 percent at the end of the year. The GDP plummeted 17 percent the same year. President Harding took severe measures in 1920-22 and cut the budget in half. Tax rates were also drastically cut for all income sectors.

A Critical Evaluation of the Inside Job.Inside Job is a documentary based on the 2008 global economic crisis and delineates the reasons for one of the most devastating financial crisis of the history. The movie contains interviews of various personalities such as Hank Paulson, the former US treasury secretary, Dominique Strauss-Khan, the head of IMF and Christine Lagarde, the French finance minister (Bradshaw).

The preparation and production of the Human Development Report is done by the HDRO.1 Building a HDI involves the creation of dimension indices and then aggregating the sub-indices. In calculating the dimension indices, minimum and maximum values (also referred to as goalposts) are determined for the key input variables that are the life expectancy, education, and income level.

In the theme and basic knowledge explicitly outlined by the economist, he visits the availability of knowledge and the use of it thereof in modern society. Whiles doing this, the economist related economies to social science by making the assertion that the provisions that make social existence possible form the basis of the rational economic order.

The first person I got a chance to talk to was Kenneth Lay. Kenneth Lay was the CEO of the global enterprise Enron. The Enron Corporation came to its demise due to the greed and corruption of its executive management team. Mr. Lay was at the forefront of one of the biggest accounting scandals of the 21st century.

One criticism of socialism is that, in any society where everyone holds equal wealth, there can be no material incentive to work because one does not receive rewards for a work well done. They further argue that incentives increase productivity for all people and that the loss of those effects would lead to stagnation.

According to the paper, inflation has a direct effect on investment, it causes distortions in the economy, a lot of money is spent on buying the goods due to the increase in the prices, this, discourages savings because the money is worth more in the present. The reduction in savings leads to the amount of funds available for investments.

Every individual is concerned about their own or others health as it is one of the important aspects of the lives of human being. In this regard, health care system is quite crucial. It has been observed that the health care system of the United States of America is considered as one of the best and advanced in the world.

Protectionism, a term usually closely associated with trade, is a way of ensuring that local industries are buffered from competition from foreign manufacturers and can be implemented in several ways. These include tariffs, which increase the price of imports; quotas, which are physical limits on the number of goods that can be imported.

“Africa’s equity markets are hot, with investors attracted by the sub-Saharan region’s GDP growth rate of more than 5% over the last three years” (Harare & Johannesburg). The main markets of two African countries, Nigeria and Kenya, have risen over 50% over the last year.

Generally, this paper highlights various economic concepts in view of the scandal that tarnished the US corporate image – of Enron Corporation. This brief paper examines economic concepts including supply and demand, incentives and unemployment, market failure, property and ownership, and cost analysis.

Name: Student Number: Short Essay: Macro & Micro Economics 1. Write a paragraph explaining why a “technology-based” water pollution-control standard might not be the most economically efficient (or cost-effective) way to achieve a given level of reduction in water pollution.

Three main aspects that make up fiscal policy include consumption, investment and government spending. The three aspects add up to determine the equilibrium level of the gross domestic product. On the other hand, monetary policies entail the strategies that are undertaken by the central bank to control money supply.

Poverty is a state where one is not in a position to cater for his basic needs and those of his family. When a person is not able to eat well, dress well, access basic education, access medical care and live in a good sanitized surrounding, then the person is said to be poor. Poverty is one of the major global social issues..

U.S economiy However, concerns are that the renting programs fail to meet long-term security need for the general population of the country and in particular the family members. Private sector renting has been acknowledged to provide alternative to housing problems within the country especially to young who are limited in financial power.

The author states that multilateralism is a necessity in amalgamating countries to fight for human civil liberties and freedom, and guarantee that egalitarianism prevails in the countries. Further, multilateralism in Australia promotes international justice globally, therefore, fostering peace and harmony.

A normal good is economically defined as the type of good or service whose demand from consumers changes with a change in the income level. That is, whenever there is a raise in the real income of a consumer, the demand for the good or service increases. This means that the income elasticity for the normal good would be positive.

This will factor in the different economic aspects of any economy which include the political institutions, social organization and the overall economic policies or the overriding political ideology. It has even established and agreed over a common currency which is the euro. 

It pulled out of the global recession much sooner than did the United States, due to a myriad of factors. Moreover, the people of China still lag behind the rest of the world in terms of wealth, therefore China is reliant upon the world market for its growth.

According to the theory, it is assumed that capital allocation is quite significant for the development of economies. Capital allocation is defined as the strategic alliance to augment the means of production in a country which can further be identified as the physical infrastructural inputs, such as factories, warehouses, transports, etc.

On Monday, Eddie asked Adele for a quote on the price of wild boar piglets. This is not an offer but a mere inquiry. Simple queries for information do not amount to offers. Adele replied that the piglets would cost £13,350 including delivery charges. Eddie said that the price was acceptable. This means that Eddie did not accept the price.

The producer must minimize costs in order to sell at a competitive price in the market. Each producer has a small market share due to the perfectly competitive nature of the goods, one producer will not be able to secure a larger market share due to the same reason it will not be able to affect market price.

Developing economies are impacted by various factors; one of the factors that have impacted almost all developed economies in both positive and negative manner is globalization. Certain economists believe that globalization impacts governments and nations only in a negative manner, other economists have a completely positive view of globalization.

The mere mention of monopolistic competitive shows that there are many small competitors in the same market. The competitors sell different products that can fill the same need. For example, the grocery store sells different brands of cheese. Each potato chip market type has its own benefits and peculiarities.

One of legislation argued to play a part in curbing the menace is the food, drug, and cosmetic act. The food and drug administration requires that food be labeled with precise products and possible adverse effects as a result of consuming the product. The administration required food manufacturers to label their products with fat content by 2006.

From a microeconomics perspective, there is enough supporting evidence that minimum wage increases maintain negative outcomes for the economy. In a similar accord, thinking from a macro perspective, minimum wage increases create similar negative economic conditions. Minimum wage rates have broad negative consequences.

There are some suggestions through which the food prices and crises could be controlled. First, the key food agencies and institutions should pay close attention to consumption, food demand, food production, food supply, and food prices. Secondly, countries should not impose restriction policies on the exports of food grains.

Outline Introduction The purpose of this assignment is to reflect upon the roles of the government in a particular nation and how government can help in the success of the nation. These roles were suggested by Adam Smith in his writing named as Wealth of the Nation.

Today, even the leading and certainly the most praised economies are witnessing various economic challenges which in turn tend to create a significant impact on its global presence. For instance, the current economic situations faced by the US economy depicts greater challenges for the nation in the upcoming years and therefore has been considered as a vital matter for study by various experts.

Adam Smith is an economist and a writer of a number of prominent books, such as The Nature and Causes of the Wealth of Nations written in 1776. He theorized a system, which fixed essential principles of economics and its operations (Smith (a), n. d.).  His book explicates the relation of supply and demand and the ideation of division of labour forces in the industrial period, which accorded him such distinction that catapulted him to the Board of Customs in Scotland.

The changes in the supply and demand forces in the university education of the United States are demanding a review of university education cost (Kreps 2004). Rivalry between universities in American education market is likely to cause a decrease in the price of education in future.

Majority rule is a competitive method that consensus does not agree with in its general structure. Consensus creates a form of cooperation than competition in voting. The majority rule is however important when dealing with technical matters that require knowledge on the subject of debate.

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.