Macro & Microeconomics Essays

The paper analyzes the arguments of the proponents of supply side economics in an attempt at discovering all the pros and cons of the theory. In the 1970s, supply side economics was developed in response to the Keynesian policy, which became ineffective. As it is shown, supply side economics is a viable model in today’s environment.

By being the first company to expand into a particular industry allows it to gain a higher level of customer loyalty and satisfaction as well as better brand recognition. In addition to that, the organization also has more time to develop its product or service according to the needs and requirements of its customer base (Markides and Sosa, 2013). 

Creating customs unions that have common external tariffs can alter the pattern of trade flows in existence.  In this case, the assumption made here is that before joining the union, countries that are members of the union imposed differential tariffs on different nations with a view to protecting their internal industries.

India and China have been identified to be the two countries with the highest population along with their respective cultures being as old as thousand years. Both the countries were regarded as young nations in spite of the huge changes related to death as well as birth rates that the nations were undergoing.

This essays analyses the progress of the EU by observing actual integration and the changes, taking place in the economic and political structure. The EU’s political and economic structure, made up of the three primary economic segments^ services, industry, and agriculture, is shaped by market processes and controlled by national administrations.

Even though the economy of Bahrain lags behind its neighboring countries, its openness and multiplicity persists to provide substantial opportunities for business expansion. Bahrain has been thoroughly developing the industries of finance, transportation, and tourism, which, expectantly, will facilitate economic growth (Hassan 2007).

Taylor (2007, p. 285) specified that monopolistic competition “occurs in an industry with many firms in free entry; where the product of each firm is slightly differentiated from the product of the other firms.” In the Mankiw (2007, p. 341) perspective, market structure can be classified based on whether one, few, or many firms are in the market; if the market has many firms, market structure can be further identified based on whether differentiated or identical products are sold in the market.

Roscas is a very attractive way to save money in rural areas which do not have any resources to save money. It allows the people to come together in a form of a community, pool in money, and then rotate the distribution on the basis of the cycle. It has been credited by many agencies as an excellent means of informal savings.

In the forex market, the bank may purchase foreign currency using domestic currency to keep inflation and deflation in check (Basu, 2009; Topnews, 2011). This helps in valuing or devaluing a particular currency in case of need. To increase the value of a currency, the central bank will buy the currency and hold huge quantities of it in its reserves thereby reducing its supply in the market.

One of the major concepts of microeconomics is price elasticity of demand, which refers to sensitivity levels of demand for a given product or service to changes in its price. The elasticity of demand co-efficiency is the percentage change in the quantity of a product or frequency of a service in reference to percentage variation in price.

The company is involved in geological exploration, transportation, storage, processing and marketing of hydrocarbons as well as generation and marketing of heat and electric power. It was established in 1989. Gazprom Russian Joint Stock Company came up in 1993 under the guidance of USSR gas industry ministry.

The topic wants to put up the argument that the factors in the current economic crisis and its trend of its exposes the weaknesses associated with present-day global macroeconomics practice. Taking a stand contrary to the topic would mean that a person believes that macroeconomics has been perfect, well utilized, and correctly administered.

Therefore, the implication of geography on the economic development can be used to explain why the rate of economic growth in Africa is relatively slow. Both the human and physical geography of African countries is unique and distinctive. Human geography within Africa has, for example, created political problems with the associated economic implications.

Dr. Mukund Mahajan, in his knowledgeable book, “Managerial Economics,” records that supply and demand have to exist in equilibrium for harmony in the world of macro and microeconomics to sustain. Dr. Mukund further elaborates that a change in the equilibrium of supply and demand of money often results in a drastic change.

In the annals of history, the competition between socialist and capitalist economies will remain as one of the most imperative events that occurred in the twentieth century. This competition not only transformed the contours of politics in the twentieth century but also led to the creation of two parallel and competing economic systems.

In highly turbulent periods, the ability of industries to support national economies is usually decreased. However, there are industries, like the oil and petroleum industry, which have managed to keep their competitiveness and remain intact from global market pressures. The current paper focuses on the oil and petroleum industry of the UK. 

Economics is everywhere. People deal with it every day, just choosing to ride a bus or take a walk is an application of economics. When planning to take the bus, one should take into consideration the available money and the possibility of traffic jams. Also, when deciding to walk, available free time must be considered since walking consumes more time.

Economics as a study thrives to assess the various factors that affect the fiscal and monetary conditions of a nation or a given setting. In the course of this assessment and analysis, various factors are considered in light of their effects and implications on the economy.

At its core the article seek to understand some of the more complex dynamics behind the ways in which environment has a direct affect on how populations integrate with their surroundings and how these environmental conditions necessarily re-write the rules of how humanity integrates with key environmental changes affect the realities of daily life and settlement.

After China got its inclusion in the World Trade Organization its economy emerged as the engine of growth. This sudden emergence of the economy has been beneficial for some parts of the globe, although some countries had to make a few adjustments to deal with the rise in low skilled labor which was an immediate after-effect of it.

History explains the past views and events on politics, and political science gives the root to history to be created. This is to mean that they are related, and no one can exist without the other. This article covers an overview of the global economy as an international issue, and how it relates to international relations theory.

Economic freedom has played a role in the transformation of international trade. It has built trust between parties through the regulations set to improve the trading environment. Because of freedom, parties participated in the production of products that boosted fair competition leading to the production of quality goods. 

Disaster analysts state that the protection system and preparedness for such and other natural disasters had flaws. Most importantly, New Orleans's strategy to rebuild the levees and create new ones that can bear another storm like Katrina in preparation for other forth-coming hurricanes seems promising (Eidman, 2013).

It also looks into the welfare of the survivors of tragedies or calamities and individuals that suffer loss due to the occurrence of disasters. Social security also looks into the welfare of the disabled to ensure that they have equal opportunities with other citizens to improve their livelihood.

Microeconomics relates to the study of the allocation of funds by different sections of users, which include domestic households, firms, and industries. Their decision-making pattern is thoroughly studied to make assessments and observations for the future forecast of market conditions, particularly when resources are limited.

Essay Questions Answer 1 The long-run rate of economic growth measures the ability of a nation to progress its living standard. It is believed that even a small change in the long-run growth rate over a period of time will lead to a big advance in the income of an average person.

This paper will cover statistics related to the economy of the United Kingdom. National economic statistics are tailored to investigate and reflect different economic activity aspects in the United Kingdom. Discussion The UK economy can be considered as the continuous services and products flow from producers to users, and the consequent labor and capital flow into the process of production.

 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.

International business helps to articulate capital flows, technological skills, and even employment opportunities across the world. Intercontinental business is crucial in the globe of money-making affairs. This is the epoch of globalization and liberalization when almost all the companies and firms of the world are going global.

These policy makers have to consider a number of other factors including competitor`s tuition levels, government aids and scholarships along with the ability of students to pay college fees (Jung S, 2008). Due to budget cuts, especially during times of recession, universities have to increase tuition fees to cover the administrative expenses.

The knowledge that an employee possesses originates from either classroom or on-job-training and more often both. In the recent past, there has been a great controversy as to whether on-job-training or school education is more effective in equipping an employee with effective working knowledge.

There are strong arguments that have been set up by both sides on the reasons why their approach is the best and it can be said that both stances have their advantages as well as their disadvantages. But in order to determine the best approach, it is essential that one understands the main basic points of each argument.

It is essential to state that collusion within an industry refers to the practice of all, or some of the players within an industry to coordinate their production and pricing, in such a way that they can increase prices or reduce production, for the sake of sustaining high prices for their commodities in the market.

The turmoil in the region has undeniably brought down governments, pushed numerous countries into a second recession, and put out in the open deep-seated rifts between regions. Notably, fears of this sovereign European debt crisis assumed their shape as the sun was setting in 2009; a time when the crisis proved to be quite challenging for countries.

The situation where the market produces more or less than the ideal or the optimal amount of a particular good is regarded as a market failure in terms of economics There are several factors that result in market failures like externalities and monopoly power and asymmetric information.

The Theory of Planned Behaviour has seen use by a number of studies that sought to examine how likely people are to act in certain ways. For instance, Hardeman et al (2002) focused on health behaviour, while Bagozzi et al (2004) instead examined how a specific group of people view dieting and their inclination towards it.

Case Study Table of Contents Case Study 1 Table of Contents 2 Introduction 3 Reason for Change 3 Organisational Design Issue 4 Cultural Factors 6 Impact of Various Stakeholders in the Change Process 7 Strategies for Transforming Culture 8 Implication of Management and Leadership Style on Change 12 Impact of Contrasting Personality 14 Challenges Faced By PSE&G 16 Recommendations for Success of PSE&G 17 Conclusion 18 References 20 Bibliography 22 Introduction The essay will represent organisational change in one of the public companies of New Jersey named Public Service Electric and Gas (PSE&G).

The role of a central bank in any economy is to manage the monetary policy of the country while ensuring that it manages to achieve broader macroeconomic objectives. One of the key objectives of any central bank is therefore to ensure that inflation within economy remains under control.

As a result of that, economic activities have been reduced considerably in America. Even though Fed reduced the interest rates considerably, neither banks nor the people were ready to take advantage of it. Fed flooded billions of money in the financial market in order to sustain the lending activities in the country.

In this essay we look at the regulation by the government to control hydrofracking. This is the removal of gas by pumping hot water, chemicals and sand into wells in order to remove the gas. The control will mean that there will be minimal extraction of the gas from the well (Goodstein 53).

World Economy: Neoliberalism. News around the globe always contains the headlines regarding the world economy and the presence of a crisis. Economic downturns, turmoil and collapse have been reported throughout history. As the world changes, economy also changes.

In the second section the economy after 1920 is described. Here a short view of comparison of today’s economy with the past economy is provided. The comparison is on the basis of economic indicators like GDP, the unemployment and the CPI rate. The Period of 1900- 1910: In 1900 the amount of people unemployed in the US was 1420 (000s) approx and the percent of civilian labor force was only 5%.

This means that the money market involves all the short term investment instruments. The instruments of a money market include the certificates of deposits, commercial papers, banker’s acceptances, and treasury bills, all of which are valid up to a year.

The reason for this is that cars are now relatively cheap and they are also convenient for everyday use. There used to be a time when only the rich could afford a car, yet car prices have dropped considerably enough to allow practically anyone to purchase one.

Why is China growing so fast? Economies play a vital role in the prosperity and development of any country. It refers to a system or network of manufacture and consumption of resources by the labor in any country. The exchange of goods between supplier, consumer, and services provided to the people make basic infrastructure of a country’s economy.

Russia has undergone many significant changes after collapse. In 2009, Russia was the leading exporter of natural gas, the second largest exporter of oil and the third leading country in exporting of steel and primary aluminum. The global commodity prices showed a high volatility on that time and that made the government think about the development other sectors; mainly they focused on the technology sector to reduce the dependency.

There are several ways in which the government can control the negative impact of Dutch disease. Given that there is temporary economic growth; Pingali and Evenson strongly suggest that need to stabilize not only the income but also the exchange rate. Basically, this can be done by imposing addition taxation on excess revenues.

Free market system which is the most productive way of running an economy suggests that any intervention by forces other than demand and supply will tend to affect the economic efficiency negatively, resulting in production inside the production possibilities frontier rather than on it.

4 How are oligopolistic markets different from monopolies? Describe how the short run and long run equilibria may differ for each market case. 6 Describe how the assumptions for the different markets (perfect competition, monopolistic competition, oligopoly and monopoly differ from each other.

An additional reason to incorporate strategic alliances is that a firm is able to offer an increased array of products and services without having to incur costs associated with product development (WALLACE 2004, 72). These new products and services are, basically, based on those that are already being offered by the new partner(s).