Macro & Microeconomics Essays

The world economy is currently at its worst with most countries hit by the pinching global recession. Economists define financial crisis as a significant downturn in activity that affects all the economic segment, the decline in activity normally last for a certain period, which could be more than months or years.

The number of unwaged civilians declined from 88,710,000 to 88,341,000, this subsequently led to an increase in the number of the employed by a margin of 410,000 to stand at 143,384,000 and the unemployed also to increase by 170,000 and stand at 12,258,000.

Normative statements represent an opinion, or a theoretical scenario, and they are always used to develop new ideas, and establish goals. An example of a normative statement is such as; the government should reduce taxes by half, in order to increase the level of disposable income within the state.

The answer to this question is largely dependent on a country, as different countries have different methods of computing what is to be subjected to taxation from the security funds. The conventional knowledge would argue that as one grows older, the burden of taxation should reduce, this is not particularly the case in some cases when one has some of the income generation activities while at the same time having security funds; thus, security funds will be subjected to limited taxation.

In this era of competition where economic supremacy can impact various other aspects of a given nation, the need of monitoring economic performance has gained a special attention among the nations. In this regard the economists worldwide has suggested various measures amongst which Gross Domestic Product commonly known by its abbreviation of GDP has become the most popular indicator that measures the health of the nation’s economy which in turn impact the standards of living of the nation.

Economic planning can be used for the replacement of imports by home products. If the defects of home products can be analyzed, and the likely future trends in demand can be forecast, then domestic firms can take the necessary action both to improve their product and to expand their capacity. Government support for certain industries can also be helpful here.

The Bretton Woods Agreement was developed in New Hampshire in 1944. The major outcomes of the agreement were the formation of an International Monetary fund. The system proposed the introduction of a pegged foreign monetary exchange rate system that was adjustable. Other countries' central banks were made to maintain a fixed exchange rate.

This results in the emergence of an economic equilibrium for both quantity and price. Considerations of the power of supply and demand within the market date as far back as the 14th century. This paper will consider the subject of supply and demand, discussing its inherent provisions and assumptions.

According to the report two countries where labor issues are quite prevalent are Qatar and the United Arab Emirates. Both countries have a large influx of immigrants who come in for work hence a high rate of labor issues. It is difficult to create labor laws that fit both the needs of the citizens and non-citizens.

This paper elucidates on the major changes, that took place in the economic front, especially as a result of the crisis, that resulted in diminished access to liquid cash and real capital. Today, building credit has higher prominence than building real wealth because businesses became increasingly dependent on credit to supply goods and services.

Monopoly and Microsoft. The question of whether or not Microsoft represents a monopoly has long since been settled. With fully 90% of all computers running Microsoft operating systems, the reality of the current market speaks for itself. However, even though it is been demonstrably proven that Microsoft is in fact a monopoly, a further question that must be engaged is whether or not this monopoly could somehow represent a benefit to the consumer.

The relationship between the political forces in the United Kingdom and the banking industry is subject to change. With that in mind, it must be understood that past experience with regards to the banking industry cannot and should not be determined to be equivalent to future expectations of how the industry will evolve and continue to be manifested.

The states of economic affairs in the global marketplaces have become highly complex over time. Modern countries operate in the market by following the motto of free market principles. After the emergence of privatization associated with globalization and liberalization of the world economy, the powers of the public and private authorities in the economies have changed over the years.

As recorded in 2012, the country had a growth rate in a real gross domestic product (GDP) of about 2%. The estimated real per capita GDP of the country was about $36900 as recorded in 2012 (“The World Fact Book”). The major sector of the economy that contributes a wholesome amount in its GDP is the service sector (7.5%).

Inflation yields positive effects only if it is a short-term inflation but a long-term one where even the central bank has no capacity to handle looms disasters not only to a country but the globe in general due to the fact that the world has become a global village. Some of the causes of inflation ) can be prevented or mitigated early enough.

‘The public debt, which is sometimes called the federal or the national debt, is the total amount the federal government owes its creditors.’ (Arnold, 2008) The reduction strategy for budget deficit involves decreasing the public expenditure or increasing taxes or a combination of both.

 The financial crisis of 2007-08, not only led to the collapse of several banks and financial institutions but turned down the stock markets in most of the countries. The financial crisis has led to one of the largest banking shakeouts due to the meltdown of loans and savings. 

These two parties decide what to produce and what to purchase. A free market economy is based on the forces of demand and supply with little or minimum government intervention in the form of subsidies, taxes and regulation (Kates, 2011:34). The means of labour are privately owned and this enables parties to according to their own self-interests.

In fact, the country has seen long periods of deflation before the Second World War. The last economic expansion took place between March 1991 and March 2001 when the rate of inflation was low by the standards of the post Second World War era, which holds true irrespective of the kind of index used to calculate the rate of inflation.

Generally, in the economic analysis, there are various kinds of market structures that may operate in the economy depending on the number of sellers and the degree of market power that each seller has in the market.  Therefore the market structures of an economy can be categorized under the following types.

With the help of modern techniques, up to date procedures, contemporary practices, globalization and highly advanced transportation system the International trade system is spreading really fast. 1) "Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong.

Marketplace realities surrounding the firm in question are the defining characteristic in terms of price and profitability. The decision of what the price for any given product or commodity should be made often has little to do with what it actually costs to produce and distribute a particular product.

The economy of the United States in the past few years has gone through a major slump. This slump has been seen through their real estate crisis, rise in unemployment rates, and reduced competitiveness in the global economic setting. This economic crisis was not helped by the matching economic crisis felt in other western nations as well.

The expansion of world markets by rapid globalization also means increased competition. The improvements in technology have allowed business organizations to coordinate their business activities with the rest of the world by using facilities such as e-mail, phone, fax, and video conferencing. Different cultures have different ways of business.

Professionals and patients in contemporary Australia increasingly become involved in care situations that are likely to lead to death, there has been an increase in the literature devoted to such issues as palliative care and end-of-life decision-making. The objective of all concerned in these situations is to ease the transition from life to death.

Courts, and the public in general, view the expert evidence as more authentic than the conventional evidence like documents, witnesses, statements, behavior in court, and other forms that might be submitted by the opposing parties. such evidence carries considerable weight in jury decisions, especially if it goes in accordance with circumstantial evidence.

Scarcity is defined as an “Ever-present situation in all markets whereby either fewer goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase. This universal phenomenon leads to the definition of economics as the science of allocation of scarce resources".

1a. Price elasticity of demand (PED) is the extent to which quantity demanded changes to a change in price (Bamord, Brunskill, Cain, Grant, Munday, Walton 2002). When PED of a good is between 0 and 1 then it is said to have inelastic demand with the good being more inelastic the closer the value is to zero. 

For a couple of decades now, Wal-Mart has been characterized as being the leader, the dominant firm and the Big One Retail Company, all relatively smaller firms look up to. The main reasons behind this are multifarious, with the consumers benefitting the most among them. This paper attempts to focus and analyze the impact of the merger of the smaller firms in the Retail Industry, with the Major leader – Wal-Mart.

The term real business cycles (RBC) means recurrent fluctuations in an economy’s income, products, and factor inputs (especially labor) that are due to non-monetary sources (McGrattan, 2006). As a result of these fluctuations, individuals consciously change their consumption and labor supply (Mankiw, 1989).

As eHow.com puts it, “a closed economy is just a theoretical concept as no perfectly closed economies are still in existence.”1Globalization has led to removal of barriers to trade and allowed flow of capital and employees in and out of the country. Advocates of an open economy argue that opening the country to international trade creates employment, provides a variety of goods and services to consumers at low prices, increased investment opportunities as well as economic growth.

Consumer well-being is increased by lower prices on imported products and a greater variety of products available in the market. Further, production efficiency is improved by specialization based on comparative advantage and increased competition from foreign businesses, thereby raising the country’s gross domestic product (GDP).

Economic growth is defined as the increased capacity of a country’s economy to produce goods and services in comparison to a previous period and is measured by the gross domestic product. Economic growth leads to better living standards for the population and higher rates of employment. Different theories are used to explain economic growth.

In fact, many people refer to it as inflation, which bases on the fact that, if inflation increases by a particular percentage, the index will also increase by the same amount, hence the two are directly related.

If one looks at who gets the minimum wage one becomes likely to agree why the minimum wage policy needs to exist. Unfortunately, not everybody is born into affluent families to send them to the best schools and universities in order to receive an education in the desired field and eventually get a well-paid job.

Andrew expresses the position of the AFL and their clubs toward creating a secure and inclusive setting for women at all stages in Australian football (2005, p.3). Since the adoption of this policy in 2005, it has continued to protect women against sexual harassment and discrimination essentially improving their participation so far.

This paper is written to highlight the features of a perfect market. In the first half, it focuses on the changes in consumer demand and how the market responds to it. Drawings are also incorporated into the paper to increase clarity. The paper also shows how the market forces adjust themselves to attain the short-run and long-run equilibrium that was disturbed by the initial change in demand.

FED plays an important role to maintain the US economy through different tools. It argued, that the FED was the most important global player in tackling the financial crisis. FED basically plays a role in providing largest payment system in the world. All the group of tools, used by FED from 2008 to 2012, are considered.

According to the paper, international laws in the UAE and Qatar considerably improved according to the world standards during past few years. The two countries gained economic profits by liberalizing the international trade regulations and labor migrant laws. The traditions of the UAE and Qatar face challenges in a rapidly globalizing environment.

The differences between Keynesian economic policies and monetary policies have been the center f a huge debate in Macroeconomics for so many years since the inception of these two schools of thought (Lipsey and Chrystal, 2007). Keynesian economic principles were put forward by John Maynard Keynes, a renowned British economist, while the monetary policies have been spearheaded by Milton Friedman.

Name Professor Course Date Shocks to the US Economy and the Likelihood of a Depression Abstract The report contains an analysis of the causes and the effects of shocks on the US economy. The impacts of recession in the US economy were explained by the key economic indicators of GDP growth rates, inflation rates in US, unemployment rates of US, performance of US dollar, etc.

According to the paper, the Indian economy encompasses a number of sectors which range from traditional farming to modern industries. India is one of the major exporters of services and components related to the information and technology sector. The country profited from the advancements made by its citizens in the field of software development.

The tax is devised in such a way to discourage smoking that the consumption of cigarettes has decreased by 20% according to a report. The factors that affect the size of the tobacco market are the tax rate that is imposed on cigarettes in the country and the smoking habits of the newer younger generation as a result of anti-smoking campaigns.

The author states that China and Canada have been signing agreements concerning energy distributions and this provides for the exchange of experience in economic matters. One of the agreements that they signed was that Canada had to supply carbon captures and storage projects since China has not had the technological know-how about carbon.

Monetary policy has thus become in technical term the economic’s nominal anchor. The monetary policy regime was modified with the objective of escalating its underlying effectiveness and corresponding transparency in the face of the alterations by the Mexico’s economy.

The free market economy is characterised by private ownership of property and/or resources, means of production, consumer sovereignty, competition and independent choices. The free market economy is more effective than the mixed economy due to the fact that investors or businesses and the consumers have control over the market, i.e.

The global financial crisis of 2007-08 has been the single most important matter of concern for the world economy in recent times. There has been a wide literature survey of the factors leading to the economic downturn that has become the most severe financial crisis, since the Great Depression. The reasons that led to the Recession have been discussed in detail.

Most of the developed countries see the biggest chunk of their government’s expenditure go to three major sectors; defense, healthcare, and education. ‘Welfare state’ is the term coined to represent countries whose leadership aims at providing the masses with security, quality education, and healthcare facilities.

GDP focuses on the current economic activities or the flows, rather than on the developments of natural, economic, and social capital assets, which are important for a long-term perspective goal. An important aspect of overcoming a few limitations of GDP is the adoption of a more inclusive framework for well-being.

 The causes of price change in gasoline gases as discussed above pose a major challenge to both producers and consumers. This is because despite the various ways that can be used to overcome these causes some of them seem to be inevitable.