Macro & Microeconomics Essays

The other major problem with the material economy is the fact that it is an open system, not a closed system. Raw materials start at one end and waste products exit at the other end. This type of linear system sooner or later will run out of the raw materials needed to keep the system going. In a word, it is unsustainable in the long run. 

Inflation rate is increasing in the economy as well as the unemployment level however; interest rates have not been increased by the reserve bank of the country. Rising inflation level, contractionary fiscal policy as well as the increasing level of unemployment may reduce the aggregate demand in the economy thus forcing the interest rates to rise.

Each point on the Aggregate Demand curve represents short-run equilibrium in the economy. During the recession, the output declines. This is either because any one of the components of aggregate demand (AD) including consumption (C), investment (I), government spending (G) and net exports (NX) decreases or the price level increases.

Economic stability determines the nation’s stability in terms of earning of economic condition of the citizens and market. There are various means of measuring the economic stability and the growth or the downfall of countries. In this paper four countries; Canada, Japan, United States and United Kingdom are taken into consideration with an intention to measure and compare their economic stabilities in terms of real GDP, Productivity, Inflation of Price and Labor Market.

In a recent news item it was published that “the tourist industry has struggled to maintain adequate demand as people have less discretionary income to afford vacations” (Hotel Managers Group, 2011). The item continued to explain that “this has made it tough for any hotel operator to maintain their profit margins in the face of decreasing growth prospects.” Because of the changing trend in patronage, it has become necessary that hospitality owners seek proactive ways in which they can cater for the future survival of their investment.

However, there have been voices raised regarding the assumption of a relationship between GDP and happiness, with several prominent personalities suggesting that the GDP is a contributing factor to happiness and not the only, nor the most important factor. These assumptions and suggestions from both sides will be analyzed as to which side is actually more capable to justify their stance.

The market structure is characterized by freedom of entry and exit. Monopolistic competition along with oligopoly constitutes the structure of imperfect competition. Firms that are imperfectly competitive offer many products.

The article also concludes that birth rate declines have a strong to medium-term positive impact on per capita income growth through labor supply effects according to recent regressions. Overall, their study attempts to account for the endogeneity of birth rate to income growth stating that birth rate declines precede income growth increases, as well as “factor crowding” in terms of investment, but less so in terms of resource dilution as is well known through the Malthusian principle.

The most reliable measure of inflation levels is the overall consumer index (CPI-U). CPI-U measures the average price of a fixed set or basket of goods and services. Various economies of the world have been experiencing an increasing rate of inflation over the past decade.

The Labor Markets Initiative’s research works focus on three key areas including impacts of immigration on the national economy, immigration and the economic crisis, and policy responses for future immigration reform (MPI). This initiative also pays particular attention to the welfare of low-skilled or low waged workers in the long run.

The Report of the year 2012 provides information about the economic activities in 2011 and their impacts, current economic trends in growth and the foresights made about the growth process of the next year. Numerical data is provided in the report in regard to employment, income, production and also the program designed to carry out the several objectives set by the government.

Everyone is not protected in the market with cost-of-living increase, especially workers in an unorganized sector. Many workers earn their subsistence on fixed incomes because of either no or very less bargaining power; they cannot ask for a proportional increase in their wages that can match the inflation and thus, they are harmed most due to inflationary pressure in prices.

Towards better health care for the world, the best practice is only in doing more funding for it. This is so because it would be the right approach towards solving the major problems faced today. For example, there are very many serious diseases that are being found every day and therefore without preparedness, it cannot be easy to solve such diseases while they emerge.

Many banking sectors have been stricken by banking crises for the past decades due to the worldwide financial crisis. Although world wars impacted the banking system, the 21st century has thus far been more stable. The increased competition in the monetary markets has been among the main debating issues over financial volatility across the globe.

This has been achieved through strategies that were formulated to increase the revenue earned by the company. These strategies were; to increase on the quantity sold, through increasing the expenditure of the customers. The managerial department has ensured quality design, employment of quality and qualified labor in order to make the production process efficient and successful.

It is common knowledge, that macroeconomics is related to the big issues of the economy. It is the study of aggregate supply and aggregate demand. In order to achieve macroeconomic objectives, the government formulates certain policies. The policies designed by the UK government are primarily put into place to improve the working of the economy.

Perfect Competition: A market is said to be in perfect competition when there are a large number of buyers and sellers perfectly aware of the market prices, and no firm is large enough to have any economic power over the industry (“Dewett, 1983”). The two main characteristics of a perfect market are low barriers to entry and exit, i.e.

This savings is mobilized by the different commercial banks in the economy. The banks in turn offer the accumulated funds to the potential investors in the nation. However, the investors are charged a certain rate of interest on the loans offered to them.

Rules and regulation restrict operations in international businesses and this forms the basis of defining different types of international trade environments. Free trade is one of the types and defines an international trade in which no regulations exists. Buying and selling of commodities are only subject to laws of demand and supply and not domestic laws or international barriers.

Unlike in the primitive societies that existed during the birth of economic thought, the modern economy shows instant changes with yesterday conditions being fully different from today’s economic environment. This calls for well thought economic policies otherwise the economy would stump to serious and unsolvable problems in the future.

The central bank is a government institution charged with the responsibility of controlling interest rates, issuance of a new currency, regulating the money supply in the economy, and overseeing the operation of commercial banks in a country. Central banks also act as government banks bank and the government lend or borrows through them.

Ricardo-Barro's effect highlights that the crowding out effect cannot only be described by looking at the impact of budget deficit on demand for credits but also on household savings. It claims that the budget deficits do make households enhance their savings so as to pay the high taxes that might be needed in the future to pay back the debt.

After having explained the concept, the writer further dwells on the understanding and the functioning of ADR. He argues the advantages and disadvantages of ADR. It also involves the study of different types of ADR and their functions in the settlement of disputes. The writer has given a brief explanation of every type of ADR.

This is dependents on the nature of the market that exists in a particular economy. In order to effectively discus the economic transition as argued in the question, it is better to understand exactly what a monopoly market is. This is a market structure where there is only one seller/producer for a particular product i.e.

It is evident that the government recognizes the essence of having skillful people absorbed into employment while at the same time putting the focus on economic growth. This is boosted by the government in that it has put attention to enhancing training programmes, education and employment approaches.

Kiswahili, which is the local language in Tanzania, has been used in primary school. When students join secondary schools, the curriculum dictates that English should be used for learning. The challenge is that students fail to learn since majority of the teachers in secondary schools lack proficiency in English.

These controls in the economy are directed through the Federal Reserve's use of monetary policy tools that include open market operations, the discount rate, and the reserve requirements while on the other hand, the president gives directives through fiscal policy tools that include either increase or decrease of government spending, tax, and subsidies.

Entry barriers should not aim at preventing firms from forever entering into the market for purposes of affecting consumer welfare and competition. Just retarding the new firms’ arrival is enough. For purposes of Wal-Mart and Loblaw to deter entry into their market niche they should utilize the following porter’s strategies.

The BOP consists of two accounts; the capital account and the current account. The capital account records all the transactions between the resident of a country and the rest of the world whereas the current account records imports and exports of tangible goods and intangible services along with the unilateral transfers.

The high terms of trade contributed in increasing the level of real income and reduced the rate of the inflation within the economy. The terms of trade can be defined as the ratio between export prices and import prices. A rise in terms of trade will enable the country to buy more imports with fewer amounts of exports.

There are sets of different factors which determine the quantitative characteristics of the interaction between laws of demand and supply for a given product. A lower price is enticing for customers. But the price is also determined by the volume of product supply. So the price of the product can decrease even if there is a growing demand for it.

However, the labor force of such countries is largely unskilled. This contributes to the slow economic growth of such countries. The most common means of improving the quality of labor in a country is through attracting foreign investments. Foreign investors provide labor to the local population besides the tax benefits that the local governments enjoy.

The dominance of the world’s trade business is held closely by the major economies of the world - the USA, Japan, and Germany. The bigger the size of the economy, the better placed the nation becomes in the business negotiation. In other words, the bigger the economy, the higher the competitive advantage that the country has over other nations. 

The reserve with the central bank can control supply of money via selling and buying bonds. If the central bank purchases securities, it exchanges money for security. Consequently, if the government intends to decrease inflation, it sells government bonds for money hence reduces money supply in the economy.

Additionally, the disparity is taking on significance in the debate by the global community today, in some way influenced by the efforts towards the realization of the Millennium expansion objectives. This paper is going to tackle the inequality levels in Ecuador in comparison to the countries that have the same level of income.

This paper evaluates macroeconomics as a phenomenon accounting for issues, objectives and policies that affect the whole UK economy. The aggregates referred on this paper are macro, and they are the determinant factors of the increased rate of unemployment and inflation in relation to UK economic growth.

The European Central Bank (ECB) is responsible in managing the monetary aspects pertaining to the Euro. The currency was floated with an aim to integrate European states politically and economically. A single currency facilitates trade across the European Union eliminating currency exchange costs; it also protects the area from the external economic shocks such as turbulence in the currency markets and crude oil prices.

According to Varian (2010), the two-part pricing is widely practiced by firms because it enables a firm to make larger profits than they would have made by just charging monopoly prices. In fact, such firms are extracting more of the consumer surplus, which is then converted into direct profits.

The impact of the global financial crisis is still considerable. It is causing an economic slowdown in developed and developing countries globally. Evidence shows that, the root cause of economic and financial turmoil is the selling of sub-prime mortgages by the United States mortgage market to huge numbers of consumers with inadequate incomes.

Analyze the impacts of increased demand for biofuels on the demand for and price of crops such as corn. Figure 1: Isoquant Isocost Analysis for the Production of Biofuels From other raw materials and plant matter, liquid fuels referred to as biofuels can be produced.

The theory of supply and demand is one that any economist cannot go without mentioning in microeconomics as it is seen as the core of this segment of economics and makes a focus on household economics that deals with the buying and selling and involves the market forces.  This paper is aimed to analyze the supply and demand theories as have been used in microeconomics.

When investment, trade and cultural exchange happen internationally between different countries of the world and consequently bring changes to society and global economy, we call it globalization.

A large number of workers get such opportunities of working in Canada as domestic labor or farm labor. Most migrant workers do menial work, so they are not well paid. Worldwide1 billion people cross physical borders and women form 72 percent of this migrant workforce (UNPAC, “Globalization and Migration, “par.

The remarkable growth of China can be credited greatly to the Chinese Economic Revolution that occurred in the late 1970’s.There were two phases to the reforms. In the first phases focus was on the countryside.The second phase of these reforms focused on industrialization and worker welfare as well as on enterprises.

Investors also use this theory with the help of risk free rate return calculations to determine its future value, and thus decide if an investment is viable. It is very important that the future value of the dollar be protected with strict policies for it is the world’s reserve currency.

To summarize the term “ring-fencing” (Moe, 2011), the proposed UK banks will enclose their retail operations as legally separate entities that are well funded and can operate independently of the rest of the financial group. Investments will be conducted outside the fence and will be allowed to fail without the government stepping in.

The social and economic policies of most developing countries prevent the optimum realization of the benefits associated with free trade and globalization. Colman and Nixson (1986) argue that equal distribution of national resources promotes stable democracies but this condition is noticeably absent in most developing countries.

What is the opportunity cost of your going to college? List components of the opportunity cost. Be sure to include all costs, including the value of what you might otherwise have done with your time (including forgone leisure time, working) as well as the price of tuition, books, et cetera.

Obviously, this means that when mortgage rates are down, investors tend to lower prices for the house (Lank, 2003). In this regard, real estate investors would have to take a longer time to pay for the mortgage, and this means that they mortgage the house at a hire rate.

Poland is located on the central European map, and it borders a host of seven states including Germany and Russia. Its history has been revolving around the presence of these two powerful states, which includes the period at which each of the countries occupied it. Poland has been able to grow, despite its involvement in two of the most tragic wars.