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From this research it is clear that Hotelling rule assumes that real inflation adjusted levels and risk-free interest rates of investments in the economy influence the extraction and prices of the natural resource in the economy. It also assists the owners of the exhaustible resources to make decisions to either extract the available resource now or in the future.
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The opinions are followed by the logic that monetary policy has been effective during the recent financial crisis. In fact, it is said that monetary policy has been more potent during times of crises because not only did it lower interest rates on default-free or government securities but it also lowered credit spreads.
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The basic needs of individuals required for day to day life might not be satisfied adequately, where the lives of community as a whole shall worsen. Thus, it becomes the prime responsibility of every citizen to pay taxes on a fair basis, as the funds collected in the form of taxes are utilized towards their own benefits.
Microeconomic principles on the other hand would include demand and supply prices of a particular family allocating their financial resources for an apartment, and the wages that each family would pay to their home decorators to set up their homes. These concepts can be understood as microeconomic because they study the behavior of a small number of individuals using limited resources as opposed to the entire market.
This paper discusses various topics in economics with the purpose of enabling a better understanding of the financial markets. It focuses on exchange rates, inflation, financial markets and monetary policies. A rising dollar makes goods produced in the US expensive in other countries and while goods produced in other countries become cheaper for consumers in the United States.
These countries are closely integrated to the global economy and this interconnectedness made them particularly vulnerable to the cascading effects of a slowdown in the globalization trend. Neo-liberalism is put into question as various capitalist principles did not seem to work out, which had previously been hailed as a good development for everyone concerned, as exemplified by the phrase that a “rising tide lifts all boats” kind of rationalization but the benefits of globalization are spotty.
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Forces of demand and supply set prices in a free market economy for every respective product. When there is an excess supply of a particular product in a free market economy than the available demand, prices tend to go down automatically (Friedman 12). On the other hand, when demand exceeds supply, market prices go up as there is not enough distribution and supply of the respective product.
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The very recent mega blast by apple I phone 5 has astonished people around the world, its brilliant success has been the headline strokes all over (Trudy Muller , 2012). Supply and Demand The demand graph for the iphone 5 has taken an interesting and profitable turn in market, and its popularity among people is increasing day by day.
Term paper on Effects of Taxation on Macro & Micro economics Abstract The Overall the study of economic environment is divided into two categories, microeconomics and macroeconomics. The micro-economics deals with individual units while the macro-economic deals national or international economy as a whole.
Federal Reserve Policy during the Recession and Effects of the Credit Crunch Name: Institution: FEDERAL RESERVE POLICY DURING THE RECESSION AND EFFECTS OF THE CREDIT CRUNCH Part One: Federal Reserve Bank Policy during the 2007-2008 Recession To increase the funds that were available to commercial banks, as well as decrease the rate of fed funds, the US Federal Reserve announced that it had plans to increase to $300 billion its Term Auction Facility (Amacher & Pate, 2012).
According to economic analysts, natural disasters have affected the economy immensely through the loss of the labor force, destruction of investments, and laid out infrastructure. As witnessed, some natural disasters occur within several seconds but the effects that they cause could be devastating.
Income and Substitution Effects. Inferior goods are those which react negatively to changes in buyers’ income in that any change in income results into an opposite change in demand. Few Inferior goods are bought when the buyer’s income goes up but much is bought when the consumer’s income goes down (Hyman 2010, p.
Money can be held in three common forms; paper money, metallic coins and money deposits to banks. Measurement of the money supply is a critical act and various ways have been developed by economists to measure the level of money supply in the economy. The high-powered money multiplier approach is an approach that considers the level of bank deposits by the private sector while determining the money supply.
The major weakness of a country with weak intellectual protection is that other powerful nations can convert the ideas from other weaker nations as their and then they can modify them to come up with quality and valuable products that would later be sold to the originators of the ideas at better deal prices.
Nash equilibrium is a term used to describe a position where strategies taken by the players are at optimal point, given the moves taken by other players in the game. In Nash equilibrium, no industry or individual is in preference of a different choice. This means that each player chooses the best strategy given the approaches taken by the other players in the market (Kelly, 2003).
This is normally the case when the concerned nation experiences a recession first, which is followed by a short-lived period of recovery, and lastly, a recession once again so that there are in all two recessions that the economy experiences. It is mostly noted in developed nations or those passing through a phase of transition.
By recruiting and training people for more rewarding jobs, this budget plans to increase the national economic prosperity. The budget also aspires to take advantage of the seismic shift in the global economic power, which greatly benefits the nation as this unexpected shift influences the economic growth in the country’s Asian region.
There seems to be a discrepancy in theory and data when it comes to the relationship between inflation and unemployment. There seems to be no clear trade-off between inflation and unemployment from the start of 2006. However, the trend comes in by mid-2008 when the gap between the two indices widened.
The series of financial crisis that hit America hard recently has been putting a large amount of pressure on the government to impose more taxes and scrap the important tax cuts that have provided some measure of relief for average Americans, which are mostly in the middle class.
The aim of the study is to analyze the economical condition of China, the developments made by the Chinese government, which made the country one of the most developed countries in the world. The researcher will also analyze that whether the future of the economy is also strong. To make the economy strong, the government has to make certain policies so that the base of the economy becomes strong.
It will entail all the required concepts in the project proposal; plus the business marketing fundamentals that are viable to make meaningful returns. The proposal must present an innovative and convincing idea both to the prospective clients and the funding body with adequate consideration of the other stakeholders and the general community at large.
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This paper examines the concept of minimum wage from an Economics point of view. In doing this, the paper will begin by defining the concept of minimum wage and its corresponding meanings. Generally, this will be followed by an assessment of the history of minimum wage with an emphasis on the United States.
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The financial crisis refers to the situation in the financial economy when the value of the assets and institutions goes on losing their value at an increasing rate all over the world. The study is also concentrated on the genesis of the 2008 financial crisis which involves disastrous circumstances.
Whenever the system of productivity & consumption of resources is strong in any country, it provides a tool for economic development. Many poor countries have started from nearly zero to a better if not best, the economical system has shown remarkable progress in economic development over a short period of time.
The production activities are carried out in economic systems which address the economic problems of scarcity with the finite factor inputs. Economic systems thus are composed of people, rules, institutions and relations and can be of many types. A free-market system is such that resources are allocated based on the price mechanism.
The Financial Crisis Inquiry Commission’s report on the economic turmoil indicated that the melt down was an artificial problem which emanated from the operations of the financial institutions. The report identified the following causes of the financial crisis.
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With the emergence of many small and medium carriers, large airlines are subject to significant threats too. Air France KLM appears to be in the most unprofitable position in terms of its short-haul operations. With regard to the past trends of these three airlines, an analysis is done to forecast their future prospects in the industry.
The political and economic issues affect the welfare of the international states through employing multidisciplinary and interdisciplinary approaches (Hobson 27). The IPE attempts to solve the related problems of international relations including political, economic and international trade issues.
In fact, AFL has been focusing on researches in the areas concerning sports science, sports medicine and evolution of the game, through investigations of the various issues. AFL concentrates on the issue like efforts reduction of injuries occurrence, increased performance in coaching and playing.
According to the intellectual property law, ownership rights are granted to a variety of intangible assets which include musical, literary works. Some common intellectual Property Rights are copyrights, patents, rights on industrial designs. The aim of the law of intellectual property is to promote business.
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As the global socio-economic scenario is changing rapidly, theoretical explanations to complex subjects are also being revived from a more critical and broader perspective. This particular phenomenon can be apparently observed with reference to the studies conducted and documented by Steven D. Levitt and Stephen J. Dubner in the book Freakonomics.
Economic growth is measured as percentage change in real GDP. There is an implicit link between economic growth and GDP. The GDP is often referred to be the proxy for human development as well as well being. But it is difficult to judge the relation between economic growths with well being.
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James argues that although technology has been beneficial, the payback left out most of unprivileged developing countries especially in sub-Saharan Africa. The author is undoubtedly able to rest down the special effects of information technology in facts and competently on the global economy.
While India has demonstrated swift and excellent development in its “offshore IT outsourcing and other service sectors” with institutional and language advantages, China has been successful in capturing the world’s attention with impressive growth in GDP and phenomenal inflow of FDI. Some more impacts are yet to be seen.
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Coming from a background with hard academic excellence coupled with a solid experience of a working economy spanning from Kings College to Cambridge University [the heart of knowledge], right into the money control systems of the British Treasury, Keynes was an economist of real economics, recognizing so early in his life the need to convert theoretical prescriptions into politically relevant, workable plans able to assist an economy in need.
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Economic conditions impact significantly the lives of people. Human survival is still very much founded on economic trade and relations with limited natural resources prompting individuals to trade goods with each other. Current economic conditions indicate that some individuals in some parts of the world do not have sufficient resources to support themselves.
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The Gulf Cooperation Council is also known as the Cooperation Council for the Arab States of the Gulf (CCASG). It is They are often known as “The GCC States.” Some of the general objectives of GCC countries are as follows: promotion of scientific and technical progress in different industries like mining, agriculture, water, and animal resources.
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This signifies one thing; that is, in the banking sector, right from the executives to CEOs are involved in the corporate trough, yet are receiving a hefty bonus for their achievements and performance, which they were not ethically suitable for. The compensation that includes bonus multiplied massively with an augmenting designation in banks.
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Economic ties between Russia and the United States are important since they provide stability to the broad bilateral relationships between the two countries. It is evident that the current trade and investment levels of Russia and the United States are low, although there are chances to improve the country's status quo.
Moreover, it is in order that the property rights owner is accorded the privilege to transfer the property rights to the highest bidder. The failure by the economic systems to assign property rights to resources gives rise to externality (Stern, 2006). The lack of clearly defined property rights means that externalities cause market failure and hence by allocating property rights to the use of natural resources, regardless of who holds these rights, will protect these resources better than government intervention.
The economic growth of China was never affected and its GDP never sunk below 6 percent. However, some countries including Australia was worst affected especially in its first quarter where it registered no growth. Additionally, economies including Mexico, the United Kingdom, and Japan were adversely affected by their annualized GDP.
Most of the American population is employed by small and medium enterprises, which means that these enterprises support the majority of American households. The government should recognize the critical role that small businesses play within the economy and help them by providing the most conducive environment so that they may succeed.
Macro and Micro Economics.
The subject matter of Economics is on explaining the world. That is, ways people behave, way in which most markets work and the way governments work in relation to the administration of scarce resources. The subject matter of Economics can also be said to be around production and distribution of output.
The measures used by governments worldwide to secure the performance of the national economy are not standardized. Usually, these measures are chosen on the economic and social characteristics of the local market but also the needs of the economy in terms of financing. Tariffs and quotas are common measures for improving market efficiency. The effectiveness of these measures is not guaranteed.
Several economies in the world have successfully managed to pull through despite radical mitigations in the number of resources availed by the government. Using Keynesian analysis, a reduction in government spending triggers a very vibrant private sector growth that contributes immensely to the economy of the UK.
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The study will address low-income county residents profile and issues they face during food procurement, the causes and impacts of food sufficiency and insufficiency and lastly best policy recommendations based on the two issues. The findings of the study proved that 6.1% of the household are at a risk of hunger.
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 countries. There are several specific reasons for the financial crisis which are discussed below in detail. Subprime involves the credit status of the borrowers of subprime loans.
The 21st-century earnings inequality often characterized by the ever-widening gap in income between the haves and the have-nots has been a hot topic for scholars over the past decade. Of particular importance in the entire analysis has been the effect of the statutory minimum wages on the dwindling prospects of employment growth and the subsequent poverty statistics.
This era of globalization has lead to countries coming closer to each other, this has happened in all aspects including trade. International trade is the exchange of goods or services between economies. It is calculated in the current account of the balance of payment of the economy.
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According to the paper, China previously used conservative practices in trade spheres by raising level of tariff rates and granting subsidies to the domestic enterprises. From the 1990s the government started to develop the potential of foreign trade activities. Ascension to the WTO helped the Chinese companies to increase its volume of exports.