Macro & Microeconomics Essays

Macroeconomic factors such as the unemployment rate and inflation play a pivotal role in the national economy of the country. Rapid inflation takes away the benefit of rising GDP or in other words brings down the real GDP growth rate and thereby real income of the people. Similarly, a high unemployment rate does not augur well for the economy as it tends to raise income disparity among the people.

Of course everybody knows that ObamaCare is a health insurance sponsored by President Obama but many are still oblivious of what it is really about, why many politicians disagree about it and whether if it economically advantageous to Americans both as a country and individual.

Keeping inflation down to a desirable moderate level is an important contributive factor to sustaining economic growth. This is because it serves as an incentive for increasing output, investments, and unemployment. A rapid rate of inflation disrupts regular economic life leading to a wider income gap, falling output, and unemployment.

The US labor market is experiencing higher unemployment rates. Prices are continually souring high and interest on mortgages rising .These situations can also be addressed by critically examining how the market elements interact.

The company has been accused of pursuing anti competition strategies that are unlawful in order to dominate the market and benefit from the monopoly power (Meller 2009). In a monopoly, the firm will have the entire control in setting prices and sometimes derails innovation due to lack of competition.

A monopsonist confronts the supply curve that is between the price paid and the quantity purchased. But a competitive buyer always accepts the price determined by the market. Therefore, a monopolized market is characterized by a smaller quantity and a lower price. Just like monopoly, Monopsony also results in the inefficiency of the market.

Why is Smith's work on the division of labour still of interest after almost 250 years? Adam Smith introduced the notion of division of labour in his path-breaking book, An Inquiry into the Nature and Causes of the Wealth of Nations, in 1776. The notion of division of labour implies ‘separation of manufacturing process into distinct and simple operations which are then delegated to specific hands or machines to perform’ (Smith, 1776, p.10).

The main determination of economic justice is to free each person to engage in creativeness in endless work beyond economics, which involve the mind and the spirit. Economic justice pursues to outspread the principles of justice integral in human privileges into the economic world.

If we are to name a few of these basic perspectives, microeconomics, macroeconomics, institutional economics, and industrial organization - or the study of the firm, all comes to mind. The degree to which the lens of scrutiny is focused, and the size of the entities that are studied are dissimilar among these, and it is likewise true that each has its set of strengths and weaknesses.

Weather Phenomenon vs. Crops Prices. Commodity prices are generally influenced by a number of economic factors, the most common being the demand and supply of the commodity in the market. Nevertheless, the forces of demand and supply are also influenced by other macroeconomic factors such as the prevailing weather patterns at any given time that can either increase or reduce the production of a particular commodity.

They provided some solutions which they thought will unlock the mysteries of the economic dilemma. Keynes was the believer of less government control. He tried to pan out a way where less or little government controls will allow the enterprises to work in the free economy regime.

In the year 2004, the average price of Bordeaux wine dropped to ₤159. Just as in 2002, the demand for the wine was more than that of 2003. This is so because of the reduction in price from ₤223 to ₤ 159. Reducing the price of the commodity would have an effect of increasing its demand. This would also increase the number of sales of the product. 

It is under rigorous scrutiny at the international forefront where experts have been incessantly concentrated on the development of a structured all-inclusive definition of globalization. Globalization is the acceleration and intensification of interaction and integration among the people, companies, and governments of different nations” (pp: 1).

Almost half of all immigrants, in fact, do not possess insurance, which is approximately thrice as high as those for native-born citizens. Since such a large number of immigrants do not have health care, they come up against serious barriers in pursuit of medical care and have to pay more from personal savings to receive care.

It is in the interest of the whole world to ask for the intervention of world trade organization and GATT to review the legal loopholes that give China such opportunities to manipulate the global economy. Economic sanctions for strategic co-operative input factors are also important it can threaten Chinese authorities to reverse their actions.

Any good that falls in the category of common resources has to meet these two characteristics, where rivalry indicates that the consumption of goods by an individual precludes its consumption by other individuals since the unit consumed is no longer available. The second qualification for a commodity into the category of common resource is non-excludability.

If the Federal Reserve increases the rate of interest, the profitability of such firms will definitely go down due to reduced sales. Increased interest rates will increase the cost of borrowing, which in turn reduces the amount needed to finance investments and through the multiplier effect, this will lead to reduced profits to international firms. 

Mainstream economics is a specific school of thought to the post World War II era, specifically in the Anglosphere and to a lesser extent globally (Wrenn, 2004, pp106). Mainstream economics is associated with neoclassical economics which combines Keynesian approach and neoclassical methods macroeconomics.

Chocolate gifts molded into various shapes are now a traditional offering on particular holidays like valentines. It is also used to flavor various hot and cold beverages in the production of hot chocolate and chocolate milk. Cocoa mass originated in Mesoamerica as a beverage, as well as an ingredient in various foods.

Two primary divisions of economics are Macro and Microeconomics. Macroeconomics entail a concern on the how the economy behaves the globe and economies. On the other hand, Microeconomics is a study that encompasses decisions made by individuals and several concerned businesses regarding pricing of goods and services offered and strategies of allocating resources.

Globalization contributes to sustainable prosperity for all people. This can be done by cutting down on poverty and increasing the number of companies competing for the sale of the same good or service through the opening of trade between different countries. This will cause the quality to increase and the prices to drop thus winning the consumers.

Role of the Government in the Prevention of Recession. The Wall Street is given the name following the construction of a very long wall that ran for eight blocks, which is approximately 1.1km long. This wall ran from Broadway all the way to South Street in the lower parts of Manhattan.

At the end part of the chapter, the author mentioned the land- or city-scape visionary named Ebenezer Howard. His so-called garden cities had surprisingly formed or reformed the planning design of a modern-day urban dwelling. Howard’s concept of garden cities was an attempt to merge nature and the man-made environment.

The organisational structure can be of two kinds, one is classical and the other one is modern. The classical organisational structure consists of centralised structure, bureaucratic structure and divisionalised structure (Natural Resources Management and Environment Department, 1997).

According to the report many people are of the view that oil price increase may affect only the vehicle owners. In fact oil price increase can destroy family budget drastically since the prices of the households are heavily dependent on the prices of oil. The transportation of Households from one place to other needs the services of vehicles.

Question one The “equation of exchange” is a fundamental equation in economics that demonstrates the relationships among money supply, the level of price, velocity of money and the index of spending. MV = PQ. MV represents the expenditure (the money supply (M) times the velocity of money (V).

Inflation tends to create an impact on the economy usually in the short run, deflation can have long-run impacts on the economy and the central banks certainly do not want this. Gaining the confidence of the investor and consumers to restore the aggregate demand is very difficult and therefore, it needs to be ensured that a scenario of deflation does not occur.

In principle, we know that we are in a recession when there is a general decline in the economic activity. This becomes obvious when we look at the real gross domestic product. This is the most viable indicator to know the state of the economy. This is regarded as a noteworthy turn down in economic activity just after the economy reaches a peak and end when it reach trough (New York Times, 2010).

It was a real honor for the specified Caribbean territories to conduct this mega sporting event. There was a huge demand of extraordinary planning as well as investment for this event. The analysts also discovered that around ten million US dollars was coming as an internal and external investment associated with this mega event.

The managerial task has always been associated with unpredictability and complexity even though it has massive opportunities for an organisation. In characterizing the works of managers, their activities would be reflected in terms of the four basic functions of management: planning, leading, controlling and organizing.

Global giant, the gambling industry consists of various sectors. These are mainly casino resorts and other convenience gaming spots. Both of them differ in the way that there are opportunities for jobs as they include hotels, shopping malls and other recreational activities. Whereas, the convenience gaming spots offer very little of gaming options and such opportunities and, therefore, are of no significant economic benefits.

Thus far that of the three explanatory variables, the exchange rate is the single most directly determining variable for Canada’s inflation rate. This is because for the past four years under review, whenever there is an increase in the exchange rate, there is a corresponding increase in the inflation rate of Canada. When there are decreases also, there are direct decreases in the inflation of Canada.

Mankiw’s book provides the reader with detailed research with learning and reinforcing principles on how to calculate GDP and why it is an important indicator. The book has various tutorials that help the readers to understand the significance of GDP and why foreign investors should to invest in countries that have positive GDP growth.

Federal marketing orders have been imposed on fruits, milk, vegetables, raisins and other agricultural products. Marketing orders are said to have originated as early as 1920s with farmers trying to impose regulatory controls on crops voluntarily (Christensen 17).

The means and ways of eradicating poverty are now widely researched and studied in various academic fields such as religion, economics, sociology, ethics, and theology. Globally, disparities between the poor and the rich even in the most resourceful nations are increasing sharply.

Entrepreneurship and technological advancement, in carpet making, are hindered by a lack of financial capital since the population’s income levels are predominantly low. Social capital affects the country’s carpet making process, which revolves around mutual appreciation.

On the other had human beings have unlimited wants. In a free market economy, the forces of demand and supply determine the market equilibrium and the prices are determined by the price system. When a country or a company has a comparative advantage compared to the other countries, producing a same good, the country which has the advantage can supply the good at a cheaper rate compared to the other countries.

This trade was brought about by the rapid increase in the number of Europeans who fell in love with tea as a beverage, and who constituted a growing market that the VOC saw as a profitable opportunity that can be served by a vitalized trade in tea between itself and China, acting as mediator.

The European Monetary Union is the agreement between the states of the European Union to adopt a common currency for the countries. The currency that has emerged from the agreement has been named the Euro. The rationale behind the formation of this association was the creation of a strong single European market.

This essay primarily focuses on the evaluation of the effectiveness of the fiscal policy measures in the US in the recent times. It reveals the types of fiscal policies that were adopted in US to deal with the recession and economic slowdown. The essay discusses direct and indirect consequences of the shutdown of the government on growth.

There are two types of foreign exchange rate, the spot exchange, and the term forward exchange rate. The first is defined as the rate that is currently applicable, while the latter is defined as the rate that is currently quoted and used for trading.

The task of making decisions that control the interest and exchange rates confront authorities at all time. Over the short term, involvement in the global market makes it difficult to tax the international capital that is relevant to the nobility factors of production like labor. This huge loss of fiscal alternatives can prove costly, especially in the end.

This essay discusses the influence of professional networking, and considers their role in assisting recruitment in the times of recession. As it is shown in the paper, professional networking is the manifestation of the skills of potential employees, such as their focus, determination, enthusiasm and ability to work with people

The current US government is facing many challenges owing to the slowdown of the economy and the poor performance of many US institutions. In that context, the Keynesian Aggregate Expenditure Model is of apt relevance. Aggregate expenditure or aggregate demand is the total expenditure on domestic goods and services.

The term Asian Tigers is used to refer to four Asian nations namely South Korea, Taiwan, Hong Kong, and Singapore. The four are referred to as the Asian Dragons of the Four Asian Tigers due to their developed economies. These happened between the 1960s and 1990s such that all the four nations had graduated into high-income economies.  

The development path of East Asian countries is different from western countries. The tax system has been proved as an important component of the development of this region. Taxation has supported economic policies in South Korea and Taiwan that have promoted economic development as well as the development of public institutions.

2006 New York Housing Bubble Introduction A housing bubble can be said to be an economic bubble, which occurs in either local or worldwide real estate market. It is characterized by fast rises in the price of real property until untenable levels are approached or reached relating to incomes and other measures of affordability.

No one would have ever guessed that over the years that R.H. Macy & Co. would eventually become one of the largest department store retailers in the world. The first day’s sales were $11.06 and the first year would gross almost $90,000. Last year’s gross sales, 2010, were $25.0 Billion. The sales were up from $23.8 Billion in 2009.

Monetary policy: The monetary policy refers to changes in money supply brought about via government interventions. The government may change money supply using various tools. One of the ways is by using monetary base control; the government has full control over the money supply in the economy (the total currency held by the non bank public, volt cash held by banks and reserves of commercial banks with the central bank.

Just as a person is born, then he grows and matures, and eventually his life experiences a decline and finally he dies, similarly an industry is born, it then develops and grows. After attaining maturity it starts the declining process and finally the industry has to be shut down, that is it eventually dies.