Macro & Microeconomics Essays

A deadweight loss refers to specific forms of benefits that consumers or producers lose due to inefficiency within market operations. In most cases, such inefficiencies are caused by monopoly pricing or taxation (Brent 89). In other words, a deadweight loss can be termed as the total surplus resulting from market distortion especially from the side of government regulations on prices and in most cases the levied taxes.

The preamble of GATT describes the motives and purpose of forming it.  Full employment, increased standards of living through steady growth of income and making full use of world resources to expand the production base and exchange of goods were the motives behind the formation of the GATT (World Trade Organization).

The exchange rate is one of the important measures of economic development of a country.  Exchange rate of a country is governed by several factors.  Increase in value of local currency makes the country’s exports expensive in the global markets which will affect exports. Imports become cheaper under expensive local currency.

The model lays emphasis on the manner in which exposure to international trade is likely to induce the entrance of more productive firms into the export market. At the same time, the least productive firms will be forced out and only produce for the domestic market, this in turn will also lead to the exit of the least productive firms.

This paper aims to highlight three major differences of Islamic banking with regular banking system. Differences between Islamic Banking and Regular Banking With and Without Interest on Loans The banking institutions in any economy play a crucial role in the progress of the economy.

Macro environment Macro environment factors are also external to the firm and cannot be controlled. These factors hardly have any effect the marketing capability but affect the decisions of marketing within the company. Macro environmental factors may include the following:

Both these definitions illustrate that economics is a science applied in our everyday life, rather than it is one of the abstract studies. Everyday people have needs and wants they seek to satisfy. Even though these needs and wants are changing, and depend on many various factors, they are continuous.

Critically, health policy is vital in facilitating infrastructural set up to enhance the provision of timely health treatment to victims of lifestyle diseases. It provides requisite capacity through legislation on various economic measures, for example, initiation of price controls to balance supply and consumption.

The two countries participation in trade blocks in the region is beneficial, both politically and economically. Indeed for the two countries, closer ties in Free Trade Area of the Americas (FTAA) have served the purpose.

This essay highlights macroeconomic objectives of the June 2010 Budget and focuses on the analysis of macroeconomic problems, that were identified in the Budget report. According to the essay, the present UK Government appears very genuinely committed and focused upon controlling and reducing the budget deficit in the UK over a five year period

This paper examines the strategies used by China to enter the various African extraction markets. It goes further to look at the China-Africa Development Fund . It then looks at the various expansion into the extractive industry of the continent by examining deal flows and profitability of these Sino-African mining and drilling ventures.

In general, if the government removes or reduces tax deduction on mortgage interest, the demand for houses shall decline since its marginal cost increases. Government increases income tax, leaving people with less disposable income, hence low purchasing power again reducing purchasing power for houses.

The major turn around in the value of oil was seen after the 1973 oil embargo of the oil producing countries from around the world, which shook the entire base of world economics. It was after this the major players in the world economics understood that oil it just not just a black liquid it is the black gold and the need for the survival of every country in the world.

Recently there is a co-authored by Senator Schumer (D-NY) and Mike Lee (R-UT), US VISA offering a three year residential visa to foreigners who will spend at least $500,000 on a residential house, be it a single family house, a townhouse or condominium. The breakdowns were as follows, the $250,000 must be spent on a residential house.

When president Obama took charge of the presidential office, US had already lost over 8.8 million jobs and the Obama’s stimulus program which was made to create 4 million jobs was not enough to counter the entire problem. The problem is going to further elevate as the job created through the stimulus package were coming to an end as the projects started with the stimulus money were coming to an end.

According to the study conducted all the students attending college do not have to earn for their expenses. Sometimes students are dependent on their parents who take the responsibility of paying for all of their son’s or daughter’s expenses. Attending college and pursuing a degree course also requires a student to study harder and appear for examinations.

If trade was absent it would have been difficult for a country to meet the expense of producing a particular good. The result would have been higher prices for the consumers. Decision-makers will choose the most efficient and economical way to produce a particular product. Thus it can be assumed that the country will decide upon the amount of trade that will benefit the country as a whole.

Generally speaking, the recession was a big blow to the global economy. Very many countries were affected Northeast England and Scotland were not left behind. They are trying to recover from the problem with many of them preferring direct investments in the country and building on education and improving skills.

The economy suffers blows from within as a result of a lack of affordable over for its citizens. A study by the Harvard medical school stated that 45,000 people die annually as a result of not having health insurance. However, due to a reduction in personal earnings, there will be poorer health care, and this boils down to reduced productivity.

The ever increasing global fuel prices and diminishing stock of available sources of energy has continued to be a concern to economic planners. This has prompted countries to search for cleaner and renewable energy to meet rising demand from industries and homes.

Different theorists argue on different economic models in approaching the markets. Ideally, economists derive markets as determined by the availability of the required resources with a ready seller and buyer for the product. However, the markets deviate because of the demand and supply levels that shape the market conditions.

Patten lived between 1852 and 1922 (Magnusson 83). He developed an economic view that was contrary to other economists regarding the availability of resources. Abundant production would result from advancement in manufacturing techniques to the extent that people will have more than enough for their needs.

Neo classical economics is the theory of economics that deals with the optimization problem of the two most important agents in the economy; sellers and buyers. In simple words, the theory revolves around the concept of price mechanism followed in the free market economy and the market allocation of resources from within the opportunity sets.

This paper will extensively shed light upon a monopoly, in addition to this it will also throw light upon the causes of a monopoly and with the help of a case study, a monopoly will be explained in detail. A Monopoly or Monopolies have been determined as one of the main types or causes of market failure, the term not suggesting death or cessation of the market but rather aligned with the definition of a monopoly.

The author concluded that recovery will be weakening and there will be less helpful for those who are underemployed or unemployed. It would not do well for those who have lost their homes. In the end, the author transits to building more ambitious budget reforms. Without such reforms, there is a threat that current slow growth will become entrenched in the form of economic stagnation.     

Notably, most of the Russian natural gas and oil were sold in Europe since it offered the major market for these resources (Russia’s most crucial economic partner). The effects of the 2008-2009 economic crises have negatively affected demand in the energy sector of the European market.

Budget deficit has been has been an issue in both developing and industrialized countries. Originally, the issue was blamed in large for the assortment of ills that beset developing countries at that time such as indebtedness, poor investment, high inflation, and poor growth performance.

The main purpose of the research is to present that poverty has become one of the major economic concerns in the United States recently. Indeed, by a considerable margin, the country has the highest poverty rate among all other developed economies. Particularly disturbing are the poverty rates for children: 3-4 times bigger than in most European countries.

The most effective way to implement pollution control is automatically put in place. Under the assumption that there are perfect markets, perfect information dissemination, and very minimal transaction costs, Coasian bargaining can seamlessly happen and can be used to secure environmental protection. (Cole 2002:3-4)

The purpose of health and safety during the work regulation is twofold. Primarily it is quite evident that very frequently human resources are found to be physically hurt during various constructions only due to the lack of safety and health regulation followed by inefficiency. Tt is better to be perfectly planned in a regulated way.

You need to review the report carefully. Ask yourself: * Where there is matching material, is there a sufficient amount to indicate that the Writer has taken the material from a source, or is it just a fragment? * If the Writer has taken material from a source, have they properly referenced it?

The financial sector works as the backbone of the UAE’s economy. The financial services sector plays a pivotal role and has significantly contributed to the diversification of the UAE’s economic strategy. And, Abu Dhabi and Dubai’s financial sectors, which are the main contributors to the UAE’s economy, from 2007 to 2008.

Conversely, the Chinese system developed a hybrid approach to liberalization where SOEs were only privatized after a series of informal state and public checks and balances. The question of which is more central to the transition stage – macroeconomic success or moderation – seems to be a chicken and egg equation, as one inevitably leads into the other.

On a larger political scale, the debate may focus on how free or how socialized should a market be, but among those that believe the markets should be as free as possible, there is still concern over monopoly practices and how the government could be used as a tool to respond to them. The first step in understanding and forming conclusions in this debate is to determine a definition of monopoly.

The economy of a state is one thing that plays a major role in the lives of the citizens. It is always important to ensure that there is a continuous effort to ensure that the economy is in the right state to get assurance that a state can sustain itself properly. A reliable report has it that the state of California has a history of large budget deficits.

Most of the time when a country suffers from inflation, the central bank of that country takes several steps to stop severe inflation and tries to minimize the prices of the goods and services (Hudson, 1982, p.67). The central bank of the United Kingdom is known as “The Bank of England”. In the year 1694, the bank was established and on 1st March 1946, it became nationalized.

Complexities in international trade in the recent years have increased complexities in businesses due to globalization drive pursued by the countries.  The market structure in various economic systems has undergone significant change due to the impact of the convergence of technology.

The invention of economic thought has had several growths and with views of economic problems, issues and solutions changing as time goes by, that is from the mercantilist view, physiocrats’ view, just to mention a few to the modern economics. All these theories and thoughts are seen to be adversely affected by their timing. 

A loose monetary policy in any country is one strategy the government uses to stimulate economic growth in the country. Its main benefit arises from the reduced interest rates and expansion in the money supply. In this context, the focus is on Germany; a large country with a dynamic system of open markets and economy.

The law of supply states that the higher the price, the higher the goods the producers are willing to supply. If the price is high, this also entails that the level of supply is also high since the producers will be willing to supply more which is likely to result in the generation of more revenue which constitutes the basics of every business.

Working Capital Management Introduction Working capital management is a complex process through which a company ensures that it maintains sufficient cash inflows in order to meet its short term debt obligations as well as operating expenses. In other words, the system of working capital management intends to establish a relationship between a firm’s current assets and current liabilities.

This essay mainly focuses on determining certain sets of economic policies, conducted by Argentinian government in the early 2000s, that contributed to the cessation of the economic crunch. On the economic front, the government abandoned convertibility, encouraged industrial reactivation, and introduced price control measures.

The history of international law has not been so peaceful, at least for the last two decades. The period witnessed considerable variation from the norms, and the deviation came mostly from the US and its allies. The developments helped scholars and the international community understand the loopholes in international laws.

Air travel is an increasingly expanding industry, for both business and leisure pruposes. “It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries” (Aruvian’s R’search, 2011).

Various influential figures have also argued that there has been extensive inflow of foreign capital into the American economy which acted as the main triggering factor behind the crisis.

  One of the most remarkable, systematic as well as invasive forms of external intervention related to developing countries since a few decades has been, what is essentially known as, ‘structural adjustment’. It can be comprehended as an effort made by the International Monetary Fund, the World Bank as well as the Organization for Economic Co-operation.

The term hyperinflation is also referred to as a type of inflation, which is extremely high and unmanageable. It mainly occurs when there is an extensive increase in the supply of money within the economy which is not balanced with the growth of the GDP of a particular economy. There occurs an imbalance in the supply and demand.

The author states that the key factor that contributed to the decline of feudalism was its tendency to encourage population growth for both the peasants and the feudal lords. The large peasant family helped in farming but it led to defragmentation of land holding and lower production in the long run.   

The research revealed the way oligopoly firms maximize abnormal profits in the market. It revealed the way cartel firms under oligopoly to maximize profit both in the short run and in the long run.

Most companies have currently employed a method with the main aim of motivating their workers. For instance, in the US teachers are being awarded with promotions and other benefits as a form of motivation based on their work track records. However, some argue that such practices end up resulting in financial crises around the globe.