Macro & Microeconomics Essays

The paper "PESTLE Analysis of the USA" is a great example of macro and microeconomics case study. With the rising competition in the global markets, it is critical that companies undertake market research and analysis before the venture. In this case, the analysis would focus on the United States. The US is the third most populous country globally and fourth by total area.

The paper "The Implication for SMEs in Adopting the Living Wage Policy in the UK" is a perfect example of macro and microeconomics coursework. To move a high tax, less wage and high welfare society to a lesser tax, high wage and lesser welfare society, the government is trying its best to take a stance. After the year 2010, more than 2 million jobs are created by the government and currently, it is taking action to provide more gains to lower-wage workers.

Theoretically and according to Salzmann, Edmonston & Raymer (2010), this suggests that increasing a country`s population density beyond the desired level makes everybody individually poorer. The UK, with less than one acre of land at least per head, including lakes, motorways, and mountains is far past the population density under which any increases in the population will make everyone poorer. 

The paper "The Tax Justice Network in the UK and the USA" is a good example of macro and microeconomics case study. Countries experience loses to multinationals and individuals through increasingly aggressive use of tax avoidance schemes. Various press reports have continuously highlighted the low tax paid by well-known multinational companies. Tax avoidance and tax evasion are two different concepts that have been used interchangeably.

A well-recognized tool for measuring economic inequality in the world is known as Gini. Using the information from the recent Gini results that show that the developed countries have less inequality than developing and disadvantaged countries can help us deduce a mechanism of eliminating inequality (Harford n.p). 

The paper "Macroeconomic Effects of the Minimum Wage to the Economy" is a perfect example of macro and microeconomics coursework. The chancellor of England decision to increase the minimum wage has been met with criticism and praise from different sources. The chancellor said that the employers were to be forced to increase the minimum wage to £7.20 an hour from 2016. The wages would be raised by 6% annually to an average of £9 by the end of the year 2020 (BBC, 2015).

For example in 2010 alone, the federal spending consumed nearly 24% of the Gross Domestic Product (GDP), which equaled the value of goods and services produced in the economy. The only time this somewhat excessive spending occurred was during World War II. The tax revenues were able to stand at 15% of the GDP in 2010, which was the lowest level since 1950. 

The theory argues that the market is self-regulating as individuals seek to profit themselves. It is the profits that individuals seek that promote optimum allocation of society’s resources. The classical theory supports growth, competition, and free trade. It discourages the government from interfering with the market.

Some economists argue that an increase in government spending in the provision of goods and services creates an incentive for increasing the level of production. Those who do not agree with this view argue that the federal government should transfer the right of provision of these services to the private sector.

Activities of the company include gas exploration, processing, transport, and marketing. Kalotay (2008) studied the implications of the recent rise of Russian transnational corporations including Gazprom to global prominence for the paradigms of international investment. Gazprom has leapfrogged to global status and is a net capital exporter. 

The policy measures are supposed to uplift Ireland’s economy. Some of them offer a short term solution while others offer a long term solution. To avert an economic tragedy like the one that hit the country two years ago, more macroeconomic policies should be put in place. This will ensure that Ireland is well prepared if and when such a tragedy hit the world again.

Although Blanchard talked of a political business cycle, Mankiw clarifies that although the term "business cycle" suggests that economic fluctuations are predictable, they are actually not. Over a business cycle, the real wage is expected to be acyclical in the Classical model, countercyclical in the Keynesian model, and procyclical in the New Keynesian model.

Different schools of thoughts and critiques have been developed on free market and its drivers. A classic thought on spontaneous market order can be derived from the statement of Hayek “ We have never designed our economic system. We are not intelligent

Generally speaking, the US economy is largely currently unstable.  Since the advent of the US economic and global economic crisis, it has mostly gone through various issues like high inflation and high unemployment rates.  Its housing and credit market crisis has also caused major problems in its economy.

Much has been written about the ongoing global economic crisis and the response of countries around the world to deal with the fallout of the same. While many commentators have written about the US leading the way in terms of bailing out the ailing banks, the actions of the member states of the EU (European Union) have also come under scrutiny for their response to the crisis.  

This system encourages private ownership of production. It is possible to find people who have control over natural resources and have ownership of industries for the production of goods and selling goods. This paper will give a detailed comparison of capitalism with the Islamic Economic System

Generally, in fact, “by agreeing to pursue that interest within an organization as constraining as the European Union, the member-states have recognized the ultimate superiority of multilateral, as opposed to unilateral, decision making and action in a variety of policy arenas” (Almond et al. 2002). 

It is estimated by the year 2030 the numbers will climb to 5 billion and the largest concentration will be seen in Africa and Asia.  (UNFPA, 2007, p.1).  Publicity has concentrated on large metropolitan cities, however, speculation predicts that the largest portion of the new growth will lend itself to smaller towns and cities. 

Their argument mostly implies that an increase in government spending it is an indication that more money is going to the people’s pockets which is a good boost towards economic growth. This view, however, is a complete opposite when it comes to smaller governments

Before a detailed discussion of the internal labor market an appropriate definition of it must be considered; where Doeringer and Piore have defined it ‘an administrative unit such as a manufacturing plant, within which the pricing and allocation of labor is governed by a set of administrative rules and procedures’.

A country with an uninterrupted growth of almost 16 years, with the 5the largest economy on the exchange rates, and the sixth-largest on the purchasing power parity, UK has been the best economy for a very long time. It has had the ninth highest GDP per capita. The deputy governor of the Bank of England commented that the world economy has a long way to go to stabilize after the crash.

The main purpose of Economic Theory is to provide an outlet for research in all areas of economics. Economic Theory is providing a wide spread of scientific knowledge in the relevant area of economics. Various factors are influencing outside the business are the external factors; among them, the main factor is the degree of competition.

The poor nations have not been an equal chance to access world markets and the rich nations continue to put impediments which marginalize the poor nations in world trade. This is the rule of justice that is likely to determine how we achieve equity in the distribution of resources which further accounts for the richness and poverty.

With Rawls’s and Hayek’s unusual and constantly indirect recognition that, inevitably, there is ‘inequality’, the theories developing the generally advantageous nature of the market arena from the argument that voluntary transaction is equally beneficial is deficient of a fundamental empirical connection.     

The author of the paper states that emerging markets like India and China continue to attract foreign investment due to the promising markets. The availability of resources and lack of competition in the developing countries also contribute to the globalization and international trade that are witnessed currently.

There are several policies and theories, which govern the attitudes of countries and strategies of countries in the political arena. These strategies form the basis of a country’s behavior and the way they conduct themselves in the international political economy (Larson & Skidmore, pg. 65-68, 1997).

The money supply significance as an ADD is significant to the research of macroeconomics, particularly monetary policy intended to alleviate business cycles. A regularly recommended, and frequently pursued, answer to business-cycle reductions is an expansionary monetary strategy, a raise in the cash supply.

Through combining with data on population, national income can give a clear measure of wellbeing based on the country’s per capita income, as well as its growth with time. National income can also be combined with data on the country’s labor force in the assessment of productivity’s level and rate of growth.

It is important to say that competition is actually a very good process that makes the market work efficiently. Classical economists deem competition as a highly desirable phenomenon but neoclassic economists suggested that perfect competition is an ideal model that is almost impossible to find in reality.

Communities are the basic reason for the tourist to travel, their need to experience the way of life of different communities, their culture, and the nature of different communities. Tourism growth prospects are ever-growing. Every country has got an advantage from this field. World Travel and Tourism Council (WTTC) estimates show that “in 2002 travel, tourism and related activities will contribute 11% to the world’s GDP, rising to 12% by 2010.

Generally, some macroeconomic measures are being taken by the central bank to energize the microeconomic market in which people have sufficient money to save themselves from starvation and increase their capacity to purchase essential items. Sanctions might run against the interests of all concerned.

It is one of the important areas of the world economy. The global economic scenario is facing challenges to meet the fast-growing oil demand with depleting oil reserves. (Oil Industry Statistics). The oil industry is showing a higher growth rate due to the higher demand for energy in the industrialized world. The higher growth rate is expected to be continued in the future also due to the increasing demand for energy in various industrial functions.

As the real estate market is becoming increasingly international, it is important to understand the operations in national markets and their interrelationships. This project tries to identify and find similarities and differences across different markets and provides a framework to explain how these national markets converge.

This paper aims at understanding a major concept that relates to economies of scale and brings out the extent of economies of scale within a firm. This concept is referred to as the minimum efficient scale (MES). 

However, there are times when rewards intended to encourage or promote a certain plan for the good of the economy can accidentally or coincidentally bring about an event that does harm. Such policies and incentives will then become perverse economic incentives.

(ii) The scatter diagram of annual salary versus years of post-secondary school education is presented in figure 2, in the appendix. From the diagram, the underlying relationship between these variables i.e. annual salary and the years of experience is positive correlation i.e. annual salary is increasing with increasing years of experience.

Reliability gives researchers confidence and also ensures that worthless and misleading data is not unnecessarily collected. Amaratunga et al., (2002) describe a valid measure as “one which measures what it is intended to measure”. If the same results in the same circumstances come up repeatedly, the measurement procedure is considered reliable even if it is measured by different people.

The enterprises became more efficient with the help of the private sector and the change in business philosophy which enable the new corporation to meet the corporate goal of increasing its shareholders' wealth. The enterprise's success also indirectly accomplished the original traditional government objective of the SOE.

Examples of companies that fall into the market are cement companies, car companies, electrical appliances companies. Here the consumers have a choice and the prices are set by each firm. In these markets, the oligopolistic differentiate their products and the quality of products can be very different for each firm. 

Following the end of World War II in 1945, western countries experienced a high wave of economic growth. Britain was in that pact that enjoyed the unprecedented times of unusually high and sustained growth together with bursting employment. Britain was flourishing in raising real income rate, a raising high consumption of goods and services.

The recessionary effects become visible in the economy, the rational individuals and businesses will actually reduce their wages and prices thus increasing the purchasing power of the dollar. This increase in the purchasing power of the dollar is considered as equivalent to the increase in the money supply.

The merchants were given foremost priority under mercantilism and the interests of the bourgeoisie, above all the commercial bourgeoisie, were expressed under the system. Merchants' higher position was justified by the fact that trade and circulation of money was the main economic activity under this economic system.

Specifically, the presence of high unemployment rate is considered a major problem in the local and international labor markets (Gupta, 2008, p. 62). Even though a country is active in terms of its economic activities, a large number of working individuals who are out of employment becomes one of the major concerns of the government and its local citizens.

The new international economic order does contain some supply-side constraints but some significant contributions of it cannot be denied. It should be also admitted that some changes brought about by it did not have any significant impact. However, the global contribution of the new international economic order becomes difficult to identify. 

Globalization was considered as the wave of the future when it first appeared to unite countries into one global economy for the mutual benefits, which presumed global integration and interdependence in the technological, economic, social spheres. The core intention of promoting globalization among countries had positive purposes to make the world more mature, connected and interdependent.

In its early stages mode of life was simple with few people, but as the population increased the question of its management became pivotal. A market economy and a command economy are the two forms of an economy that are often debated. Proponents of free-market mechanisms consider the least government interference as the ideal form of government.

The paper shows that research conducted has shown that the CAPM model can stand up on the criticism leveled on it by the advocates of other models. As already discussed the other extended models that include factors other than a market index can explain only for very minimal variations in the expected return. 

Due consideration has been given to macroeconomic policies, inflation trends, exchange rates and political lobbying that might have deep impacts on corporate economies. Greater focus has been laid on the US, UK and Eurozone economies. However due consideration has been accorded to West Asian, Indian, African and other developing economies.

The American economy after the civil war was showing tremendous progress with proportionate increase in its population during the three decades between 1870 and 1900. Gross Domestic Product of the country touched an envious growth level during that period with historic achievements in almost all economic ventures.

In perfect competition, there is fierce competition among the firms. Consumers benefit directly from it. Due to the immense competition, there is the best allocation of resources. Consumers stand to gain the most in a perfect competitive structure. No firm is in a position to influence the price. Therefore, there are fewer chances of price manipulation.