Nobody downloaded yet

Intermediate Microeconomics - Essay Example

Comments (0) Cite this document
Summary
It has affected each and every industry in the US, and has had repercussions all over the world. When the housing bubble broke, it did not spare anyone or any…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Intermediate Microeconomics
Read TextPreview

Extract of sample "Intermediate Microeconomics"

Download file to see previous pages es alike : all declared bankruptcy and the State had to infuse millions of $s into the economy in the form of economic stimulus to keep the economy from completely crunching.
"This collapse in housing value is sucking in all borrowers," said Mark Zandi, chief economist at Moodys Economy.com. The New York Times quotes “Like subprime mortgages, many prime loans made in the United States in recent years allowed borrowers to pay less initially and face higher adjustable payments a few years later. As long as home prices were rising, these borrowers could refinance their loans or sell their properties to pay off their mortgages. But now, with prices falling and lenders clamping down, homeowners with solid credit are starting to come under the same financial stress as those with subprime credit.”
An article in the WSJ [2007] speaks about the sub prime crisis and its analysis by the Journal., “To examine the surge in subprime lending, the Wall Street Journal analyzed more than 250 million records on mortgage applications and originations filed by lenders under the federal Home Mortgage Disclosure Act. Subprime mortgages were initially aimed at lower-income consumers with spotty credit. But the data contradict the conventional wisdom that subprime borrowers are overwhelmingly low-income residents of inner cities. Although the concentration of high-rate loans is higher in poorer communities, the numbers show that high-rate lending also rose sharply in middle-class and wealthier communities”. According to the same article, even in 2006, when the housing market was weakening, some lenders were still willing to make riskier loans. The analysis of loan data by The Wall Street Journal indicates that from 2004 to 2006, when residential property prices were at their peak in many parts of the country, more than 2,500 banks, thrifts, credit unions and mortgage companies made a combined $1.5 trillion in high-interest-rate loans.”This article describes how the subprime ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Intermediate Microeconomics Essay Example | Topics and Well Written Essays - 750 words - 1”, n.d.)
Intermediate Microeconomics Essay Example | Topics and Well Written Essays - 750 words - 1. Retrieved from https://studentshare.org/miscellaneous/1557502-intermediate-microeconomics
(Intermediate Microeconomics Essay Example | Topics and Well Written Essays - 750 Words - 1)
Intermediate Microeconomics Essay Example | Topics and Well Written Essays - 750 Words - 1. https://studentshare.org/miscellaneous/1557502-intermediate-microeconomics.
“Intermediate Microeconomics Essay Example | Topics and Well Written Essays - 750 Words - 1”, n.d. https://studentshare.org/miscellaneous/1557502-intermediate-microeconomics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Intermediate Microeconomics

Microeconomics

... Point “a” does not represent an efficient allocation of factor of production. To see this, consider a point like ‘b’ in the same graph shown below. It provides the same level of output of good X as point “a” since we still are on the same X isoquant, but the production of Y has increased since now we are on a higher Y isoquant. Similarly, we could have picked a point on the Y isoquant through point “a” which is tangent to a higher X isoquant. This would imply a higher production of good X without reducing the output of good Y. Since such Pareto improvements are possible, point “a” can’t be an efficient allocation. 2) The Coase theorem states that in the absence of transaction costs, ownership of property rights does not matter... Point “a”...
3 Pages(750 words)Essay

Microeconomics

...? Microeconomics 08/26 Microeconomics In 2007, the potato chip industry in the Northwest was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. The new company is now a “monopoly” which is only the sole provider of potato chip in the entire country. Now, there is only a single supplier of potato chip all across the region (Brigham, 1976). As all...
6 Pages(1500 words)Essay

Intermediate Macroeconomics

...?PART 2 Real GDP Growth for Quarter IV and Quarter I: It is being forecasted that the real GDP will grow by 0.75 percent in the fourth quarter of 2012 and by 0.875 percent in the first quarter of 2013. The similar trend has been projected by IMF (IMF, 2012). The main reason behind the increase in the real GDP growth is the declining inflation in the last quarter (RBA Statistics). It is evident that any change in the inflation rate has direct impact on the output level and overall GDP (Leamer, 2009). The decreasing inflation rate will push the Reserve Bank of Australia (RBA) to cut down the interest or cash rate. The decrease in the interest or cash rate will encourage the consumers and investors to spend more money. This, in turn... 2 Real...
4 Pages(1000 words)Research Paper

Microeconomics

...of the of the Term Paper on Microeconomics Introduction As economics has many fields or branches, microeconomics is one of such fields, which deals with the study of consumer behavior. The consumer can belong to a household, an industry or a company. Hence, microeconomics relates to the study of allocation of funds by different sections of users, which include domestic households, firms and industries. Their decision making pattern is thoroughly studied to make assessment and observation for the future forecast of market condition, particularly when resources are limited. However, since the buying and selling is common to all participants of economy, therefore...
10 Pages(2500 words)Term Paper

Intermediate accounting

...Titus Rock Manickam Order No. 230991 21 June 2008 Intermediate Accounting Introduction Any market as old as the livestock market is inherently resilient and quite capable of absorbing the vicissitudes and vagaries of nature. By the same token, it is also capable of absorbing short-term losses arising out of mismatches between actual positions and forecasts. Problems and difficulties only arise when actual results belie market expectations and calculations. The problems may be compounded due to losses resulting from the miscalculations. Nonetheless, by and large, seasoned livestock management such as the Three Little Pigs Inc. is capable of deciding the right course of action through experience. This is because the problems... Rock...
3 Pages(750 words)Essay

Microeconomics

...Microeconomics Microeconomics Resources in a country can be ified into two groups; tangible and intangible resources. Goods such as food and drinks, electronic goods, vehicles etc are tangible resources whereas services like education, healthcare, tourism, business consultancy etc are intangible resources. UAE is a country which is blessed with immense oil resources whereas it lacks scarcity in manpower resources. In fact UAE is currently facing demographic imbalances because of the huge expatriate workforce available there. The number of overseas population is more than the number of locals in UAE. Abdullah (2007) has pointed out that “8 out of 10 people living in the UAE were born abroad as per the...
6 Pages(1500 words)Research Paper

Intermediate Microeconomics

... Elasti of Demand Assignment Own price elasti Point elasti of demand: EpD = %change in QD/%change in P. = {(7-10)/10}/ {(1.25-1)/1} = (-3/10)/ (0.25/1) = -0.3/0.25 = -1.2. Arc elasticity of demand is the proportion of the percentage of variable between two points to the percent of the other variable (Mankiw 89). {(Q2-Q1)/ (Q1+Q2)/2}/ {(p2-p1)/ (p1+p2)/2} = {(7-10)/ (10+7)/2}/ {(1.25-1)/ (1.25+1)/2} = (-3/8.5)/ (0.25/1.125) = -0.353/0.222 = -1.59. 2. Cross price elasticity of demand Cross elasticity of demand measures the responsiveness of the demand for the product in respect to change in price of another product. It depicts the percentage change in price of the product due to the percentage in price of a complement product... Elasti of...
1 Pages(250 words)Assignment

Intermediate Macroeconomics

...The Effect of Oil Price Changes on the Buying and Selling Economies Summary Arguably, modern day economic structures of many countries are dependent on crude oil, as the major source for energy and being in significant demand throughout the world. The top suppliers of oil include Russia, Saudi Arabia, The United States, China, Iran, Iraq, United Arab Emirates, Canada, Venezuela, Mexico, and many more, having strong implications on their economic stability and thereby, influencing global consumption and expenditure rates through international trade to a substantial extent. The specific objective of the paper is to illustrate the effect of price change in the international market of crude oil on buying and selling economy. The core... Effect of ...
17 Pages(4250 words)Research Paper

Intermediate Microeconomics

... Monopoly Homework Assignment Complete the graphs below of a monopoly so that the condition of profit, loss or zero economic profit respectively. This will include: -Drawing the MR and ATC curves and labeling them -Determining and labeling the optimal levels of p*, ATC* and Q* on each graph -Shading in the profit/loss rectangle on each graph i) PROFIT S/Q MC ATC PM P* PROFIT MR D=AR QM Q* ii) ZERO ECONOMIC PROFIT S/Q MC ATC P* (MC meet MR at the same point where ATC meets AR(D) curve) MR D=AR Q* iii) LOSS S/Q MC... Monopoly...
1 Pages(250 words)Assignment

Microeconomics

...Consultation on Market Structures Consultation on Market Structures Market structures are the different conditions or characteristics of a certain market that interrelate to determine the degree of competition and profitability of a given market in an economy. There are different market structures in the economy determined by the different characteristics including monopoly, perfect competition, oligopoly, and monopolistic competition. Perfect competition is a market structure where there are many buyers and sellers operating in the market having no influence on the price, hence are price takers (Samuelson & Stephen, 2012). One of the main characteristics of perfect competition includes sale of homogenous goods where all firms... on Market...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Intermediate Microeconomics for FREE!

Contact Us