B A decline in the number of firms in the tire industry will decrease supply…
When it comes to corporate business and the common business the government needs to intervene to make the playing field fair for everyone involved. When competitors seek out the next get big money merger or expansion, this is where I believe the government steps in. with the government putting in place regulation such as fiscal policy, and monetary policy, the grounds of society become equal to the groups of power that have greater economic influence.…
where X and M are exports and imports of goods and services respectively, m is the marginal propensity to import, and all other variables have their usual meaning.…
3. If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:…
The primary question of this article is based upon the question of what is more useful for deterring crime. Is it a harsher sentence or a greater chance to be caught? There have been multiple papers on this topic, but most of the results have been inconclusive. Therefore, the researcher would like to shed more light upon human decision making in regards to deterring crime. The key benefits of this research would include providing valuable data on how to prevent crime using limited resources. Would it be better to spend more money on punishing a crime, or to spend more money on things such as inspection or law enforcement in order to catch more people committing crimes? This is a very interesting question because crime takes a large toll on national and state governments. Additionally, the decrease of crime would be extremely beneficial for society. Finally, this question tries to find a way to uncover the mystery that is human decision making.…
Macroeconomics is the study of the economy as whole (Colander, 2013, p. 5). It considers the problems of inflation; unemployment, business cycles, and growth (Colander, 2013, p. 5). Inflation is a general increase in prices and fall in the purchasing value of money. Unemployment rate refers to the number of people actively looking for a job but unable to find one (Colander, 2013, p. 5). Business cycle is a cycle or series of cycles of economic expansion and contraction (Colander, 2013, p. 5). Economist analyzes each of these factors to determine the state of the economy. We live in an environment that is constantly changing. There are a number of factors, behaviors and trends that affect the economy. One event can caused a domino effect. This paper will outline how scenarios such as purchasing groceries, massive layoffs, and a decrease in taxes affects government, households, and businesses.…
A recession is a period of temporary economic decline during which trade and industrial activity is reduced, generally identified by a fall in GDP (Gross Domestic Product) for two or more consecutive quarters. During my search, I came across an article titled “America’s Response to a Deep Recession”. In this article it states that in March 2009 more than nine in ten Americans (93 percent) rated the nation’s economy negatively, as no-so-good or poor, while only 7 percent said it was excellent or good (Blendon & Benson, 2009).…
The further growth of the budget deficit has been caused by a weak economy and increased government spending in areas such as: health care, education, defense spending, and lowered taxes. The government and/or Federal Reserve Bank can often hurt the economy trying to balance out high budget deficits. There is no doubt that our national debt is increasing. Budget deficits today will reduce the growth rate of the economy in the future, proving where we invest our money matters. Fiscal and monetary policies also play a role in managing budget deficits. High budget deficits will certainly affect the overall economic growth and the debt that the U.S. has to struggle with.…
* In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing.…
We pay taxes on just about everything, so when a decrease in taxes occurs, this lets us know that when the taxes goes down, a deflation in our economy happens and we tend to spend more money because we know that as long as there is a decrease in taxes we have a little more money to purchase things. This affects the businesses as well, because if the taxes are low they can spend more money on the things that they use to run the factories our buy more ink that produces the paper from the paper factory. This activity affects the government as well, because if the taxes go down there is less money that the government receives from the different factories and or businesses that pays these taxes. This will also trigger a change in our economy in some different form or fashion. If taxes are going down, then you can best assure that inflation or the unemployment rate or both will be affected by this particular economic…
During my time as a student in high school and college, I find that professors are like boxes of chocolate. You simply won’t know what you will get until the semester begins. I believe this is like apples and oranges because while I like oranges, I also deeply enjoy apples as well. I find this comparison similar to how I view professors in college. Without question this comparison also represents two professors that I had during fall 2016, Blake Stephens and Noushin Seddighzadeh.…
Although the United States has the leading economy in the world, it was in a recession in 2008, and began to slowly emerge from the financial woes of that time in 2009. The United States, at this time has an unemployment rate of 6.2 percent according to the U.S. Bureau of Labor and Statistics ("Employment Situation," 2014, p. 1), which is a slight decrease from the 6.7 percent rate in March 2014, and a great decrease from the unemployment rate of 10.0 percent in October 2009. This had a direct effect on the inflation rate. In 2004 he inflation rate was 3.3 percent, and reached a high of 4.1 percent in 2007, which is the highest it had been in the previous ten years. As of July 22, 2014 inflation rate was 2.1 percent, which is a vast improvement from the rates listed above, but still not as low as the rate of 0.1 percent in 2008. ("Inflation Rate," 2014, p. 1)…
1. Distinguish between an absolute advantage and a comparative advantage. Cite an example of a country that has an absolute advantage and one with a comparative advantage.…
Macroeconomics explores trends in the national economy as a whole considering the study of the sum of individual economic factors. Industry is affected by factors such as GDP, unemployment, inflation, interest rates, and consumer price index. Fiscal (government) policy can help guide the economy toward a particular track without dictating a specific ending affecting tax, interest rates, and government spending (McConnell and Brue, 2005). Monetary policy attempts to achieve vast economic goals by regulating the supply of money through influencing outcomes like economic growth, inflation, and unemployment. Both policies attempt to control or regulate the economy. "If monetary policy is doing its job, the government should maintain a relatively…
Macroeconomics is one of the main branches of economics. The best way to understand what macroeconomics is about is perhaps to contrast it with microeconomics, another main branch of economics.…