Eco/372 Week 2 Essay Example
Economics 1
Economics
Shane Hadaller
ECO/372
October 24, 2010
Ms. El Hag
Economics 2
Economics
Economics plays a key role in the business world. There are many different terms used in the business world that not everyone understands. These terms actually apply to everyday life in households and everyday activities. There are events that happen that can affect each other, these events are put together into a flow diagram and can illustrate the interaction between certain things such as households, government and businesses for example. Hadaller Inc. is a medium scale construction company involved in tuff times in this economic downturn. Hadaller Inc. has to struggle with a very small market and trying to keep its employees working and happy so they do not lose all of their good talent. Hadaller Inc. provides to the countries GDP (gross domestic product). Since we do hundreds of million of dollars worth of construction every year we actually have a small impact on the GDP. Our company has hit hard times and has had to struggle to stay involved in this ever so changing economic environment. Since we have hit these hard times we have had to adjust our prices which will affect the real GDP. This will be affected because we have had to lower our rates in order to compete which will mean less revenue and less profit at the end of the year. We have other competitors that have decided to expand globally to try and increase revenue since there has been such a bad recession in America. We have decided that we will need to try and expand so that our company will be able to produce more of a profit and to keep our employees working even if they have to travel. With this economic downturn we have had to deal with lay offs which has affected our unemployment rate. We went from a company that usually has about a 3.5% unemployment rate to a company that has over a 6% unemployment rate. This has caused us to have to pay
Economics
Shane Hadaller
ECO/372
October 24, 2010
Ms. El Hag
Economics 2
Economics
Economics plays a key role in the business world. There are many different terms used in the business world that not everyone understands. These terms actually apply to everyday life in households and everyday activities. There are events that happen that can affect each other, these events are put together into a flow diagram and can illustrate the interaction between certain things such as households, government and businesses for example. Hadaller Inc. is a medium scale construction company involved in tuff times in this economic downturn. Hadaller Inc. has to struggle with a very small market and trying to keep its employees working and happy so they do not lose all of their good talent. Hadaller Inc. provides to the countries GDP (gross domestic product). Since we do hundreds of million of dollars worth of construction every year we actually have a small impact on the GDP. Our company has hit hard times and has had to struggle to stay involved in this ever so changing economic environment. Since we have hit these hard times we have had to adjust our prices which will affect the real GDP. This will be affected because we have had to lower our rates in order to compete which will mean less revenue and less profit at the end of the year. We have other competitors that have decided to expand globally to try and increase revenue since there has been such a bad recession in America. We have decided that we will need to try and expand so that our company will be able to produce more of a profit and to keep our employees working even if they have to travel. With this economic downturn we have had to deal with lay offs which has affected our unemployment rate. We went from a company that usually has about a 3.5% unemployment rate to a company that has over a 6% unemployment rate. This has caused us to have to pay