Economic Principles -- Perfectly Competitive Markets
Generally, gasoline and related petroleum products intended for automobiles are all products whose sale in the United States represents a close approximation but not necessarily an exact model of a perfectly competitive market. That is because entering the market is not completely barrier-free in that it requires a significant investment of capital. In that regard, the primary barrier to entering the market is the overhead cost associated with establishing the gas station facilities and qualifying for government licensing.
However, that is not substantially different from many other industries or even the simplest markets because virtually every business in modern American society requires the purchase or lease of land or facilities. Therefore, the existence of these barriers is not, in principle, enough to take gasoline and petroleum sales out of the perfect market description because the barrier is equally surmountable by anybody with sufficient capital to start…...
Economic Principles)
Fetter's Economic Principles
Fetter text on Economics principles is in line with major applications of economics though it does so with lots of caution to ensure qualifications that are necessary. The book treats science of economic growth, motives of economic and economic nature as core fundamental to understanding economics.
Evaluation of the Discussions in Economics Principles
In the book, Fetter puts weight on time as an important aspect in investigating the connection between economic aspects such as price and cost among others Fetter, 1927.
Strongly he objects to theory in economics which is not time conscious claiming it will be dismissed by time itself. Fetter uses theory to put across discussion and arguments which he further supports with diagrams and illustrations Arthur M. Diamond, 2008.
The diagrams and illustration are not for problem solving rather, to ease understanding giving a greater precision of arguments.
The book considers a much detailed discussion on capitalization and…...
mlaReferences
ARTHUR M. DIAMOND, J. 2008. science, economics of," The New Palgrave Dictionary of Economics, 2nd Edition, New york, Palgrave Macmillan.
FETTER, F.A. 1927. Economic principles, New York, Century co.
People Face Trade-Offs: Mankiw's Ten Principles Of Economics
The first principle of Mankiw's Ten Principles of Economics is People Face Tradeoffs. This principle suggests that there is always a tradeoff in obtaining something -- one thing must be given up in order for you to have the other thing. This principle applies perfectly to the situation of choosing one of three electives -- all of which would be useful, but only one of which can be taken. Thus, in order to have one of the useful electives, I must give up enjoying the other two. In order to graduate, I have to limit myself to one course now and not think about the other two. This is the first decision-making principle that I would use to help me make my choice and be more at peace with it. Knowing that tradeoffs are a common practice in economic theory, this principle would…...
Supply Demand Simulation
Macro and Microeconomic Principles
From the simulation, the two major microeconomic principles are supply and demand. The simulation majorly focuses on the supply and demand of rental properties in Atlantis. In addition, the influences on supply and demand form the major topic discussed in the simulation. The macroeconomic factors clearly stated in the simulation are changes in the population trend, choosing to rent or buy apartments and factors that directly influence these changes. Colander (2010), states that the quantity demanded always increases with falling prices and quantity supplied reduces with receding market prices (Colander, 2004). The company's supply is almost 2,000 apartments; the company speculates at reducing the vacancy rates to 15% to increase demand, a clear applicability of the demand law.
Demand and Supply Shifts
The availability of rental apartments, demand for rentals, number of potential renters and the pricing are the common factors that affect supply and demand from…...
mlaReferences
Colander, D.C. (2004). Economics . New York: McGraw-Hill / Irwin.
Mishkin, F.S. (2004). The Economics of Money, Banking, and Financial Markets. Boston: Addison-Wesley.
Rogers, C. (1989). Money, Interest and Capital: A Study in the Foundations of Monetary Theory. Cambridge: Cambridge University Press.
Microeconomic and Macroeconomic Principles
The simulation is based on Atlantis housing and looks at the general conditions that prevail and determine the housing conditions, demand and the prices therefore. There are both detached homes and apartments that are to let and to be bought in this region. The simulation and hence the paper concentrates on the supply and demand of two bedroom apartments in Atlantis.
One of the microeconomic factors is the demand and supply. With 2,000 two-bedroom apartments within the management of Hal Morgan, they are able to meet the high demand that could be. This makes them have an advantage over their competitors within the same market niche that may not have the same high numbers of rooms. The other microeconomic factor that works to the advantage of Goodlife Management over the possible competition is the monopoly that they have in this region in the sector of two-bedroomed apartments.
One of…...
mlaReferences
Samuel L.B., (2006). Economics Interactive Tutorial; Elasticity. Retrieved August 23, 2013
from http://hspm.sph.sc.edu/courses/Econ/ELAST/Elast.html
Business Book Mall, (2011). How Elasticity of Demand Affects Total Revenue. Retrieved August 23, 2013 from http://www.businessbookmall.com/economics_19_how_elasticity_of_demand_affects_total_revenue.htm
He would be faced with deciding whether he must spend all his available resources on goods or services, or whether he must save some of his income so that he would be able to finance some of his needs of his future. When he is taken as a labor resource, he must make the decision whether he must use his time in working for his pay, or whether he must spend it on sleeping and other leisure time activities. ("Decision making using marginal analysis," n. d.)
Similarly, when he is a labor resource, he must decide how much of his time he must spend on education, so that he may be able to maximize his life earnings. On the other hand, if he were an entrepreneur, then he must make the decision on how many people he must hire, or how much he must spend on acquiring a new product…...
mlaReferences
Evans, Edward. (2005) "Marginal analysis, an economic procedure for selecting alternative technologies/practices." University of Florida, Institute of Food and Agricultural Sciences. Retrieved 15 December, 2007 at http://edis.ifas.ufl.edu/FE565
Johnson, Paul. M. (2005) "Marginal Analysis: A glossary of political economic terms" Retrieved 15 December, 2007 at http://www.auburn.edu/~johnspm/gloss/marginal_analysis
McConnell, Campbell R; Brue, Stanley L. (2005) "Economics, principles, problems and policies" McGraw-Hill Professional.
McEachern, William a. (2006) "Macroeconomics, a contemporary introduction" Thomson
Economics Major
First and foremost, I intend to major in Economics. From quite an early age, I have grown up admiring successful business leaders. I envisaged such individuals as living relatively fulfilling lives based on the wealth they had amassed from investments. One of my main personal heroes in business and investments has always been Benjamin Graham, an astute investor and economist who passed on in 1976. Graham who in my opinion remains one of the most rational investors of all time came up with some of the most priceless yet simple investment principles. Having developed a keen interest in the investments field at an early age, I have been an avid reader of any available literature on Ben Graham. Based on these readings, I remain convinced that to make sound investment decisions; the need for a well-founded understanding of economics cannot be overstated. Further, over time, I have come to…...
Economics
According to Burrow, Verard and Kleindl (2007), "a market economy is an economic system in which individual buying decisions in the marketplace together determine what, how, and for whom goods and services will be produced." Hence in any hypothetical pure market economy, the government of the day does not take an active role in deciding what products the citizenry should buy and in what quantities. A pure market economy is however taken to be a theoretical ideal. Burrow, Verard and Kleindl (2007) on the other hand note that "a command economy is an economic system in which a central planning authority, under the control of the country's government, owns most of the factors of production and determines what, how, and for whom goods and services will be produced." In such an economic system, the government of the day largely dictates the mode of utilization of the various factors of production.…...
mlaReferences
Baumol, W.J. & Blinder, A.S. (2011). Economics: Principles and Policy. Cengage Learning.
Burrow, J.L., Everard, K.E. & Kleindl, B. (2007). Business Principles and Management. Cengage Learning.
These decisions necessarily entail that some potentially productive opportunities are sacrificed in order to make what is estimated as the most productive choice.
Supply and demand refer to specific products and services, the ability to provide these, and the level at which they are desired by the target market. uyers desire a product or services, and therefore demand a certain quantity of these at a certain price. The relationship between the price and quantity of desirability is the demand relationship. Supply is the actual quantity of the product or service that the market can provide. The concept of supply relationship is the correlation between supply and the price received by the supplier, who is willing to supply a certain amount of products at the price received.
The dynamic in the relationship between demand and supply has a direct influence on the efficient allocation of resources within an economy, as well as…...
mlaBibliography
NetMBA.com. (2002-2007). Production Possibility Frontier.
Unfortunately most growth oriented economic policies such as "supply-side" economic policies tend to exacerbate inequality. A greater role of the government in the economy such as increased taxation on the rich can reduce inequality. Inflation and unemployment are usually inversely proportional in most economies, i.e., increase of money supply through deficit financing reduces unemployment but increases inflation while tight monetary policies reduce inflation but increase unemployment. According to a number of analysts, a major cause of terrorism in the world is an acute sense of deprivation among a large section of the population. Economic measures can, arguably prove more effective in rooting out terrorism than military action.
Part C-Theory
What, How and for Whom to Produce:
In 'free market economies' decentralized decision making by individuals and firms based on consumers' desires (which determine the price of goods) and the profit motive determine what goods are produced and in what quantities. For example,…...
mlaReferences
Free Market Economy" (2003). Article in Microsoft Encarta Encyclopedia. CD Rom Version, 2003.
O'Connor, D.E. & Faille, C. (2000). Basic Economic Principles: A Guide for Students. Westport, CT: Greenwood Press.
The Rural Poverty Trap." (2004). Oxfam Briefing Paper # 59. [Available online] Accessed on January 26, 2005 at http://www.maketradefair.com/en/assets/bp59_The_Rural_Poverty_Trap.pdf
According to FAO statistics more than 900 million people live on less than $1 a day in the rural areas of the developing world (The Rural Poverty Trap, 2004)
Economic Decision Making
Economic decisions are first and foremost influenced by the dividends an individual stands to lose or gain with the choices they make. Because economics are the basis of individual well-being, people must prioritize time and spending, weigh the intensity of wants against the implications of needs, and carefully consider disruptions to earning potential as this most directly impacts each of the aforementioned categories. As detailed by N. Gregory Mankiw, the four basic principles of economic decision making include that all individuals face trade-offs; In order to make gains, some commodity or quality is often lost -- the most common loss includes the trading of money for goods. Next, Mankiw exerts that the cost of something is what you give up to get it, implying that all gains come at a price that extends beyond their monetary value to include time and effort spent. Third, Mankiw explains that…...
mlaWorks Cited
Gregory, N. (2008). Principles of macroeconomics. South-Western Pub. 5-13
In the future, the politicians could support an agenda promoting the national manufacturers in an attempt to reduce imports and increase exports. The direct impact for the mechanic could be that he might have more work in the future.
Another example of how the book is useful is given by the need or desire to understand the features of the contemporaneous economic crisis. Despite the fact that the media present apocalyptic stories of today's financial challenges, a reading of Clayton and Giesbrecht's book would reveal that the economy has often been confronted with challenging times and that times of economic boom and recession are normal. Otherwise put, a Guide to Everyday Economic Statistics would help the reader understand the cyclic character of an economy and he would as such be less pessimistic. Listening only to the media coverage of one bankruptcy following another would definitely take a negative toll on…...
Economic Development Agency
Economic development constitutes one of the most important aspects and without it life would become unbearable to all individuals living in the society. This process however does not happen in a vacuum and the involvement of various stakeholders, say the communities and policy makers is mandatory (O'Sullivan & Sheffrin, 2003). The roles of the State Economic Development Agency (SEDA) in promoting positive economic development is one, whose relevance cannot, to any extent, be disputed. In achieving their mission of promoting economic development, throughout the entire state, the need for appropriate data was evident (Nafziger, 1993). It is indeed true that the agency ought to have had access to the data considering the significant role they intended to play using the same information. The unfortunate thing however is the reality that laws, that restrict access of information, though intended for good, has served to curtail the progress of…...
mlaReferences
Meingast, M et al. (2006). Security and Privacy Issues in HealthCare Information Technology, proceeds of the 28th IEEE EMBS Annual International Conference, New York
Nafziger, W .(2006). Economic Development New York, NY: Cambridge University Press,
O'Sullivan, A. And Sheffrin, S (2003). Economics: Principles in action, New Jersey: Pearson Prentice Hall
Islamic Bonds: Sukuk and the World of Finance
Stocks and bonds are among some of the most common ways of investing and raising capital in the financial markets today. Investors in the international arena are presented with a myriad of choices in terms of bond types. One of these is a relatively recent bond market that has emerged from the Islamic community, known as "Sukuk." This term is used to describe Islamic bonds. This type of bond distinguishes itself from its Western counterpart by its adherence to Shari'ah principles, one of which is the prohibition on charging or paying interest (Islamic Development Bank, 2010). This is accomplished by granting the investor a share of the investment asset, with its cash flows and risk. The growth and success of the Sukuk market has been remarkable, in that it caters to an investor market that seeks to diversify its holdings beyond the traditional.
Thus,…...
mlaReferences
Financial Times (2011). Definition of Sukuk. Retrieved from: http://lexicon.ft.com/Term?term=sukuk -(Islamic-bonds)
Islamic Development Bank (2010). What is Sukuk? Retrieved from: http://thatswhy.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/thatswhy/en/sukuk/what-is-sukuk.html
Rana, S. (2014, Nov. 27). Pakistan raises $1b through Sukuk bonds. The Express Tribune. Retrieved from: http://tribune.com.pk/story/798044/pakistan-raises-1b-through-sukuk-bonds/
Reuters (2014, May 1). Pakistan will issue dollar-denominated sukuk soon: Dar. Dawn. Retrieved from: http://www.dawn.com/news/1103402
chief economic principle that must be confronted in the horrifying picture Steven Brill paints in "Bitter Pill: Why Medical Bills Are Killing Us" is the devastating effect caused by economic monopoly. Brill tiptoes around the issue, and basically defines monopoly by the concept of "powerless buyers" -- -but the economic conditions that render buyers powerless are economic conditions that restrict a buyer's freedom of choice, which is precisely the problem with American medicine in Brill's article. Doctors -- or by extension the Medical Industry -- represent a monopoly. There may be a plethora of pharmeceutical companies that exist, and which ostensibly compete under heavily regulated industries (which include a close government supervision on potentially monopolistic new inventions, such that copyrights and patents in pharmaceuticals are guarded under law for a mere fraction of the time that the copyrights and patents, for example, involved with Walt Disney's trademark cartoon character…...
Rational choice theory is an economic principle that assumes individuals make decisions based on rational calculations aimed at maximizing their benefits or utility. This theory suggests that individuals weigh the costs and benefits of various choices and select the option that offers the greatest payoff.
Rational choice theory is based on the idea that individuals are rational actors who make decisions based on self-interest and the information available to them. This theory is often used to explain various behaviors, such as consumer choices, voting decisions, and criminal behavior.
Overall, rational choice theory provides a framework for understanding how individuals make decisions....
1. Implement targeted financial education programs: Provide accessible and culturally relevant financial education programs for minority communities to improve financial literacy and understanding of economic principles.
2. Increase access to capital: Create programs that provide minority-owned businesses with access to affordable loans and grants to help them grow and sustain their businesses.
3. Address systemic barriers: Implement policies that address systemic barriers such as discriminatory lending practices and limited access to resources that have hindered the economic advancement of minority communities.
4. Support entrepreneurship: Create programs that support minority entrepreneurs by providing them with training, mentorship, and resources to start and grow successful....
I. Introduction
II. Key Components of the ABM Strand Curriculum
The South African governments spending plays a significant role in influencing the countrys GDP in the future. Government spending is a component of GDP known as government consumption expenditure, which includes spending on salaries, goods, and services. If the South African government increases its spending on infrastructure development, social programs, and other areas that stimulate economic activity, it can have a positive impact on GDP growth. This is because government spending often leads to increased investment, job creation, and overall economic expansion. However, if the government overspends or misallocates resources, it can lead to budget deficits, inflation, and an unsustainable....
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