Essay About Economic

What is Economics? Essay
Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much
money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total
in the economy. But despite the large number of areas in which our lives are concerned with money,economics is more than just the study of
money.
It is concerned with:
В·The production of goods and services: how much the economy produces; what particular combination of goods and services; how much each
firm produces; what techniques of production they use; how many people they employ.
В·The consumption of goods and services: how much the population as a...show more content...
There are three types of resources:
В·Human resources: labour The labour force is limited both in number and in skills.
В·Natural resources: land and raw materials The world's land area is limited, as are its raw materials.
В·Manufactures resources: capital
All inputs into production that have themselves been produced: e.g. factories, machines and tools.
One must bear in mind that our wants are virtually unlimited, while the resources available to satisfy these wants are limited. In other words
when society demands more of a product than can actually be produced to fulfil those wants we have a problem of scarcity. An example of this
would be the OPEC oil price shocks between 1973 and 1980. Yes, it is true that the price of oil rose and some individuals used substitutes but

the economies of oil importing countries like Germany and Japan fell because OPEC now had more buying power since they had the control
over a scarce resource. We can therefore think of oil as having become scarcer in economic terms when its price rose.
Earlier I stated that economics is concerned with consumption and production. We can look at it in the terms of demand and supply. It is simply
the quantity of a good buyers wish to purchase at each conceivable price. Three factors determine demand:
В·Desire
В·Willingness to pay
В·Ability to pay
Whilst supply is the quantity of good sellers wish to sell at each conceivable price. Supply is
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Economic Systems Essay
Introduction
Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national
community. An economic system is slackly defined as country's plan for its services, goods produced, and the exact way in which its economic
plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy.
Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to
the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy,
national and state governments play a...show more content...
Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at what price.
The role of the state is limited to ensure right precision in the prices charged by the sellers. Prices also have the function to allocate and
distribute a country's resources. Market leads to complete effectiveness bringing about the best possible distribution of a country's resources
in a perfect world. This would only happen in a state of equilibrium and there is a unique price for every commodity. But in a realistic world
which is imperfect by nature, prices are never at equilibrium and very unstable depending upon the vagaries of the market forces. This
generally harms people living below the poverty line. It is impossible for them to pay high prices in cases of demand shortage. Thus, the free
market model is not a viable option in developing countries which has a large number of poor. Besides, producers are aim to minimize profit and
maximize rent of production. Examples of countries that are using this economy system are Hong Kong, USA, and UK. Many developing
countries like India and China are moving towards totally free–market economy. The command economy is government directed. The market
forces have very little say in such an economy. There is no private property. On the other hand, a command economy aims at using all available
resources for developing either

business economics Essay
Table of Contents 1.INTRODUCTION 2.MAIN BODY 2.1THE NATURE OF RESOURCE COST STRUCTURE AND THE PRACTICAL
SIGNIFICANCE OF DIFFERENT COSTS 2.2THE FACTORS INFLUENCING OPTIMUM SIZE AND THE SIGNIFICANCE OF DEMAND
AND SUPPLY RELATIONSHIPS 2.3UNDERSTANDING OF THE RELEVANCE AND LIMITATIONS OF ECONOMIC THEORY TO
MANAGE DECISIONS 3.CONCLUSION 1.INTRODUCTION: From the economic perspective, there are a full range of wants from
individuals, firms and government but there is only a few number of resources or factors of production such as land, labour, capital and
enterprise. The raw material will come from land, taking the example of oil, gas. The labour relates to the individuals able to work. The capital
covers machinery,...show more content...
Equipment, everything used to bring all the materials together, for example, cranes, welding sets, computing time, mobile offices. It is also
important to know how much money committed to spend at any point in time. 2.1.1The microeconomics perspectives: This focuses on the
market behaviour of individual consumers and firms to help understand the decision making process of firms and households. This is at a level
of individual buyer and individual seller, meaning demand and supply. How much to produce and how much to charge for it. The law of the
demand is that the demand decreases when the price increases and the demand increases when the price decreases. Also more demand of a
product results in an increase of the price the price of that product. (See graph below). 2.1.2The macroeconomics perspectives, focuses on the big
picture of the national economy as a whole and provides a basic understanding of how things work in the business environment. The macrocosmic
policy goals will be achieved by the monetary policy and the fiscal policy. The monetary policy is the management of the nation money supply, the
decision of the interest rate and the banking system to promote economic growth, lower unemployment and inflation. 2.2The factors influencing
optimum size and the significance of demand and supply relationship: The demand and the supply are two main concepts of the economy.
Demand is what quantity of product or service

Macroeconomics Essay
"Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national economy as a whole.
Macroeconomists seek to understand the determinants of aggregate trends in an economy with particular focus on national income,
unemployment, inflation, investment, and international trade" (Wikipedia, 2007). Government tends to use a combination of both monetary and
fiscal options when setting policies that deal with the Macroeconomic.
According to McConnell & Brue (2004), governments make adjustments through policy changes which they...show more content...
dollars into gold at $35 per ounce, has made the U.S. and other countries' monies into fiat money–money that national monetary authorities have
the power to issue without legal constraints.
Money is used in all economic operations; money has a powerful effect every economic activity. The increase in supply of money put more money
in the hands of the consumers and increased spending. When the money supply continues to expand and the prices begin to increase, particularly if
the output growth reach to the capacity limits as the public begin to expect the inflation, lenders insist on higher interest rates to offset and
expected decline in purchasing power over the life of their loans. Contradictory results happen when the supply of money falls, or when the rate
of growth cries off. The U.S. money supply comprises currency–dollar bills and coins issued by the Federal Reserve System and the Treasury–and
various kinds of deposits held by the public at commercial banks and other depository institutions such as savings and loans and credit unions. On
June 30, 1990, the money supply, measured as the sum of currency and checking account deposits, totaled $809 billion. Including some types of
savings deposits, the money supply totaled $3,272 billion. And even broader measure totaled $4,066 billion

Economic Growth Essay
Economic Growth Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic
growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases
employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to
raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and
services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final
goods or services less the cost of...show more content...
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A more reliable measure of economic growth is
real GDP per capita; this measurement takes into account both the total production of the nation and the total population. Real GDP per capita
measures the real income per head of the population.
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP
/ Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide
an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be
developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major
determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education
and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity
and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing
population requires increased public spending on housing, education and other social needs while businesses expectations of

Economic Impact Essay examples
The Economic Impact of SUVs "The SUV (Sports Utility Vehicle) is one of the most popular types of vehicle to both own and drive. Last year,
SUVs and minivans outsold conventional cars for the first time. However, the SUV is increasingly coming under attack for its fuel economy,
emissions standards and safety record. Vehiclefuel efficiency across the US is now at its lowest level since 1980. However, former California
governor Gray Davis signed legislation requiring the California Air Resources Board to develop regulations to reduce greenhouse gas emissions
from passenger vehicles. This includes SUVs. California accounts for 13 percent of the nation's auto market, so manufacturers of cars, SUVs and
trucks are sure to comply with the...show more content...
SUV drivers are also more likely to be drunk. And SUV drivers are less likely to wear their seatbelts. The Insurance Institute monitors actual
driver deaths for Highway Safety, and as you can see, the average driver death rates were lower in large vehicles but there was a significance
overlap between vehicles categories (Status, 2007).
|Model of Vehicle |# Of Models |# Of Fatalities (per million) |
|Small 4 door cars |14 |45–191 |
|Mid–size 4 door cars |17 |14–130 |
|Lrge 4 door cars |11 |57–118 |
|Md–size luxury |8 |11–54 |
|Lrge luxury |11 |14–85 |
|Lrge mini–vans |5 |36–97 |
|Vry large mini–vans

Essay about U.S. Economy
The United States economy is currently not looking very good. Over the past couple of months the economy has taken a turn for the worst and
we could be headed into a recession in the coming months or years. The biggest problems are in the real estate and mortgage markets. In 1999,
housing prices rose at huge rates and lenders began offering riskier mortgages, which caused homeowners to keep piling up huge debts. People
were taking out loans and balloon mortgage payments that they really could not afford. The problem began in late 2007, when housing prices
began to fall and the system fell apart causing huge numbers of defaults on home loans and foreclosures. Currently, 5.6% of mortgages are
delinquent, the highest rate in 21 years, and...show more content...
The housing crisis that I mentioned earlier and resulting backlash through the entire economy has been building for awhile now but it has just
came into the forefront in the past couple of weeks. We really haven't faced a downturn like this since the Depression. Last Tuesday, January 22,
the Dow Jones industrial average fell almost 600 points and was already down 9% in 2008 (Gross 1). Immediately the Federal Reserve took
action and cut the interest rates three–quarters of a percentage point, the biggest cut in 24 years. Today, not even a week later, the Fed again cut
interest rates, this time by a half–point (Aversa 1). This move is an effort to keep the economy out of a recession by getting money back into the
banks and encouraging them to keep lending credit to turn the economy upward. Whether or not it will work remains to be seen in the coming
months. The government also announced another move to a couple weeks ago to help get the economy going again and avoid or slow down a
recession. President Bush and the House are currently developing a $145 billion stimulus plan that would give tax relief to citizens by sending
them individual checks for $300 and up. The plan would put over $100 billion into the hands of consumers and the government hopes that
money would be spent and put back into the economy (Wolf 1). While all these things are good news for the struggling economy, most economic
experts believe that a recession of some kind may be impossible to avoid

Essay on Principles of Economics
Principles of Economics Paper
Individual decision making is either you do, or you do not. Most people are rational beings basing their decisions on a formula, benefits versus
cost. Are the benefits of buying a $1000 television worth it? Are the marginal benefits worth the marginal cost?
Just this morning, I was faced with such a scenario. I was invited over to a friend's house to try a new video game. I did not go, however,
because I knew that I had to read several chapters for my class and write a paper. The benefits were that I would have some time to hang out
with my friends and enjoy some much needed free time. The cost would've been that I could have not gotten all of my reading done and possibly
been late on my...show more content...
Centrally planned economies are of a lower caliber quality, because the government decides who, what, and how products will be handled. This
however does not meet the consumers wants, only the needs.
Market economies are quite different from centrally planned. Market economies base their who, what, and how answers on the consumers. This
gives the consumers more choice and power on their buying habits. In a market economy, products will tend to have higher quality and higher
probability of satisfying the consumers. This does, however, target the more willing and capable buyers.
There is a third economic system that was brought about in the nineteenth century: a mixed economy. This mixed economy is a combination of
both centrally planned and market economies. This allows for the answers to "who, what, and how?" to be decided by consumers but in which the
government has a significant role in the allocation of resources.
Simply explained, social interactions change from one economic system to another. A centrallyplanned economy restricts free will as far as the
questions who, what, and how. Perhaps leaving the society a little less satiated. A market economy will allow for higher paying jobs, better quality
products, but targets only a certain demographic. A mixed economy attempts to combine both systems and allow for high quality products, high
paying jobs

Economics Reflection
. Through the process of reading, I learned many things about the economy. First of all, I learned that it is a much more difficult decision to
come to in regards of how much government involvement in the nation's economy is enough, how much is too little, and how much is not
enough. I also learned that trying to keep the economy stable and productive is a constant and difficult struggle, and that it is often difficult to
even know what needs to or can be done in order to stabilize it. While I find economics to be somewhat boring (I am a music major and largely
emotionally driven, which means that my entertainment is usually emotionally involving somehow), I actually enjoyed how Wheelan explained
economics in this book. While I would not read it for fun, reading this book as an assignment was not painful.
Having government involved in the economy has its pros and cons. One of the Pros is that the government can help prevent or discourage harmful
behaviors or actions. Government regulation can prevent man–caused shortages. Fishing regulations are often put in place to prevent overfishing.
These regulations prevent or discourage fishermen from fishing too much in one season, which allows the fish to repopulate and remain available
in the future. In the book, Wheelan mentioned how the government can also tax bad behaviors to encourage behaviors that benefit health and/or
the environment. An example of this is a tax on gasoline and/or larger vehicles, or a tax on cigarettes.

Essay about Economic Conditions
To analyze an economy, certain statistics can be used to predict the economy's future. This is important because it helps prepare people for
prosperity or hard times. Certain indicators can be used to determine the future of aggregate demand and others can be used to determine
aggregate supply. Using eight aggregate demand indicators and four aggregate supply indicators we developed a prediction for the economy in the
near future.
Changes in aggregate demand are reflected in changes of GDP. To find valuable indicators of the future aggregate demand is to find statistics that
tell about change in the components of GDP (C+I+G+Nx). Aggregate supply is influenced by the costs of production to producers and the advent
of new or better factors...show more content...
In general, they are a good indicator of the economy and public sentiment for it. If people are confident in an economy, they will invest more in
stocks, but if they are wary of an economies future, they are more likely to save their money. Stock prices have been falling after a year of
record gains, indicating that the period of economic growth is either slowing or coming to an end. The Industrial Production Index is a good
indicator of the I in GDP. This index will reflect growth for producers, whether they are making profits, and if new jobs are being created.
After several years of steady increase, Industrial Production is down, hinting that aggregate demand may soon be too. Unemployment is
another indicator of aggregate demand. If unemployment is low, many people have jobs, and they will probably be spending, adding to GDP.
Unemployment has been at a record low, but recent layoffs in the auto industry as well as other have driven that number up to 4.2 from 4.0.
This is still a low figure, but if it continues to rise, that may impact GDP greatly. Disposable personal income reflects how much money people
have to spend. Obviously, the more money someone has the more likely that person is to spend it. After many quarters of positive figures for
real disposable personal income, those numbers have been dropping, even registering as negative in the last few months. Less income will mean
less spending, a lower GDP, and a

Economic Problem Essay
Along with the development of the earth is a series of social events need to be addressed, such as population growth, food shortages and water
shortages in many parts of the world. Specifically, people in Australia are facing with the threat of water shortage in the future. This problem has
created an economic problem and urged the Australian government to find the solutions for this problem. This essay will explain the economic
problem and answer the question how do markets attempt to solve the problem of water scarcity in Australia, focusing on the economic problem,
water scarcity in Australia, the role of markets and water market in Australia.
The economic problem can be known as the competition between unlimited wants and scarce...show more content...
In order to solve the economic problem, we must choose how to use our scarce resources efficiently. If the choices are made, sources can be used
efficiently. For instance, the Australian Governments is restoring the Balance in the Murray–Darling Basin to keep the water in this basin and
protect the environment. They are making decision since the water is scarce. Australian Governments (2010) showed that water which available
in Murray–Darling Basin declines, so this basin is likely to become worse. The problem is water in Australia is not unlimited. We therefore
have to make choices. The choice can be known as opportunity cost. Since we never have enough resources at our disposal, we have to give up
something in order to get another thing we want. For example, Morton and Shippen have to make the decision between selling water to the
government or keeping the water for their using and their agriculture. If they decide to keep the water, the money from selling water is forgone
and vice–versa. So, scarcity forces making choice.
The role of market can help solving the economic problem. A market can be known as an actual place where buyers and sellers interact to trade
goods, services for money. They interact in the market to determine the price.
The diagram shows the way market finds the price for water. At point E, quantity demanded equals quantity supplied and the price of goods that
customers are willing and able to buy equals the price of goods

Essay on Economics in My Life
Economics in My Life
When I was first given this assignment I was extremely perplexed at how I would even begin to finish it. I had no idea how economics related
to my life in anyway. I hadn't thought about it critically and I struggling terribly. Thanks to some much needed help from a fellow classmate, he
allowed me to get an idea of things from his own essay. After reading not one, but two other essays, I was so surprised at how oblivious I had
been. I never realized that just about everything that goes on in my daily life is, in fact, economics. I never realized that from the things I buy to
the money I earn from working is all economics. The things I miss out of while working or going to school is a complete opportunity cost. Or even
...show more content...
Certain books that were unbelievably hard to find were in the higher price range because they were, in a way, rare. As appose to a book that was
so common could easily be found at a cheap price.
They say that there is always something lost at the cost of another. Opportunity cost is something that I always consider before most
decisions. For example, I work weekends as a server, including Fridays. That Friday shift is one of the best days to work to make good money,
but almost every winter and summer class is Monday through Friday. It's also a full eight hour shift so it makes it extremely difficult to find
even later classes. In my whole two years at ECC I've only been in one sit–in winter class. Other than that I'm left with online classes. The
opportunity cost for the much need money I make on Friday sets me back enormously in school, because not every class is available online.
Work stands in the way of a lot things in my life. Because I go to school Monday through Thursday I really only have Friday through Sunday
to work. It's hard for me to go on vacations or even hang out with friends at the beach during summer because I get off later in the afternoon.
Staying out late with friends is also an opportunity cost because I work early mornings. So you can see that I give up a lot for work but I know
that if I work hard now it won't be so hard later in life. That's when I'll stay out late and go on vacations.
This was first year that I actually had to fill taxes and I

Economics Elasticity Essay
Businesses know that they face demand curves, but rarely do they know what these curves look like. Yet sometimes a business needs to have
a good idea of what part of a demand curve looks like if it is to make good decisions. If Rick's Pizza raises its prices by ten percent, what will
happen to its revenues? The answer depends on how consumers will respond. Will they cut back purchases a little or a lot? This question of how
responsive consumers are to price changes involves the economic concept of elasticity.
Elasticity is a measure of responsiveness. Two words are important here. The word "measure" means that elasticity results are reported as numbers,
or elasticity coefficients. The word "responsiveness" means that there is...show more content...
When it is greater than one, economists say that demand is elastic.
Products which have few good substitutes generally have a lower elasticity of demand than products with many substitutes. As a result, more
broadly–defined products have a lower elasticity than narrowly defined products. The price elasticity of demand for meat will be lower than the
price elasticity of pork, and the price elasticity for soft drinks will be less elastic than the price elasticity for colas, which in turn will be less
elastic than the price elasticity for
Pepsi.
Time plays an important role in determining both consumer and producer responsiveness for many items. The longer people have to make
adjustments, the more adjustments they will make. When the price of gasoline rose rapidly in the late 1970s as a result of the OPEC cartel, the
only adjustment consumers could initially make was to drive less. With time they could also move closer to work or find jobs closer to home,
and switch to more fuel–efficient cars.
The concept of elasticity can help explain some situations that at first glance may seem puzzling. If American farmers all have excellent
harvests, they may have a very poor year financially. They may be better off if they all have mediocre harvests. If a bus company decides it
needs more revenue and tries to get it by raising fares, its revenues may decrease rather than increase.

Inelastic Demand

Essay About Economic

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