Effects of the Government on the Economy

Effects of the Government on the Economy This essay articulates the principles, relationship between micro economic and macroeconomic by doing research in regard to this essay we can assume that government play a major role in economics such as price control, policies, increasing wages of employees and making decision in the market place however we can also assume economic policies are not influenced if they are not almost generally determined by acceptance of some of these mistakes. Perhaps the shortest and surest way to an understanding of economics is through segmentation of such errors, and particularly of the central error from which they stem. In addition economics is all about policies how society decides what, how, and for whom to produce. INTRODUCTION Human being intend to be able to solve living basic problem such as what goods and services to produce, how to produce these goods and services and for whom to produce these goods and services. Economics is the study of how society decides what, how, and for whom to produce. Economics is also about human behaviour we also could describe it as a science rather than a subject within the arts or humanities. This reflects the way economics analyse problems, not the subject matter of economics. Economist aim to develop theories of human behaviour and to test them against the facts moreover good economics retains an element of art, for it is only by having a feel for how people actually behave that economists can focus their analysis on the right issues. But what exactly is economics? Task1: Most modern definitions of economics involve the notions of choice and scarcity. Possibly the earliest of these is by Lionell Robbins in 1935: Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Virtually all textbooks have definitions that are derived from this definition. Although the exact wording differs from author to author, the standard definition is something like this: Economics is the social science that examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants. Scarcity means that people want more than is available. Scarcity limits us both as individuals and as a society. As individuals, limited income (time and ability) keep us from doing and having all that we might like. As a society, limited resources (such as man power, machinery, and natural resources) fix a maximum on the amount of the goods and services that can be produced. b) Concept of opportunity cost: This concept of scarcity leads to the idea of opportunity cost. The opportunity cost of an action is what you must give up when you make that choice. Another way to say this is: it is the value of the next best opportunity. Opportunity cost is a direct implication of scarcity. People have to choose between different alternatives when deciding how to spend their money and their time. Milton Friedman, who won the Nobel Prize for economics is fond of saying there is no such thing as a free lunch. What that means is that in a world of scarcity, everything has an opportunity cost. There is always a trade-off involved in any decision you make. The concept of opportunity cost is one of the most important ideas in economics. Consider the question, How much does it cost to go to college for a year? We could add up the direct costs like tuition, books, school supplies, etc. These are examples of explicit costs, i.e., costs that require a money payment. However, these costs are small compared to the value of the time it takes to attend class, do homework, etc. The amount that the student could have earned if she had worked rather than attended school is the implicit cost of attending college. Implicit costs are costs that do not require a money payment. The opportunity cost includes both explicit and implicit costs. C) Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into income taxes and regulations created by governments. MicroeconomicsÂÂ  focuses onÂÂ  supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize its production and capacity soÂÂ  it could lowerÂÂ  prices and better compete in its industry. Macroeconomics, on the other hand,ÂÂ  is the field of economics that studies the behaviour of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such asÂÂ  Gross National Product (GDP) and how it is affected by changes in unemployment, national, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nationsÂÂ  capital account or how GDP would be affected by unemployment rate. While these two learning of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end products price charged to the public. http://www.investopedia.com/ask/answers/110.asp Task2: In this particular task I am going to explain the existing relationship between demand and price also will be giving more detail related to market demand curve and factors affecting demand. According to some researchers demand can be defined as the quantity of a good buyers wish to purchase at each conceivable price, market demand could also be defined as a set of arrangements by which buyers and sellers are in contact to exchange goods or services. The relationship between demand and price describes the behaviour of buyers at every price at every particular price there should be quantity demanded the term quantity demanded makes sense only in relation to a particular price for example in everyday language we say that when the demand for a football match tickets exceeds their supply some people will not get into the ground. Demand curve shows the relation between price and quantity demanded the other things relevant to demand curves can usually be grouped under three groups: the price of goods, the income of consumers and consumer tastes or preferences. Price controls are government rules or laws that forbid the adjustment of prices to clear market for example high food prices mean considerable hardship for the poor the government would prefer to impose a price ceiling on food in order to help the poor to continue purchasing adequate food quantities. In order to be effective a price ceiling must be imposed below the free market equilibrium price therefore it is going to reduce the quantity supplied and lead to excess demand unless government itself provides the extra quantity required. The main factor affecting demand is consumer revenues; consumers intend to purchase a product in order to satisfy their due to their incomes however quantities of demand could increase as consumer incomes rise for example low income people satisfy their needs for clothes by buying low quality clothes as their incomes rise they switch to better quality clothes. Market demand curve is the sum of the demand curves of all individuals in that particular market by asking, at each price, how much each person demands. it also could the horizontal addition of individual demand curves Individual Demand Curve By looking at the graph we could what an important role price plays in the market therefore we can conclude in this demand of goods or services depend on the price and also on consumer incomes the graphs summarise the demand responses to changes in incomes it also show us the effect of income increases although income rises increase the quantity demanded of goods by consumers. Task 3: In this particular task I am going to explain how an equilibrium price and equilibrium quantity can be achieved and also the effects of excess supply, demand on market equilibrium. According to David Begg economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. It is the point at which quantity demanded and quantities supplied are equal, for example, refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. Price controls are government rules or laws that forbid the adjustment of prices to clear market for instance we can assume that when price controls are maintained for many years they may have further repercussions. For example many countries have imposed rent controls limiting the rent a landlord can charge for accommodation. Countries such as the UK have had price ceilings for many years in the rental market in also failed to raise insignificant amount with the inflation therefore many private landlord have quit the business. There are many reasons why government wish to intervene in a free market to set prices as a result prices are set the market forces ( where demand and supply vary) but in some cases government will need to set prices for different products. For instance the European Union EU has used minimum prices for farmers it is also could be argued farmers incomes are too low therefore minimum prices can be used to increase prices above the equilibrium however the government decided to have price controls in farming to encourage farmers to supply as much as possible. This graph show us the existing relation between equilibrium price and demand and also how an equilibrium price and equilibrium quantity can be achieved however we could conclude on this task that equilibrium price is the price at which the quantity demanded by consumers and the quantity at which companies offer services and goods . Task 4: Perfect competition: Economist definition of perfect competition is different from the meaning of competition in everyday usage in economic theory a perfect competition can be defined as a description of markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets say for commodities or some financial assets may approximate the concept. Economic markets in many sectors can be described by the term oligopoly this is where few producers dominate the majority of the industry and the market, perfect competition operate on a number of different assumptions. Economist also assumes there a number of a different buyers and sellers in the marketplace this could lead to a perfect competition in the market which could allow price to change in demand and supply. Perfect competition can be characterized by many sellers and buyers, many products that are similar in nature and as a result of many substitutes, for example in a perfectly competitive market a single firm decide to increase its selling price of a good, the consumers can just turn to the nearest competitor for a better price, affecting any firm that increases its price to lose market share and revenues. According to Stanley Fisher An oligopoly is a market dominated by a few producers, each of which has control over the market. It is an industry where there is a high level of market concentration. However, oligopoly is best defined by the conduct (or behaviour) of firms within a market rather than its market structure. Characteristics of oligopoly can be by competition other than price. Price wars , cutting prices in the market where all large firms tend simply to lead to lower profits, changing little market shares, instead , oligopolistic companies intend to charge relatively high prices but also compete through promotion and advertisement but existing firms can be safer from new companies entering the market because entry barriers to the market are high, for example existing successful brands have a number of a products considerably promoted in the other hand it will be difficult for a new company to establish its own new brand in the market. This graph show us how important perfect competition is in the market in order to launch new product firms will need to follow some entry barriers and have some requirements and follow government policies such price control. Task 5: In this particular I am going to give an explanation and evaluation of what is meant by Keynesian, Monetarist economics: According to Keynesian theory, some microeconomic-level actions if taken collectively by a large proportion of individuals and firms can lead to inefficient aggregate macroeconomic outcomes, where the economy operates below its potential output and growth rate. Such a situation had previously been referred to by classical economists as a general glut. Keynesian economics: during recession periods when aggregate demand is insufficient, monetary and fiscal expansion can boost demand, product and employment in 1930 Britain was partly pulled out the slump of Keynesian policy of government heavy spending on rearmament as the threat of war loomed however in the three decades after 1945 governments of both political parties in Britain attempted to implement the Keynesian policy in order to manage the level of aggregate demand but some of the policy did not work perfectly . In the decade after 1965 both inflation and unemployment grew fairly steadily which build up inflation proved to be a costly after effect Keynesian policies. Today we are more doubtful about the success of the activist period of 1950 and 1960. Keynesian economics proceeds on the assumption that price level given but what can happen if the price level change for example when the economy is near full employment and there is no longer space capacity to make companies think before raising price of products or increasing wages of their employees. On the other hand Keynesian government should be able to tackle unemployment issues otherwise effects of unemployment could reduce production of goods. According to Monetarism theory the governments proper economic role is to control the rate of inflation by controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over longer periods and that objectives of monetary policy are best met by targeting the growth rate of the money supply . Finally we can conclude that there is much about which all economists agree but there are some important differences of opinion, both in the positive economics of how the world we are living actually works and in the normative economics of how the government should behave in the market. Due to market power economist intend to play a role in the market by solving problem faced by consumers such as price rises therefore they intend to have price ceiling for each product and I have learn economic is just not a science subject it is there to reconcile the conflict between people virtually unlimited demand with society limited ability to produce goods and services to fulfil these demands.

A Comprehensive Time-Series Analysis Essay

The report is mainly focused on the structural time series model as it is applied as a means of portraying the structural behavior of life insurance demand. The study is focused on the impact of selected variables including the price level, revenue, interest rate, seemingly perpetual joblessness and population on life insurance demand. Problem The importance of life insurance companies has increased significantly over the past several years. However, despite this remarkable rise, there is little that is known about the structural behavior of the demand for the products and services offered by life insurance companies, and what external factors drive this demand. The problem of this study aims to tackle is the behavior of life insurance demand within a period of deregulation and reform that is existing within the industry, also exploring the relationship between demand and a specified set of explanatory variables over this time. Feasibility This project has the prospect of being highly feasible. Although there is very little research with regards to life insurance there are extant research conducted pertaining to life insurance and other kinds of insurance in other regions of the world (e. g. Southeast Asia) that is similar in several aspects to our study. Aside from this, the proponents of this research are leaders in the field of life insurance and as such their study is heavily grounded on years of experience and knowledge in the field. This shows the feasibility of such an endeavor. Audience The primary audience for this market study may be useful in assisting life insurance companies in the various facets that comprise their current corporate strategy for Life insurance. One of the cases that this paper can be applied is for the case of seasonal issues. Secondly, this research and similar research in this area can be of interest to other institutions that are similarly involved in life insurance. For example, it might be useful to generalize the results of the comparison of forecasting models to other categories of financial intermediaries such as banks and monetary agencies providing aid in life insurance issues. Topics to investigate This report intends to examine clearly the following areas pertinent to Life Insurance: †¢ Provide a very innovative perspective to the study of life insurance demand. †¢ Determine the relationship between the cyclical and trend components of demand and the specified set of economic variables affecting life insurance. Determine whether insurance demand is stochastic using an singular variation model o Determine if life insurance demand has a deterministic seasonal component attached to it existing within the first quarter of each year of the sample period and a relative fall during the fourth quarter of the year. †¢ Utilize a seemingly unrelated time series model in order to test for the presence of common factors. †¢ Investigate the forecasting power of the singular variation model when it is opposed to the multivariate model that includes explanatory variables Methods/Procedure In an effort to provide an original perspective towards the study of life insurance demand and overcome inadequacies in previous research, this study employs the structural time series model. As opposed to traditional methods, this methodology is based on representing explicitly the components of a series. While these components cannot be observed directly their usefulness can be found in an economic point of view. This paper is based on a sample of quarterly, seasonally unadjusted insurance data covering the period between the second quarter of 1980 and the fourth quarter of 2003 that results in 90 total observations. The main advantage of using quarterly data, as opposed to annual data, is that it allows us to address possible seasonal fluctuations appropriately. Qualifications/Facilities/Resources The researchers of this study are esteemed experts in the field. Part of the group hails from a college institution under the Department of Economics and Finance. The rest are expert leaders in the field of life insurance and are employed in multinational commercial insurance companies. The group is knowledgeable in the statistical method to be used and have been involved both directly and indirectly in the creation of research pertinent to Life insurance.

The Ideal Approach to Bar Essay Samples Assualt and Battery

The Ideal Approach to Bar Essay Samples Assualt and Battery The Fundamentals of Bar Essay Samples Assualt and Battery Revealed If you've recently become the victim of an assault, speak to our Los Angeles personal injury attorney today to schedule a complimentary consultation. The most important thing is, it frequently requires a court case and a superb attorney to argue the facts of your case to receive it sorted out fairly. Battery is that kind of contact that has to be intended. Likewise, it is a successful assault depending on your point of view. In other words, it requires unlawful physical contact to another. So in case you DO hit somebody, it's battery. The organization employs zinc for the anode portion of the battery, combinin. When you have questions regarding battery, our Los Angeles assault and battery attorney is able to give an educated answer to any question you may have. Bar Essay Samples Assualt and Battery - What Is It? First-degree assault and battery charges are the absolute most severe and it has extreme bodily harm, usually by means of a weapon. Again, it must satisfy both elements of assault. Notice that battery demands using force whereas assault only requires the present ability coupled with the aim to use force on somebody else. There is not any evidence of assault because there is not any physical harm while the battery can be proved easily because there is physical evidence. Lies You've Been Told About Bar Essay Samples Assualt and Battery There's no individual offence for a battery regarding domestic violence. In some specific circumstances, moreover, consent isn't possible to prove. Domestic violence cases are usually conducted in their very own separate courtrooms because of the special issues which are often present in domestic violence cases. Furthermore, Virginia law criminalizes a selection of acts of physical violence that aren't classified as assault and battery. The Good, the Bad and Bar Essay Samples Assualt and Battery Another frequent instance of assault is whenever someone places a loaded or unloaded gun to a different individual's head. It is sometimes defined as any intentional act that causes another person to fear that she is about to suffer physical harm. An assault can lead to fear of impending violence in an individual even though there is not any true violence inflicted. If a person is facing assault and battery charges, they could possibly be in a position to claim self-defense in the event the threat or physical harm was used to safeguard their person. Key Pieces of Bar Essay Samples Assualt and Battery Employing a Personal Injury Lawyer If you or someone close to you has been injured as a consequence of an assault, battery, or a different intentional tort, you may choose to check with a neighborhood personal injury attorney to find out if you're able to recover for your injuries. Thus, even when you did not really make contact with the individual, in the event that you intended to make contact, you might be found guilty of assault. You likely have questions regarding sexual assault defenses, and will also wish to learn more about mandatory sex registration, in case you be convicted. Our profile's contact form is not difficult to use and makes it simple to attach with a Roanoke, Virginia lawyer and seek out legal counsel. For instance, a number of states do not demand proof of a real injury or pain to support a simple battery charge. Normally, the evidence supplied to the court would consist of hotel receipts, plane tickets, charge card bills and witness corroborations. Over time, battery laws have developed and expand ed to include conduct besides an outright fist fight. When you review every one of your answers, keep an eye on your mistakes. Instead you wish to learn new material and put it in the appropriate context. The term apprehension, for example, evokes a feeling of fear and alarm. Both the concepts are explained in detail within this paper with suitable examples. The idea of battery has been in existence for decades under criminal and civil law. Bar Essay Samples Assualt and Battery - the Conspiracy While the absolutely free essays may give you inspiration for writing, they cannot be used `as is' because they won't satisfy your assignment's requirements. Call today for a completely free consultation. Bar Essay Samples Assualt and Battery - Dead or Alive? Get in touch with an Attorney Being accused of sexual assault can be a trying situation issue to manage. If you're charged with a crime, you should speak to a Virginia criminal defense lawyer. In the United States, sexual assault is defined differently based on the state laws in effect. FindLaw's Assault, Battery and Intentional Torts section gives info rmation about the respective acts that are deemed intentional torts and the elements a victim must prove so as to prevail in their case.

The Mass Decline Of Childhood Identity And The Social...

Throughout modern society, children have become the primary consumers of marketing (Hill, 2011, p. 348). As the documentary Consuming Kids illustrates, infants are easily deceived by society, culture, and especially media scams (Barbaro, 2008). Marketing has shifted the focus of children from traditional playing to various consumerist desires. This paper will explore the causes of the mass decline in childhood identity and the social implications involved. The impact of marketing for children will be examined through its effects on culture and society, children’s identity, consumerist tendencies, the increase in need for media and their effects through symbolic interactionism. Jennifer Ann Hill states, Consumerism has led to a host of seemingly endless needs for sophisticated electronic media technology, making it increasingly difficult to provide children with an environment that allows for creativity or original thinking (Hill, 2011, p. 352)*** and the presence of this marke ting is the catalyst to several different issues in the development of children (Hill, 2011, p. 352). In this report, I will contend that marketing is detrimental to the growth of children shaping youth to become lifelong consumers and how it is a societal problem. Society is established through the cultural views and production of the individuals inside. The views of the individual can be driven by capitalism or societal norms. Under Marxist theory, the nature of society was determined primarilyShow MoreRelated The Sociology Analysis of Food and Food Ways Essay1841 Words   |  8 PagesAlthough eating is a vital part of survival, with whom, how and where we eat are not. 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