Total Marks: [20] Weight: 5% Qs. 1 a. Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of the stocks and bonds bought and sold? Why don’t they include the value of the used …
Technology which should be used in monitoring data transmission should be able to have a big memory which will enhance proper transmission of both signals and sound to space from earth. The technology which can be quite applicable is the memory error recovery and protection …
Last year, “Promising economic indicators” is a headline in the front page of a Hungarian newspaper. The economists, government representatives and many politicians said that Hungary’s economy is growing. Growing half times as it should be. In reality and if economics can only speak, Hungary …
Karl Marx introduces the concept of commodity fetishism which is our society’s obsession with the consumption of goods and services. It is in Marx’s opinion that this is used to mask the exploitation of the working class as they become obsessed with consuming. We use …
The new classical macroeconomics model was originated in the early 1970’s by the economists working in the University of Chicago and the University of Minnesota. Robert Lucas, Thomas sergeant, Edward Prescott and Neil Wallace are the economists who were behind the formulation of this macroeconomic …
ECON *120: Principles of Microeconomics Spring 2010 I. FOUNDATIONS OF ECONOMICS A. Scarcity, Production Possibilities, Efficiency and Exchange Section I. A Learning Objectives: • Define or explain a number of basic economic terms and concepts. • Explain, illustrate, and apply marginal analysis. • Explain, illustrate, …
Explain the term ‘underlying trend rate of growth’ and the factors determining this rate. The underlying trend rate of growth represents a curve which shows the annual potential growth maximum that can be achieved with all available resources. An economy must target to increase this …
A long-term effect of the Great Depression was the departure of every major currency from the gold standard, although the initial impetus for this was World War II. In any case, the world economy has simply outgrown the capacity of additions to the world gold …
The current state of the economy is one that is concerning for almost all Americans. Though we are in the recovery phase businesses are still hurting, people are out of work, we are barely getting out of a depression etc. People are pointing fingers at …
The Gross Domestic Product (GDP) of a country is commonly defined as the total market value of all final goods and services produced in a country in a given year. The fact that it is measured regularly and quite consistently in practically all countries of …
US Economy is a mixed economy where the private sector plays a major role in economic activity and the role of government is minimal compared to other industrialized countries like Great Britain, Germany, France, Spain, Netherlands, Scandinavian Countries and East European countries. However after the …
Mountainous Politicians, countries and ideologies from all over the world have been torn for years between what they should follow and believe. Countries argue over which policies should be adopted been the economist’s fundamental question. What would life be like if the country you lived …
The question whether Mexico has benefited from NAFTA is still under discussion and constant debates. Some claim that since NAFTA there is a significant increase in poverty rates, whereas others provide the opposite information. Apparently, in broader terms, the country has benefited from free trade …
Policies related to development economics Policies dealing with the redistribution of income, property and/or wealth Macroeconomic stabilization policy: Stabilization policy attempts to stimulate an economy out of recession or constrain the money supply to prevent excessive inflation. Contraction policy Expansion policy Fiscal policy uses government …
In 2008 Latvia experienced a banking crisis that stemmed from a poorly regulated banking sector. The banking sector was using aggressive lending to grow the increased inflow of foreign capital, most of which came from Russia. This lead to a property bubble, similar to what …
Assessment (Demand and supply) Answer the following 1. Distinguish between a shift of the demand curve for a product and a movement along the product’s demand curve (10 marks) 2. With reference to two different determinants of demand, explain why the demand curve for bicycles …
The International Monetary Fund (IMF) and the World Bank Group are two global institutions created to assist nations in becoming and remaining economically viable. Each plays an imporant role in the environment of international trade by helping maintain stability in the financial markets and by …
INTRODUCTION PART CHAPTER Getting Started CHAPTER 1 1 CHECKLIST When you have completed your study of this chapter, you will be able to 1 Define economics, distinguish between microeconomics and macroeconomics, and explain the questions of microeconomics. 2 Describe the work of economists as social …
This report looks at the Banking and Financial systems of the Netherlands. It first provides a background of the Dutch economy and its significance in the world financial markets. It looks at the role of the Netherlands in trade (it has two of the largest …
In modern society people desire goods and services that provide a more comfortable or affluent standard of living. We want bottled water, soft drinks, and fruit Juices, not just water from the creek. We want salads, burgers, and pizzas, not Just berries and nuts. According …
The consumer industry has grown considerably. The increasing foreign direct investment highlights the growth rate of the Bangladesh economy. Over time there has been structural transformation of the economy with a shift from predominantly agricultural led economy towards industry led economy, the contribution of agriculture …
Introduction At present, with the increasing process of globalization, the world is integrated as a huge market. International trade is becoming increasingly important between countries. Therefore, exchange rate are now of great concern, people care about its ups and downs, and its implications, especially, to …
ECONOMIC HISTORY Answers Reading I 1. In the case of England, the agricultural sector played a key role in industrialization. This is mainly because, the increase in productivity in the sector led to an increase in the workers income, and this increase made possible for …
INTRODUCTION TO ECONOMICS Exercise 1 1. What determines that a resource be scarce? Why is scarcity important in defining Economics as a science Resources are seen as being scarce, when the wants exceed the resources. The fundamental problem of economics relates to the choices made …
Assessment: Lesson 7 Preview Questions Instructions You have completed the Lesson 7 Preview Questions. Assessment Score Attempt Score: 8. 00 out of a possible 10. 00 (80. 0%) Assessment Score: 8. 00 out of a possible 10. 00 (80. 0%) Assessment Time: 2462 minutes Question …
Introduction National income (Y) comprises the value of all goods and services produced over a given year(usually a year) within a country which is representing the standard of living. There are three approaches to measure national income, one of which is the expenditure approach can …
Aid is a burning issue these days. The question of countries accepting foreign aid has intrigued economists and the general public for a quite a while. Television discussions and newspaper articles have frequently focused on this issue while politicians try to fight this matter out …
What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? The determination of whether a resource is scarce is its supply in relation to demand such as land, labor capital and human capital. If …
Balance of payments refers to sum of both the balance of visible and invisible items. The balance of Payment is a comprehensive annualrecord of economic relation of a country with the rest of the world during a given period of time. A balance of payments …
Introduction The United States economy is undoubtedly the world’s largest and most influential with an estimated Gross Domestic Product (GDP) of $ 13.84 trillion according to CIA world fact book in the year 2008. This figure represents a triple of the second largest economy GDP, …
Creator: John Maynard Keynes
In thinking about the overall health of the macroeconomy, it is useful to consider three primary goals: economic growth, full employment (or low unemployment), and stable prices (or low inflation). Economic growth ultimately determines the prevailing standard of living in a country.
Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). It transforms the money-value measure, nominal GDP, into an index for quantity of total output.
There are 5 common terms in macroeconomics that are considered in aggregate: output, gross domestic product ( GDP ), production, income, and expenditures. Economic output is the aggregate output of goods and services by an economy, which is also how GDP and production are defined.
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