Essays on Economists

The affordable Care Act 2015 formerly christened as Obamacare is one of the major reforms in the health sector. Obamacare seeks to expand and improve health care access to a majority of Americans by curbing costs of healthcare through taxes and regulation. The primary focus of this policy was to provide more Americans with access to health insurance, improved quality of health insurance and health care, reduce healthcare expenditure in the country and more importantly regulate the insurance industry. However, the policy has received support and opposition in equal measure. Proponents of the policy call it a monumental legislation ...

Economists tend to relate to the subject of research with scientific objectivity (Mankiw, 2015). They develop theories, accumulate evidence and then analyse them in an attempt to prove or disprove the theoretical concepts. The main tools of the economist (and other scientists) are theory and observation, but, in contrast to the natural sciences, in economics it is almost impossible to set up an experiment to confirm or deny a new concept. In order to somehow compensate for the absence of the possibility of carrying out laboratory experiments, economists are paying close attention to natural experiments offered by life. An ...

“If it has ‘science’ in its name, it ain’t (Minnick).” Those words were said to this writer by the smartest person he ever knew personally, a man with PhDs in Mathematics and Physics, a true scientist. He went on to explain that science, if it is science, can be reduced to mathematics and then can predict. “Science can generate electricity or flatten cities,” he said. The problem, of course, is that whenever one deals with the “soft sciences,” political science or economics (the dismal science) or sociology or history or any of the disciplines that are housed in ...

The paper presents a review of the book known as “Wharton on Dynamic Competitive Strategy." The book is divided into four parts and 17 chapters. Part one addresses understanding the advantage in changing competitive environment, part two addresses anticipating competitor’s actions, part 3 addresses formulating dynamic competitive strategy and the last part addresses choosing among alternative competitive strategies. This paper reviews part one of the book that covers chapters one to nine. The review involves a critical evaluation of the chapters and presentation of personal views on over the content of each chapter. The book brings together an ...

The significance of trade remains to be a topic of debate since its advantages are not often quantifiable by the parties involved. Therefore, this article by ED Crooks is discussing why American Corporations are sometimes against exporting. According to some beliefs, the overvalued dollar was the key reason for companies to stop engaging in exportation (Crooks, 2011). But according to some suggestions, the primary reasons why most firms in the United States are not utilizing exporting opportunities has nothing to do with an overvalued U.S dollar. Therefore, other factors are obstructing the exportation of the manufactured goods and services ...

as Environment Policy

Effectiveness of Carbon Tax as Environment Policy

Climate change has emerged as a global challenge because unrestrained rising of global temperature would cause melting of glaciers and rise of sea level that would submerge land masses, change weather patterns with frequent incidence of hurricanes and floods and droughts. As an effective response to the challenge, global leaders have agreed to cut back emission of Green House Gases (GTG) to contain the global rise in temperature below 2 degree Celsius (Symon, 2013). Carbon dioxide, a major constituent of GTG, is released to the atmosphere on combustion of fossil fuels such as coal, oil, and ...

Japanese Economy in the Recent Years

Introduction During the advent of economic downturns particularly in terms of financial crises or bubbles, the usual resort of the government is to rely primarily on its monetary tools alongside expansionary fiscal policies to stimulate the economy. Monetary policies are tools used to deal with inflation, budget deficits, unemployment, incomes, international economic relationships among others. Monetary policies have profound effects on our jobs, incomes, livelihood, and career choices. One of the considerations and is always on the watch in an economy is the behavior of prices of the goods and services. As the law of demand states that with ...

Poverty and scarcity

The scarcity of resources in the society has a relationship with poverty. However, poverty refers to a scenario where people lack basic necessities or adequate wealth to sustain meaningful life. It is important to note that poverty can be rampant in a country that has more resources than a country fewer resources. Therefore, poverty declines if people utilize the available resources in an efficient way to meet their needs. For example, a country that is in the civil war will have more people languishing in poverty than a stable country. On the other hand, scarcity refers to a shortage ...

Significant increases in the national debt, with no relief or plans to deal with the problem, and its effect on the economy An increase in national budget, with no relief or plans to deal with the problem, will result in a deficit, or more spending with less national input. Repercussions for a budget deficit can mean more borrowings for the national government from the private sector, such as the selling of bonds or gilts to the private sector. The debate over the budget deficit has two opposing views. The first one is that the deficit is destructive to the ...

Abstract

The Geographic Information Systems (GIS) is technological programming that gathers, accumulates, and evaluates data related to the earth’s surface. GIS interprets set of data on a single map, which is evaluated and interpreted subsequently. Over the years, the integration of the technology with the principles of Transportation Economics gained a significant attention of numerable economies. Particularly the metropolitan cities of developed countries that encounter various challenges related to the development and maintenance of infrastructure. It was found that GIS allows the Transportation Economists to develop and propose an efficient plan related to different routes and their smart integration. ...

An example of something that was counter-intuitive

Some countries try to stimulate their economies by increasing the money supply. When people have a lot of money, you would expect them not to be poor since they can buy whatever they desire. Economists have tried to explain what happens in most countries where such policies are implemented. In most cases, it is found that people tend to become poorer despite the availability of money. The common intuition is that the economy will get stimulated, but economists describe this as a country being in a liquidity trap. People demand more than what is the productive capacity of their ...

Background Information

Harley-Davidson Inc. is one of the largest motorcycle manufacturing companies that has not only dominated the United States market, but also other parts of the world. The Company has 100 years experience in terms of motorcycle manufacturing and has attracted a broad base of clients across the United States (Brannen, Jeffrey and Nabil, 11). Economists have mentioned that Harley Davidson Inc. is one of the two motorcycle manufacturing companies that did not experience significant impact as a result of the Great Depression (Zarco and Morgan, 47). Besides, the company has undergone a series of management as well as ownership ...

Deficit spending refers to the spending of funds more than the income. In government, deficit spending occurs when the government expenditure exceed the revenues collected over a specified fiscal period (Investopedia, 2016b). An important note on government deficit spending is that it begins at the budgeting stage where the government plans to spend more than it expects to get in revenues. The consequence of this is that the government has to borrow even with the achievement of the highest estimates in revenue collection. The government finances the deficit through two main ways. Traditionally, the major method of meeting the ...

Postmodernism is a broad term covering a wide set of ideas that shape various aspects of society based upon postmodern theory. Postmodernism based its way of gaining knowledge on multiple ways rather than just relying on reason and senses, as it was in modernism. It can be said that postmodernism is more skeptic of the previous approaches towards gaining knowledge and questions the existence of objective truth ("An Overview Of Premodernism, Modernism, & Postmodernism"). Cultural postmodernism refers to the effects of postmodernism on music, art, customs, laws, morals, and other aspects of culture. Economic postmodernism, on the other hand, deals ...

Introduction:

We have seen economic progress through the centuries, and we have prized that progress because the same has been making our living standards better and it is giving us access to so many services. That of the United States is an economy which screams progress, but within this progress, the economy also hides a great flaw. In this economy, the rich seems to be getting even richer, while the poor suffer through the worse of the ups and downs, at least this is a question that we are going to prove true or false in this paper. As per ...

Abstract

The Great Depression during the 1930s was referred to as the most severe economic downturn that affected the United States and the global economy. The depression lasted for almost a decade, and some economists and monetary scholars blamed the failure of the banking institutions to come up with effective policies to maintain a sound standing. The banks were not sufficiently prepared to deal with erratic economic movements. Consequently, there were also those who argued that the Fed should be blamed for the economic recession because of their failure to adapt sound monetary policies. It was pointed out that the ...

1. How were the conditions in 1935 and 2013 similar? What did John Maynard Keynes propose to resolve this crisis in his book? Both 1935 and 2013 are two years during which the world’s economy went through economic crises. Specifically, 1935 experienced the Great Depression, while 2013 faced the global financial crisis. The economists of the time predicted that the economy would come out of the depression without the intervention of the government (Kirshner 315). In 1935, unemployment was extremely high. In 1936, Keynes published his book ‘General Theory of Employment, Theory and Interest.’ While other economists suggested ...

The Solow Model

For long, the concept of economic change has been interesting economists. The reasons why some of the countries are poor while others are rich or even the understanding of why some nations grow faster than others has constantly disturbed the understanding of most economists. The theory of economic growth has been put upfront in explaining the growth indices of different nations. In its place, the theory of economic growth aims at explaining whether poor countries can grow faster than their rich counterparts, catch up with them and close their income gaps, that is converge. Elaborated by Trevor Swan and ...

There is a need to understand the term entrepreneurship before starting a business. For that reason, it is good to comprehend the entrepreneurship concept. Various economists have varying definition regarding entrepreneurship. Each entrepreneur has a wide vision on how he can succeed in a certain niche, meaning that they try to be innovative and capture a market that has not been captured before, to present a unique product or service. For that matter, entrepreneurs enhance the economy of a country by stabilizing sales and this increase per capital income, thereby shooting the economic status of a country. 2.0 Feasibility ...

Introduction

Business organization has a central goal of profit maximization and increase in their productivity at the least possible cost. As a result, employers oftentimes tend to do everything it takes to get what they want. This includes subjecting employees to undue work pressure and probably denying them of certain benefits. Too often than not, this creates an unrest and conflict in the workplace which in turn affects the productivity of the employees. This is where labor unions, also known as trade unions come in the workplace environment. The sole purpose of labor unions is to act as a middleman ...

Question 1.

As the production will increase, the supply curve will shift to the right, therefore the equilibrium price will decrease, (Figure 1): Figure 1. The increase in production on the mango market Thus, as the quantity of production has increased by 30 % from Q0 to Q1, the supply curve shifts from S0 to S1 and the equilibrium price decreases from P0 to P1.

Question 2.

In agriculture, the term bumper harvest means the unusually high production of a crop. Though some politicians might claim that this benefits the farmers, actually that is not exactly so. Firstly, with the increased production the ...

The utility theorem of Bentham was the way formalizing and developing a scientific background for the ideas of economics. This theory enabled the economist to transform their ideas to the formulas on which they could make calculations, and develop theoretical extensions. The utility theorem formulized total utility and marginal utility. Total utility is the sum of the complete satisfaction from consuming goods. Marginal utility is the change in total utility against the change in the used amount of goods. This utility formulation enables economists to understand how the utility changes for people for their preferences of consumption (Hunt & Lautzenheiser, ...

Report

Report Nowadays, the basic knowledge of economic principles is crucial for everyone, even for those who are not professional economists. The economy is the mechanism that affect everyone: the probability of find the desirable job, getting mortgage loan in the bank, the amount of rent payments are all variables that are determined by economic processes. The conscious understanding of economics helps policymakers to take appropriate and timely actions; allows firms and investors correctly forecast interest rates, in order to make profitable investments, to the households and individuals to properly plan their savings, to the scientists – develop actual models and ...

Introduction

Economics of Sustainability is the ability to maintain a distinct level of economic growth indefinitely. Even though economics have conventionally stated economy and the ecological systems as different fields, the economic aspects of sustainability try to view the environment and economy as incredibly interlinked multifaceted systems. It gives more information on how the economic portion of the integrated system is transformed to be sustainable. Economically, sustainability provides an establishment of actions to be done by the present people that will not weaken the predictions of the future people to enjoy levels of wealth, consumption, or utility (Huesemann 547). Sustainability ...

Introduction

Casino Capitalism is a vivid description of the international financial markets, their behavior, and the economic strength they yield to various entities. The book goes on to describe the advantages of international financial markets and some of the evils associated with the same. The author, Susan Strange was a former student of the British international relations studies; she is mostly renowned for her contributions to the creation of the international political economy. Apart from her major publication of the Casino Capitalism in 1986, she also published other books, namely: States and Markets (1988), The Retreat of the State (1996) ...

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper.

What would be the production possibility frontiers for Brazil and the United States?

Without trade, the United States produces ...

Introduction

Modern economies have multiple agents. A proper understanding of economic principles enables agents to work successfully in their endeavors. Mankiw (2015) describes economic principles which will be used in this paper to answer specific questions.

How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources

Scientists develop different hypotheses and models to explain world phenomena. Likewise, economists attempt to create models which describe reality and, more significantly, use those to make predictions that guides people, businesses, and governments (Mankiw, 2015). Since economists can hardly use a laboratory as in a physical experiment – although there has been mock economic experimentation – they usually refer to the natural experiments offered by history ( ...

Introduction

A discussion among the classical economists and the Keynesian economists continues on the government intervention in the free markets. According to the classical economists, the free market mechanism can develop solutions for the crisis in the market if there is no external influence on the markets. The Keynesian economy merely expresses that the free market economy carries the risk of generating crises and undesired deficit or surplus in the economy when the demand cannot clear the supply (Posner 234-252). The discussion on the government intervention is changing direction each time the world economy suffers from a global crisis becomes ...

Introduction

Price was and remains the main tool that provides a proportional development of production and unity of interests of market relations. Basis for analyzing the structure of the economy, its challenges, opportunities and prospects for socio-economic development is based on the identification of the essential features of pricing, determining the structure of prices, price proportions. Successful economic development of any country or subject of a market economy depends on clear and effective functioning of the price, because they reflected the entirety of economic relations and the relationship between members of social production. This is possible if the mastery of ...

(Comparative Analysis on Canadian Market and US Market)

Introduction 2

Analysis 2 Communism and Capitalism Approaches 2 Corporate Governance 3 The Trade Union and Political Alignment 4 Collective Bargaining Approach 5 The Gini Coefficient Impact 5 Job Exportation Effect 6 Union Contribution Effect 6 Transparency in Union Operations 8 Conclusion 8 Recommendation 9

References 10

Introduction Are unions still relevant today in Canadian labor market? This is one of the fundamental questions at the heart of the Canadian workforce. Apparently, it has been highly speculated that the Canadian workforce, especially among the young workers, does not see the need for strong trade unions. ...

The role of the state in the economy: A historical perspective

The role of the state in the economy has been a subject of discussion for many decades with different views emanating from a broad range of the individuals and institutions in the field of economics. Since the early 1900s, various economists have continued to investigate the various roles of the state in economic development. The investigation led to the distinction of the roles in two broad categories, namely; normative and positive roles. Normative roles refer to what exactly the state should do to maximize the welfare of the people. On the other hand, the positive roles outline what the ...

Legalize Drugs

Legalization of drugs is a topic that continues to be hotly debated as a possible solution to reduce crime and save tax payer dollars that are tied up in drug enforcement agencies. Drug-related crime is one of the most expensive things facing the United States citizens; from the perspective of those who are involved in drug use and sales, to the tax payers whose money is given to the agencies that exist to deal with all drug-related criminal offenses. Nevertheless, there are some for legalizing all drugs; however, there are those who believe this would be a disaster for ...

The Corn Laws were laws passed by the British Parliament in 1815 to keep the prices of grain high so that British grain farmers would be favored in the market. England had different laws that affected the importation of grains dating back to the 12th century (The Editors of Encyclopædia Britannica), but it became a serious issue in the 1800s because of the costs of war; England had a rapidly expanding population and had a naval blockade imposed during the Napoleonic era that caused the price of grain to rise. The laws became a big issue between the ...

American Public University

The Moral Critique The moral critique views that political scientist's, as well as economists, became less principle experts who betrayed their original vision and goal of political economy. Greater than any other social sciences economists separated themselves from these controversial concerns in last half of the century and have since developed a personal contained professional discourse. The newly created discourse is that of positive science that excludes the evaluative claims earlier stipulated. Myrdal Gunnar never wanted to see these economist returning to the political and moral commitment and advocated for a clear distinction between the advocate and scientists roles ...

Introduction

Ricardo and Marx have developed an economic approach based on the labor-value. Both authors’ economic theory depends on the labor-added value. As known, the price determination in the markets is the most important mechanism defined in the science of economics. The price is an agreement between the agents in the economy, and the price conveys a lot of information to the agents in the economy. For instance, by using the cross-price demand elasticity statistics, or the income demand elasticity comparison, one agent can see how the price competition is developing, and how successful the market is contributing to the ...

Abstract

Do the imbalances in current accounts still matter in today’s deep global financial markets that exhibit two-way gross economic flows that dwarf the new outcomes provided by current accounts? Contrasting the adult perception of the world and complete markets, extreme current account imbalances indicate severe financial and macroeconomic stresses, particularly as was the case in the mid-2000s. The increasingly massive valuation differences in nations’ net global investment standards and positions, as well as risk allocations, cannot be relied upon to offset the variations in regional wealth systematically as implied in the current accounts. The same conditions that warrant ...

Since the adoption of the Patriot Act 2 on October 2001, strict measures such as the detention of foreigners suspected of a security breach, electronic surveillance of individuals through databases, authentication identities through biometrics, technologization border controls, among others, are presented in political discourse of the USA. The US security and media are the latest techniques in the fight against terrorism. Most Americans feel that these measures are contemporary to the fight against terrorism. In fact, this impression is the product of the effects of language games made by the administration and the media as the rhetoric and imagery ...

Carbon credit refers to a permit allowing a company or state to emit a ton of carbon dioxide awarded to firms that have decreased the emission of greenhouse gasses below their quota. It follows that a country that produces carbon beyond its quota needs to purchase carbon credits from the energy-efficient ones (those producing less) in what economists call “cap-and-trade.” Although most people believe that the cap-and-trade on carbon emission works, I think this is a false assumption. Some economists opine that funds raised from trading on carbon credits would help them come up with alternative fuels reducing the ...

Chapter 2: Literature Review

Introduction The chapter consists of all the relevant information that can be collected from past studies and are combined to present a clear view. It is the initial for determining the factors that can be used to synthesize the overall study through findings and discussion. The positivist approach is used to collect and summarize the information from the previous studies and determine the model that can be used to conduct a viable study. The positivist approach emphasizes all the relevant information regarding the topic that is to compare Islamic and Traditional banks using data envelopment analysis. The theoretical framework ...

Its ease of use, hassle-free negotiable platform, and reliability has attracted many city dwellers, especially tourists, to choose online taxi services over traditional methods of cab booking. But among many online cab service providers, Uber has established itself over the others in a short span of time. Especially in the United Kingdom, their market shares are astonishingly high compared to the country’s oldest running taxi services such as Addison Lee and Black Taxi. More than the usual marketing tricks and colorful experiences to fool the customers, there is a working system under this whole operation of Uber to ...

Nowadays, many people will stipulate that the Great Recession of a few years ago was just as bad, if not worse, than the Great Depression. There are similarities and patterns, to be sure. The effect globally was indeed worse this time around, because the world’s banks are far more intertwined and globalized now. People experienced a hard time getting back on their feet, and we had (and still have) a congress that is completely ineffective, throwing money at problems rather than actually fixing the regulations that allowed such a tremendous recession to take place. On the other hand, ...

The Big Mac Index

I would like to analyze The Big Mac Index in European region. I chose 5 currencies: Euro, Sterling, Swiss franc, Zloty and Kroner. Let us have a look on Big Mac prices in each of the country from 2012 to 2016.

Euro area

As it can be seen from this table, raw index was always undervalued – the Bic Mac price in euro was lower than in dollar. It means that the euro currency is overvalued against the dollar. Moreover, we may conclude that the euro is not a very stable currency because the price for Bic Mac changes every year. In ...

Production efficiency refers to the production of goods at the lowest possible cost. On the other hand, production inefficiency refers to the production of goods at a higher cost than the existing costs known. Economists view an economy as productive efficient if it can use its minimum or limited resources in the production of the maximum amount of outputs for the given economy. An economy that is production inefficient is one that does not use its given resources to produce the maximum number of units. Graphs as very essential for economists in illustrating such concepts. An example of the ...

Instruction:

David Colander presents a journal known as eastern economic journal in 2016. A set of rules are important to organize the teaching of introductory economics. These rules offer an advantageous instructions and suggestions, which provide a platform for further discussions to unify. If a teacher follows all these efficient rules, then they make grading easier and students can remember all material related to the course. Many Economists argue that our way of teaching is not well and we are teaching the wrong directions as well. Every teacher should keep in mind that every principle is a tool not a ...

1) Which were the primary causes of the Great Depression? According to Walton and Rockoff, an acceptable explanation for the Great Depression has to distinguish between the initial forces, which brought a downturn in financial activity, and later events, that turned a downturn into a calamity. We can detect two issues on the economy that foreshadowed the real slump in economic activity. First, there was a decline in the construction industry that began 1925, that had a significant impact on the depression. Second, the agricultural sector suffered greatly, with falling world prices and massive indebtedness (422). Walton and Rockoff ...

Macroeconomics attempts to understand and solve various issues affecting an entire population or country. Some of the challenges that face people and governments include unemployment, GDP levels, economic growth, inflation, depression, etc. A nation’s ability to mitigate and improve the issues stated above depends on the long-run rate of financial growth. Over a long period, economists have found out that even the slightest difference in the long-run economic growth can have massive effects on the living standards and income of the average individual. This essay explores the impacts of long-run rate of financial growth on the development of ...

Hitler: First of all, the philosophy of fascism is based on the ideas of nationalism and a strict system of social division. In the philosophy of fascism every person has its own role in the society as well as its own function. Overall, fascism is a political and nationalistic set of views and ideas. Stalin: everything is quite to the contrary with communism. The first serious divergence consists in the fact that communism is rather an economic philosophy than a political one. The core economic idea of it is that all people should be equal, everything should be possessed ...

Legalization of drugs is a topic that continues to be hotly debated as a possible solution to reduce crime and save tax payer dollars that are tied up in drug enforcement agencies. Drugs related crime is one of the most expensive obstacles facing the United States citizens; from the perspective of those who are involved in drug use and sales, to the tax payers whose money is allocated to the agencies that exist to deal with all drug-related criminal offenses. A possible solution to curtail the social and financial problems that exist as a result of drug sales, use, ...

ECON 4331W

Introduction The phrase "the rich get richer while the poor get poorer" has become a worldwide anthem at many political and economic forums. While these facts are actually true very few or practically no one goes forward to act in a manner seen to strike a balance if anything many individuals are individualistic and greedy. Elite economists from IMF recently released a study on the causes and consequences of rising income inequalities. It is believed as a result of income inequality there could arise a myriad of complex problems, most of which touch and significantly impact upon the economic ...

Question One

ISIS can be said to be in a state that is under demented utopia. They show a lot of love and affection to the fellow Muslims, who obey and adhere to their rules and teachings. ISIS takes a different form of terrorism unlike others who indiscriminately attacked varied groups and cause a lot of death and destruction of property; The organization has adopted a new style that is very deceptive, showing affection to those that only support and oblige to their rule and command. Berger and Stern view things differently, though, and by claiming that they are better terrorists ...

Laissez-faire is a style of leadership in which the leaders leave the workers or their subordinates to engage in their work using their own developed rules and policies. In Laissez-faire style of leadership, the leaders leave the responsibilities for their subordinates to execute them without the involvement of their seniors. Furthermore, the subordinates are left to choose the means in which to accomplish the tasks as there are strict rules, policies and regulations germinating from their superiors. The laissez-faire leadership is characterized by a deliberate abstention from interference or direction, and there is individual freedom of choice and action. ...

Introduction

The exchange rate has become an integral component of modern economics. Its role stems from its far-reaching effects on the economy of a country, investments, the profitability of firms, and personal finances. Countries have become even more interdependent due to the rapid advancement in communication technologies and the expansion of global trade, which have significantly reduced the geographical distance between both individuals and countries. However, since nations use a broad range of domestic currencies with different values, trading partners must, therefore, rely on currency conversion methods to facilitate global transactions. This paper explores the importance of exchange rate and ...

Research Paper

Economic Growth and Poverty Alleviation One of the most important aspects of a country is its economy. One of the major goals of every government is to assist its means to achieve economic growth. It is measured in monetary terms, since money is the lifeblood of every country. Without money, a country will not be able to fully operate. Economic growth is also referred to, as the process by which the standard of living of the citizens of a country is increased. It happens when people utilize their resources to make other things that are of higher value (Romer). ...

1) According to economists a small firm or a large organization operates in three different markets including capital, product, and an individual market for social pressure. The social presence is maintained due to pressure from activists, governments, and other not-for-profit organizations (Baron, Harjoto, & Jo, 2011). As the owner of a company the path followed is the same as provided by David P. Baron in his book “Business and its Environment.” The company must support to operate at best in all the three markets and must create an equilibrium that emphasizes on establishing strategies to enhance financial performance, corporate performance, ...

Externalities take place when consumers/manufacturers activities have an unintentional or indirect impact on other consumers/manufacturers without affecting prices. According to Sankar, externalities may cause positive and negative effects (6). In other words, if the consumer or a group grants certain benefits to other economic agents, the externality is positive; if any activity is disadvantageous to other groups or individuals, then the externality is negative (7). According to Stiglitz (216), “Externalities arise whenever an individual or firm undertakes an action that has an effect on other individual or firm”. The externalities phenomenon tends to have a spillover effect in the ...

Introduction and background information

The underground market is a precise example of free economic activity at work. The markets are entirely unregulated except by the participants themselves. No taxation takes place, and it is possible to pursue activities in the underground market which are illegal. The market can be very popular. Indeed, the smugglers (the earlier form of underground markets) were sometimes, known as ‘free traders ‘in medieval Europe. The major factor influencing the growth of the underground market is high taxation by governments. The increased tax is because of the ever increasing public expenditure with dwindling resources at the disposal. Reversal is ...

Abstract

The impacts of an enterprise’s dividend policy on share prices wield considerable significance to the investors, economists, and corporate officials. The economists try to appraise and understand the operations of the capital markets, the corporate officials institute the guidelines, while the investors plan the portfolios. Throughout the process, several queries arise: Do the firms with substantial distribution policies sell their premiums over those with negligible payouts? If yes, under what circumstances? Is there a standard series of ratios or payouts that can maximize the share prices? The three questions have been the focus of various studies, but the ...

The concept of full employment, or the natural, frictional, and rate of unemployment plays a central role in macroeconomics and its policy. Let's start with natural employment. The determinants of the natural rate of unemployment are duration and frequency of unemployment. The duration of unemployment depends on cyclical factors in addition to the structural characteristics of the labor market. The organization of the labour market including the presence or absence of employment agencies , youth employment services. The demographic makeup of the labour force. The ability and the desire of the unemployed to keep looking for a better job which ...

Harford’s book The Undercover Economist is devoted to the exploring of fundamental reasons for rich economies being rich and poor economies being poor. Formaini smartly notices that Harford in his book “seems to want to explain to noneconomists some of the interesting theoretical conclusions that economists use to explain observed behavior and wealth pattern” (204). Within the book, which is rather easy for understanding, a set of major concepts from economic theory are deeply analyzed and interestingly and, sometimes, entertainingly explained by the author. In terms of this paper, a brief summary of Harford’s book will be ...

The United States Department of Labor describes competitive sourcing as a key element of the President’s Management Agenda that seeks to get the best value for money on taxes paid by the American people. This is accomplished through a strategic plan that leverages the market economy’s competitive forces to improve the efficiency of the government. It involves awarding of tasks and activities to the most qualified party through a competitive process. Government organizations are allowed to compete for work against the private sector based on the assumption that both can perform tasks and deliver commercial services cost-effectively ...