Demand And Supply

Demand and supply

[Name of the Writer]

[Name of the Institution]

Demand and supply

The article I have chosen for discussion is "Hyundai's car sales are affected by lower gas prices". The article indicates the price equilibrium and supply changed due to the demand for small cars. The sales fell four percent as demand is decreased for small cars like Accent and Elantra. Besides, a 5% increase in the demand was recorded for big vehicles like crossovers and trucks ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"sIpv2v3e","properties":{"formattedCitation":"(\\uc0\\u8220{}Hyundai falls 4% as small cars tumble,\\uc0\\u8221{} 2014)","plainCitation":"(“Hyundai falls 4% as small cars tumble,” 2014)","noteIndex":0},"citationItems":[{"id":1067,"uris":["http://zotero.org/users/local/mlRB1JqV/items/KHM32QTP"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/KHM32QTP"],"itemData":{"id":1067,"type":"webpage","title":"Hyundai falls 4% as small cars tumble","container-title":"Automotive News","abstract":"Hyundai Motor America's November sales fell 4 percent on weak demand for small cars such as the Elantra and Accent.","URL":"https://www.autonews.com/article/20141202/RETAIL01/312029993/hyundai-falls-4-as-small-cars-tumble","language":"en","issued":{"date-parts":[["2014",12,2]]},"accessed":{"date-parts":[["2019",9,6]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Hyundai falls 4% as small cars tumble,” 2014). The reason behind this change in demand for small and large cars is the lower gas prices which is $3 per gallon. Price and demand have a negative relationship due to which when the price of gas decreased the demand for big vehicle increased lead to changes in demand level. However, the supply curve did not change resulted in a loss for small cars but gain for big vehicle. People changed their preference from small cars to large one as they are now able to ride big vehicles in the same gas prices. This change in preference leads the Hyundai company to make more crossovers and trucks than small compact cars. Moreover, The decrease in the demand indicates the surplus of small cars models in the market that no one is buying. It shifted the price equilibrium lower than before. Therefore, the company should manage to increase the demand for those cars. In addition, the supply of large car should be increased to gain more profit. In other words, in the short-run company may face loss due to the already produced small compact cars, but if they manage to cope with the demand of the consumer they can make a profit over it in long term.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Hyundai falls 4% as small cars tumble. (2014, December 2). Retrieved September 6, 2019, from Automotive News website: https://www.autonews.com/article/20141202/RETAIL01/312029993/hyundai-falls-4-as-small-cars-tumble

Describes A Shift In The Supply Curve Or In The Demand Curve

A shift in the demand curve of iPhone 11

Martin Gutierrez

[Institutional Affiliation(s)]

Author Note

A shift in the demand curve of iPhone 11

The essay is based on a CNN’s recent report on increasing demand of iPhone 11. The iPhone released different versions of the new model including iPhone basic, premium, Pro and Pro Max. The graph pattern of increased demand has been explained with related determinants.

Article summary

The article highlights the increase in demand of iPhone 11 and compare to the previous model, iPhone X. The new model launched has higher similarity to the previous one in specifications. However, the number of orders received for this latest model are considerably higher than the previous iPhone X (Clare, 2019). This can be because the number of people upgrading last year was less as iPhone X was most expensive model yet with fewer innovations. Another reason was ongoing tension with China lowering the sale (Clare, 2019). The highest number of orders have bene put for the iPhone 11 Pro which is a larger-storage version, and for Space Gray and Gold colored models for their aesthetic features.

Graph pattern observed

The increase in the demand follows the graph pattern below. The graph has shifted upwards with the increasing number of orders or demand. The two determinants ‘size of the market’ and ‘consumer’s taste and preference’ have increased shifting the graph upwards. The number of people wanting to buy the new model has risen causing the upsurge in demand. The other factor causing the shift in demand is consumer’s taste and preference.

Q

P

P*

Q*

S

D

D’

Q

P

P*

Q*

S

D

D’

Recommendations

Based on above observations, it is recommended to:

Make efforts to reduce the expected shipment delivery times

Solve tensions with the china

Reducing the shipment times will increase accessibility and popularity of model. To further increase the sales, efforts must be made to solve the tension with China as China is one of the biggest markets for Apple products.

References

Duffy, Clare. (2019, September 16). Demand for the new iPhone 11 appears to be off to a good start. CNN Business. Retrieved from https://edition.cnn.com/2019/09/16/tech/iphone-11-sales-demand/index.html

Discussion

Discussion

[Name of the Writer]

[Name of the Institution]

Discussion

Catholic framework for economic life is based on the principle of ethical leadership and social responsibility. It guides people that how they can make society productive and balance by their positive and cooperative role as a member of society. For instance, forth principle ensures the equality of the society. Economic policymakers always try to reduce inequality and provide equal opportunities to the people ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"YPsTn6ZK","properties":{"formattedCitation":"(\\uc0\\u8220{}A Catholic Framework for Economic Life,\\uc0\\u8221{} n.d.)","plainCitation":"(“A Catholic Framework for Economic Life,” n.d.)","noteIndex":0},"citationItems":[{"id":1259,"uris":["http://zotero.org/users/local/mlRB1JqV/items/JTBA4LSJ"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/JTBA4LSJ"],"itemData":{"id":1259,"type":"webpage","title":"A Catholic Framework for Economic Life","URL":"http://www.usccb.org/issues-and-action/human-life-and-dignity/economic-justice-economy/catholic-framework-for-economic-life.cfm","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“A Catholic Framework for Economic Life,” n.d.). This principle highlights the necessities of the human food, clothing, shelter hence it is consistent with the basic understanding of ethical leadership ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ku2kmkaS","properties":{"formattedCitation":"(\\uc0\\u8220{}Ethical Leadership,\\uc0\\u8221{} n.d.)","plainCitation":"(“Ethical Leadership,” n.d.)","noteIndex":0},"citationItems":[{"id":1263,"uris":["http://zotero.org/users/local/mlRB1JqV/items/3FR4LVPM"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/3FR4LVPM"],"itemData":{"id":1263,"type":"webpage","title":"Ethical Leadership: Character, Civility, and Community","container-title":"edX","abstract":"Explore theoretical and practical elements of ethical leadership with emphasis on leaders personal narratives within social and historical contexts.","URL":"https://www.edx.org/course/ethical-leadership-character-civility-and-community","title-short":"Ethical Leadership","language":"en","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Ethical Leadership,” n.d.). In addition, it is the social responsibility of government and guardians to provide good education, healthcare, quality life, and security to the people, therefore, this principle carries both the component i.e. ethical leadership and social responsibility to make positive economic life ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"dbsHByHO","properties":{"formattedCitation":"(\\uc0\\u8220{}Social Responsibility and Ethics | Who Is Responsible And Why? | Pachamama Alliance,\\uc0\\u8221{} n.d.)","plainCitation":"(“Social Responsibility and Ethics | Who Is Responsible And Why? | Pachamama Alliance,” n.d.)","noteIndex":0},"citationItems":[{"id":1266,"uris":["http://zotero.org/users/local/mlRB1JqV/items/VS3CIDAL"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/VS3CIDAL"],"itemData":{"id":1266,"type":"webpage","title":"Social Responsibility and Ethics | Who Is Responsible And Why? | Pachamama Alliance","URL":"https://www.pachamama.org/social-justice/social-responsibility-and-ethics","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Social Responsibility and Ethics | Who Is Responsible And Why? | Pachamama Alliance,” n.d.).

The ninth principle is made for people in the workforce. Discrimination at work is common phenomena which happens mostly for self-interest. People try to increase their profit and give harm to the other ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"fCJPWA4c","properties":{"formattedCitation":"({\\i{}THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf}, n.d.)","plainCitation":"(THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf, n.d.)","noteIndex":0},"citationItems":[{"id":1260,"uris":["http://zotero.org/users/local/mlRB1JqV/items/ZNP2U5XG"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/ZNP2U5XG"],"itemData":{"id":1260,"type":"article","title":"THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf","URL":"http://www.catholicsocialteaching.org.uk/wp-content/uploads/2010/10/THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf, n.d.). This principle, therefore, teaches us to promote ethical leadership where people should work for profit maximization but not by taking other's economic opportunities but by increasing own productivity and efficiency ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"7oD9CyG5","properties":{"formattedCitation":"(\\uc0\\u8220{}Leadership | Ethical Systems,\\uc0\\u8221{} n.d.)","plainCitation":"(“Leadership | Ethical Systems,” n.d.)","noteIndex":0},"citationItems":[{"id":1261,"uris":["http://zotero.org/users/local/mlRB1JqV/items/BPK6WABE"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/BPK6WABE"],"itemData":{"id":1261,"type":"webpage","title":"Leadership | Ethical Systems","URL":"https://www.ethicalsystems.org/content/leadership","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Leadership | Ethical Systems,” n.d.). Besides, stakeholders and employers can invest in social welfare programs or cooperate with employers and consumers to help them in seeking new opportunities. However, it is not the responsibility of the company to invest for social responsibility their objective should be providing maximum return to the shareholders. This is because it is the investment of the shareholders and they should decide where they should spend their money. Therefore, it is important for the managers, employers, consumers, and shareholders to give their best which in return become a benefit for the whole society ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"NoBgCDES","properties":{"formattedCitation":"(\\uc0\\u8220{}What is Social Responsibility (SR)? | ASQ,\\uc0\\u8221{} n.d.)","plainCitation":"(“What is Social Responsibility (SR)? | ASQ,” n.d.)","noteIndex":0},"citationItems":[{"id":1264,"uris":["http://zotero.org/users/local/mlRB1JqV/items/3HPN2WFA"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/3HPN2WFA"],"itemData":{"id":1264,"type":"webpage","title":"What is Social Responsibility (SR)? | ASQ","URL":"https://asq.org/quality-resources/social-responsibility","accessed":{"date-parts":[["2019",9,26]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“What is Social Responsibility (SR)? | ASQ,” n.d.).

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY A Catholic Framework for Economic Life. (n.d.). Retrieved September 26, 2019, from http://www.usccb.org/issues-and-action/human-life-and-dignity/economic-justice-economy/catholic-framework-for-economic-life.cfm

Ethical Leadership: Character, Civility, and Community. (n.d.). Retrieved September 26, 2019, from EdX website: https://www.edx.org/course/ethical-leadership-character-civility-and-community

Leadership | Ethical Systems. (n.d.). Retrieved September 26, 2019, from https://www.ethicalsystems.org/content/leadership

Social Responsibility and Ethics | Who Is Responsible And Why? | Pachamama Alliance. (n.d.). Retrieved September 26, 2019, from https://www.pachamama.org/social-justice/social-responsibility-and-ethics

THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf. (n.d.). Retrieved from http://www.catholicsocialteaching.org.uk/wp-content/uploads/2010/10/THE-COMMON-GOOD-AND-THE-CATHOLIC-CHURCH_1996.pdf

What is Social Responsibility (SR)? | ASQ. (n.d.). Retrieved September 26, 2019, from https://asq.org/quality-resources/social-responsibility

Discussion

Name of Student

Name of Professor

Name of Class

Day Month Year

Discussion

Do you think taxing soda like this will be effective in reducing the consumption of the good? Why or why not?

Taxing soda drinks will make it difficult for the consumers to access it easily which will decrease its sales. High taxes will ensure that people think twice about making the choice of consuming soda(Kaplan). It is not yet decided that how much tax will be implemented on the drink, but if 2 cents per fluid announce is increased it will add the cost of 24 cents per soda can. This will result in a $2 billion increase in annual revenue. Many scientific researches prove that one of the leading cause of obesity which results in health disease like kidney failure, diabetes, and heart failure. Imposing taxes will help people in avoiding the wrong choices (Lazarus).

What sort of groups will benefit if a tax like this is imposed? What sort of groups will be harmed if a tax like this is imposed?

The decision of taxing Soda will impact the different industries for better and for worse. Taxing the soda drinks will negatively impact the soda industries as it will decrease their sales and will result in economic loss. This will also impact the sugar industry again due to reduced demand for sugar by the soda industries. This will also reduce the healthcare cost due to the obesity-related problems that are directly linked to the consumption of soda drinks(McGreevy).

3. Are you in favor of taxing soda? Why or why not?

I think sugar addiction is real, like tobacco and heroin addiction. All of these addictions are harmful not only for health but also for the economy. Their consumption causes adverse effects on the health and well-being of an individual. In the US about 40% of the population is obese due to high sugar consumption. Increasing soda tax will make it difficult for people to buy and consume it, which will stop them from making wrong decisions. In the long run, it will benefit the population in making mindful choices regarding health and fitness.

Works Cited

Lazarus, David. "Laugh It Up, Republicans, But A Soda Tax Is A Serious Response To A Deadly Serious Problem." latimes.com. N.p., 2019. Web. 18 Apr. 2019. ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY

McGreevy, Patrick. "California Lawmakers Propose Soda Tax, Outlawing Super-Size Sugary Drinks." latimes.com. N.p., 2019. Web. 18 Apr. 2019.

Kaplan, Karen. "World Health Officials Want Super-Size Tax On Soda And Sugary Drinks, But Are Countries Ready To Swallow That?." latimes.com. N.p., 2019. Web. 18 Apr. 2019.

Discussion And Assignment 4, 5

Discussion and Assignment 4 and 5

Student’s Name

Institution

Date

Module 5: Assignment 4- Program description and Methods

The study conducted by Giving Hope Inc. established that there is a gap in the Denton Community, which needs to be bridged. The poverty index is high resulting in lawlessness, early pregnancy among teenagers, school dropout and drug abuse. These issues have impacted the community negatively and therefore, immediate attention, which can give hope to the community, is required. In order to meet the objectives and aims of this project, our organization intends to offer a mentorship program to both teenagers and adults, build homes and provide food services to the community under the dire need of food and shelter. This is a temporary plan to address the immediate needs of the community.

However, the permanent solution would be to provide mentorship and entrepreneurship seminar to women and other interested parties and help them establish small scale businesses. The mentorship program would help in addressing the school dropout menace and drug abuse to give the community hope for a better future. The entrepreneurship program is to ensure that members of the community have suitable businesses especially women who are the cornerstone of most families in Denton Community. Helping women and other interested parties to establish businesses would give an individual member of the community a self-sustainable income and this would help in reducing the poverty index in the community.

Giving Hope Inc. intends to partners with community centres within the Denton community to establish a long term mentorship program. The organization shall employee mentors to work closely with the community centre to address issues affecting the community. The mentorship program shall run for six two years, whereby Giving Hope Inc, shall train community mentors to work forever within the community. This shall include entrepreneurship training and giving money to individuals who have completed both mentorship and entrepreneurship training to start their own businesses. The money or funds shall be provided under a program called “Table banking” to help in establishing businesses for profit making. The program would be conducted within the community centre and shall run for a period of one year. It is expected to train over 500 women from Denton Community on entrepreneurship skills and also offer mentorship program so that they can become family mentors to address problems the community faces.

Reducing Homeless in the society has been the main concern for people and therefore, Giving Hope Inc, intends to build houses to host many homeless as a permanent solution to the problem of homes. Giving Hope Inc intends to acquire land, through a partnership with the state department to construct affordable and modest houses for the homeless. The acquisition of land and construction of homes intend to start three months after the organization has acquired the funds. And therefore, within one year eighty per cent (80%) of construction shall have been completed and several people shall have moved in to use the house for permanent occupation.

Module 5: Assignment 5 - Timeline

Giving Hope Inc. intends to run three simultaneous programs under its "Safe Alive" program. These are the homeless program, mentorship and entrepreneurship. These programs shall be inclusive and take a period of 24 months before the organization handed over the said program to the community for their own management. Giving Hope shall first conduct an assessment, then planning, which includes a budget to ensure that all areas are covered efficiently. After planning the hiring of mentors, purchasing of land and construction equipment shall be under to ensure that the program is completed within the time frame. The training shall be completed within 3 months for each group and after that funds to be given to them start their own businesses.

Table 1: Time Frame

Activity

Duration

Assessment

3 Month

Planning

1 Month

Purchase of equipment and Land

1 Month

Hiring mentors

1 Months

Construction of Houses for the homeless

12 months

Training on Entrepreneurship

6 Months

Mentorship Program

12 months

Table Banking issued to Women for business

3 months

Discussion 4 - Sharing own experiences

A story is inspiring. It gives a real-life situation and therefore, it gives a clear situation of what is transpiring on the ground. This kind of story is what is needed for a grant to convince funders since it lets the funder to have the knowledge of what the fund intends to do in a real-life situation. It also allows the funders and the organization to understand the need for the funds and with this kind of video, it is very easy for convenient for donors to put in an investment into a project. Based on the video it is important to have a real life story video besides a proposal to forward to the donors or funders of a project. It is, therefore, important to state that the video is a really convincing story, which is necessary for effective communication.

Discussion Post

Economics

Student’s Name

Institutional Affiliation

Long-run average cost

Generally, it is prudent for the management of a company to determine both short-run and long-run average price based on production levels. Typically, in short-run, the average total cost has a U shape because the initial average cost of production is a fixed factor thus the average cost curve will fall at the initial till minimum then start to rise (Leitner, 2011). Whereas in long-run, the average cost curve signifies the least attainable average production cost. Therefore, firms in short-run always increase their level of production.

Description of economies of scale and diseconomies of scale

Economies of scale refer to the deterioration in the long-run average cost of production due to increase in size and operation of a firm (Leitner, 2011). Diseconomies of scale refer to the increase in average production cost as a result of a decrease in size and production levels of a firm.

Determinants of economies and diseconomies of scale

Usually, various factors lead to either economies or diseconomies of range for a firm. Some of these determinants are the cost of raw materials, cost of labor, technological level and cost of capital (Carlino, 2012). For instance, a decrease in the cost of these factors contribute to economies of scale because a company will spend less during production. However, an increase in the value of these determinants contributes to diseconomies of scale because a firm will consume more resources.

Cause of economies of scale for Walmart

Walmart is one of the best-performing companies in the industry it operates. The management of the company has implemented the high use of technology to attain economies of scale in its production process (Carlino, 2012). The use of appropriate technology has enabled the company to reduce its cost of production due to the efficiency and accuracy of the machines used.

Importance of economies of scale to help a business entity compete in an industry

Economies of scale benefit a company to decrease its cost of production due to mass production. As such, the firm will produce a quality product at a low cost which will make a firm to charge moderate prices. Consequently, this will help a company to gain a competitive advantage in the sector it operates.

References

Carlino, G. A. (2012). Economies of scale in manufacturing location: Theory and measure. Boston, MA: Springer US.

Leitner, M. (2011). Economies of scale in semiconductor manufacturing. Place of publication not identified: Grin Verlag.

Discussion Post

Name

Institution

Course Code

Dated

Economics

Wild Card: 1

           Recycling scheme of Norway is one of the most successful recycling schemes all over the world. The success rate of the Norwegian recycling scheme is 97%, however, in the US, the recycling rate for plastic bottles is just 30%. Norwegian recycling scheme hinges upon the loan scheme. According to the loan scheme, whenever a customer buys a plastic bottle, he is charged with some additional amount. The additional amount is equivalent to 13 to 30 US cents. The question is; is it possible for the US to adopt the Norwegian model for recycling of plastic bottles? Probably no! the reason is the simple economy of scale. Norway is about the population of one of the smaller U.S. states. To apply the Norwegian model on the scale of the entire United States, with the many different state law structures, is practically impossible. It is like so many of the comparisons of how something is done in Norway, so why cannot the U.S. do it? Country size is a big factor, but also a difference in the legal structure of the countries plays a big role too. It’s not that Norway is any better or any worse than the U.S., it’s simply that they are different. Sometimes the difference is positive, sometimes not, but comparing a country the size of Norway with the United States is impossible.

Wild Card: 2

           The pain one carries can override any rational thought. People do feel the need to punish those who they feel hurt them or didn’t help them in work. Society can get caught up in things that do not matter and forget to help those in desperate need of help. People can be so self-centered that they cannot see the pain and suffering of others. Some people are overlooked and go to extremes when no one will help them. More often than not, people feel disrespected and undervalued at work, however, there is no place of emotions in business. In a corporate culture, companies want employees to be happy not out of altruism but because employers are of the view that happy employees are more productive than unhappy employees. In such a corporate culture, the economic value of the happiness of employees is always less than the economic value of whatever management did that made them unhappy. Such kind of economic values are calculated, so complaining management about hurt feelings, however, is a dead end.

Wild Card: 3

            Ensuring students have access to resources resulting from their costly education would help shrink the burgeoning student loan debt. Graduation or not graduating means little if there isn’t a significant increase in affluence. As far as America’s student debt is concerned, it has reached $1.5 trillion. Regulating the loan program is tough because it is imperative to allow disadvantaged populations to have access to education and a fair shot at winning the affluence lottery. When 500 applicants go after one or two positions, it is distinctly a lottery since most realistic applicants will be qualified. What is wrong about creating infinite educational opportunities? Infinite educational opportunities put a massive burden on taxpayers. Student loans are underrated, because weak students are, sometimes, at a disadvantage concerning socioeconomic and academic opportunities. Albeit, student will be left with some skin in the game if they are provided with no-interest loans, however, a student will have to repay if their educational venture fails. It is high time that the loan program was reformed. However, if equal interest rates are charged regardless of odds of success then it would be a recipe for fruitless credential inflation. To bolster the effectiveness of student loan then interest rates for weak or high-risk students must be raised. Raising interest rates for the high-risk student will warn the students to look before they leap.

Discussion Question

US Trade Policy (1970-1980)

[Name of Writer]

[Name of Institution]

A blanket term for US trade policy in the 1970s is protectionism. This came to be because by the end of the 1960s, USA had partially lost its economic hegemony in the world which had established in the post-WWII era. So, the Congress shifted its focus towards protecting US industries from imports. CITATION Pie86 \l 1033 (Nivola, 1986)

The main imported goods in the 1970s were agricultural products, automobiles and automobile parts. Owing to protectionism, these were the ones that faced the most restrictions. Other major trade goods included oil and steel. Some of the most important services traded by the US in the 1970s included engineering consultations, film royalties, airfares and insurance premiums.

In the 1970, there was new competition from Latin America (Mexico, Brazil) and Asia (Hong Kong, Taiwan, South Korea) with Japan and Europe already giving US exports a tough time. Therefore, several restrictions all pointing to a protectionist trade policy were imposed. It started with the 1970 trade bill allowing an industry to seek government protection against imports. It did not pass but paved the way for the Burke-Hatke bill which added restrictions on foreign investment to the earlier bill. This did not pass either, but the debate had been successfully shifted. In 1971, President Nixon saw the US breach of Bretton Woods which made US dollar a floating flat currency. The 1974 trade act gave US companies the right to ask for protection against imports. A round of ‘voluntary’ restrictions of exports to the US by other countries were insured via nontariff barriers and it continued throughout the decade. CITATION Vical \l 1033 (Canto, Cato Journal)

Pros:

Protectionist trade policies eliminate foreign competition and give local companies the protection and time needed for them to grow.

Local companies are moved to hire more local people for jobs.

Cons:

Without foreign competition, the quality of local produce stagnates while the prices rise.

It slows economic growth by increasing layoffs.

References

BIBLIOGRAPHY Canto, V. A. (Cato Journal). US Trade Policy: History and Evidence. 1983, 679-703.

Nivola, P. S. (1986). The New Protectionism: U.S. Trade Policy in Historical Perspective. Political Science Quarterly , 577-600.

Discussion: Price Elasticity

Price Elasticity of Demand

[Enter name of Student here]

[Enter name of institution here]

Answer 1

Figure against dark beer shows that this product is very much price elastic because 1.48 is greater than 1. In other words, percentage change in quantity demanded is higher than percentage change in price. A small increase in price for this product will result in a considerable decrease in quantity demanded. There will be a disadvantage to company if it increases price of this product.

Answer 2

The figure for whole industry is 0.44 which shows am inelastic demand. This means that there will be less change in quantity demanded as compared to price in the industry. In order to increase demand in industry as a whole, a huge decrease in price will be required.

Answer 3

Blended Scotch whiskey is the product that has most inelastic demand among all these products. This judgment has been made by observing the figure of 0.07 which shows very low change in quantity demanded as compared to price. The company can increase the price of this product to increase its total revenue because price and total revenue move in same direction in case of inelastic demand.

Answer 4

Overall industry demand is inelastic as the average figure is less than 1. As a CEO, I will increase the price of beer because in case of inelastic demand, price and total revenue go in the same direction. If we increase prices in this scenario, there will be an increase in total revenues of the firm. Prices should be increased for brands which have price elasticity less than 1, in fact, lower the elasticity, greater will be the benefit of increasing product’s price. Products having elasticity greater than one should have lower prices.

Answer 5

There is a considerable difference between price elasticity of demand in developed and emerging countries. Single malt scotch whiskey and sparkling wine are two products which show highest differences in elasticity among developed and developing countries.

Discuttion

Lusine Hovakimyan

Instructor Name

Economics

21 January 2020

Discussion

The labor unions are necessary in this globalized world, especially after the availability of a versatile and trained labor force that is available to the business owner at very cheap wages. These unions are there so that workers could have the power to negotiate for favorable wages and working conditions through the leverage of collective bargaining. However, some costs are associated with keeping these unions afloat. These union dues are used for activities like annual dinners, corner meeting and other activities that are needed for the welfare of workers.

My personal experience with my union leaders has been very fruitful. They provided me a platform to raise my voice as my employer wanted to decrease my wage rate after the economic crisis of 2008. I think that union participation has started to decrease over the years since many employees do not earn enough wages to pay union dues. The workers also get dishearten and lose faith in their union leaders if their union loses to the rich business owners on some legal grounds.

Even then, I think that many workers still prefer to work with union leaders rather than fighting for their rights alone. This is often because certain people are too strong to handle, even with the substantial might of union behind workers. In a PBS documentary about the condition of Las Vegas Culinary Workers, it can be seen how successful and rich hotel owners have several immigrant workers at their disposal. This shows that it is often in the advantage of businesses to stop their workers from being parts of these units, as it gives these workers the power to negotiate their working terms and conditions.

Works Cited

BIBLIOGRAPHY There are no sources in the current document.

Does Religion Cause War?

Does Religion Cause War?

Author Name

[Institutional Affiliation(s)]

Author Note

Does Religion Cause War?

Introduction

Religion has played a vital role in the lives of individuals since the beginning. Since records began, there have been multiple wars and conflicts among different tribes, countries, or nations. Whether it is the belief in contemporary Christianity or whether it goes back to the times of Judaism and Hinduism, there has been religion as an influencing factor, on some level. A number of wars between countries and civilizations took place in the past. However, it is important to understand the real motives behind these wars. Technological advances, economic crises, and political upheavals change the face of society. In the last few decades, there has been much finger-pointing at Christians and Islamic extremists. It is obvious that history is a mixed bag, as conflicts and wars are related to both religious and personal motives. The majority of people argue that religion is the main reason behind most of the wars, while others claim that it is power, politics, and material goods that are problematic factors behind a war. However, it is inconclusive whether religion is the major reason behind war or not. It is crucial to determine whether religion contributes to wars or that there are other motives behind it.

Discussion

First of all, there is a need to determine the major reasons behind the war to get a better understanding of its origin. A number of motives behind wars including economic gain, civil war, revenge, nationalism, religion, territorial gain, defense war, and revolution. However, people argue that The Crusades is a perfect example to explain that wars can be religious. Undoubtedly, The Crusades were a series of religious wars that were fought to take control of the Holy Land (Pearse, 2007). These wars were held in Western Asia and Europe by the Roman Catholic Church. The major purpose of that war was to provide assistance to the Christian Byzantine Empire that was attacked by Muslims. The conflict between Muslims and Catholics started a series of these wars. Therefore, it is evident that wars can be religious and of great intensity. However, people also argue that differing religious beliefs did not start these wars. It was the massacre of three thousand Christians that compelled Christians to start The Crusades. One must need to understand that The Crusades would not have taken place if Muslims did not massacre 3000 Christians (Pearse, 2007). The different religious backgrounds of both nations became the primary reason behind that war.

In addition, it is unfair to draw a conclusion on the basis of just one example. It is necessary to keenly observe another side of this issue. God has been used in order to justify many cruel moments from crucifying Jesus to stoning adulterers. Political and cultural motivates have been fulfilled by many nations while keeping religion on the front. It is necessary to indicate how cultural and political motives are satisfied by various leaders. The conflict in Northern Ireland is a significant example to justify that religion has been used by leaders to satisfy their needs. Division and unison are incited within people of Northern Ireland with the help of religion (Pearse, 2007). The issue of identity is the primary reason behind this conflict. The Nationalists in Northern Ireland have Catholic faith, while the unionists are predominately protestors who wanted to remain as a part of Great Britain (Purzycki & Gibson, 2011). Commonly, it is believed that religion and sectarianism are prevailing in the conflict. With the help of this example, it is safe to say that religion is not the sole reason for wars. However, in reality, religion has been used as an incentive to continue as the conflict in order to cover the real motives of leaders such as cultural or political purposes. A number of leaders and scholars also believe that religion stimulates peace among nations (Purzycki & Gibson, 2011). Thomas Jefferson in one letter stated that “we took the liberty to make some enquiries concerning the ground of their pretensions to make war upon nations who had done them no injury, and observed that we considered all mankind as our friends who had done us no wrong, nor had given us any provocation” (Letters of Thomas Jefferson).

Identification of actual causes of war is one major aspect of concern for the stakeholders. Undoubtedly, it is vital to explore all the potential factors that stimulate the calamity of war in different forms. It is noteworthy to mention that various researchers in this discipline discovered diverse ideological arguments to evaluate the main causes of the chronic concern of war. The phenomenon of religion is recognized as the one critical factor associated with the issue of war. It is argued that religion can increases the risk of war (Pearse, 2007). It is vital to critically examine the argument whether religion causes a problem of war or if this is just a myth. This form of consideration is crucial to successfully explore the existing association between the facets of religion and war. It is argued that religion is one major cause of war and this association can be observed in the case of many different forms (Purzycki & Gibson, 2011). There are various practical examples in history where the practical implication of religion causes immense division between people. It is one common prospect about the facet of religion, that it divides people based on the difference of their beliefs. Religion is characterized as the practical medium that makes it difficult for people to think beyond their religion and give necessary respect to all humanity (Pearse, 2007). In other words, the spectrum of religion is defined as the medium of increasing the feeling of hatred between people who are different from each other due to the difference in their religious faiths. The consideration of religion as the cause of war can never be ignored as it is the main source of increasing gaps between different groups of human beings. It is argued that religion is a critical cause that reflects the debate that people differ from each other that ultimately enhanced the issue of incompetence between different individuals (Purzycki & Gibson, 2011).

It is evident that religion causes certainty, which is a potential reason to engage individuals in war. Meic Pearse in his book The Gods of War demonstrated that a range of secular ideologies has left a trail of devastation and death in their wake (Pearse, 2007). The majority of people argue that most wars are religious wars by providing examples of Israeli-Palestinian conflict, the Lebanese civil war, Buddhist uprising, Nigerian conflict, Yugoslav Wars, and Abyssinia-Somalia conflict. It is also apparent that religion divides humans between believers and non-believers (Purzycki & Gibson, 2011). These beliefs can compel individuals to fight for the sanity of their religions. People often argue that it is a false assumption to believe that the majority of wars are religious. According to the Institute of Economics and Peace, 123 out of 1763 wars have been caused by religion (Morgan, 2016). The overall weight of this statistic is approximately 7 percent. By keeping in view this figure, it is clear that most wars are not religious wars. Most violent groups in history tend to be anti-religious, which can be seen in the case of Nazi Germany and Stalinist Russia. World War II was the most deadly regime of human history (Purzycki & Gibson, 2011). The traditional religious expressions were forbidden by both groups. Religious traditions were willingly replaced with politics and nationalism in order to satisfy and fulfill personal reasons (Morgan, 2016). It is a common perception that religion promotes hate by dividing individuals into believers and non-believers. This division persuades individuals to hate each other.

Religions established a position as a stimulating factor to encourage people to adopt the domain of violence and brutality against others. The domain of religious wars is one prominent concept that requires the necessary attention to examine the associated relationship between the elements of religion and war (Morgan, 2016). The existing connection between religion and war can be observed in the case of different examples such as the facets of Crusades, Yugoslavia, Iraq, Afghanistan, etc (Purzycki & Gibson, 2011). All these aspects of growing tensions between different individuals are the example of the stimulating role of religion as the cause of conflict. It is argued that the philosophy behind the spectrum of religion increases the potential chances of growing tensions between individuals or groups who are different from each other. Undoubtedly, it is one horrific condition to use religion as the domain of argument to create terror and violence against any specific group (Morgan, 2016). Conflict is identified as the major element appeared due to the division of people based on the broad idea of religion.

However, people argue that religion itself does not promote hate among each other. According to the Bible, “they will hammer their swords into sickles, reshape their spears into pruning hooks. One nation will not attack another. They will not practice [or learn] war anymore” (Isaiah 2:4). Regardless of the Bible, other religions also encourage the concept of peace and love among each other. According to the Quran, “Satan wishes to sow enmity and hatred between you with intoxicants and gambling” (Quran 5:91). Religions teach us about peace and love, but many individuals in the past used religion to justify war. However, people have divided a single religion into a number of sects. Christianity itself is divided into thousands of sects, which is highly problematic. Each sect is trying to fulfil its desires and motives by using religion. It is unlikely for individuals to arrive at sublime truth without having faith. Religion is all about faith that makes individuals equal in front of God. However, nature has always favored the strong ones over the susceptible ones (Pearse, 2007). It is important to consider that people are the ones who cause conflict and confrontation rather than religion itself. Therefore, it is not wise to conclude that there is no war without religion. Cruel motives of individuals are the prevailing causes of wars in the world.

A religious war or holy war is one prominent argument that helps to figure out that religion is the primary cause of war. A critical examination of the role of religion is a necessary condition to make better inferences about the existing connection between religion and war. Various secular ideologies under the spectrum of religion influence the concern of conflict that appears in many different forms. The primary reason for all the historic wars is identified as the imbalance approach of religion that turned as the extreme degree of conflict between different nations. This argument can be better apprehended by considering the example of the European wars. These wars are identified as the chronic series of wars that appeared due to improper interpretation of religious ideologies.

Proper examination of the current situation of war and peace of the world is also a necessary condition to successfully address the phenomenon of conflict based on the idea of religion. It is significant to mention that the regional domains of conflicts in the form of growing terrorism in the regions of Iraq, Syria, etc. originated due to the difference of religious opinion between different groups (Pearse, 2007). This form of consideration clearly revealed that the risk of religion as the stimulating factor of war can never be ignored, as it creates visible differences between people and groups based on their different religious thoughts and ideologies. According to Alexandra Mirai, an Arab-German film director, “religion is all good, but we are almost back to medieval times now, where we are obsessed with going into religious wars and electing our politicians based on their religious statements.” The current spectrum of wars in the context of religion is successfully defined by the author who indicates the utilization of religion as philosophy playing a critical role when it comes to considering the existing association between war and religion. The interpretation of religion is questioned by the author with these words that there is nothing wrong with the religion but there is a need to critically examine the implication of the main idea of religious philosophy adopted by believers. The current scenario in the context of conflict is a major facet of consideration that requires the necessary attention. It is argued that in the current scenario of conflict enhancement, the followers of the religion are obsessed to involve in different forms of religious conflicts (Purzycki & Gibson, 2011). This form of consideration ultimately turned as the calamity of war due to the conflicting representation of religion. In other words, the phenomenon of religion is used as the medium by the followers to create and enhance the issue of conflict between diverse individuals.

Conclusion

By overviewing these arguments, it is evident that religions have the tendency to cause war. It is obvious that religions cause inevitability among humans by providing different views, which leads to confrontation. It would be unfair to conclude that religion is not the primary cause of war. This notion is significantly denied with the example of World War II, The Crusades, and the current war in Afghanistan. A critical examination of various pieces of evidence and historical figures illustrate that religion can cause intensive wars as it has in the past. The consideration of different historical events clearly indicates that the risk of war due to the phenomenon of war can never be ignored. There is an example of a number of wars in world history that appeared due to religious differences existing between different religious groups. It is obvious that the identity of the religion is used by different stakeholders as the stimulating factor to initiate the approach of war against their counterparts. The extreme obsession of the specific faith eventually limits people’s tolerance level to accept different realities and embrace it in its true perspective. In simple words, religious intolerance can be characterized as the major instigating factor that motivates people to involve in the facet of conflict and war against each other. It is highly considerate to understand the consequences of these wars. Religious wars are cruel, intense, and have the tendency to last for years as seen in World War II and The Crusades. People have made their own perceptions by forbidding traditional religious expressions. Secular ideologists and leaders should not use religion on the front to fulfill their motives.

References

Morgan, R. (2016). Does religion cause war?. Issue, 24, 3-5.

Pearse, M. (2007). The gods of war: is religion the primary cause of violent conflict?. InterVarsity Press.

Purzycki, B. G., & Gibson, K. (2011). Religion and violence. Skeptic, 16, 22-27.

E202 Essay

Economic Analysis of News Article

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Economic Analysis of News Article

1. Rising interest rates signal mild confidence in the economic outlook for USA. When the Federal Reserve raises interest rates, cost of borrowing rises too. This results in increased interest rates by banks for individuals as well as businesses which hampers borrowing trends. The decreased borrowing then results in decreased spending which leads to an overall economic slowdown. However, this measure is usually undertaken by Federal Reserve to curb inflation. The increase in interest rate by the Fed is a sign that it wants to stabilize prices of commodities in the market. This is a classic measure to curb inflation in the market and signal to investors by the Federal Reserve that the overall outlook of the US economy is somewhat positive as more and more people are inclined to deposit money and the Fed is willing to take the risk of slowdown in economy. This shows the strength of the US economy.

Investors are incentivized to place their money in US treasury because they will get better returns on a higher interest rate. This helps in increasing deposits in banks and Federal Reserve which results in increased pool of money that can be loaned out at higher rates for increased yields. Thus, shored up reserves are one of the goals of this policy of increased interest rates by the Federal Reserve.

2. If people hold money, their opportunity cost is the revenue that they can generate if they invested the money in bonds. The bonds yield income that is equal to the interest rate so if interest rates rise, people are inclined to buy bonds and this decreases money supply in the market. An increasing interest rate signals that the government is moving towards contractionary fiscal policies that are designed specifically to curb inflation. However, the cost of curbing inflation is a slowed down economy which tightens money supply.

The increasing interest rate will result in decreased money supply. On a money demand, money supply curve, the money supply curve, MS1 will shift towards the left as it gets decreased. To keep the market equilibrium, money demand curve will also shift towards the left. Thus, the entire equilibrium will shift towards the left that signals a decreasing money supply as well as money demand, slowing down the economy.

3. As a result of increasing interest rate, aggregate money supply will decrease. This phenomenon occurs because a decrease in money supply results in people holding lesser amount of money which will result in lower spending. Hence, aggregate demand will decrease because people have less amount of money to spend.

On an aggregate demand aggregate supply curve with equilibrium at E1, increasing interest rates will result in a shift of aggregate supply curve, AS1 towards the left. Calling this point AS2, the aggregate demand curve, AD1 will shift towards the left as well in order to maintain equilibrium in the market. The new aggregate demand curve AD2 coupled with AS2, will result in a new equilibrium point, E2 which will be towards the left of E1. This signals an overall slowed down economy but with controlled inflation, which is the main goal of Fed’s policy.

4. An increased interest rate increases the cost of borrowing. This forces people and businesses to borrow less money as cost of borrowing is high. The reduced demand for loans leads to less spending as people invest a lower amount of money in the economy. This decreases demand in the market, causing an increased supply of products and services as there are lesser buyers and more sellers. This simple demand-supply relationship causes inflation to fall or at the very least, leads to control in rising inflation, so the risk of hyper-inflation is significantly reduced.

Since, people borrow less for investing, there is less investment in the economy which leads to lower economic output. The lower output results in a lower amount of GDP growth as people tend to finance less and less businesses, resulting in decreased economic growth. Risk taking also suffers as a result of increased interest rate as investors are more wary of increased risk associated with increased interest rates.

Furthermore, unemployment could rise as a result of elevated interest rates. This is due to the fact that less investment in economy coupled with a slower GDP growth, results in decreased job creation. This is inevitably a blow to workers as they have to make do with existing jobs as competition increases in the market. Slower economic growth as a result of increased rates will most likely result in a slightly worse off unemployment rate than before.

5. The Federal Reserve should not continue to increase interest rates as the adverse impacts on economy outweigh the perceived advantages. Although, the existing increase in interest rates turned out to be a necessity as a means to curb rising inflation but this trend should not be repeated indefinitely. The increasing interest rates are only a short-term measure to achieve immediate results in controlling inflation.

The adverse impacts include lower investments, which means a lower economic growth percentage. This inevitably leads to a decrease in creation of employment opportunities that hurts the interests of the middle class people. The growing unemployment as well as the slower economic growth is unsustainable in the long term even if inflation is controlled. The added disadvantage of an increased interest rate is the shrinking money supply that affects the market negatively. Increasing interest rates also tend to increase market volatility which can spiral into a crisis like situation if risky investments such as those in over-the-counter derivatives is left unregulated.

References

Borak, D. (2019). Fed raises interest rates in Powell's debut. CNNMoney. Retrieved 15 April 2019, from https://money.cnn.com/2018/03/21/news/economy/us-interest-rates-fed/index.html

Donna Borak, C. (2019). Federal Reserve raises rates despite signs of economic softening. CNN. Retrieved 15 April 2019, from https://www.cnn.com/2018/12/19/business/federal-reserve-december-rate-hike/index.html

Gillespie, P. (2019). What an interest rate increase means for real people. CNNMoney. Retrieved 15 April 2019, from https://money.cnn.com/2015/03/19/news/economy/federal-reserve-statement-interest-rates/index.html

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The president of the United States, Donald Trump, promoted his protectionist policy in the importation of steel and aluminum. Specifically, a tariff rate of 25% steel imports will be applied 10% to those of aluminum, both Mexico and Canada will be exempt for now. Trump has justified this measure because "the steel and aluminum industry in the United States has been devastated by aggressive foreign commercial practices" and has also described industry as "vital" to American national security. There have been many reactions in different countries, criticizing this decision. Canada called the tariffs "absolutely unacceptable," while senior EU officials said they are developing plans to combat this decision. Some European companies mentioned that they were putting American investments on hold as a response. In Spain there has been no specific statement criticizing this decision, or even any authority. Perhaps the most outstanding is the leader of the United Left, Alberto Garzón, who celebrated Trump's decision and commented that "Even part of the right wing like Trump is trying to take protectionist measures because they have understood that neoliberalism and globalization are the problem".

Why does not protectionism work?

When we are faced with a national scenario in which an internal industry lacks the capacity to compete against the country's external industry, the State decides to penalize the external industry through a tax policy, called tariff policy. As a result, there is an increase in external prices compared to domestic prices, so that, in comparison, domestic industry significantly improves its competitive position regarding consumers. These measures are applauded by the left since, by sanctioning external companies, apparently it is possible to benefit the internal industry and therefore the workers that comprise it, and also the companies and their respective corporate profits. The great benefit of this policy is to privilege a specific industry, simply by placing it in the national sphere. However, it has great damage for consumers, also in global levels of poverty and the dynamic process of innovation, also known as creative destruction.

Protectionism

Imagine that we are with Product A that has been manufactured internally and whose price is 20 euros and on the other hand, we have Product B, with the same characteristics as Product A, at a price of 15 euros but it has been manufactured externally. In this case, imagine the State decides to impose a tariff policy, so finally, the final price of Product B is 23 euros, that is, higher than Product A. In this environment, what would be the consequences of this decision? With the tariff policy, the main aggrieved is the consumer since he experiences price inflation as the best market purchase alternative is damaged in the market. In this case, the best alternative was Product B, for a price of 15 euros. However, after the tariff policy, your best alternative is Product A, for 20 euros, which means a greater mobilization of your resources to acquire the same good. Given that Product B is no longer the best option for consumers, there is a destruction of competitive employment, linked to Product A, that is, a job that had a greater facility or ability to offer a product to the market, at a cost of comparatively minor production. In other words, the efficient producer loses.

It is interesting to assess the dynamic effects when applying this type of measure. The price difference between both products implies an opportunity cost. With the protectionist policy, the consumer must mobilize a greater amount of resources to acquire exactly the same. This price differential would have meant savings, which could have been used to demand other consumption or capital goods to provide greater welfare. If there is a technological improvement that allows producing a lower cost, protectionist policies will seek to harm these technological advances. In fact, in full technological revolution, many states seek to protect certain sectors before the emergence of the so-called collaborative economy that has improved consumer alternatives. In conclusion, protectionist policies not only harm consumers and competitive employment in the short term, but also impede the process of creative destruction that allows us to free up resources to exploit new sectors or new ways of knowledge, not yet developed, which implies a position contrary to the progress and improvement of societies.

Is it good for the United States?

"We have to protect our country and our workers," Donald Trump has consistently said to justify the imposition of protectionist measures. However, the argument that imposing substantial tariffs will safeguard or even promote employment is far from unanimous. This decision is "likely to cause damage not only outside the United States but also to the US economy itself, including its manufacturing and construction sectors which are heavy users of aluminum and steel. Had already explained the IMF after the promulgation of taxes in these sectors. US agricultural federations have recently lamented that in trying to protect steel and aluminum producers, Donald Trump was paving the way for retaliation that would severely affect other sectors such as agriculture. They now fear taxes on their exports to the Asian giant (soybean, sorghum, farmed pigs). In 2002, President Bush imposed steel taxes that remained in effect for 18 months. During this period, some 200,000 American jobs had suffered from this protectionist measure, remember the economists of Oxford Economics. But the association of American industrialists said that these taxes on steel and aluminum already showed beneficial effects on employment in the US steel industry, with the creation of some 3,000 jobs.

Dangers for the global economy

Protectionism is therefore not necessarily a miracle cure for the crisis and can also generate many tensions at the international level. This is particularly the case with the latest announcements from President Trump. European and Chinese leaders have risen up against these commercial attacks. In particular, they threatened the US President with equivalent trade reprisals against imports of US goods in the event of effective application of these customs duties. A protectionist escalation is therefore to be feared, which could be harmful for the world economy.

International relations could therefore be largely affected by American protectionism. Only dialogue can overcome this growing problem in order to find economic and trade agreements that suit each party. The meeting between Emmanuel Macron and Donald Trump in the United States last week may be the premise of an easing of trade tensions between Europe and the United States.

References

Eichengreen, B. (2016). What's the Problem with Protectionism? Project Syndicate, July, 13.

Irwin, D. A. (2017). The False Promise of Protectionism: Why Trump's Trade Policy Could Backfire. Foreign Aff. 96, 45.

Inglehart, R., & Norris, P. (2016). Trump, Brexit, and the rise of populism: Economic have-nots and cultural backlash.

ECO Written Assignment

ECO Written Assignment

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ECO Written Assignment

Introduction

GDP (Gross Domestic Product) measures the whole worth of amenities produced within a given nation’s boundaries. It is the most common way of determining an economy’s yield and is thus considered a measure of the extent of a country’s economy. When it is said that one country’s economy is more significant that of the other countries or that an economy is developing or lessening, commonly it is referred to Gross Domestic Product numbers.

Discussion

General Domestic Product is defined as all ingestion by households, all investments by companies or businesses, and all acquisitions by the government, additionally, purchasing made by outsiders minus acquisitions of things made overseas. For instance, the selling of the cars, the money paid to a day care center, the health insurance payments all of these are encompassed in the Gross Domestic Product (Brynjolfsson et al., 2018). When the government purchases fighter planes or pays suppliers or buy food, all of these are a part of GDP too.

Similarly, all of the investments in final produce involved in making those merchandises, the types of machinery the car manufacturer’s purchases or the oven the cafeteria buys, all of these are calculated too. Business ventures in inventories are totaled as well. When a plant makes a lot of vehicles this year, and it does not trade them up until the next year, the worth of that creation is tallied in the Gross Domestic Product for the current year. Gross Domestic Product is essential as it offers a bird’s-eye view of the overall economy, it is a decent start at a swift economic summary of a nation.

GDP also has some shortcoming. This measure leaves out some aspects in an economy, and for instance, the vegetable one may grow in their backyards or other non-advertised merchandises. GDP is also commonly used to capture the happiness index of the public, however, leaves out significant features of well-being like greenhouse gasses or even contentment (Giannetti, 2015).

Some additional limitations of Gross Domestic Product are the failure to embody the amount of revenue disparity in society, the failure to specify whether the level of development in the country is maintainable or not, the inability to account for the expenses enforced on public health, HDI (the Human Development Index), GPI (Genuine Progress Indicator) and HPI (The Happy Planet Index) etc.

Financial well-being is defined as having financial security at present and in the future. Present economic security consists of the capacity of individuals, families, and societies to reliably meet their elementary needs that include in food, accommodation, services, health care, conveyance, schooling, child care, clothing, and compensated taxes, and also to have control over their day-to-day finances (England, 2017). It also comprises the capacity to make financial choices and feel a sense of safety, contentment, and personal success with one’s private funds and work pursuits.

Social wellbeing is the degree to which one feels a sense of belonging in society. The standard of living, customs of living organized, customs and philosophies are all central to our life quality and social well-being.

Conclusions

The relation between economic development or well-being and human well-being is apparent. The economic growth forms a physical basis for the extension of social welfare. Although these two are different, they are interrelated, and if the economy is progressive, it will result in the welfare of the society by improving the standards of living (Jorgenson & Schreyer, 2017). Economic progression and productivity also align with the core values of the community. For example, if the economy is progressing so will the income, employment, and technology, etc. progress; this will, in turn, make people able to spend more time with their families and build a strong bond by providing better sustenance for their families.

References

Brynjolfsson, E., Diewert, W. E., Eggers, F., Fox, K. J., & Gannamaneni, A. (2018, May). The Digital Economy, GDP and Consumer Welfare: Theory and Evidence. In ESCoE Conference on Economic Measurement, Bank of England (pp. 16-17).

England, P. (2017). Households, employment, and gender: A social, economic, and demographic view. Routledge.

Giannetti, B. F., Agostinho, F., Almeida, C. M. V. B., & Huisingh, D. (2015). A review of limitations of GDP and alternative indices to monitor human wellbeing and to manage eco-system functionality. Journal of Cleaner Production, 87, 11-25.

Jorgenson, D. W., & Schreyer, P. (2017). Measuring Individual Economic Well‐Being and Social Welfare within the Framework of the System of National Accounts. Review of Income and Wealth, 63, S460-S477.

ECO260

Econ Long Answer Question

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Econ Long Answer Question

During 1910 to 2010, the measurement of wealth inequality in America and France indicates that inequality was almost uniform during this period. There was a strong correlation between wealth inequality and income inequality which leads to a high impact on total income equality. In America, the factor behind this trend includes the high concentration of wealth in pre-1914. Main difference took place from the 1950s onward due to the patrimonial middle class and their concentration of wealth. In France, inherited wealth was the main factor that represented the total wealth during the 19th century. However, during the 20th century, its share fell from 80-90% to 40-50% which leads to u shaped curve for total wealth.

The trend in income inequality from 1910 to 2010 showed an increase in inequality in both Continental Western European and Anglo-Saxon countries. However, the main factor behind the change in inequality was different. For instance, during 1910-1940, inherited wealth was greater in Anglo-Saxon countries while European countries dependent on the income of the middle class more. During 1940-70s, inherited wealth started decreasing and middle class became more debited thus the government had to spend more to control the crisis. From 1980-2010, inherited wealth again showed increasing trend while countries like America managed to cover the crisis of great depression and wealth showed a positive trend.

Skill-based technological changes mean the contribution of a worker according to the skill for advanced technology. In America, the number of technological changes happened from the 1970s onwards. These changes had an impact over the wage inequality for the worker. For instance, skills supply was highly dependent on the educational system which can improve access, quality, and work experience of labor. The demand for skills means the positive correlation of the worker with the pace of innovation and its adoption. The theory indicates that wage inequality in America since the 1980s showed the rising educational wage difference. For instance, the computer became useful tool in the process of production which marked a number of workers as unskilled as they did not have enough knowledge of computer. Therefore, a worker who adopted new technology by acquiring knowledge of technology qualifies for the higher wages while others fall in low wage workers. This leads to the inequality of wages. The criticism for the SBTC includes the ignorance of other factors that affect wage inequality that are race, gender, and age. In addition, the hypothesis that inequality stabilized in the 1990s turned as a great criticism for the theory. The criticism is true as the 1990s trend was fluctuating and there were several other factors affecting wage inequality.

Human capital indicates the skills and experience that a worker gives to the company while signaling theories of education indicate the level of education and acquiring knowledge to enhance the skills. If the signaling model is considered as true then the skill-biased technological change argument should be considered as true. For instance, during the 1970s the innovation in information technology brought the change. The workers with advanced knowledge and computer skills provided their skill to the companies and achieved higher wages. However, the human capital theory can be also true as human capital try to adjust with the new technology and it is possible that even without having higher education, one can adopt the technology advancement through training when required.

During, 1945-1980s there was the shift in the economic policy regime. Full employment macroeconomics by Keynesian and welfare state social policy balanced the growth. Hourly wage growth was faltered which improved the real income growth. Publicly owned enterprise showed the decline and middle class was in debt. Governments increased their spending to stable wage inequality. Unions showed a strong correlation with low economic inequality. Higher education and income distribution policy by the government brought the change. From the 1980s onward, GDPPC growth increased to 55.6 percent. Central bank focused on low inflation. Government induced the recession and introduced the austerity budgets.

When the labor market is in competitive, it shows the positive relation with wages. For instance, when labor rate decreases in the market it leads to the increase in wage rate which increases the productivity of labor hence resulted in producer and consumer surplus and loss minimizes. The impact of unionization is inverse on the employment level as they control the number of employees in the company to increase the wage.

If the labor market is in a monopsony, the level of employment will increase as a single union will decide the number of workers and monopolist do not face such pressure as the number of workers are present which they can hire, therefore, the role of union gets minimized.

Income inequality and poverty have a strong correlation. With the decrease in income inequality, poverty also decreases. For the purpose, the government tries to distribute income equally and introduce different income support programs for low-class people. For instance, Canada has established Canada Pension plan and Canada Poverty Reduction Strategy. Piketty recommends that a progressive annual wealth tax of up to two percent globally can be beneficial for the reduction of poverty. Donald Trump is not in the support of Piketty’s predictions and he is more concerned about the progress of America alone.

From 1900-2010 government policy changed in America and Britain. The income tax was imposed on the people with high income in America and Britain. It was useful in these countries because other countries like France and Germany had more proportion of inherited wealth while America was more dependent on the wages of individuals. Piketty factors that capitalism is not an accident, wealth tax, income tax, inequality all were justified through the policy change in America and Britain. As taxes applied helped to gain the revenue and to maintain the debt.

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Article: How Does the US Economy Work?

https://www.thebalance.com/how-does-the-u-s-economy-work-4056835

Article Description:

This article discusses the most common economic concepts that influence the economy of the US. The factors that contribute to the recession and the influence of Gross domestic products and demand and supply are thoroughly discussed in the article.

Discussion:

The most important concept used in the article is inflation. The causes and impact of inflation are discussed thoroughly in the article. Concept of inflation is tricky but simple. Inflation refers to the increase in the prices of goods and services over a particular period of time. In economic terminology, it can be explained as that people have to pay more to get certain products and services, from getting a new haircut, to buying a new milk crate. Inflation affects all aspects of human life and increases the cost of living ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"U5BkU2dP","properties":{"formattedCitation":"(\\uc0\\u8220{}Inflation,\\uc0\\u8221{} n.d.)","plainCitation":"(“Inflation,” n.d.)","noteIndex":0},"citationItems":[{"id":1895,"uris":["http://zotero.org/users/local/KZl8ZL3A/items/4SILX6HB"],"uri":["http://zotero.org/users/local/KZl8ZL3A/items/4SILX6HB"],"itemData":{"id":1895,"type":"webpage","title":"Inflation","container-title":"Econlib","abstract":"Economists use the term “inflation” to denote an ongoing rise in the general level of prices quoted in units of money. The magnitude of inflation—the inflation rate—is usually reported as the annualized percentage growth of some broad index of money prices. With U.S. dollar prices rising, a one-dollar bill buys less each year. Inflation thus …","URL":"https://www.econlib.org/library/Enc/Inflation.html","language":"en-US","accessed":{"date-parts":[["2019",4,18]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Inflation,” n.d.).

It reduces the purchasing power of the common man and the businessmen in terms of each unit of currency. It reduces the value of a currency in the global market. The more prices rise the fewer people can buy in a particular amount in comparison to the time when inflation rates are lower. It increases the feelings of uncertainty in the consumer market. It is attributed by the percent increase or percent decrease in prices during a specified period, which is usually over a period of month or year. For example, if the inflation rate for milk is 2 percent in a year, its price will be 4 percent in the next year or month. If the inflation rate is above 50 percent in one month it is considered as hyperinflation. But if this inflation occurs at the time of recession it is called stagflation, which will result in the rising prices of gold and stock, this situation will be called asset inflation. One cycle of inflation leads to another. Two main types of inflation are demand-pull inflation and the other one is called cost-push inflation. In demand-pull inflation occurs when demand beats supply of goods and services. In this situation of scarcity, the buyer becomes desperate for the product and become willing to pay more. This is also a common type of inflation in the US. The second type of Cost-Push inflation occurs when supply is restricted but demand is not restricted ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"KwE93NIZ","properties":{"formattedCitation":"(Amadeo, n.d.-b)","plainCitation":"(Amadeo, n.d.-b)","noteIndex":0},"citationItems":[{"id":1893,"uris":["http://zotero.org/users/local/KZl8ZL3A/items/GHFQH4IV"],"uri":["http://zotero.org/users/local/KZl8ZL3A/items/GHFQH4IV"],"itemData":{"id":1893,"type":"webpage","title":"Why Inflation Is as \"Violent as a Mugger\"","container-title":"The Balance","abstract":"Inflation is when prices rise over a designated time period. The inflation rate is the percent increase. It will lowers your standard of living.","URL":"https://www.thebalance.com/what-is-inflation-how-it-s-measured-and-managed-3306170","language":"en","author":[{"family":"Amadeo","given":"Kimberly"}],"accessed":{"date-parts":[["2019",4,18]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Amadeo, n.d.-b).

In the book inflation concept is defined as “quantitative measure of the rate at which the average price level of selected goods and services in the economy increases over a period of time” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"819XOGXC","properties":{"formattedCitation":"(Tucker, 2010)","plainCitation":"(Tucker, 2010)","noteIndex":0},"citationItems":[{"id":1889,"uris":["http://zotero.org/users/local/KZl8ZL3A/items/NVWN3XZK"],"uri":["http://zotero.org/users/local/KZl8ZL3A/items/NVWN3XZK"],"itemData":{"id":1889,"type":"book","title":"Economics for Today","publisher":"Cengage Learning","number-of-pages":"932","source":"Google Books","abstract":"Help your students visualize economics in action with the most pedagogically rich, complete text on the market--Tucker's ECONOMICS FOR TODAY, Seventh Edition. A quick look at this engaging, dynamic text will show you why this is the book that is famous for helping students at all levels of skill and preparation. Written by an award-winning educator recognized for his work in relating basic economic principles to global issues, Irvin Tucker's ECONOMICS FOR TODAY continues its strong tradition of presentation using a unique textual and visual learning system. This edition concisely presents and reinforces core concepts, then immediately assesses student comprehension to ensure understanding. The latest information on federal deficits, the stimulus package, environmental issues, and other developments in economics today is presented in an engaging, easy-to-follow format that students can quickly grasp and apply to everyday life. ECONOMICS FOR TODAY, Seventh Edition, provides a full complement of instructor resources, including a handy Instructor's Resource CD, new PowerPoint slides, optional CourseMate website and complete array of videos. Help your students learn and apply economics with the unmatched student-friendly approach in Tucker's ECONOMICS FOR TODAY, Seventh Edition. Discover a rich array of online teaching and learning resources to support your course on the Text Companion Website for Tuckers' MICROECONOMICS FOR TODAY. This dynamic website builds on this edition's content with password-protected teaching resources available to download as you need them, including the Instructor's Manual, Test Bank, and PowerPoint slides. Interactive tutorial tools help students master concepts from the text.Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.","ISBN":"978-0-538-46938-8","note":"Google-Books-ID: _GeHxvDMI6AC","language":"en","author":[{"family":"Tucker","given":"Irvin B."}],"issued":{"date-parts":[["2010",9,13]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Tucker, 2010).

In the article, this concept used as "Inflation is difficult to stamp out. Once it occurs, people begin to expect ever higher prices. They will buy now before prices go up more in the future. That increases demand even more.” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"a5w2lYqr","properties":{"formattedCitation":"(Amadeo, n.d.-a)","plainCitation":"(Amadeo, n.d.-a)","noteIndex":0},"citationItems":[{"id":1891,"uris":["http://zotero.org/users/local/KZl8ZL3A/items/PSET2CLP"],"uri":["http://zotero.org/users/local/KZl8ZL3A/items/PSET2CLP"],"itemData":{"id":1891,"type":"webpage","title":"How Does the US Economy Work?","container-title":"The Balance","abstract":"The U.S. economy works through the laws of supply and demand. It's managed by the Federal Reserve and your elected officials.","URL":"https://www.thebalance.com/how-does-the-u-s-economy-work-4056835","language":"en","author":[{"family":"Amadeo","given":"Kimberly"}],"accessed":{"date-parts":[["2019",4,18]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Amadeo, n.d.-a)

In these lines, the influence of inflation over the population is explained. The concept defined here is demand-pull inflation. It is correctly used in these lines of the article. It is a common human behavior that when there is a scarcity of some essential product, they want to buy it in large quantities and stock it so that they stay uninfluenced by the reduced supply of product in the future. But overall when the demand is more and supply is less, tis further stocking and buying off the product, further reduces the supply thus results in increased demand. This behavior further intensifies the inflation in the community. Currently, in the US, the inflation rate is on the high rise according to the Bureau of Labor Statistics. The cost of living is increasing at a rapid rate which is resulting in people feeling unable to afford the living cost.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Amadeo, K. (n.d.-a). How Does the US Economy Work? Retrieved April 18, 2019, from The Balance website: https://www.thebalance.com/how-does-the-u-s-economy-work-4056835

Amadeo, K. (n.d.-b). Why Inflation Is as “Violent as a Mugger.” Retrieved April 18, 2019, from The Balance website: https://www.thebalance.com/what-is-inflation-how-it-s-measured-and-managed-3306170

Inflation. (n.d.). Retrieved April 18, 2019, from Econlib website: https://www.econlib.org/library/Enc/Inflation.html

Tucker, I. B. (2010). Economics for Today. Cengage Learning.

Econ111

Jinyoung Kim

Assignment

Econ111

1a) the card is the most used payment instrument (non-cash) in number of transactions. In 2017, it accounted for more than 50% of non -cash means of payment. I quite agree with this statement, the cashless debit card when you are abroad does not allow all operations and if there is a problem with computers, we find ourselves without money. So even if banks try to dissuade their customers from using cash for their payments, they offer a lot of virtual means of payment (paypal, monéo, payment by smart phone, contactless payment cards) that we say: We must keep the possibility of paying in cash. Moreover, many merchants abroad do not have card payment terminals and only accept cash, including hotels. When possible, you should make withdrawals with your debit card. More than a prepaid debit card, this is the best way to access your money anywhere in the world.

1b) Life in Australia in 2019 is easy and at the same time difficult for the Australian people. If you have the appropriate education and experience, you can easily find a suitable job. High social security of the population, compulsory medical insurance, a decent pension, high quality food and much more - this is what attracts Russian people to this southern mainland. And therefore, those wishing to move to permanent residence in Australia in 2019 did not decrease, but, on the contrary, more and more of them appear every year. A high standard of living in Australia, without exaggeration, can be said to be the result of the development of the economy in an immaculate environment. The country has the least environmental disasters, polluted big cities and poisoned rivers. Proof of this is that the United States and many other developed countries buy milk and meat only in Australia. Thanks to this strategy, life expectancy in Australia only increases over the years.

2a) This includes the separation of social payments 80:20, while 20% go to the beneficiary's bank financial credit, and 80% to the withdrawal card, which can be used for acquires, as usual,. wherever there are outlets.

Fig,1, percentage of cashless debit card

The cash less debit card cannot be used for withdrawing cash or used in enterprises that mainly supply gaming or alcohol products. Australia has a very high level of education. Diplomas of Australian educational institutions are recognized throughout the world. Together with good conditions of study at universities, service departments are being created to help foreign students. Schools are mostly public, but there are those that are funded by various private foundations and religious organizations. There are Russian and Ukrainian schools that make life easier for Russians in Australia

.

Fig 2, The mounting human costs of the cash less debit card

2b) Yes, because delayed debiting does not present only advantages. Indeed, if you have more freedom in the management of your finances, be careful to have the necessary balance on your account at the date of deduction. Otherwise, you will have to pay a charge for payment incidents to your bank, until you have re-established the situation. Deferred debiting therefore imposes a certain rigor in the monitoring of your expenses, and a good anticipation of your cash flow.

More expensive but also more flexible, the deferred debit card allows to spread its expenses according to a debit date, usually monthly. This date can, for example, be set right after receipt of the salary, giving free rein to any purchase transaction during the month, regardless of the balance of the account. Dealer withdrawals and check payments remain debited immediately.

3) The customer cannot spend money that he is not yet have and, in this way, pay for expensive purchases without having to worry about the balance of his bank account. The deferred debit card is not a solution to the overdraft. This solution is only suitable for people who can replenish their account regularly and adequately. If the deferred debit card offers more freedoms, we can expect a severe backlash in case of impossibility of settlement at the time of maturity. If the owner does not have enough money, he or she will have to pay a fee for payment until the situation is reestablished (Donaldson, 2008).

4a) With this type of card, purchases are debited only once a month. When paying, the account is not debited immediately, but on a pre-defined date. This date can be fixed in agreement with the bank, so as to intervene only after reception of the salary for example. Given the cash facility it provides, the debit card offers credit-like operation. It allows you to spend money regardless of the balance of the account, taking advantage of a cash advance. The deferred debit card is suitable for employees receiving a regular salary, paid on a fixed date, or holders with sufficient income to periodically feed their account.

To summarize, the deferred debit card has three major advantages:

It makes it possible to face an unforeseen expense without being immediately uncovered and forced to pay agios.

The incumbent’s banking situation is transparent since the outstanding amount of the card, accessible via the Internet, is regularly updated.

In case of tight cash, the holder can make a transfer from another account (eg a savings account) before being debited.

Disadvantages

The debit card is adapted to the expectations of those who wish to follow their expenses day by day. It allows having a constant visibility on the balance of a bank account; this stiffness is however a problem in case of unforeseen, and the regular use of the overdraft authorized can generate substantial costs. With this type of card, purchases are debited only once a month. When paying, the account is not debited immediately, but on a pre-defined date. This date can be fixed in agreement with the bank, so as to intervene only after reception of the salary for example.

Given the cash facility it provides, the debit card offers credit-like operation. It allows you to spend money regardless of the balance of the account, taking advantage of a cash advance (Donaldson,2008).

5a) Many criteria play on the way everyone wants to manage their cash flow. In order to meet the personal preferences of all their customers, most banks offer different types of payment cards. Thus, some cards open the possibility of an immediate debit of each expense on your statement of account when others allow a deferred debit at a fixed date every month. Finally, be aware that you can opt for a bank card with systematic authorization, which is the equivalent of the blocked package in telephony and allows you to spend without ever fearing the overdraft.

Ethical economy also believes that informational asymmetries play a significant role in the financial sector, and its participants, primarily non-professional investors and bank customers, are struggling to cope with it. The problem of discrepancies between self-interest and company’s interest is recognized as an ethical economy which is decisive, since it is this discrepancy in the functioning process that cannot be completely corrected by incentives, and it can only be weakened by special, uncorrupted incentives. It is doubtful that the use of sufficiently high economic incentives can lead to excessive motivation of market players, since financial motivation and intrinsic motivation are not the same thing. Ethical principles indicate the need to enhance the role of banks as socio-economic institutions that base their activities not only on the basis of professional enterprise, but also on ethical standards combining corporate and public interests (Wright, 2008). It seems that the principles of the Basel Accord, the economic norms recommended by it and the rules of behavior of banks should be supplemented by the norms of ethical behavior of monetary organizations. As part of reputational risks, the degree of participation of banks, in particular, in the implementation of social projects, the greening of production and regions, in the protection of consumers, should be taken into account more clearly. The unethical behavior of banks, one can bankruptcy of clients who experience problems with fulfilling their obligations to banks bordering on raiding; as well as the use by banks of informational awareness of client affairs, in particular, trade in insider information and trade secrets.

5b) In the case of a card with systematic (or prior) authorization, the debit is only possible (whether a withdrawal of cash or payment of a purchase) if the account is sufficiently stocked. This is a guarantee that can be useful if you tend to overheat the card or the card is for your child. It should be noted that this card does not necessarily prohibit overdraft facilities. In this case, the debit will be limited to the threshold stipulated by the agreement for the maximum overdraft authorized (Wright, 2008).

Mainly cashless transfer of funds allows the pensioner to save time on visiting institutions that make pension payments, and saves him from having to stand in queues to receive money. Receiving a money transfer to the card, the pensioner has the opportunity to use the full range of services provided to bank card holders. With the help of the SEC, you can perform the following actions: independently withdraw (deposit) cash at an ATM or contact a bank operator for this; transfer all funds (or part of them) from one card to another; pay for purchases directly with a card through bank terminals installed in stores and pay utility bills.

If it shouldn’t it be practical to all beneficiaries of government expenditure because the deferred debit card is not recommended for the most expensive profiles, and even on the contrary! It imposes in fact to keep rigorous accounts to ensure that the necessary amount will be available on the account at day J. Otherwise, the overdraft charges and payment incident arrive quickly and cascading. Delayed debiting is of particular interest, for someone who knows how to manage his budget but whom needs a cash advance on an exceptional basis. A bank card "with systematic authorization" or "anti-overtaking" differs from other cards on an essential criterion. It verifies, before the validation of each transaction or withdrawal, that its holder has the necessary funds on the account. Otherwise, the payment is simply rejected! The operation differs from that of a conventional card, with which the sum would have been written in overdraft and would have given rise to fees and penalties.

References

Donaldson, D (2008). Difficult to conclude’: impact of cashless debit card trial. Online available at: https://www.themandarin.com.au/95938-difficult-to-conclude-impact-of-cashless-debit-card-trial/

Families and Children. Online available at: https://www.dss.gov.au/families-and-children/programmes-services/welfare-conditionality/cashless-debit-card-overview

Wright, J., 2008. Do authoritarian institutions constrain? How legislatures affect economic growth and investment. American Journal of Political Science, 52(2), pp.322-343.

Economic Agriculture Analysis Essay

Economic agriculture

Agriculture is of great economic value if agriculturists use the right inputs and fertilizers. The article reveals that agronomical inputs improve yields that results on increased returns and high economic boost. It has become a standard practice in the developed countries to use modern seeds and adequate water for enhancing yields of crop. Agriculture development is linked to economy because high production of crops leads to high incomes, prosperity of the communities and overall economic growth. Evidence suggests that the countries that have better developed agriculture are more likely to gain economic benefits. GDP growth is directly liked to the agriculture yield that also depends on labor productivity. Per capita real income of the countries is also linked to high agricultural yield.

Labor force of most of the developing countries is generating large share from agriculture. Evidence also suggests that agriculture is the major source of generating employment for the people of developing countries. People lacking in education or skills can get work in agriculture that help them in earning money. Agriculture is also linked to the exports that again improved the economic gains for the country. Most of the developing countries are exporting agricultural commodities to different countries for earning foreign exchange. The foreign exchange is then used for improving infrastructure of the economy and its other important indicators including education, health and investments.

Agriculture leads to economic development by providing food and raw material for the non-agriculture sector, developing demand for the goods produced in those sectors, strengthening purchasing power and selling market surplus. Investable surplus is also given in the form of taxes and savings. Agriculture sector thus help nations in making economic system self sustaining. While if agriculture sector fails to meet the demands for food products it undermines economic growth.

Reference

BIBLIOGRAPHY McArthura, J. W., & McCord, G. C. (2017). Fertilizing growth: Agricultural inputs and their effects in economic development . Journal of Development Economics, 127, 133-152.