...Introduction The article I chose argues about discrepancy between tight and monetary policy of United States’ Federal Reserve Bank compared to that of other countries. This article is related to Macroeconomics and concepts are consistent with the course materials. It talks about unemployment, inflation and monetary policy. I found out strengths and weaknesses from the monetary policy that occurred in this article. Different countries concern about different problems within their society whether it is inflation rate or unemployment rate. Emerging markets like China and dominant markets like Japan and Europe conduct tight monetary policy to raise interest rate. In contrast, the Fed (The Federal Reserve Bank) does not conduct tight monetary policy to raise interest rate. The author of this article states that the U.S. acts like an outlier. Some officials like the Hawks, people who pursue an aggressive policy, would like to see the Fed to tighten monetary policy. On the other hand, the Fed has conventional Keynesian perspective over the monetary policy. They are optimistic about inflation but aware of unemployment. So, there is a conflicting argument between the hawks and the Fed leaders. Ben Bernanke, chairman of the Fed, considers inflation’s principal determinants to be gap between aggregate demand and aggregate supply. In contrary, the hawks put less emphasis on the gap between aggregate demand and supply to regulate the inflation rate and more weight on the position of...
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...MICROECONOMICS APPLIED RESEARCH MICROECONOMICS AND LONG-TERM HEALTHCARE Cochise Community College Campus Microeconomics Cochise Community College Microeconomics and Long-term Healthcare It was not long ago that our country was going through some very difficult economic times. Job losses were on the rise, there were many issues leading to an increase in foreclosures, and many financial institutions needed to be bailed out. Many people, however, held the misconception that the health care industry was immune to the economic problems that faced our society. Many thought that those working in the health care industry had no need to worry about losing their job and that they were disconnected from the larger problems of society. Those involved with health care have to deal with issues that are faced by the rest of society. Because of this, it important that the health care industry address these problems in a timely manner due to the lives that are often dependent on their decisions. In 2009, individuals aged 65 years of age and older constituted approximately 12.9 percent of the U.S. population (A Profile of Older Americans, 2010). Projections for 2030 show there will be an increase to 20 percent of the population that will be 65 or over. The aging of the population will affect the demand for healthcare because older individuals encounter more frequent and prolonged spells of illness. Those individuals that are...
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...Division Core Prof. Taimoor Qureshi By Appointment taimoor.qureshi@ucp.edu.pk COURSE DESCRIPTION Principles of Microeconomics is an introductory course that teaches the fundamentals of microeconomics. This course introduces microeconomic concepts and analysis, supply and demand analysis, theories of the firm and individual behavior, competition and monopoly, and welfare economics. Students will also be introduced to the use of microeconomic applications to address problems in current economic policy throughout the semester. COURSE OBJECTIVES After studying this course the students should be able to: Understand the basic concepts of the subject. Understand the application of the tools of demand and supply for efficient resource allocation and profit maximization. Identify core economic issues related to business firms. Comprehend the benefits of market efficiency. GRADING PLAN TYPE Quizzes Assignments Final Projects Midterm examination Final term examination Total PERCENTAGE (%) 10 10 10 30 40 100 CALENDER OF ACTIVITIES WEEK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 CONTENTS TASKS/ACTIVITIES Introduction to Economics • Basic Concepts – I Class Introduction Introduction to Economics • Basic Concepts – II Utility Assignment 1 Due Demand Supply Quiz 1 Markets - I Markets - II Mid-Term Midterm Exam Market Analysis: shares, currency, and labor markets Market Failures and Imperfections The Fundamental...
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...ECO365 November 24, 2014 Microeconomics and the Law of Supply and Demand The Supply and Demand simulation concept is essential to understand the effects of pricing and availability to consumers on real world commodities. This simulation captures the impact of different scenarios and situation of the property management company, Goodlife Management in the city of Atlantis. In the scenarios and based on the situations that occurred, these factors influences the equilibrium such as adjusting the rental rate of the apartments to maximize revenue. An attempt to increase the price to ensure a sufficient number of apartments to be rented to satisfy the demands, and making modification to the firm's trend from rental apartments to homeownership in order to meet the needs of a growing population due to Lintech Inc (University of Phoenix, 2014). Macroeconomics VS. Microeconomics In the simulation, the concepts of both, study of Microeconomics and Macroeconomics, are examined. Macroeconomics focuses on factors that affect the economy as a whole (Colander, 2013). In the scenario where Lintech company was introduced, the changes led to the whole economy of the city of Atlantis, not just the financial situation of Goodlife Management firm. The firm perceived the increase of residential demands due to the company workers that relocated in the area. However, in the scenario, when the firm increased the rental price due to the foreseen increase of demand of more apartments need to be...
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...the rentals. The simulation helped students in determining rental rates, vacant apartments, and the quantity of apartments that are rented for any given month. According to the text, macroeconomics is the study of the economy in its entirety. Macroeconomics is studying unemployment, business cycles, business growth, and inflation. Microeconomics refers to studies of individuals and decisions made in business. An effect of a microeconomic result would be a higher demand for maintaining the rented properties by an increase in rented apartments and employment would increase. If Goodlife wanted to reduce the vacancy rate, lowering prices of two bedroom apartments would increase demand of the apartments. Prices of the two bedroom apartments will rise as the demand for a two bedroom apartment increases. This equates to the microeconomic effect with increased revenue for Goodlife, Increased revenue equates to more money spent building additional buildings, maintaining and up keeping the apartments to for tenants to live in. This simulation was isolated to specific area, Atlantis, and being limited to a specific area I would feel that this is a microeconomic principle. Thinking about this in macroeconomics...
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...order to fulfill every aspect of that position. You don’t have to be a college Graduate in order to be a manager, but you do have to have many skills. When being a manager you must know how to cultivate a team, you must have great listening skills, you must be able to empower your staff, and have knowledge in an overall structure of an organization. Microeconomics plays a part of management. Roughly speaking, microeconomics deals with economics decisions made at a low, or micro, level. More precisely, I would define microeconomics as "the analysis of the decisions made by individuals and groups, the factors that affect those decisions and how those decisions affect others". Microeconomic decisions by both firms and individuals are motivated by cost and benefit considerations. Costs can be either in terms of financial costs such as average fixed costs and total variable costs or they can be in terms of opportunity costs, which consider alternatives foregone. Prior to formulating strategy, a manager must of course have knowledge of what he/she wants to accomplish. The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Evaluating the general economic and industrial environment in which the organization operates. This involves an overview...
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...Econ 1 Professor Carter December 12, 2011 Microeconomics In My Daily Life Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would...
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...ONLINE SUBMISSION ASSIGNMENT COVER PAGE | Name: Anthony Radici Student number: S00110027 Tutorial time room: Monday 5pm. Room C3-07 Date: Friday the 2nd of May 2014 Course: Bachelor of Commerce Subject: Principles of Economics Instructor: Dr Jason koh “ An analysis of the key macro and micro economics factors which impact on the current Australian housing market” Introduction This paper explores the current situation of the Australian housing market. This paper will place a major focus on how macro and microeconomics impact the housing market in Australia. The paper starts off with the Australian economy and the housing market at the moment. The next section is the major part of this essay as it focuses on the macroeconomics factors, which have formed the housing market. The following section briefly explores the microeconomics factors, which have formed the housing market. And finally the last section of this paper ended by a conclusion. Australia and the housing market Throughout the years we have seen a massive change in prices when buying a house in Australia, this is due to many different factors, which have had a big impact on the economy itself. One of the main reasons why prices have been going up is because of the population growth. As we know as the demand increases, price also increases. Recently we have seen a change in people willing to buy a house, they are mostly aged between 22 to 42 years old and in most cases, they can...
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...1. Explain the terms Microeconomics and Macroeconomics. Give an example of one topic analyzed by each field. Do all topics in Economics fall into one or other of these fields? Give an example of an area in Economics that has both microeconomic and macroeconomic dimensions. The terms microeconomics and macroeconomics are both similar but study very different behaviors and decision-making skills. The study of microeconomics is the study of “decision making undertaken by individuals for households and by firms.” The study of macroeconomics on the other hand is the study of “behavior of the economy as a whole”, which includes unemployment price level and national income(Miller, p.3, 2014). For example, in Microeconomics topics studied in this...
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...services on a day to day basis. Supply, however, is limited by the availability of medical resources and the skill to administer care effectively. Macroeconomics Macroeconomics studies the economy as a whole. Macroeconomic analysis studies the roles of the government, exports and imports, consumption, investment, government taxes, and other factors in an economy. In health care, the macroeconomic market is the entire country’s health care system including the way that it performs in terms of profit, loss and efficiency. Macroeconomics of health is concerned with parallel sets of large scale system issues concerning spending for employment and other aspects of health as part of the economy. The biological health status which includes longevity, fertility and productivity are also taken into account. Microeconomics Microeconomics deals with single institutions and their interaction in the economy, the behavior of single consumers, firms and industries. Explanations of microeconomics are...
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...Nature and Scope of Macroeconomics by Smriti Chand Macro Economics The Nature and Scope of Macroeconomics! Introduction: The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole. In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes. Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression. Contents: Nature of Macroeconomics Difference between Microeconomics and Macroeconomics Dependence of Microeconomic Theory on Macroeconomics Dependence of Macroeconomics on Microeconomic Theory Macro Statics, Macro Dynamics and Comparative Statics Transition from Microeconomics to Macroeconomics Stock and Flow Concepts 1. Nature of Macroeconomics:________________________________________ Macroeconomics...
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...The Affects of Monopolies on Our current Microeconomic Situation More than anything else, the progress of the world in the 21st century depends on economics. The microeconomic situation of the United States has several determining factors contributing to it's current status. What we earn, what we save, what we spend, how deligently we work and retain our jobs is all part of the microeconomic system that controls our daiy lives. Another large factor hindering the success or downfall of the current economy is the effect of monopolies. By defintion a monopoly is a large company that has exclusive control of a commodity or service in a particular market giving them the power to manipulate prices. In a sense a monopoly is the logical result of competition. The roles of a monopoly in microeconomics severly affect the manner in which individual businesses can effectivly conduct their business in more than one way. Monopolies have forever affected our economy but these following pages are more of a generalized overview of the affects they have had strictly in the 21st century. One role of a monopoly in microeconomics is the effect it has on the pricing of goods and services. Monopolies can impact consumer prices in two obviously different ways, they can cause prices to drop so low that it forces companies out of business, or it can cause prices to skyrocket making it difficult for consumers to purchase a product. Neither of these options are necessarily good for the consumers...
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...1. Coffee bun market Research and certified by economists and scholars, market structure has 4 types of market. It comprises of perfect, monopolistic, oligopoly and monopoly. Each market has its own characteristics and features which the businessman are required to master so that they are able to apply the business strategy sophisticatedly. First of all, it is perfect competition. In this market type, there are a lot of small firms and customers. Thus, both sides do not have any effect on price. Besides, the products sold in this market are identical to the sellers. And because product is homogenous and consumers do not care the brand name, it leads to a strong competition among the sellers to gain the most attention from consumers. Moreover, the entry of market is free. There is almost no object to prevent new firms from entering the market. So it is very easy for them to come in and compete with the existing firms. And if they feel the profits from the business not as much as they want, they also leave the market without prevention. One more thing is that the information about price and products in the market are observed and updated well by both sellers and buyers, so they know which suppliers are offering same products with lower price than another. For example, selling cabbage belongs to perfect competition where the sellers and buyers update their own information about price daily. And the buyer can choose any seller which they provide the lower price than another in...
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...Microeconomics In My Daily Life Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would choose to study, because to me, the value of studying...
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...partitioned into two noteworthy parts Microeconomics and Macroeconomics. The previous is the investigation of monetary conduct of a specific individual, firm, or a family unit, it concentrates on a specific unit while the last is the investigation of totals not a solitary unit but rather every one of the units consolidates. Take a gander at the imperative contrasts in the middle of micro and macro aspects underneath. The difference between micro and macro economics is simple....
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