...A-3 In 1939, the United States was still ensnared in a severe economic depression, one that crippled the nation for a full decade. President Franklin D. Roosevelt's New Deal experiments had brought some relief to a population reeling from unemployment, inflation, and scarcity, but considerable transformations—vast federal spending, price regulations, job placement, the expansion of unions, greater access to home loans, social security for the elderly and disabled, and the public's restored confidence in their government—did little to bring prosperity to the American people. By the end of the 1930s, 17% of the American work force remained unemployed; 30% still lived in poverty; and the most needy and least organized citizens, such as domestic workers, sharecroppers, new immigrants, blacks, and unmarried women, reaped few of the New Deal benefits. FDR's great experiments, then, did not end the Great Depression. Only mobilization for a world war would bring an end to the most devastating economic crisis in United States history. In late 1939, a full two years before the United States entered World War II, President Franklin D. Roosevelt decided it would be necessary—and perhaps wise—to invest time and money into national defense. Despite his promise to keep the nation out of the war escalating abroad, Roosevelt carefully and deliberately prepared the country for a worst-case scenario. By the spring of 1940, he convinced Congress to increase defense spending, enlarge the army...
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...In that part, it was more focused on the battle of ideas between John Maynard Keynes and Friedrich von Hayek, two of the most well-known economists of their time. Keynes could see the faults of free market in the time after the war and that all of those errors could be fixed if the government regulated the economy. However, Hayek thought that the free market would fix itself, with no government control. World War I laid a whole continent to waste and drew attention to the problems of political organization. People were looking for something better during this time and that something came in the form of socialism and communism. Western civilization was fascinated by this idea and started owning or regulating the so-called ‘commanding heights’ of the economy. During the period between two World Wars, the world experienced the collapse of capitalism and each part of the world tried to manage through by adopting either socialism or communism. Socialism promised a more just society, Hayek was more concerned for the poor and equity. He believed that people needed to be free from government interference and that markets work and governments don’t. His ideas were based on a fully functioning function free market system without regulations, which were also the ideas of Ludwig Von Mises. Mises was a libertarian who believed that markets always needed to be free from government meddling and he argued that socialist states cannot be successful because they lack a functioning price...
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...Managerial Economics For test purpose only The economic problem is most simply explained by the question "how do we satisfy unlimited wants with limited resources?" The premise of the economic problem model is that wants are constant and infinite due to constantly changing demands (often closely related to changing demographics of the population). However, resources in the world to satisfy human wants are always limited to the amount of natural or human resources available. The economic problem, and methods to curb it, revolve around the idea of choice in prioritizing which wants can be fulfilled and how do we know what to produce for the economy. Opportunity cost and Production Possibility Frontier or Production Possibility Curve. The main theory to decipher what and how to prioritise these wants and needs is to look at the opportunity cost (looks at what good must be prioritised first according to needs and how efficiently that the good can satisfy infinite wants). A good way to look at this is the production possibility frontier (PPF) or PPC, this isolates two goods in an economy produced at any one given time to show the effect of what would happen if one changed according to the other and also the effects of new technology and new resources. For example, say that we have isolated two goods, food and clothing, and we look at what would happen if there was increased production of food (there is an opportunity cost of clothes so clothes would go down as food goes up), this...
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...------------------------------------------------- Economic problem From Wikipedia, the free encyclopedia | This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2012) | The economic problem, sometimes called the basic, central or fundamental economic problem, is one of the fundamental economic theories in the operation of any economy. It asserts that there is scarcity, or that the finite resources available are insufficient to satisfy all human wants and needs. The problem then becomes how to determine what is to be produced and how thefactors of production (such as capital and labor) are to be allocated. Economics revolves around methods and possibilities of solving the economic problem. Economic problem arises mainly due to two reasons- (i) human wants are unlimited (ii) means to satisfy human wants are scarce. Contents [hide] * 1 Overview * 1.1 Opportunity cost and Production Possibility Frontier or Production Possibility Curve. * 1.2 Needs * 1.3 Wants * 1.4 Choice * 2 See also ------------------------------------------------- Overview[edit source | editbeta] The economic problem is most simply explained by the question "how do we satisfy unlimited wants with limited resources?" The premise of the economic problem model is that wants are constant and infinite due to constantly changing demands...
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...Contents 1. Introduction to Economics 1 What is Economics? 2 Studying of Choice in a World of Scarcity 4 The Cost-Benefit Principles 6 Absolute Advantage vs. Comparative Advantage 9 2. Law of Demand and Supply 13 Introduction to Demand and Supply 14 The Demand Curve 15 The Supply Curve 18 Market Equilibrium 21 Shift in Demand 25 Shift in Supply 26 3. Elasticity of Demand and Supply 29 Price Elasticity of Demand 30 Types of Elasticity of Demand 31 Determinants of Price Elasticity of Demand 34 Price Elasticity of Supply 38 Types of Elasticity of Supply 39 Determinants of Price Elasticity of Supply 41 4. International Trade 44 Introduction to International Trade 45 International Trade Restrictions 48 Arguments in Favour of Restricting Trade 53 Non-economic Arguments for Restricting Trade 56 Problems with Trade Protection 58 5. Market Structures 62 Introduction to Market Structure 63 Perfect Competition 65 Monopoly 68 Monopolistic Competition 72 6. Macroeconomics – GDP, Unemployment, Money and Central Bank 77 Introduction to Macroeconomics 78 GDP 81 Unemployment 84 Inflation 89 [pic] |Principles of Economics | |BM2 | A WORD OF WELCOME ...
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...gave this historic speech February 23, 1934. During this period of time the United States was experiencing an economic crisis known as the Great Depression. The common people went into a panic jobs at a scarcity. In 1933, the Great Depression reached it worst point and some 13 to 15 million were unemployed and numerous banks around the country failed (History). This statistic shows the paucity of jobs that were available at this time. This ultimately led to homelessness and hunger for those who could not receive an income. Bread lines, soup kitchens, and an increasing number in homeless people around American blossomed (History). However while most suffered horribly from this depression, some wealthy aristocrats resided comfortably throughout the depression. During the time, the majority of wealth was held by 4% of the population, which owned 85% to 95% (Nolo). Most of the nation’s money had been held these moneyed men who did not merely experience the depression like the common people. The president at the time was Franklin Delano Roosevelt, and he took his best effort trying to solve the problem by implementing many reforms and changes. President FDR promoted many federally funded programs to resolve American economy, aid in relieving suffering of the unemployed, and reforming the system to prevent any future crisis (The Great Depression). Long also had some ideas of reform of his own. Long first supported FDR’s New Deal, but later he began attacking FDR saying he was a tool of...
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... Market Equilibrating Process EC0/561 April 12, 2012 Professor Sella-Villa Abstract The purpose of this paper is to explain the market equilibrating process in relation to my personal experience supported by academic research. The following factors will be included in my explanation: law of demand and the determinants of demand, law of supply and the determinants of supply efficient markets theory and surplus and shortage. Market Equilibrating Process Not since the Great Depression of the late 1920’s that carry over into the 1930’s has the United States experience an economic downfall like our current economy recessions that we are recovering from that started in 2008. Understanding what an economic depression is will help individuals deal with their own economic experiences. Economics is the social science that examines how individual’s institutions and society make optimal choices under conditions of scarcity, (McConnell, Brue, Flynn, 2009). The two stakeholders that contribute to the market equilibrium process are the supply from the producer and demands from the consumers. The equilibrium process is equal when the producer and consumer needs are balance. Producers and consumers competition off sets the equilibrium process, producers with larger inventories are force to decrease their prices to undersell their competition. Consumers benefit from this because; more choices are available to fill their desires. When a price...
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...Research Proposal-general topic -Decade from 10-20 years of age -a time of great change -biological (puberty) -cognitive (brain development) -social (personal relationships) -a time of increased risk for certain negative behaviors -depression -delinquency -substance use -important time to look at how stress impacts adolescents daily lives *Stressors-demands that represent a threatened or actual loss scarcity of resources -types of stressors -acute events (major life events) -chronic stressors (daily hassles) -life transitions (changing peer relationships) -everyone exp stress but there are individual differences in the way we respond to it that impact functioning -these individual differences can be seen at a behavioral level and physiological level- stress response *Choose 1 or 2 hypothesis related to stress during adolescence and design a study to test there hypothesis -must include something that has to do with stress as a variable in your study -your study should contribute to what is already out there in some way *Does Internet and social media use cause stress in social relationships in adolescences? -IV-internet and social media use -DV effect on social relationship -moderator- social interacts are happening both in real world and over the internet Implications and limitations- small paragraph if you did research, small section on limitations-what the flaws of you purpose study References-APA format Nuts and bolts 12...
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...the Civil War began, the Legal Tender Act was passed, which then allowed paper money, called greenbacks, to circulate. This started the Fiat Standard where money was only backed by the faith of the federal government. The system did not work the way it was intended because of debt and inflation, so the economy then switched to the Gold Standard. After the Gold Standard was installed there was panic among the banks. In 1913, the Federal Reserve Act was signed by Woodrow Wilson so that forty percent of paper money had to be backed by gold. Sixteen years later the stock market crashed and the Great Depression began. In 1971, President Nixon brought back the Fiat Standard, which the United States still uses today. These systems all have their advantages and they also have flaws, however, the best economic system for the United States economy would be the Fiat Standard due to stability, scarcity, and difficulty returning to the Gold Standard. Many of those who argue for the Gold Standard say that its policies guarantee economic stability, however those who oppose say those policies only offer destabilization that could mortally wound our economy. Between 1919 and 1931 prices and inflation changed drastically under the Gold Standard. The Gold Standard can never be stable because the value of gold is always changing. These fluctuations would severely damage the United States’ economy since the dollar’s value is directly connected to the value of the gold. The economy would then destabilize...
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...Week 1 Scarcity( individuals, businesses (firms), gov Unlimited wants, scarce resources to aquire those wants Economics study of choices people make Economic models – graphs 3 key economic ideas 1) People are “rational” ( weigh benefits vs cost 2) People respond to econimic incentives --- money, cars ect... 3) Decisions are made at the “margin” not “all or nothing” (optional) Margin : means next or additional Widgets Subjective (Your point of view. Scarciy ( 3 Questions 1) What to produce? “Individules” Producers, Consumers, Gov 2) How much to produce? Man vs machine 3) Who gets it? Income Distrubution Should the gov intervie??? (tax code) Trade offs Opportunity Cost 1. Job 2. Education Micoeconimics VS Macroeconimics Micro • Small • People/firms make decisions? • How do they interact in markets? • Gov try to interfere??? Macro • Large • Econimy as a whole • World/International (orginations, trade • Inflation • Grouth • Unemployment Economic Systems (Gov) Centrally planned Gov decides how resources will be allocated. Exmp: Soviet Union : Communism/Socialism • Tough to produce @ lowest cost (bueracry) • Low standard of living • Political dictatorship • Exmp Cuba & N. Korea Market economies • Interactions between...
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...Klodd Moore Mr. Vauhn EN 1320 8/7/13 Piracy vs. Copyright Violation The ongoing dispute over illegal Internet-based file sharing between the entertainment and software industries and the vast, online pirating community has been one of the most debated topics. Gripping public attention for the past decades. Napster, a website created by a college dropout became an empire. Used by hundreds of millions of people, that robs billions in revenue each year. Although these rogue websites claimed to only be hosts for illegal file sharing, the United States government took action to eliminate Internet piracy and protect copyright by implementing digital encryption technologies and strict laws that prohibit tampering with these encryptions. The trafficking of copyrighted goods must be put to an end because it promotes illegal transactions of an owner’s intellectual property, causing sales in the entertainment and software industries to plummet and thereby restricts the growth of the economy. Internet piracy is the unlawful reproduction and/or distribution of any copyrighted digital file without the permission from the owner. It is driven by the consumers demand for a desirable product that would otherwise be unobtainable, either because of financial limitations or cultural factors, such as the Chinese culture’s emphasis that the free sharing of knowledge creates and preserves both civilization and traditional values across generations (Lu 310). Consequently, such a mindset that has...
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...situation because unemployment will affect the nation. A robot is just a smarter computer. The robot will be able to jobs such as, data entry number crunching, operation, and much more. If a robot that doesn’t need to be paid can do what a human employees can then many people would be out of jobs. Which will cause a great depression and recession. Labor is to be done by humans but eventually this theory will change. There’s barely any former job even for people with degrees. If robots took over the low paying job, unemployment would be really high. Most of the jobs today are paying and worked by high quality people. The normative economics is that robots should be allowed to take over human jobs. Martin ford says that robots taking over the work force will only tear the economy into pieces. Entrepreneurship is when a person who organize and manages any enterprise, especially a business usually with considerable initiative and risk. Key word in the definition of entrepreneurship is “people” because that’s who are suppose to do labor. Small businesses are the only ones want the new technology. The robots will only benefit small businesses. Scarcity comes in this situation because the robots will not be getting paid for their work. Therefore they satisfy all wants at a zero price. The unemployment rate is at 13.1 percent as of December 2012. In less than 20 years unemployment rate will increase to 50 percent. This is a negative effect on the humans. How will they afford...
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...prices to get healthcare. The demand for physicians is dependent on many factors. Some of the factors are but not limited to income of the people, population, behavior of the buyers, expectations about future prices and incomes. According to reports and past projection, there is shortage of physicians in the country. This directly influences the policies and prices of the current healthcare system. Due to this shortage, we have more medical schools in the country. The government has also been subsidizing admission to such schools. At present, there are about 900,000 physicians working in the market for 300 million patients or customers. So clearly, the population of customers is large. The price at providing healthcare has gone up due to scarcity of professionals and limited amount of income people can spend upon healthcare. The behavior of buyers is such that they want to spend as much less as possible on getting healthcare now, because they expect the price of getting healthcare to shoot up. So they want to save money now in order for rainy days, when they would really need it. Demand: Old 691400 New 814700 Health care costs: Old $16834 New $ 22615 PEoD = %change in QD/%change in price %change in price= 22615-19834/16834= .34 %change in quantity= 814700-691400/691400= .18 PeoD = .18/.34= .53 Price $22615 $16834 ...
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...Jan. 21 2014 History202-B The Populist Challenge Targets of Farm anger * The Tariff * Raised prices on items purchased * Created an environment of international retaliation against American farm exports * Consolidated money into the hands of the government * This caused deflationary pressure on the economy * By 1890, the government had a yearly surplus of 180 million * Railroad and Grain Elevators * Their monopolistic activities forced farmers to pay unfair prices * Banks * Held their debts (sharecropping, crop-lien system) * Charged excessive interest rates * Threatening and foreclosed on those struggling * Felt their struggling was based on the system which was funded by big backs The Reality of Unrest * Farmers found themselves in a new world of economic competition * Antebellum agriculture was controlled by large landowners * Post civil war small farmers did not benefit from large-scale production * In Nebraska, Kansas, and South Dakota farmers more adverse growing conditions * Meteorologic anomaly ended returning the high plains to normal dry conditions * Leads to the “dust bowl” Organizing Revolt: The Farmers’ Alliance The Grange * Designed to advance the lives of farmers * Taught new farming techniques * Social Events * Attempted to create a system of cooperatives * Fought for regulation...
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...AP Macro Economic notes: Other Points to Remember: Fiscal Policy — Congress stabilizing the economy through taxation and spending (budgeting) policies, limitations include that Congress only determines the budget annually or so, expansionary policy causes deficits, contractionary is unpopular. - Discretionary — a change to address a specific economic situation - Automatic — built in policies like unemployment compensation, progressive income tax, etc... Other Review: Calculating % increase — (2nd year data - 1st year data) / 1st year data then multiply by 100 to get percentage Equation of Exchange — MV = PQ GDP = C + I + G + (exports - imports) [Expenditures Approach] OR GDP = W + I + P + R + Depreciation + Indirect Taxes [Incomes Approach] Investment spending (capital) – low interest rate to borrow money Financial investment (bonds & securities) – high interest rate for high rate of return Production Possibilities Curve (Use to show economic growth) The PPC shows economic growth and is shifted by changes in resources, including capital investment, and productivity. Aggregate Demand and Aggregate Supply Graph (Use to show output and price level) Money Market with Side-by-Side Investment Demand Graph (Use with Monetary Policy) Loanable Funds Market Graph (Use with Fiscal Policy) Supply of Loanable Funds is determined by the amount of savings in a nation and actions of the Federal Reserve. Exchange Rate Graphs Before they produce their first...
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