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Economic Analysis Of Marketing Automation Software

Title page

Economic analysis

Executive summary

Company planning to purchase marketing automation software must integrate principles of managerial economics for reaching maximization of returns. These principles allow the company to minimize costs and adverse situations that can result in a loss of stability or revenue. The common principles adopted for making the best use of the automation software include incremental concept, reaching an equi-marginal point, considering opportunity cost and discounting. By integrating these principles the manager would be able to make better decisions regarding automation software.

Introduction

Marketing automation software is essentially required by businesses these days. The evidence suggests that 51% of the businesses are relying on technology for attaining growth and stability. Marketing decision related to automation software results in increased spending and costs for the business. This indicates the need for adopting managerial principles for managing costs and utilizing the software for maximization of profits. It is critical to identify the principles of managerial economics that minimize the probability of financial and reputational loss.

Literature review

Evidence obtained from the literature suggests that the integration of principles of managerial economics leads to the efficient management of the operating system. The decision-making and planning are important tools for organizing, staffing and controlling activities that result in maximization of benefits due to the appropriate use of the automation software. The primary principle of managerial economics states management of marginal costs and revenue. The most important for the managers is to meet the challenge of keeping costs lower than revenues CITATION Bru09 \l 1033 (Biegel, 2009).

Literature suggests opportunity costs also allow the company to manage costs such as by choosing the best alternative. This is useful for keeping the costs minimum and maximizing gain CITATION Luk17 \l 1033 (Froeb, McCann, & Ward, 2017). The equi-marginal concept allows managers to think about how a firm can adopt a new activity by sacrificing other activities. This principle stresses on reaching an optimal point where the benefit is maximized. Discounting is also an important principle that states that the company must be prepared form meeting unexpected situations CITATION Pau10 \l 1033 (Rubin & Dnes, 2010).

Empirical analysis

Investing in marketing automation software can be viewed as an opportunity for responding to the needs of changing the marketplace and reshaping the marketing and sales functions in business-to-business. HubSpot is recognized as one of the most powerful automation software. It offers various features including sales software, marketing and support software. The data and other features lead to the achievement of efficiency in operations CITATION Bru09 \l 1033 (Biegel, 2009).

By adopting principles of managerial economics the company would be able to manage costs and attain maximization of profits. Keeping in view the principle of incremental concept the managers will focus on increasing revenues more than cost. The second principle that can be integrated into the current situation is the time perspective. This reflects that the managers must compete to take timely decision. This also involves decisions regarding changing output and size that managing opportunity cost is also effective for choosing the cost-effective automation software CITATION Luk17 \l 1033 (Froeb, McCann, & Ward, 2017). Discounting can be used for keeping managers prepared about unexpected situations such as defects in the automation system, operational inefficiency or staff’s incompetency of handling software. Such measures can allow the company to reach an optimal point.

Conclusion

The overall analysis of the situation depicts that incorporation of principles of managerial economics increase managers efficiency of handling uncertain circumstances and taking the right decisions at the time. The use of principles allows the company to minimize costs and maximize gains. The principle of incremental concept the managers will focus on increasing revenues more than cost. Similarly discounting suggests preparing managers for dealing with uncertain situations.

References

BIBLIOGRAPHY Biegel, B. (2009). The current view and outlook for the future of marketing automation. Journal of Direct, Data and Digital Marketing Practice , 10 (3), 201–213.

Froeb, L., McCann, B. T., & Ward, M. R. (2017). MANAGERIAL ECONOMICS, 5TH EDITION. Cengage Learning.

Rubin, P. H., & Dnes, A. W. (2010). Managerial Economics: A Forward Looking Assessment. Managerial and Decision Economics, 31 (8), 497-501.

Subject: Economics

Pages: 2 Words: 600

Economic Philosophy:The Friedman Doctrine And Social Responsibility

Economic Philosophy: The Friedman Doctrine and Social Responsibility

[Name of the Writer]

[Name of the Institution]

Economic Philosophy: The Friedman Doctrine and Social Responsibility

Introduction

Milton Friedman was an American economist who born in Brooklyn, New York on 31st of July, 1912. Friedman got his initial education from the city New Jersey where he got a scholarship for his bachelor's degree in economics and mathematics. He completed his degree in 1932. He continued his study at the University of Chicago and later Columbia University for his Ph.D degree. After completing Ph.D. in 1946 he got a job at the University of Chicago in the economics department. Friedman became one of the leading people for monetarism at the end of the 20th century. Friedman thought is associated with monetarism where he criticized Keynesian economics theory through his work ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"NfsV62QT","properties":{"formattedCitation":"(\\uc0\\u8220{}Milton Friedman\\uc0\\u8212{}Biography,\\uc0\\u8221{} n.d.)","plainCitation":"(“Milton Friedman—Biography,” n.d.)","noteIndex":0},"citationItems":[{"id":1196,"uris":["http://zotero.org/users/local/mlRB1JqV/items/TB3FPU2X"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/TB3FPU2X"],"itemData":{"id":1196,"type":"webpage","title":"Milton Friedman - Biography","container-title":"Cato Institute","URL":"https://www.cato.org/special/friedman/friedman/index.html","language":"en","accessed":{"date-parts":[["2019",9,21]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Milton Friedman—Biography,” n.d.).

Discussion

The contributions of Milton Friedman in the field of economics are numerous. He was an educator who became a professor in 1946, full professor in 1948, and emeritus professor in 1983. His earliest work was the theory of the consumption function. His other contributions include floating exchange rates, price theory, the natural rate of unemployment, permanent income hypothesis, monetarism applied macroeconomics, volunteer military, helicopter money, and Friedman doctrine. He wrote various books like capitalism and freedom, free to choose, and the shock doctrine. His works include books, columns, television programs, monographs, lectures, papers, and magazines ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"HUPrCuKS","properties":{"formattedCitation":"(\\uc0\\u8220{}Milton Friedman,\\uc0\\u8221{} n.d.)","plainCitation":"(“Milton Friedman,” n.d.)","noteIndex":0},"citationItems":[{"id":1195,"uris":["http://zotero.org/users/local/mlRB1JqV/items/8PIIRMGS"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/8PIIRMGS"],"itemData":{"id":1195,"type":"webpage","title":"Milton Friedman","container-title":"Econlib","abstract":"Milton Friedman was the twentieth century’s most prominent advocate of free markets. Born in 1912 to Jewish immigrants in New York City, he attended Rutgers University, where he earned his B.A. at the age of twenty. He went on to earn his M.A. from the University of Chicago in 1933 and his Ph.D. from Columbia …","URL":"https://www.econlib.org/library/Enc/bios/Friedman.html","language":"en-US","accessed":{"date-parts":[["2019",9,21]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Milton Friedman,” n.d.).

The most famous and critical contribution of Milton Friedman was the Friedman doctrine. It is also known as shareholder theory in which he claimed that shareholders must be the priority of the firm. According to him, shareholders are the economic engine of any firm who invest their money so it becomes the social responsibility of the firm to ensure the maximum returns to the shareholders. He criticized the concept of social responsibility of the firm who spend their revenue or income on social welfare. He stated that the firm has no responsibility towards the public instead stakeholders are the only one who should be taken as a responsibility. This is because when a firm spends earning on social causes it decreases shareholders. This should be the choice of stakeholders whether they want to spend their money in any social cause or not. Friedman further argued that when the firm links itself to the community rather than maximizing profit then it results in totalitarianism ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"p6no4313","properties":{"formattedCitation":"(Watson & Prevos, 2009)","plainCitation":"(Watson & Prevos, 2009)","noteIndex":0},"citationItems":[{"id":1197,"uris":["http://zotero.org/users/local/mlRB1JqV/items/NKM2KUFS"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/NKM2KUFS"],"itemData":{"id":1197,"type":"post-weblog","title":"Milton Friedman on Corporate Social Responsibility","container-title":"The Lucid Manager","abstract":"What is Corporate Social Responsibility in light of Friedman's rejection of this concept? Essay on Milton Friedman on corporate social responsibility.","URL":"https://lucidmanager.org/milton-friedman-corporate-social-responsibility/","language":"en-GB","author":[{"family":"Watson","given":"Ian"},{"family":"Prevos","given":"Peter"}],"issued":{"date-parts":[["2009",7,14]]},"accessed":{"date-parts":[["2019",9,21]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Watson & Prevos, 2009). Friedman doctrine had a significant influence on the cooperate world. It also led to a noticeable rise in stock-based compensation. Therefore, his theory is considered as a significant contribution to the business world.

After analyzing Friedman doctrine I think my social responsibility of corporations to society will be to maximize my profit and provide high return to where I will work. When every individual work to ensure maximum return to the owner it will ultimately provide benefits to the society. As a student, my responsibility is to acquire knowledge and take high grades so I can serve better for the economy of the nation in future. A company can maximize its profit along with being socially responsible. For instance, various companies can do environmental effort by adopting policies or strategies which can increase their profit by giving the least hazard to environment. Sustainability is a big example of being socially responsible without compromising the firm's profit. In addition, companies can improve labor policies, reduce carbon footprints and increase volunteer efforts for the community.

Conclusion

Through the history of Milton Friedman and his efforts, it can be concluded that he has a significant contribution to the field of economics. Friedman Doctrine is a crucial theory which explains that it is not necessary to decrease profit of the company for social responsibility, instead company can achieve both the goals with effective policies.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Milton Friedman. (n.d.). Retrieved September 21, 2019, from Econlib website: https://www.econlib.org/library/Enc/bios/Friedman.html

Milton Friedman—Biography. (n.d.). Retrieved September 21, 2019, from Cato Institute website: https://www.cato.org/special/friedman/friedman/index.html

Watson, I., & Prevos, P. (2009, July 14). Milton Friedman on Corporate Social Responsibility. Retrieved September 21, 2019, from The Lucid Manager website: https://lucidmanager.org/milton-friedman-corporate-social-responsibility/

Subject: Economics

Pages: 2 Words: 600

Economic Risk

Economic Risk

[Name of the Writer]

[Name of the Institution]

Economic Risk

Economic risk is the situation that affects the investment and economic growth of any nation. Factors that can lead to economic risk include political instability, exchange rate, war, and government policies. In the article ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"pAzyhien","properties":{"formattedCitation":"(Business, n.d.)","plainCitation":"(Business, n.d.)","noteIndex":0},"citationItems":[{"id":1325,"uris":["http://zotero.org/users/local/mlRB1JqV/items/77UB8TDV"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/77UB8TDV"],"itemData":{"id":1325,"type":"webpage","title":"The trade war keeps weighing on consumer confidence. And that's a risk for the US economy","container-title":"CNN","abstract":"The trade war keeps weighing on American consumers. That's a risk for the US economy, which is driven by consumer spending.","URL":"https://www.cnn.com/2019/09/24/economy/consumer-confidence-trade-war/index.html","author":[{"family":"Business","given":"Anneken Tappe","suffix":"CNN"}],"accessed":{"date-parts":[["2019",10,1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Business, n.d.), the author discussed one such factor which may lead to economic risk in America. The article is about the trade war between America and China which brought economic risk not only for both the nations but also for other nations that are connected to America or China for trade. In the article, the author claimed that trade war is increasing the risk for the economy due to consumer spending. Trade highly depends on the political relationship between two nations and when the policies and regulations in trade get strict then complications arise. In the case of America and China, Trump administration applied tariff and other trade barriers on China. In response, China also imposed a similar value of tariff and barrier to America's goods and services. According to the survey, fall of 125.1 has been observed in the consumer sentiment index. The escalation in tariff and trade between the two nations is the big factor for this fall said by senior director of the economic indicator. Not only this, equity market is also showing weaknesses due to the future thread. In addition, due to the economic risk an increase in gasoline price is recorded. America's economy is highly dependent on consumers account and if their confidence and trust become weaker then it is alarming for the nation. This is the first American sentiment measure which shows the negative trend due to the trade war between the two nations. In the month of August largest drop in the consumer sentiment has been recorded which is threatening for economy. The author claimed that consumer confidence will remain law unless the issue between America and China is get resolved.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Business, A. T., CNN. (n.d.). The trade war keeps weighing on consumer confidence. And that’s a risk for the US economy. Retrieved October 1, 2019, from CNN website: https://www.cnn.com/2019/09/24/economy/consumer-confidence-trade-war/index.html

Subject: Economics

Pages: 1 Words: 300

Economic Trade

Economic Trade

Student’s Name

Institution

Date

Q1. Explain the difference between absolute advantage and comparative advantage

The concept of absolute advantage is the natural ability of the nation to produce specific goods in an effective and efficient manner at a very lower marginal cost. However, comparative advantage is the capability of a country to produce specific products at a lower opportunity and marginal cost. Absolute advantage addresses the lower marginal cost of production of specific products compared to competitors in the market. However, the concept of comparative advantage is suitable for international trade because both nations in trade are mutually benefiting because of the comparative advantage of each other.

Q2.

The equilibrium price is $3 per pound and the quantity is 12 million per pound. Therefore, the consumer surplus is 7 million pound of sugar. The producer surplus is 15 million and the government revenue would be $ million. The government regulations would reduce the surplus of the sugar and therefore, the deficit would be created in the market.

Q3. A free trade takes place when there are no government interferences or interventions ad therefore, international trade is open to the economies. However, a country which does not have any comparative advantage can still benefit from free trade. According to Michaerl (2014), free trade increase high quality and lower prices of goods and therefore, a country would be able to have several products, which increase the competition in the market. With market competition, the products or goods would less expensive for consumers. This would benefit consumers and the country through the promotions of the industries which a country has the highest comparative advantage.

References

BIBLIOGRAPHY Michaerl, Meril. "Economic Analysis of demand and supply in the market." International Journal of Trade and business, 2014: 2-34.

 

Subject: Economics

Pages: 1 Words: 300

Economics

Economics assignment

Economics assignment

Answer 1

The views of Cameron are that the prices of the housing are too high in the place where they are living in fact, he said that that people are afraid of mortgage over a longer period of time. The other person Ross has argued that although people are able to buy houses by getting loans but when they repay the loans, they have to pay back a considerable amount of money more than what was actually borrowed. The argument of Ross is more appropriate.

The interest rates have risen which makes the mortgage expensive and borrowers have to pay back a considerable higher amount of money than they borrowed. The second reason is that the prices of all the things have risen and this has made the housing more expensive.

One is mortgage where the person will pay certain sum of money every week so that the whole sum of money is paid over a longer period of time. The second strategy is to rent out a facility and eventually buy it over a period of time.

Answer 2

Both the variables considered have shown increasing trends over the passage of time. For a certain period of time, the variables have increased together and round about 2003, the dwelling prices have started to bulge out. The difference between the two variables have risen ever since the price of housing have started rising. Gradually it has become very difficult for the people in general to afford houses. This is the reason why Cameron has mentioned that the prices of houses have risen over time.

The prices of housing and rent have sown an increasing trend over a period of time. The increase in the housing prices is steeper as compared to the increase in rents. The rents have started increasing more recently as compared to the housing prices. Both persons will benefit from the trend shown in the diagram. Cameron will benefit because he will get some loan and buy the house because he is not able to save much money out of the income that he receives. Ross will also benefit because his opinion is that a person needs a huge amount of money to buy a house which is denied by the graph as the prices of housing are fluctuating up and down. The rising prices of the housing will mean that the demand for house ownership will fall.

Answer 3

The elasticity is referred to the responsiveness of one variable to the change in another variable CITATION Agd07 \l 1033 (Ag decision maker, 2007). Elasticity of demand and supply will measure the responsiveness of change in demand and supply to the respective change in price. The difference between the elasticity of demand and elasticity of supply is that the elasticity of supply is always positive showing a positive relationship between price and quantity supplied. The elasticity of demand on the other hand shows a negative sign showing a negative relationship between demand and price of a product. The figure of 0.3 to 0.5 shows that any change in prices of housing will result in a 30 to 50% change in supply of dwelling. On the other hand, the figure of -0.6 shows that a change in price of housing will bring a 60% change in the demand for housing in the country. Both demand and supply are shown to be inelastic in case of housing. If the responsiveness of the demand is more as compared to the change in prices, the demand is said to be price elastic. The availability of the substitutes is the main determinant of the elasticity.

The demand side factor is the number of people migrating in the country

When there are more people migrating in the country, the demand for housing will increase. This will make the demand more inelastic towards the price. In other words, more migrants will mean that people will have to occupy the houses available at the prevailing prices. The migration will mean that there will be more people who will desperately need houses to live in. The more urgent some need is, the more inelastic is its demand. This is because the urgency of the need will mean that the customers will not care for the price, they will pay whatever the prevailing price is.

Planning rules to make it easier to develop medium density housing

The government will provide the housing in the inner circles of the city. This action will make the supply of houses relatively less inelastic as there will be a possibility that the constructors can increase the number of houses built as reaction to the change in price. This aspect means that the supply will be relatively less inelastic with the relaxation in the regulations. The government will also relax the various regulations that did not allow the development of housing societies. This will increase the supply of the houses across the country.

Demand and Supply Diagram

147637521971010858501600191247775198119695325112394D S

13715991079505715001857375Quantity Demanded and Supplied

400000Quantity Demanded and Supplied

276225287655Price

00Price

7143741388745

16478252584457239001917701400175182244

P0

d

s

Q0 Q1

In the above diagram, the price is shown on the Y axis and quantities demanded and supplied have been shown on the X axis. The initial supply curve is labeled as S which is an inelastic supply curve because it is drawn in such a way that it will touch the X axis when extended toward the origin. The demand curve is also inelastic because it is steeper in appearance. A steeper curve will mean that there will be less change in both quantities demanded and supplied as a result of the change in price. The original quantities are depicted by Q0 in the above diagram and the price is shown by p0. The demand side factor chosen is the migration of the people from other countries to Australia. This aspect will increase the demand of housing and the demand curve will be shifted to the right side. The supply side factor chosen is the relaxation of the rules and regulations regarding the housing by the government. We have assumed that the government has relaxed several regulations on the housing segment. This will make the development of new housing facility easier and will increase the supply shifting the supply to the right side. The new supply curve is depicted by s. We can see in the above diagram that the increase in the demand and supply has affected the quantity only and the price has remained almost the same after the increase in supply and demand. This may have happened because we have changed both the demand and supply in almost the same amounts.

References

BIBLIOGRAPHY Ag decision maker, 2007. https://www.extension.iastate.edu/agdm/wholefarm/pdf/c5-207.pdf. [Online] Available at: https://www.extension.iastate.edu/agdm/wholefarm/pdf/c5-207.pdf

Grattan Institute, 2018. https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf. [Online] Available at: https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf[Accessed 28 April 2019].

Thornton, D. J. M. &. D. L., 2008. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.174.2815&rep=rep1&type=pdf. [Online] Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.174.2815&rep=rep1&type=pdf

Subject: Economics

Pages: 4 Words: 1200

Economics

[Name of the Writer]

[Name of Instructor]

[Subject]

[Date]

Economics

The employment rate is the crucial aspect of any economy it determines the growth rate of the nation. When the employment opportunities increase the chances for the people to get the dream job also increases. However, there are numbers of factors that determine the opportunities level to introduce new jobs in the nation. America has shown an increase in employment level in the market which is a good sign for the citizen. There is a strong correlation between the inflation level and employment. Any country with high inflation faces different problems. It is because inflation has an adverse impact on the growth of the economy. It affects the exchange rate, cost of borrowing, prices, and overall economy of the country. Besides, inflation has negative over the growth of the economy however it leaves a positive impact on the employment level. In the article, the conditions of the employment level and the impact of inflation are being discussed. Whenever inflation increases in the country, the unemployment rate decreases and more people get opportunities to get new jobs.

The primary concept that has been discussed is the relationship between the inflation and employment level with the help of the Philips curve. These are the economic concept from the course and important to understand. Inflation leads to change in various economic factors that result in lowering the unemployment level. Philips curve is the curve that indicates the negative correlation between inflation and unemployment level ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"9MMS84CZ","properties":{"formattedCitation":"(Irwin)","plainCitation":"(Irwin)","noteIndex":0},"citationItems":[{"id":479,"uris":["http://zotero.org/users/local/rVaVAHaF/items/VZ93Q9Q8"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/VZ93Q9Q8"],"itemData":{"id":479,"type":"article-newspaper","title":"Three Key Factors That Will Determine How Long the Hot Job Market Lasts","container-title":"The New York Times","section":"The Upshot","source":"NYTimes.com","abstract":"Where is this growth really coming from; how real is the concern over inflation; and how many more workers are out there?","URL":"https://www.nytimes.com/2018/11/02/upshot/the-job-market-is-firing-on-all-cylinders-three-questions-will-determine-how-long-it-can-last.html","ISSN":"0362-4331","language":"en-US","author":[{"family":"Irwin","given":"Neil"}],"issued":{"date-parts":[["2018",11,3]]},"accessed":{"date-parts":[["2019",4,10]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Irwin). For instance, whenever inflation increases it leads to decrease in unemployment level and when inflation rate decreases it result in the increase in the unemployment level. Economist and government always try to maintain or decrease the inflation rate because it has a negative impact on the economy. When inflation rate increases it results in an excessive amount of money in the hand of consumers. When consumers get more money to spend, they demand more goods and services. To control the high demand for goods and services producers, stakeholders either increase the price of the existing supply of goods or services or increase production. It is diffcut to increase the production level in short run therefore increase in the price becomes the easy way to control the supply and it increase the profit of the producers. With an increase in production, demand for more labor increases. In other words, producers get the opportunity to expand their production and provide more jobs. This is how inflation leads to an increase in the employment level.

The above graph indicates the relationship between unemployment and inflation with the help of the Phillips curve. At the point, The unemployment rate is 6% with only 2% of inflation. When inflation rises to five percent at point B, the unemployment rate decreased to only 3%. However, the author discussed that the Phillips curve does not seem to be operated in the real world but somehow it is working in the US economy as it had been developed. The reason behind the unrealistic framework of the Philips curve is that inflation not always hit the unemployment level; there are various factors that eliminate the impact of inflation from the unemployment level. For instance, when inflation leads to the increase in aggregate demand it results in an increase in real GDP. Therefore, the producer hires more labor to meet the aggregate demand by providing sufficient supply of the goods and services ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"zQagGJ2l","properties":{"formattedCitation":"(\\uc0\\u8220{}Phillips Curve - Economics Help\\uc0\\u8221{})","plainCitation":"(“Phillips Curve - Economics Help”)","noteIndex":0},"citationItems":[{"id":480,"uris":["http://zotero.org/users/local/rVaVAHaF/items/EWSQAMLY"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/EWSQAMLY"],"itemData":{"id":480,"type":"webpage","title":"Phillips Curve - Economics Help","container-title":"Economics Help","abstract":"Definition of Phillips Curve (trade off between inflation and unemployment). Graphs to show how and why it can occur. real life data. Also different views on Phillips Curve Keynesian vs Monetarist. - short-term and long-term.","URL":"https://www.economicshelp.org/blog/1364/economics/phillips-curve-explained/","language":"en-GB","accessed":{"date-parts":[["2019",4,10]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Phillips Curve - Economics Help”). However, at a particular point, the economy reaches the full capacity, where no labor can be hired anymore. At this stage, producers increase the wages of the labor which results in wage inflation. In addition, they increase the prices of goods and services which lead to a constant rate of unemployment. Economists believe this phenomenon more realistic as producers prefer to increase prices first then increasing the number of labor. However, the report shared in the article indicates that the Philips curve is working in the economy to lower the unemployment rate. Government is trying to maintain the inflation rate by increasing the interest rate.

As the report has been discussed regarding the employment rate fluctuation in America. It shows that opportunities for new jobs are increasing and the unemployment level is low up to 3.7%. The proportion of the total population in America looking for a job and has increased to 0.2% ADDIN ZOTERO_TEMP (Irwin). The author explained that the above factors can lead to a change in the employment ratio. Various economics terms like interest rate, inflation, recession, the great depression, investment, and Philips curve are being discussed to figure out the actual reason for the significant increase in employment level. The author argued that inflation is the main factor that is a disturbing investment, interest rate, and somehow employment level by increasing the supply of money in the economy.

The article is important to understand the pattern of economic growth especially the fluctuation in the unemployment level but authors have ignored the one important aspect which shows that inflation is not the only element which impacts the employment level. The element is the investment level. The author is right on the point that inflation is the risk and it is affecting the interest rate, wages rate, and employment rate. However, producer or behavior of investors also has a crucial role. For instance, investment increases when investors do not see any risk related to the future value but a number of investors do not take risks. They decrease or limit their investment whenever notice that inflation can be higher in the future which can lead to lowering the risk of inflation ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"zyzeaVRA","properties":{"formattedCitation":"(Jayaraman and Singh)","plainCitation":"(Jayaraman and Singh)","noteIndex":0},"citationItems":[{"id":483,"uris":["http://zotero.org/users/local/rVaVAHaF/items/QD73NNLC"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/QD73NNLC"],"itemData":{"id":483,"type":"article-journal","title":"Foreign Direct Investment and Employment Creation in Pacific Island Countries: An empirical study of Fiji","page":"18","source":"Zotero","language":"en","author":[{"family":"Jayaraman","given":"T K"},{"family":"Singh","given":"Baljeet"}]}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Jayaraman and Singh). In addition, when investors believe that inflation rate is going to be stable in future, they increase their investment it sometimes leads to the inflation before the estimated period because of the supply of money increases in the economy. The increase in investment leads to more opportunities to produce goods and services by providing a number of new jobs. As an economist, I will consider the aspects that the author of the article ignored because it is important to consider the other factors that can bring the fluctuation in the employment rate. I will argue that the factors like great recession and low investment lead to an increase in the money in consumer's hands. These increase in the supply of money brought inflation which hit the employment ratio. To control the inflation rate it is necessary to control the money supply by increasing the interest rate as with the increase in interest rate supply of money decreases and consumer influence to invest money for future which is beneficial for the economic growth as well as to control the employment and inflation ratio.

Therefore, it is concluded that employment level is higher in America and the author thinks that its inflation that playing its role. The author discussed other economic factors like great recession, interest rate, investment, and wage rate. However, he focused on the inflation rate and discussed the Phillips curve that is resulting in lowering the unemployment level. The author created a strong argument where inflation rate affects the number of economic indicators including employment level. There is an inverse relationship between inflation and unemployment. However, the author did not highlight the importance of investment level which also provides opportunities to develop new job. Also, it stabilizes the inflation rate and economic growth becomes sustainable.

Work Cited

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Irwin, Neil. “Three Key Factors That Will Determine How Long the Hot Job Market Lasts.” The New York Times, 3 Nov. 2018. NYTimes.com, https://www.nytimes.com/2018/11/02/upshot/the-job-market-is-firing-on-all-cylinders-three-questions-will-determine-how-long-it-can-last.html.

Jayaraman, T. K., and Baljeet Singh. Foreign Direct Investment and Employment Creation in Pacific Island Countries: An Empirical Study of Fiji. p. 18.

“Phillips Curve - Economics Help.” Economics Help, https://www.economicshelp.org/blog/1364/economics/phillips-curve-explained/. Accessed 10 Apr. 2019.

Subject: Economics

Pages: 4 Words: 1200

Economics

Subject: Economics

Pages: 20 Words: 6000

Economics

Subject: Economics

Pages: 10 Words: 3000

Economics Final Research Paper

McKaylah Conlin

POSC 362

Professor Blimes

April 2019

Economics Research Paper Final

For centuries ear marks and pork barreling have been a serious issue within our government. An example of this is the Mohair famers we read about in our textbook Naked Economics CITATION Cha03 \l 1033 (Wheelan). It all started back around WWII when the government would provide subsidies to farmers who produced a type of wool that was utilized in military uniforms. As time went on, however, they transitioned to a completely different material and technically didn’t need the mohair farmers anymore CITATION Jas18 \l 1033 (Pye). But the farmers were still receiving tax breaks! If politicians keep the money coming to those farmers than that will secure that communities vote. The amount it takes tax payers to cover the mohair bill isn’t even noticeable that’s why it’s so easy to get away with. It’s much easier to sustain a minority rather than a minority support the majority. Thus, the LGBTQ and how it’s much easier for their voices to be heard rather than a straight, white male/female in the United States.

Pork barrel politics is an important part in the congressional style of politics and legislative process. A renowned congress politician stated that all politics is local in nature. The benefits sought by the local areas is a centralized part of congress politics and legislative process. Pork barrel projects which are also known as distributive benefits, are targeted to benefit some specific parts of population but costs of these projects are spread across the whole population in the form of taxation. Some theorists state that the costs of pork barrel projects exceed their benefitsCITATION Tho \l 1033 (E.Elwood).

One of the most important aspects that is assumed to be underlying in the pork barrel politics is reelection goal. Members of congress have strong incentives to give both time and other resources to take some particular benefits for which they can claim credit. These legislators are credited by the local people for initiating only that legislation which is considered beneficial for a particular area. This means that other broad-based policies are left to be considered by other legislators.

The members seek benefits for benefitting their local areas, there are two distinct categories of reasons to supply related benefits. The foremost reason to supply pork is to satisfy demands from district. The initial bills undertaken by the legislators were meant to satisfy the demand of particular districts. The initial discussion on distributive politics revolved around the bills that would boost the chances of reelection for the person who presented the bill. The individual benefits theories are presented to support this mindset. The dominant role is played by the various committees which have members which show higher demand for benefits within the jurisdiction. There have been coalitions made for achieving the desired benefits. The other perspective for supplying pork is less individualistic in nature. There are certain political actors in a society who seek support for their favored general interest legislation or majority party leaders in congress who want to save party’s majority or bureaucrats needing support for their relevant organizations. These aspects also depict collective benefits theories of pork- barrel politics CITATION Tom18 \l 1033 (Schatz).

As mentioned earlier, congressional committees have an important role to play in the pork-barrel politics. If we consider individual benefits theories, there is a huge role to be played by the congressional committees. Firstly, the committees supply some sort of equilibrium that does not allow the majorities to win over and over again. Restrictive rules can be applied by these committees which allows several committees to indulge in bargains with each other using their control over own policy areas. These aspects allow the members of committee to extract pork barrel benefits for their own selves. The process of placing the members on committee is itself dubious because members are placed on committees based on the benefits sought by their relevant districts. This thought of district consideration means that members on committees will demand and receive more benefits than an average member of congress.

The theories on collective benefits do not predict committees based on high demand to the same extent. Reason for this difference is that the reputation of parties is at stake because of pork barreling content. There are two distinct goals for the parties out of committee appointments, reelection of members and to maintain the unity of party. The first goal is more apparent in the committees with narrower goals or which will affect only a few districts. Committees taking on national goals have to be represented by members who show the party’s view in an effective way.

If we consider the informational theory of congress, it also takes into account the collective benefit. In this regard, the committees are expected to represent floor majority in their formation. Some of the members will be demanding high and will be giving their specialized knowledge to committees in return. Committee members benefit when a general benefit is an ultimate objective of the legislation. The coalition leader may be a committee chair which will mean that members will benefit irrespective of the number of members. This happens because the leaders want their members to support them on the floor CITATION Dia11 \l 1033 (Evans).

If we consider the convertibility or risk aspects related to pork barrel concept, the first thing will be seen if the contract in one state is binding in the other state as well. This will mean that a committee must contain members from various states and all these members will discuss the implications of certain amendments and how these amendments will bind into the already existing laws of that state. There is always a risk that any one of the parties do not complete their legal responsibilities. A committee should keep this aspect into consideration while coming up with some conclusive comments. In a global economy, there is always a chance that exchange rates fluctuate for and against parties. The committees should provide ample discussion on the fluctuations of exchange rates. All the regimes regarding exchange rates have their own pros and cons. However, UK adopted the gold standard and it being the largest economy, established the gold standard as a collective good. The collective benefit extended as there were many infrastructure developments across UK and other related countries. If we talk about the political economy of trade, there were protection intended activities which were supported by those producers who could not compete others effectively. Consumers preferred free trade because it resulted in lower prices of goods for them. An example is given regarding trade protection on softwood lumber where producers were better off but consumers suffered because prices were raised.

Hecksher- Ohlin theory is an extension of comparative advantage theory keeping in view the various factors of production required to make different goods. There are some capital intensive and some labor intensive techniques for production of goods. A country will have a comparative advantage in the factor of production that is in abundance in it. Thus the pork barreling will ensure that only those projects will be [assed which will use the abundant resources present in the country. This will also mean that there will be a minimal room for innovation or working on other resources which are not abundant with the country. However, the major problem with this approach is that all the resources are diminishing in nature and they will ultimately finish. Successful countries will be those who work on non-abundant resources and make them their strength. Thus, these countries will not need any kind of Pork barreling because they will have some part of all the resources and it will use them appropriately. Another aspect is the different perception of factors related to different countries. A country that is poor in labor will use the technology which is a form of capital to produce more output from the given amounts of inputs. Thus it is not the mere number of units in a given factor of production that matter, it is the total amount of output that matters. Stolper- Samuleson built on Ohlin theory and stated that free trade will benefit those who work in industries using factors that are abundant in that country. Industries using scarce factors will be at a loss as a result of free trade. There will be a convergence of price in the international trade scenario and an increase in specialization.

When we talk about the tariffs, there has been a considerable impact of their implementation across the country. This is especially true for the states where farming is the major source of earning of people CITATION Wil19 \l 1033 (Mauldin). A committee on tariffs will have a different opinion on tariffs if it has more members from Iowa than Rhode Island. The elasticity of demand for a product also plays an important role in deciding whether tariffs will be imposed on a product or not. Inelastic demand will mean that there will be a lower percentage change in demand of a product as compared to change in price. People will show considerable demand for these products at a higher price as well. Applying tariff to agricultural products can be the right policy if the burden of the price increase is equally divided among the customers. Secondly, the price increase will result in a decrease in demand and competitiveness. Thus the producers will suffer and if the majority of producers are from a single state, that state will oppose the tariffs.

Later in the book from pages 177-180 it talks all about the 5.4 tax on ethanol gasoline. Ethanol supposedly burns cleaner, however, that is not fully agreed upon in the scientific community. On this alone, the US treasury spent over 7.1 Billion in tax revenues. This made it so there was a major increase in the demand for corn which had a lot to do with a special interest in the corn farmers in Iowa. Bill Bradley, President of 1992, claimed he was trying to do away with all subsidies, but strangely enough kept the ethanol subsidy. Every candidate after that followed that same pattern. All in all, the smaller the group or community, the greater the benefits distributed especially if it is an unorganized population. “In politics, the tail can wag the dog…” CITATION Cha03 \l 1033 (Wheelan).

Another excellent example given from the book is the mandatory teaching certification process all teachers in the US must go through. Each new year teachers moving into the work force are required to take tests and certifications teachers of previous years never had to take. So the older teachers are never receiving this new information. However, according to the Hamilton Project conducted in Los Angeles, CA certifications doesn’t equal a good teacher. When a law was passed in the late 90’s to cut classroom sizes LA has to hire a bunch teachers many of which were completely uncertified to teach. Data was collected from each classroom the 150, 000 students who were chosen for this study were in. And for over three years the data was collected and it came to a strong conclusion that teacher certifications do not matter.

In an interview with a Heber city, UT rocky mountain middle school 7th grade science teacher Kimberly Conlin sheds some light on this subject and gives her two cents on what she has seen and observed over her 30 years of teaching experience. She talks about the new coming teachers and how they sometimes don ‘t know squat, but then again some of the more “experienced” teachers can sometimes be just as bad. It all has to do with the actual knowledge that teacher chooses to retain from him/herself and how much they care about their students. Despite Ms. Conlin’s good intentions and love for her students and passion for what she does, she has nearly been regulated out of the classroom! By implementing traditional, common characteristics that are often expected of a teacher are not being ostracized and shut down.

The trade agreements like NAFTA will reduce the importance of Pork- Barrel spending at least regarding the economic aspects. As discussed earlier, tariffs are one factor that can start off pork-barrel spending but with the free trade agreements, these tariffs are excluded from the trade between countries. NAFTA applies to firms who produce products in Mexico, US and Canada even if these companies do not belong to any of these countries. The major consequence of these types of agreements is that there is a direct competition among people growing similar crops in the US and Mexico. Since Mexico has a higher percentage of exports to America as compared to vice versa, the NAFTA will benefit Mexican farmers and people more than the US.

In essence, all the decisions have to be made by keeping in view the political economy. The leaders prefer to remain in their seats and they have to take care of smaller groups whose short term goals conflict with the long-term welfare goals. Globalization results in the prices of products to fluctuate all over the world. Governments interfere by imposing duties on imports to safeguard their own industries but this results in the increase of prices in the local market because these markets are inefficient. Adjustment to these changes come with certain costs. Farmers don’t cut down their produce because they are self-sufficient for their own needs on the agricultural produce. Farmers have been over represented in the government and it also has an impact on pork barrel spending. A policy of protecting a certain industry or field will mean that these costs of adjustment will be distributed over a larger number of sectors in the overall economy. The World War I had disastrous impact on the global economic system. The exchange rates fell and countries tried to diversify the costs of adjustment to their neighbors. There was a lack of coordination between the countries and it led to much more problems. This situation was very similar to the Pork-barrel spending where only a small number of people benefit at the expense of all others. Similarly only a small number of countries benefitted from these actions but a lot more suffered. One of the major consequence of the World War I was the unavailability of capital to various countries. Governments could not take any appropriate steps because they were busy in handling the foreign exchange problems. This was because globalization played a similar role to the pork-barrel spending. All these issues led to the start of World War II.

Works Cited

BIBLIOGRAPHY E.Elwood, Thomas. "Congressional Earmarks and Pork-Barrel Politics." Journal of Allied Health (2002): 127-130.

Evans, Diana. "https://calgara.github.io/Pol1_Fall2017/Evans_pork_2011.pdf." March 2011. https://calgara.github.io/Pol1_Fall2017/Evans_pork_2011.pdf. <https://calgara.github.io/Pol1_Fall2017/Evans_pork_2011.pdf>.

Mauldin, William. "https://www.wsj.com/articles/republican-sen-grassley-challenges-trump-on-some-trade-policies-11560513135." 14 June 2019. https://www.wsj.com. <https://www.wsj.com/articles/republican-sen-grassley-challenges-trump-on-some-trade-policies-11560513135>.

Pye, Jason. "https://www.freedomworks.org/content/earmarks-and-pork-barrel-spending-breed-corruption-congress." 1 January 2018. https://www.freedomworks.org. 31 August 2019.

Schatz, Tom. "https://www.usatoday.com/story/opinion/2018/07/18/pork-barrel-spending-explodes-under-republicans-column/792588002/." 18 July 2018. https://www.usatoday.com. 1 September 2019.

Wheelan, Charles. Naked Economics: Undressing the Dismal Science. New York: W.W.Norton and Company, 2003.

 

Subject: Economics

Pages: 8 Words: 2400

Economics For Business

Economics for business

Name of the Writer

Name of the University

Table of content

Contents

TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc18531045 \h 3

Industry background 451 PAGEREF _Toc18531046 \h 3

Market structure 444 PAGEREF _Toc18531047 \h 5

The industry’s associated issue PAGEREF _Toc18531048 \h 6

Climate Variability PAGEREF _Toc18531049 \h 7

Volatility in Commodity Prices PAGEREF _Toc18531050 \h 7

Concentration in the Farming Sector PAGEREF _Toc18531051 \h 7

Expansion in Indigenous Holdings PAGEREF _Toc18531052 \h 8

Resistance towards Unnatural Products PAGEREF _Toc18531053 \h 8

Vertical Coordination of Supply Chain PAGEREF _Toc18531054 \h 8

Impacts of the issue on the industry and on the Australia economy PAGEREF _Toc18531055 \h 8

Climate Variability PAGEREF _Toc18531056 \h 8

Volatility in Commodity Prices PAGEREF _Toc18531057 \h 9

Concentration in the Farming Sector PAGEREF _Toc18531058 \h 9

Expansion in Indigenous Holdings PAGEREF _Toc18531059 \h 9

Resistance towards Unnatural Products PAGEREF _Toc18531060 \h 10

Vertical Coordination of Supply Chain PAGEREF _Toc18531061 \h 10

Government policy PAGEREF _Toc18531062 \h 10

Conclusion PAGEREF _Toc18531063 \h 11

References. PAGEREF _Toc18531064 \h 11

Economics for business

Introduction

One of the largest continents in the world, Australia as a continent and a country is truly magnificent. It is a common held belief regarding Australia that it is an underpopulated wealthy country, which unfortunately gets hit by numerous natural disasters each year. The country’s economy mostly depends on the agriculture production and the Foreign Direct Investment. There are two distinct and comparatively different features of the Australian economy. The first would be the hindrance in the acceptance or significance of the Asia-Pacific region (Anderson, et al, 2016, pp. 299-319). Developing an understanding of this region and its opportunities is extremely important for the country. Second is the acceptance of rationalization in the upper diaspora of the country’s financial, political and bureaucratic framework. This rationalization revolves around economic philosophy that the importance and inevitability of globalization. Under these above circumstances, this piece of work focuses on analyzing the agriculture production industry of Australia. This report will specifically focus on the market structure of the industry, the issues associated within the industry and their impacts on the industry, and the government’s policies regarding solving those issues.

Industry background 451

Australia’s agriculture industry accounts for the total fifty eight percent usage of the land and around fifty nine percent of water usage. Furthermore, around fourteen percent of goods and services export come from this industry. This all adds into the fact that this industry accounts for almost three percent of the whole GDP (Gross Domestic Product) and also provides three percent employment in the whole employment sector of Australia. This data shows that the industry has been one of the strongest one’s within Australia. Moreover, the growth in the value of agriculture industry was thirty four percent from around forty nine billion dollars in 1999 to around sixty six billion dollars in 2018.

The agriculture production industry in Australia is highly diversified and is formed up of different entities. These entities are either further involved in services related to agriculture or in the production of agriculture related products in relation to the supply food chain. These entities are of varied nature and consist of processors, wholesalers, primary producers of commodities related to agriculture and manufacturers. Weather is one of the important factors that influences the farm yields and is a reason for the prices that are put into the supply chain (Jackson, et al, 2019, pp. 2-3). Moreover, it has also led to the fluctuations in the revenue in each segment of the agriculture industry over the period of the last five years. But due to the prevalence of diversity within the industry, it has been able to offset the effects of these fluctuations on the different sectors overall. Further analysis has shown that there is a forecasted increase in the revenue annually by a factor of 2 percent over the next five years. This level of competitiveness has allowed the Australian agriculture production industry to hold a monopoly in the whole world in comparison to other countries that have shown to have a higher income.

There are two main components of the Agriculture industry such as cropping and livestock. Around thirty one percent of the whole agriculture industry of Australia is dependent on cropping, whereas, forty four percent is dependent on livestock. The growth factors for each component has been of a varying nature. If an analysis of the livestock component of the agriculture industry is to be done, it can be seen that the dairy and beef sectors have witnessed growth with different rates. These growth rates were due to certain factors that were predominant in the economy such as the high prices and the drought in the United States of America. Furthermore, Australia in the livestock business is leading the world in terms of production of wool. This is because it exports and supplies around one-third of the total production in the world.

Market structure 444

If the performance of the industry is researched based on the sector level performance then it is clearly identified that the performance was driven by the farms that were the most productive. Their growth had been due to several factors, which has allowed growth to increase from three percent to sixteen percent. Furthermore, this growth has led to an overall increase in the share of output from twenty five percent to sixty percent of the overall figure. Focusing singularly on regions and sectors, it can be seen in the farms that are large in size have been more productive and able to generate more profit. This means that if there were a structural change in the current framework of farming than they can also be highly productive and be able to increase the level of competition within the industry.

A more detailed look is required of the current structure of the Australian agriculture production industry. It can be seen that the market conditions has allowed the best managers an ability to operate large farms. The size of farms have increased overtime in terms of receipts and the total area but the number of farms overall have also decreased. The increase in farm size has helped in increasing productivity through different channels. These channels include access to improved technology, flexibility in management of labor, developed practices implemented towards farm management and increased access to economies of scale that have shown to be more positive in nature. Another important point to consider for this increased development in this sector is the immense deregulation of the predominant agricultural market and introduction of microeconomic reforms in the whole economy.

Large farms have seen to be more productive and also more profitable. To support this notion, an analysis has been done that shows if the output per hectare of all farms was increased to those of the highest performing farms then there could be an increase of eighteen percent in agricultural output. Over the years it has been witnessed that farmers in the Australian agriculture industry have been able to achieve strong growth in productivity historically. Furthermore, they have also been able to show an increase in the output volume using only some certain inputs. This growth and productivity has enabled the farmers in Australia to compete in productivity with farmers in other countries that generate a higher income. It is understandable that smaller farms are less profitable compared to the larger farms but in comparison to Australian households they fare much better. This is because they have a comparable high income, lower amount of debt and a higher net wealth in comparison to the average household in Australia.

The industry’s associated issue

Australian agricultural production industry has been at the brunt of several threats and issues that have started to hamper the growth of this industry. The two most prominent factors that this industry has to deal with are high variability in the climate and increased volatility in the prices of commodities. There are also other factors and issues that are prevalent in the industry. These issues are concentration of the farming sector, indigenous holding expansion, resistance by customers regarding products that are considered unnatural, vertical coordination of the supply chain and the politics regarding the global environmental change (Lockie, 2015, pp. 7-11).

Climate Variability

Recently, Australia has suffered from a drought that has severely impacted the agriculture production industry in Australia. The recent drought in Australia has been seen as one of the worst droughts in around eight hundred years of the country and the continent. Australia has had a long history of drought, blistering heat and floods but their size and intensity has been up for debate. This is due to the fact that there have been limitation in observational and historical recording of such events.

Volatility in Commodity Prices

A hike in prices of agricultural commodities has been seen in Australia and has presented serious challenges for the different participants of the market. These participants include the investors, customers and the producers. This volatility in commodity prices has led to a deficiency in growth in at the macroeconomic level. The reason for such a hike in commodity prices has been characterized by some researchers as supply change and changes in the demand factors.

Concentration in the Farming Sector

Due to depopulation and increasing age within the inland, Australia has seen one of the factors for the decrease in the concentration in the farming sector. Furthermore, there has been witnessed a decrease in providing of services and amenities that are important for the agriculture industries in rural areas. Moreover, as there is less recruitment of youth in farming and the disproportionate employment of women in farming has further led to a decrease in the concentration in the farming sector.

Expansion in Indigenous Holdings

Many aboriginals and Torres Strait Islander Australians have an aspiration to settle down on traditional lands. They want to live on these lands, care for them and derive their livelihoods from these traditional lands.

Resistance towards Unnatural Products

In recent years, a movement has emerged among the consumers of the products and services provided by the agriculture production industry regarding unsustainable, unnatural and cruel products. Campaigns and boycotts have been all the rage right now against technologies and practices that are thought to be controversial. But this has led to growth in organic and alternative food markets.

Vertical Coordination of Supply Chain

Due to a highly concentrated retail sector there has been an emergence of vertical coordination of supply chain. This is due to the fact that there is less importance of markets such as spot or wholesale to large retailers. Furthermore, increased foreign ownership of the processing facilities has also been a leading cause for this issue.

Impacts of the issue on the industry and on the Australia economy

These issues have heavily impacted the agriculture production industry within Australia. Furthermore, these issues are not only impacting the industry but the economy of Australia as well (Smith, et al, 2018, pp.1185-1199). Their impacts are listed as follows.

Climate Variability

As mentioned above, the recent drought of 2018 - 2019 has been the worst one to hit Australia till date. It has been detrimental for the industry and the economy as well. Due to this drought, the value of production on a farm is expected to decrease by four percent to fifty eight billion dollars. This is a huge price tag that will be incurred onto the economy of the country. Moreover, due to this drought, food production is expected to decrease. This is due to lower yield of growth and production of low quality crops. Furthermore, due to shortage of water farmers would have to spend more irrigation and will have to look for alternative sources of water. This all will further lead into a hike in food prices.

Volatility in Commodity Prices

The volatility in commodity prices is arising due to the changing nature of demand supply of agricultural products. So according to ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) is expecting a hike in prices of livestock compared to the last three year prices. Furthermore, crops such as cotton will have a seemingly high prices and this is due to the fact that the drought has destroyed most crops. This makes the demand for the product high compared to a low supply.

Concentration in the Farming Sector

The impact of this would be the widening of the gap between rural and urban Australia. Furthermore, there is even a possibility of the collapse of the non-agricultural economy in rural areas. This is definitely not suitable for tourism and residential development. Moreover, there will be an increased dependence on international labor in order to meet the demand for expertise in supply management. This is also becoming a leading cause of depopulation and other trends that are associated with it.

Expansion in Indigenous Holdings

This actually has positive impacts for the economy and the agriculture production industry of Australia. This is because as more and Aboriginals and Torres Strait Islander Australians start producing on their lands they will be benefitting the economy as a whole. This will lead to the development of agricultural enterprises that are economically viable on traditional lands. Furthermore, with them living and taking care of the land they are living on, this will definitely improve the current distraught conditions of such lands.

Resistance towards Unnatural Products

This will heavily impact the image of Australia as the clean and green agriculture producer of the world. This will be detrimental for the country’s imports as there is a huge wave of clean and green products washing over the world. Customers want products that are organic and without additives and if their demands are not met than a loss of market share in the world is expected. Furthermore, if the agriculture production is not aligned with the demands of the consumers than a global supply would even be reorganized in such a way that it excludes Australia.

Vertical Coordination of Supply Chain

This will hamper the rate of productivity in the industry, which will then affect the economy in the overall sense. Furthermore, if supply chains become retail oriented than there is a possibility that the economies of scale that will be achieved will favor suppliers of a large nature. Moreover, if this issue continues forward than the products with high and low value would be mixed with each other. This will lead to the possibility of the customer using a faulty product that might be harmful to them.

Government policy

Government authorities has taken a lot of initiatives that can help to address the issues and complications in terms of drought. It is asserted that the Government has started both profit and non-profit organizations so that the desires of the people could be addressed. These plans include water resource management, analysis of the food products along with its division and the provision of resources. Moreover, the government started initiatives such as land care reforms and water management plans. The aim of all such plans was to ensure that the victims of drought can be treated and they can be restored to a normal health.

Conclusion

Taking into account an in-depth analysis of the facts and figures that are associated to the development of country, it is asserted that Australia has faced a lot of drawbacks as well but they were not too determined to affect the economy. Australia has addressed its barriers with great efficiency and productivity.

References.

Anderson, W.K., Stephens, D. and Siddique, K.H., 2016. Dryland agriculture in Australia: experiences and innovations. In Innovations in Dryland Agriculture (pp. 299-319). Springer, Cham.

Jackson, T., Zammit, K. and Hatfield-Dodds, S. (2019). Snapshot of Australian Agriculture. [online] Agriculture.gov.au. Available at: http://www.agriculture.gov.au/abares/Documents/snapshot-australian-agriculture.pdf [Accessed 4 Sep. 2019] (pp. 2-3).

Lockie, S., 2015. Australia’s agricultural future: the social and political context. Report to SAF07—Australia’s Agricultural Future Project (pp. 7-11).

Smith, E.F., Lieske, S.N., Keys, N. and Smith, T.F., 2018. The socio-economic vulnerability of the Australian east coast grazing sector to the impacts of climate change. Regional environmental change, 18(4), pp.1185-1199.

Pmc.gov.au. (2019). [online] Available at: https://www.pmc.gov.au/sites/default/files/publications/drought-assistance-information-pack-april-2019_2.pdf [Accessed 4 Sep. 2019].

Subject: Economics

Pages: 8 Words: 2400

Economics Foundation

CFBY bjbj 79 9 8 ,,,,,@@@8x4@4h( Rf,,,F,,CpF/04m,4 RUNNING HEAD ECONOMICS

Economics Foundation

Name of the writer

Name of the institution

Economics Foundation

Article The Trouble with GDP

The article chosen is a research study about the economic field conducted for the purpose to put a reflection on the issue or trouble with the Gross Domestic Product. Mainly the article states that the Gross domestic product (GDP) is increasingly a poor measure of prosperity. It is not even a reliable gauge of production. In the mid of nineties, an economist at Yale University William Nordhaus looked at two different approaches or methods that are used for measuring the price of light over the last couple of centuries. It can be done by the process of adding the change in prices over a particular period that the citizens of a region or country bring in to make an item such as a light. But it is a fact that the price of light got increased with time for more than three to five times from 1800 to 1992 while the involvement of innovation also made the light more efficient than it was (The Economist, 2016). Hence if measurements are done on these bases by the cost-conscious concept, then it may lead to plummeted for more than a hundredfold for the physicist. Hence the concept of GDP may come to have an issue when analyzed from such a perspective.

Apart from this, Mr. Nordhaus also stated that any real reckoning of the real incomes and revenues must account for the massive variances in the amount of quantity and of the commodities we use up to an extent. In the case of example of light, the process of measuring the amount or rate of inflation based on costs of items that are used in the manufacturing of the light and on the basis of quantity-adjusted measure of light itself will lead to bring variance up to 3.6 percent in a single year (Coetzee, 2018).

Charles Bean says that when the concept of Gross Domestic Product is taken and considered as the amount of financial value added by an individual to him or her economy, adjusted for inflation, then this is pretty simple and straightforward. While the concept of GDP takes up a high-level complexity when it comes to the details and elaboration because there is a number of factors and thing to consider and taken into the process of measurement when measuring GDP.

Similarly, in the process of measuring GDP, the value of the commodity produced is required to be added with the number of net inputs used across a wider range of commercial and business lines by incrementing each one as per their significance in the economy. It means that both input and output material should be measured to get the GSP figure. In todays service-based economy and the world, the trickiness becomes more highly critical. It is not so or it is not the issue that such calculations are difficult to do but the concern is about things that may get worse (The Economist, 2016). Hence and that is why the new lighting products show up the stats in the case when individuals start buying things in sufficient amount or volume.

The modern concept of GDP is as the sum or private utilization, investment, and spending of the government while the government spending is treated as the cost to the private sector in this modern concept and that is why the GDP may fall when this spending level goes up. On the other side, the GDP gets concerned with supply management during wars. While the effect of ideas of Keynes and their influence became a measure for production, not welfare where a measure is created when the survival was at the stake took less importance and notice of matters and items such as amount of assets depreciation, individuals achievements, and environmental patterns, etc. (Brynjolfsson, and McAfee, 2011) While measuring economic welfare also counted for some spending of state while environmental concerns should be involved as well. As that is why it is almost clear that Kennedy was right.

Further, the concept of finance is another activity that includes payments for service directly such as banks incomes, etc. and that is why the fault with GDP comes to see sometimes. Despite this, a change in the price also impacts the sales and purchase of a product which must be considered all the time. While in the case of ignoring this case, the concept of price becomes wrong. While these adjustments can be found tough to be done for services than the visible commodities as Boskin states that new products are a newer headache. But to value free digital services, the two possible approaches given by Sir Charles can be crucial almost all the time as they estimate spend time on the internet and rising traffic.

These matters do not invalidate the concept and use of GDP but set a direction for the changes in technologies and their varying impact with time when measuring GDP. Similarly, the revolution in different sectors also has a huge role in the process and measurement. Hence Sir Charles says that The problem is that, as things stand, GDP risks serving all its purposes ever-less well. (The Economist, 2016). Hence and to conclude, the challenge accounts for the massive changes in the range and quality of goods and services we use. But that finds approaches to more approachable and readily compare hand-held e-mail with the fax machine, self-driving car with a jalopy, vinyl records with music-streaming services and custom-made prosthesis with health-service crutches

Article When GDP Wont Do A New Method for Measuring Digitals Value

This article is the study aimed to figure out a new method or approach to measure the value of digital in case the Gross Domestic Product does not do.

A large number of measures of the economic performance and position to inform policies and decisions of the government body can be found based on the GDP. But a huge issue exists and raises that GDP does not count and captures the amount and shares of service and one of the keys and complex solutions that categorizes the new economies. A number of issues have raised in todays internet-based economies because measuring the value of online resources such as articles and apps etc becomes a critical challenge (Wladawsky-Berger, 2019). While it cannot be denied that GDP ignores these factors and items up to an extent while these should be accounted as we develop more digital goods when spending time on online platforms and the internet.

No doubt that there is a number of major and minor problems when it comes to measurement and keeping our statistics and this is one of the critical and major problems in todays advanced and internet-based world and economies.

The marginal cost of delivering digital goods through the source called the internet is the very first and initial problems and that is pretty close to Zero. It is also a fact that the online information gets updated almost every minute while the cost of it is much lower when it comes to its comparison with the physical counterpart (Gantz, Reinsel, 2012).

Another challenge is how the value of goods can be measured that value is basically zero. For the purpose to do so, the researchers Mr. Brynjolfsson, Avinash Collis and Felix Eggers came with the introduction of a novel method for this particular measurement. In principle, the measurement of consumer surplus gives a direct measure of the value of digital goods. In this research study, the author worked and use all of the three large-scale and mainly used online surveys that cover around 65,000 people for the purpose to measure consumers willingness to accept monetary compensation for losing access to various kinds of digital goods for a certain time period (Wladawsky-Berger, 2019).

Hence, the importance of online search engine and email is huge as they add a lot to the jobs and the results state that the digital economy contributes more consumers value than the realized when we look at the last 15 years when the presence of digital services was not so huge and strong (Wladawsky-Berger, 2019).

References

Brynjolfsson, and McAfee, 2011.Race against the Machine How the digital revolution is accelerating innovation, driving productivity, and irreversibly transforming employment and the economy. Brynjolfsson and McAfee.

Coetzee, 2018. Slide-in GDP growth the sign of an economy in trouble. Farmers Weekly,2018(18037), pp.25-25.

Gantz, Reinsel, 2012. The Digital Universe in 2020 Big data, bigger digital shadows, and biggest growth in the Far East.IDC iView IDC Analyze the future,2007(2012), 1-16.

The Economist, 2016. The Trouble with GDP. Available at HYPERLINK https//www.economist.com/briefing/2016/04/30/the-trouble-with-gdp https//www.economist.com/briefing/2016/04/30/the-trouble-with-gdp (Accessed 1 February 2020).

Wladawsky-Berger, 2019.When GDP Wont Do A New Method for Measuring Digitals Value,WSJ. Available at HYPERLINK https//blogs.wsj.com/cio/2019/05/24/when-gdp-wont-do-a-new-method-for-measuring-digitals-value/ https//blogs.wsj.com/cio/2019/05/24/when-gdp-wont-do-a-new-method-for-measuring-digitals-value/ (Accessed 1 February 2020).

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Subject: Economics

Pages: 6 Words: 1800

Economics IA

Name

Professor name

Subject

Date

Economics IA

Keywords

Economic integration is an effective way of increasing links among countries. Corporation among countries leads to many benefits such and free trade, increased competition, high investments, expansion into larger markets and improved productivity. Exit of United Kingdom from European Union will impact its trade relations with other countries. Brexit will cause countries to impose tariffs which will impact UK’s imports. Changes in imports and exports are most likely to be experienced by UK. Custom union and free trade are important components of economic integration that can be effective in covering trade agreements from both sides. Free trade deal has positive impacts on EU economy specially in the food processing and agricultural sectors.

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Qd Qw

The first diagram shows how trade affects demand and supply in the absence of tariffs. P represents the price of goods at home (UK) and P* shows work price. The import is Qw- Qd. The second diagram shows how imports change when countries like US, Australia and New Zealand will impose tariffs.

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The diagram shows the options of trade used by UK after Brexit. It explains possible relationships between UK and EU countries. Free movement of goods is considered only. There are limitations because free movement of people is ignored. Impact on UK’s trade deals with United States, Australia and New Zealand is examined. Brexit will cause UK to suffer if US, Au and NZ slash import tariffs CITATION Chu19 \l 1033 (Chu). When any country imposes tariff or increase price than the volume of imports will be effected. Price is increased from P* to P1 which indicates the changes due to imposition of tariff. Due to high prices the imports will decline. This indicates that domestic production will increase. The diagram explains the overall impact would be reduction in imports and high consumer prices.

Theory

Theory of economic integration identifies trade as an important element for economic growth. Bilateral or multilateral trade agreement can be used with group of countries for removing trade barriers. The options considered for Brexit include custom unions and free trade. United Kingdom decided to exit from the common market which support free movement of labor and capital. External tariffs are imposed on non-member nations only. Custom union eliminate trade barriers among member countries that enter into agreement. The countries cannot determine their trade policy independently. This prevents them from the creation of complicated rules. Free trade are allow group of countries to remove trade barriers.

Evaluation of solution

To determine future trade relations of UK with other countries two possible solutions include custom unions and free trade area. Customs union is a practical solution that can be used by UK for overcoming trade challenges. UK will be removed from single marker due to hard exit which means no free movement of goods, capital or labor. If UK fails to participate in custom unions it will face tariff from other countries that will restrict imports. UK will need to control its negative trade balance which is low compared to other European countries CITATION Chu19 \l 1033 (Chu). UK is importing capital intensive goods including food, chemicals, live products and machinery. Custom unions could be an effective solution for UK because it will allow the country to enter intro trade agreements. By this option UK would manage to import duty-free products from European countries. However it must be noted that custom unions allow only movement of goods not services.

Another possible solution could be single market in case of soft Brexit. This suggests having free access to the European market. However UK will not remain member of European council. Low intra-trade costs is prominent benefit for single market. UK can benefit from the reduction of intra cost. The analysis of the solutions depicts that the best option available to UK after Brexit is custom union. After Brexit countries like US, NZ and Au will impose tariff. Custom union promote free trade flow that will work as a free trade agreement among UK and other countries. By entering into trade agreements with these countries UK would manage to overcome trade barriers. Countries will accept unified common tariff that will support trade activities among them. The effect of custom unions is analyzed through trade creation. This indicates that more efficient members will sell to less efficient members. Closer interaction among countries is also a potential benefit of custom unions. Economic and political collaboration is possible that leads to single internal market.

Work Cited

BIBLIOGRAPHY Chu, Ben. Brexit: Free trade deals 'won't offset leaving EU’ 11. 2019. 16 01 2020 <https://www.bbc.com/news/business-50719616>.

Subject: Economics

Pages: 3 Words: 900

Economics In The Airline And Aviation Industry.

Economics in the Airline and Aviation Industry

Your Name (First M. Last)

Date

Economics in the Airline and Aviation Industry

Introduction

Commercial aviation and airline industry is recognized as one of the major corporate sectors of the country. Undoubtedly, it involves economic domains of different stakeholders. It is worthy to notice that currently, this particular sector requires necessary attention in the form of changing the business model. Today, the service industry of aviation is going through different forms of complex challenges that require necessary attention. It is crucial to critically assess the ground reality and propose realistic economic measures to deal with all forms of concerns. Here the particular focus is to critically observe the entire spectrum of the aviation industry of the country and analyze it under the domain of relevant microeconomic theory.

Discussion

Decreasing profitability level for the airline industry of the country demands the application of some immediate and useful aspects of fixation. The economic system of the country is immensely influenced by the elastic service industry model. Understanding of the entire economic functioning of the aviation sector is important to make better inferences about the required economic model and application of suitable economic theory. The effects of economics can be observed in different forms such as the concern of shortage of pilot to passenger ridership. Another troubling reality associated with the overall approach of the aviation sector is that the business model for the industry remained the same for more than 30 years. It reflects that the operational business model for this sector never had the prudent approach to address dynamic aspects of the market effectively and efficiently.

Unfortunately, the business situation is getting worse for the aviation sector that requires immediate economic measures. Various economic challenges can experience on a daily basis that eventually affects the overall profitability level of the industry. An extensive loss is ridership is one clear example of the prevalence of different economic concerns. There is a need for identification of economic issues and analyzing them under the domain of relevant microeconomic theory. This form of consideration can be helpful to offer better solutions to the financial difficulties of the service industry. Experts have a consensus that it is the right time to take some necessary measures to change the growing problems for the aviation sector. The critical consideration is crucial because this particular sector is ranked as responsible entity of $ 1.5 trillion in the overall economic paradigm of the country. Approximately, the employment of 12 million individuals is linked with this form of the service industry ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"qsPD1H2q","properties":{"formattedCitation":"(\\uc0\\u8220{}Aviation Needs a Makeover,\\uc0\\u8221{} n.d.)","plainCitation":"(“Aviation Needs a Makeover,” n.d.)","noteIndex":0},"citationItems":[{"id":216,"uris":["http://zotero.org/users/local/h6KbaPMu/items/5X7EXCBX"],"uri":["http://zotero.org/users/local/h6KbaPMu/items/5X7EXCBX"],"itemData":{"id":216,"type":"webpage","title":"Aviation Needs a Makeover","container-title":"US News & World Report","abstract":"It's time to address the growing number of problems facing the U.S. aviation industry.","URL":"https://www.usnews.com/opinion/economic-intelligence/articles/2017-01-19/americas-aviation-industry-needs-a-makeover","language":"en","accessed":{"date-parts":[["2019",3,25]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Aviation Needs a Makeover,” n.d.). Despite the extensive market of this sector, sadly the aviation industry suffers from numerous problems. Aviation sector of the country is losing its capacity to accommodate passenger growth that is one major concern. There is a need for handling this certain issue on priority basis. It is revealed that the industry never had enough economic resources to create a proper balance between demand and supply involves in the entire business form. Capacity constraints on airports become one common issue in the aviation sector that eventually leads to the failure to attain the desired level of profit from the market.

Airline economics is one complex scenario that is a concern with different facets of considerations. A proper understanding of different characteristics of the economics of the airline industry helps to determine actual economic issues. It is noticeable to indicate that the problem of shortage of supply is relevant to various operational domains. Growing competition in the industry at a global level makes it essential for all the shareholder to enhance the supply to attract more customers both nationally and internationally ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"bufnbjNz","properties":{"formattedCitation":"(\\uc0\\u8220{}Airline Economics,\\uc0\\u8221{} n.d.)","plainCitation":"(“Airline Economics,” n.d.)","noteIndex":0},"citationItems":[{"id":218,"uris":["http://zotero.org/users/local/h6KbaPMu/items/3E7AVWIS"],"uri":["http://zotero.org/users/local/h6KbaPMu/items/3E7AVWIS"],"itemData":{"id":218,"type":"webpage","title":"Airline Economics","container-title":"Avjobs, Inc.","abstract":"Because of all of the equipment and facilities involved in air transportation, it is easy to lose sight of the fact that this is, fundamentally, a service industry. Airlines perform a service for their customers - transporting them and their belongings (or their products, in the case of cargo customers) from one point to another for an agreed price. In that sense, the airline business is similar to other service businesses like banks, insurance companies or even barbershops. There is no physical product given in return for the money paid by the customer, nor inventory created and stored for sale at some later date.","URL":"https://www.avjobs.com/history/airline-economics.asp","accessed":{"date-parts":[["2019",3,25]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Airline Economics,” n.d.). The phenomenon of airline costs is also hugely related to the overall form of the economics of this sector.

The evolutions in the successive years will change the dynamics for the airline industry. The influx of rivals and the systematic changes are likely to disrupt the smooth economic execution of operations. It is imperative to highlight that domestic markets will not be the only entity to confront the challenges of adopting to the vigorous changes. For instance, Norwegian announced the initiation of trans-Atlantic flights from crucial cities as Denver, Austin and Chicago ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"bSf7mwzY","properties":{"formattedCitation":"(Contributor, n.d.)","plainCitation":"(Contributor, n.d.)","noteIndex":0},"citationItems":[{"id":214,"uris":["http://zotero.org/users/local/h6KbaPMu/items/JZ4Y6XIJ"],"uri":["http://zotero.org/users/local/h6KbaPMu/items/JZ4Y6XIJ"],"itemData":{"id":214,"type":"webpage","title":"Winter’s In-Season Produce — And How To Prepare It At Home","container-title":"Forbes","abstract":"This winter, choose produce that’s at its best when the temperature drops. You’ll find feeding your family a rainbow of in-season foods is surprisingly easy — and remarkably delicious.","URL":"https://www.forbes.com/sites/capitalone/2018/12/21/winters-in-season-produce--and-how-to-prepare-it-at-home/","language":"en","author":[{"family":"Contributor","given":"Capital One"}],"accessed":{"date-parts":[["2019",3,25]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Contributor, n.d.). These flights are expected to attract the customers which are price sensitive. Collectively, the economics of airline industry will be transformed drastically. Nowadays, passengers have advanced to nurture their loyalties with the price factor, not with the airline. In case Norwegian or other carrier offers a lower ticket price, the price-sensitive consumers will change the brand. The incumbent stakeholder airlines ought to be aware of the critical matter. Since the consumers are utilizing the available services in the contemporary era, the successive years may cause them change the airlines and thus the airlines may face grave economic adversities. The surge of the Norwegian flights can change the perception and consequently the economic sustainability of airlines sector. Enhancing the inherent market advantage, higher fleet frequencies and making the passengers less prone to be stranded in foreign airports can prove productive for the airlines to retain and maximize the economic output. Primarily, the major stakeholders in the deliberated economic factors are the passengers. In next five years, the fundamental economic structure of air transportation will be changed. The traditional policies and procedures to maintain a healthy economic growth will struggle to yield efficient outcome. The economics of long-haul flying will, irrefutably, be driven by the innovative technology potentially. The need of the hour is harnessing the technological advancement in airlines to open up the economic growth and capacity.

Conclusion

Evidence of the current scenario of the entire aviation industry indicates that there is a need for huge investment for the industry. There is a requirement of investing more money to effectively address financial concerns such as the shortage of supply that prevails in the industry. The particular theory of trickle-down effect is one effective theoretical prospect to understand the economic issues involved in case of aviation sector of the country. The decreasing trend of ridership is one significant example of the issue of the existing economic problem of short supply. The gap between supply and demand is increasing every day that is a concern with the approach of the trickle-down effect. It is important to mention that the significant theoretical concept of trickle-down effect is similar to the facet of supply-side economics. This specific theory of trickle-down effect is utilized to figure out the phenomenon of supply-side domains. The main focus of this theoretical perspective is that all forms of tax cuts are a great incentive for growth.

The theoretical approach of supply and demand effect is one significant plan of action to handle financial concerns of the aviation sector. This particular domain is determined as the effective practical form to address the growing problems specifically. The certain theory of supply is one helpful direction for the investors in the aviation sector to identify the growing demands and invest according to the actual needs. Proper consideration of this microeconomic form makes it easy for the producers to invest in the specific areas which require necessary attention — adoption of the specific practical facet assists to identify the actual concerns and propose relevant practical measures.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Airline Economics. (n.d.). Retrieved March 25, 2019, from Avjobs, Inc. website: https://www.avjobs.com/history/airline-economics.asp

Aviation Needs a Makeover. (n.d.). Retrieved March 25, 2019, from US News & World Report website: https://www.usnews.com/opinion/economic-intelligence/articles/2017-01-19/americas-aviation-industry-needs-a-makeover

Contributor, C. O. (n.d.). Winter’s In-Season Produce — And How To Prepare It At Home. Retrieved March 25, 2019, from Forbes website: https://www.forbes.com/sites/capitalone/2018/12/21/winters-in-season-produce--and-how-to-prepare-it-at-home/

Subject: Economics

Pages: 4 Words: 1200

Economist Carl Marx



Economist Karl Marx

[Name of the Writer]

[Name of the Institution]

Economist Karl Marx

Background:

Karl Marx was a German philosopher, economist, politician, and sociologist. He was born on May 5th, 1818. He belonged to a Jewish family. He took early education from his father who was a lawyer by profession. Later he attended Trier high school. In 1835, he got admission in the University of Bonn where he showed interest in studying literature and philosophy. However, his father wanted him to choose law for the future profession. In the university, Marx joined various clubs and engaged in a dispute which was serious. Due to several disputes, his father was forced to transfer him to the University of Berlin even after getting good greats in the University of Bonn. With the passage of time, Marx got serious about his study however, he always found philosophy more fascinating than law. He started writing both fiction, non-fiction short novels and lots of love poems. In 1842, Marx became a journalist where he expressed his view on socialism and economics. He made a criticism of the socialist movement and right-wing European governments ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"2mlkpbxT","properties":{"formattedCitation":"(\\uc0\\u8220{}Karl Marx Biography,\\uc0\\u8221{} n.d.)","plainCitation":"(“Karl Marx Biography,” n.d.)","noteIndex":0},"citationItems":[{"id":323,"uris":["http://zotero.org/users/local/mlRB1JqV/items/FWLDK6I5"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/FWLDK6I5"],"itemData":{"id":323,"type":"webpage","title":"Karl Marx Biography","URL":"https://www.marxists.org/archive/marx/bio/marx/eng-1869.htm","accessed":{"date-parts":[["2019",4,29]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Karl Marx Biography,” n.d.). In Brussel, Marx wrote, "The German Ideology" in which he presented the theory based on historical materialism. In France, he anticipated the socialist revolution. Later, he got expelled from Germany and France due to his writing. However, he did not stop presenting his view on socialism. In 1867, Marx increased his focus towards economic theory and capitalism where he successfully published the 1st volume of Das Kapital. He spent his remaining life by continuing his work. However, his remaining two volumes were published by Engel due to his death in 1883.

Marxist schools of thought:

Karl Marx belonged to the Marxist school of thought. The school of thought was developed on the work presented by Karl Marx in the 19th century. Marxism Most of the work that represents the Marxist school of thought is based on the first volume of Das Kapital. In Das Kapital, Karl Marx explained the theory of the capitalist system, its trends, and dynamism towards self-devastation. The main focus of the school is on the critics of the classical approach of Adam Smith for the wages and productivity through labor's role for economic development. The Marxist school of thought explains that with the growth of population along with the specialization of the labor force, wages go down and that the value of goods and services does not exactly interpret for the actual cost of labor. Most of the Marx work represents the philosophical critique in it. He believed that all the information involves in the critique of idea. He was not empiricist and never relied on developing abstract affirmation for the bundle of the problem ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"cPOgEpKt","properties":{"formattedCitation":"(\\uc0\\u8220{}Karl Marx - Econlib,\\uc0\\u8221{} n.d.)","plainCitation":"(“Karl Marx - Econlib,” n.d.)","noteIndex":0},"citationItems":[{"id":325,"uris":["http://zotero.org/users/local/mlRB1JqV/items/SZ98V6JU"],"uri":["http://zotero.org/users/local/mlRB1JqV/items/SZ98V6JU"],"itemData":{"id":325,"type":"webpage","title":"Karl Marx - Econlib","URL":"https://www.econlib.org/library/Enc/bios/Marx.html","accessed":{"date-parts":[["2019",4,29]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Karl Marx - Econlib,” n.d.). Instead, he tried to focus on a single problem at a time by relating them with economic, social, political, and historical facts.

Marx theory and explanation:

Marx believed that whenever a capitalist has set up the production method, the entire value is made by the labor engaged with the production of whatever is being delivered. Marx anticipated the capitalism fall and development of society toward socialism, in which "the general population" that is, the labor possesses the production means. Therefore, there cannot be any reason to misuse labors for benefit. In reality, 2 events have undermined theories of Marx. First, in communist, centrally arranged economies have demonstrated far less proficiency for the production of goods and services, that is, at producing the best outcome for the maximum number of individual than capitalist frameworks. Second, labors' salaries have actually increased with the passage of time, which undermines the theories that worker is misused for the sake of benefit which means that labors' incomes are increasing. Thus, they are becoming part of the economic growth of the state.

Major Contribution to the School of Economics

The contributions of Karl Max played an instrumental role to define the trends economics. As per his dogmas, economic laws change with the passage of time and thus the impediments cannot be reduced in true letter and spirits. His labor theory of value (LTV) delineated the values pertinent to the economic value of services or goods which later laid the foundation of Marxian economics. A wide range of its concepts of the business cycle and capital accumulation is associated with the contemporary capitalist systems. His work primarily lies at the very heart of subsequence economic philosophies and the current comprehension of the relation between labor and capital. Furthermore, one of his profound contributions was the publication of Das Kapital. The first volume was published in 1867 which underpinned a profound account of the political economy. The principle objective of the work is still widely assessed and associated with the contemporary economic developments as the motivating factor for the capitalist forces is the exploitation of labor and their unpaid work essentially fuels the surplus value. A critical appraisal of Marx's work highlights the validity of his ideas with evidence which is apparent in the contemporary states including both the developed and underdeveloped nations. It generated the essential theory that the capitalists are inclined towards generating a significant force of unemployed population to advance the accumulation of capital. The working and capitalist class are critically distinguished and supplemented with an empirical account of the economic context. To conclude, Karl Max is irrefutably deemed one of the founding founders of economic principles which later offered the path to economic assessment and evaluations of the intricate relation between capitalism and the working labor.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Karl Marx - Econlib. (n.d.). Retrieved April 29, 2019, from https://www.econlib.org/library/Enc/bios/Marx.html

Karl Marx Biography. (n.d.). Retrieved April 29, 2019, from https://www.marxists.org/archive/marx/bio/marx/eng-1869.htm

Subject: Economics

Pages: 3 Words: 900

Economy

Economics

Student’s Name

Institution

Date

Complete a table for Q, Price, TC, MC, MR and profits. Start the price at the number of letters in your first and last names combined for Q = 1,

Quantity

Total Cost

Marginal Cost

Total Revenue

Marginal Revenue

Profit

0

$ 8

---

$ 0

---

$ -8

1

9

$ 1

8

$ 8

-1

2

10

1

16

8

6

3

11

1

24

8

13

4

13

2

32

8

19

5

19

6

40

8

21

6

27

8

48

8

21

7

37

10

56

8

19

As an economist I would advise her to reopen the booth. First, the business has indicated a success performance in the last weeks. The decline in performance might be due to some market factors such as decrease in demand or increase in supply. I would advise her to look at the competitors and the market change to determine the decline in sales. The analysis also indicates that the business has high demand from students and it would be appropriate to continue (Scauzillo, 2019). I would also advise her not to get discouraged with the cost of setting up the business. The cost is high since it is projected that she would spend approximately $250 for setting up the business. However, the profit can be increased and I would advise her to derive tactics to increase the business sales. This could be done through intensive marketing online to increase demand. With increase of demand the profitability would be high as well.

Glendale Water and Power is enjoying the monopoly since it is only the company producing energy and supplying the Loss Angels region. The monopoly occurs when a single firm supplies the market with specific products and in this case, Glendale Water and Power is the only know company, which produces energy in the region. The monopolistic of the market by a single company (Lister, 2016). Monopoly of a market occurs in various ways. First, it could be through the control of supply chain from the production. And Glendale Water and Power controls the production of energy in the region and this gives it a competitive advantage over the rest of the companies, which supply energy in the region. The monopoly has an effect in the market and it affects both price and demand. In a monopoly market, the supply is constant, the demand is the demand and the price always remains the same. It makes the consumers to suffer of high prices of the commodities and therefore, it is always not encouraged. Monopoly can also refuse to sell goods to customers and this can lead to direct shutdown of business.

For sales of juices and other related products it would be advisable to have variable explicit cost. The variable explicit cost is based on the output registered by a company. And therefore, explicit costs are the expenditures incurred by the company when producing goods (Lister, 2016). The variable cost changes when the company increases or decreases the production, while the fixed cost remains the same whether the company increases or decreases the production. The fixed cost is not good for business and it can make the business to incur a lot of loses (Kenton, 2017). It is important to have variable explicit cost as the method of costing for business.

Bibliography

BIBLIOGRAPHY Kenton, W. (2017). Explicit Cost. https://www.investopedia.com/terms/e/explicitcost.asp , 2-35.

Lister, J. (2016). Explicit & Implicit Business Transactions. Journal of Business and Economic , 2-18.

Scauzillo, S. (2019). Glendale puts its natural gas plant back on the table — while LA, others back away from fossil fuels. https://www.dailynews.com/2019/04/06/glendale-puts-its-natural-gas-plant-back-on-the-table-while-la-others-back-away-from-fossil-fuels/ , 2-35.

Subject: Economics

Pages: 2 Words: 600

Economy Paper

Question 2: Please use examples with data and graph support analysis to demonstrate and evaluate the roles of social media marketing to influence a small company to thrive?

Small business and organizations can effectively and efficiently use social media for promoting and advertising their products and services without much expenditure. The social media help them generate electronic Word of Mouth (eWOM) that impacts the consumer perception and willingness to buy/consume the advertised product.

eWOM has picked up gigantically in essentialness by the power of social network locales on the internet. Because of the extensive adjustments in online media, the devices and techniques for speaking with clients have changed altogether with the rise of the wonder known as social media (Bhandari & Rodgers 2018). Albeit "social media" are frequently utilized synonymously in writing, it is vital to separate plainly between the terms. Social media comprise of three unique sorts of stages: social networks, online groups and gatherings, and sites. Every one of them enable clients to share item related data with each different and also with organizations. This segment will center around social network locales as an integral piece of social media.

Daugherty & Hoffman (2014) offer a meaning of social network destinations being web-based administrations that enable people to develop an open or semi-open profile, express a profile of different clients with whom they share an association, and view and cross their profile of associations and those made by others inside the framework. Social network destinations have impressively changed the commercial center flow. The strengthening of the client has not just changed the method for spreading eWOM as a type of data using the internet; it has additionally taken into consideration social network locales, for example, Facebook or Twitter to end up promoting media vehicles of real significance (Figure 1).

Figure 1: Coefficient Determinants of Effective eWOM through different Social Media

One particular element of eWOM in social networks is the interaction with commonplace individuals rather than taking part in, for instance, the trading of item proposals with unacquainted clients. Clients drawing in with each other in social network locales are as a rule some portion of networks that existed before entering the social network. Prior contacts are perceived more dependable. Subsequently, WOM in social networks has a higher validity contrasted with other online media. Social network locales additionally add to making the dissemination of online data speedier and less demanding (Daugherty & Hoffman 2014).

Brand attitude is characterized as how a consumer assesses a brand whether great or awful (Wang et al. 2013). Consumers judge whether the brand is useful and afterward shape a brand attitude in light of that judgment. A positive brand attitude brings about the expansion of a consumers' purchase intent (Wang et al. 2013). This would bear some significance with industry as an association that manufactures and keeps up positive brand attitudes has an expanded likelihood of holding consumer purchase intent, which means better execution.

With the quick and developing headway of web utilization now individuals can post their surveys, suggestions, tips on the virtual climate (Arenas-Gaitan, Javeir, Cataluna, Esteban and Correa, 2013). Word of mouth is an assessment of item and administrations. WOM opens up the entryway for individuals to give their suppositions about brands with other individuals confide in. Branding is an imperative viewpoint for any association to assemble capital and is considered as association resource, Strong brand empowers association to impact consumer for more purchase and to imagine better and comprehend the elusive parts of the brand, all the more ever brand image can influence the future benefit and long-haul income as consumers demonstrate ability to pay high and be a piece of promoting achievement.

Brand association is made with the assistance of direct involvement of purchasing and furthermore by the data stream to the consumer through WOM, and sets of brand association are brand awareness and brand image.

Online and web have more effect on making and setting up a brand image, and the solid effect of the brand image is made through WOM which makes a solid effect on brand judgment (Hutter et al. 2013). The exploration Conducted in Iran demonstrates that eWOM is a powerful and persuasive instrument which positively affects brand image and consumer purchase intention, eWOM helps in building great brand image and has a coordinate impact on it, the examination uncovers that brand image mediates the connection of eWOM and Purchase intention (Hutter et al. 2013).

Consumers trade their perspectives and discuss item and administrations through eye to eye correspondence, telephonic system, and now social media has additionally offered a lift to their trading view. Correspondence between the consumers impacts their purchasing behavior and can change their purchase intention (Berger and Iyengar 2013). eWOM is changing the behavior and choices of individuals with the development of web and internet business; individuals now utilize others individuals proposals and suppositions while settling on purchase choice and notwithstanding when settling on disconnected purchase choice they think about electronic data about things. eWOM is assuming a key part in consumer purchasing choice nowadays.

Numerous associations are currently contributing on eWOM instead of on conventional advertising instruments as they discovered eWOM as a solid discussing medium with more noteworthy compelling force (Yoo & Donthu 2001). Research on the Iran car expos that eWOM has a solid and positive effect on the purchase intention, in this exploration brand image is utilized as mediator. The consequence of research demonstrated that eWOM has a solid and direct effect on the purchase intention while the brand image is assuming a fractional mediating part.

Works Cited

Arenas-Gaitan, Jorge, Francisco Javier Rondan-Cataluña, and Patricio Esteban Ramírez-Correa. "Social identity, electronic word-of-mouth and referrals in social network services." Kybernetes 42.8 (2013): 1149-1165.

Berger, Jonah, and Raghuram Iyengar. "Communication channels and word of mouth: How the medium shapes the message." Journal of consumer research 40.3 (2013): 567-579.

Bhandari, Manu, and Shelly Rodgers. "What does the brand say? Effects of brand feedback to negative eWOM on brand trust and purchase intentions." International Journal of Advertising 37.1 (2018): 125-141.

Daugherty, Terry, and Ernest Hoffman. "eWOM and the importance of capturing consumer attention within social media." Journal of Marketing Communications 20.1-2 (2014): 82-102.

Hutter, Katja, et al. "The impact of user interactions in social media on brand awareness and purchase intention: the case of MINI on Facebook." Journal of Product & Brand Management 22.5/6 (2013): 342-351.

Wang, Jau‐Shyong, Yen‐Fen Cheng, and Yi‐Ling Chu. "Effect of celebrity endorsements on consumer purchase intentions: advertising effect and advertising appeal as mediators." Human Factors and Ergonomics in Manufacturing & Service Industries 23.5 (2013): 357-367.

Yoo, Boonghee, and Naveen Donthu. "Developing and validating a multidimensional consumer-based brand equity scale." Journal of business research 52.1 (2001): 1-14.

Subject: Economics

Pages: 3 Words: 900

Elasticity

Elasticity

[Name of the Writer]

[Name of the Institution]

Elasticity

Consumer surplus = 0.5 (21-13)*80

Consumer surplus = 320$

Comparative Equilibrium

At 13$ price

Consumer surplus

240$

160$

Product surplus

400$

720$

Deadweight loss

none

40

a. Initial price = 1.25 dollars price after tax= 2.50 dollars

Government tax on each pack = 2.50 - 1.25= 1.25 dollars

b. Tax paid by consumer = 2.50 – 1.50

= 1.00 dollar

c. Tax paid by producers = 1.50- 1.25

= 0.25 dollar

d. Quantity sold after tax= 18 billion

e. After-tax revenue received by producers = 1.25 dollar

f. tax revenue collected by the government = 1.25* 18

=22.5 billion dollar

g. deadweight loss = (1/2*1.25*2)

= 1.25 billion dollars

Determine the market clearing price, market clearing quantity and total clearing economic surplus when marketing clearing is changed.

QD = 5000-100p

QS = -1000+50P

Therefore, = 5000-100p =-1000+50p

=5000+1000 =100p+50p

= 6000 = 150p

P = 6000/150

P= 40.

However, QD =5000-100p

= 5000-(100*40)

= 5000-4000

QD=1000.

QS=-1000+50p

=-1000+ (50*40)

=-1000+2000

=1000

QS= 1000

The market clearing for is $40, the quantity is 6000 and the economic when the market price charged would be 90.

Subject: Economics

Pages: 1 Words: 300

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