Economics

The word of economic recessions is not a new one for the entire world, especially for the peoples of US, as economic recessions have occurred all throughout the history of modern economics. A large number of people are still unaware with the term financial and credit crisis. From an Economist view point, a financial crisis occurred when a conflict disordered the money supply and wealth of the economy, or in laymen terms it can be said that, when a shortage of cash and liquidity prevails in the economy,...

Introduction That economics has become one of the determining decision-making principles is difficult to deny. Thousands of individuals and businesses are being governed by economic principles and view economics as the determining factor of individual decision-making. In microeconomics, individual decision-making is usually defined via the four basic principles. Generally, individuals who seek to take economic and non-economic decisions should be prepared to evaluate marginal costs and benefits...

Mid-Term Questions1. When governments impose prices in an attempt to help some particular group of producers or consumers, there are often unintended consequences. Use the case of Minimum Wage to show this. (a) Explain how some workers and companies may be disadvantaged through this wage increase. The minimum wage can be described as the lowest hourly, daily or monthly  HYPERLINK httpen.wikipedia.orgwikiWage o Wage  monetary compensation  that an employer should legally pay its...

Introduction As with any other country, the global economic crisis had a strong impact on the Indian economy. The global money supply squeezed which also had an impact on the Indian economy. The decline in aggregate demand in the international markets led to decline in demand for Indian exports which ultimately led to slow growth of GDP. Shortage of credit also led to crunch in the Equity and Debt markets of India making it difficult for businesses to fund their expansions and new businesses. The...

Introduction The relationship between demand for a product and its price is considered basic knowledge in economics. An increase in the demand of a product predictably leads to increase in its price. As more and more people need or want the same product, the sellers are able to raise the price of the product without significant impact on the demand. Suppliers too are willing to supply more when prices are high, and scale down their supplies as prices fall. While such relationships are reasonably...

Minimum wage law refers to a wage that is legally set and prohibits employers from paying employees below the specified amount of money. The policy was established to curb those employers who were at first suspected of paying their employers unjustifiable salaries, especially in developed countries such as the USA and UK. Minimum wage law focused on eliminating poverty by ensuring that employees are paid the minimum amount of wage above the poverty level index. However, instead of minimum wage laws...

Introduction Human Immunodeficiency Virus is transmitted from one person to another through exchange of tissue fluids like blood, semen, breast milk, and vaginal secretions. Sexual intercourse has been reported to be the major route of spread of the virus. Other ways in which the disease can be spread include sharing of sharp objects like razor blades or needle for injections, at child birth and also during breast feeding. As the virus replicates in the body cells, it attacks the body immune system...

The constant renewal of a labor force through the establishment of vacancies and filling them, aids a capitalist economy to function efficiently this is the maintenance of the labor force. To characterize a system of migrant labor, there has to be an establishment in the difference between the institution itself, and the physical separation of the processes of renewal and maintenance. Migrant labor also depends upon the presence or lack of employment in a specific area, and the state of an economy...

Chapter 60 The goods and services market model, the foreign exchange market model and the money market model were integrated and combined together in the AA-DD model. The AA-DD model represents the connection among the three market models through a graphical form. Basically, AA-DD model is composed of the AA line and the DD line. The AA line symbolizes the market balance of assets. The AA line is derived from the foreign exchange market model and the money market model. The DD line symbolizes market...

The central bank is the most important organization in any economy in the world. Its main goals are Sustaining economic growth, and stabilizing the monetary and financial systems. In the United States, the organization that handles the responsibilities and duties of the central bank is the Federal Reserve System (also known as the  Fed ). The United States economy is big and hard to manage, and therefore, the nation needs a huge system with a big number of institutions in order to maintain...

The United States federal budget is the proposal by the president of the United States to the congress, recommending the funding levels of the next year (fiscal year), which normally starts on October 1. The decisions concerning proposed federal budget that are made by the congress are governed by the legislation as well as the rules pertaining federal budget process. In the federal budget, the Budget Committees usually set the limits of spending of the House while the Senate Committees set the...