Economics and Its Concepts

In a very general sense, economics is a social science that is devoted to studying how someone who produces something benefits from someone else buying it. However, the definitions of this discipline are numerous. It can be considered as the study of resources, their allocation, and scarcity as well as the study of problem-solving and decision-making. Because of the specific media exposure, when one hears the word “economics,” the first associations to cross his/her mind are usually those about stock markets, financial issues, crisis, etc. If fact, economics is about much more than that. It is a science that allows analyzing the past, interpreting the present, and forecasting the future. One of the essential notions for the field of economics is an incentive. The discipline studies the way people act when they what to receive something. The triggers spurring individuals, families, companies, and even governments to change the behavior are the incentives. For instance, discounts in a supermarket offer incentive to those who want to save some money. A new private school prompts parents to buy a house in the neighborhood where it is located as they want the best for their kids whereas cheap labor overseas causes companies to outsource factories. Therefore, incentives are drivers of society at different levels.

Depending on the scale of issues regarded, economics is divided into microeconomics and macroeconomics. The former concerns the financially related issues and choices of individuals. If you want to budget your salary monthly or your grandmother is bothered about why she did not manage to save enough money for retirements, a specialist in microeconomics can help. Macroeconomics, on the other hand, has a global character and works with banks, industries, and governments. The professionals in this sphere can explain how economy and gas price or aging of the population are connected, why financial crises like that of 2008 happen and reoccur, or why currency of most countries depends on the US dollar. Thus, being a part of everyone’s life, economics is omnipresent. Finally, economics is strongly associated with politics. Not a single bill, program, event which are decided on at the governmental level can be adopted or conducted without the involvement of economists. With the help of data collected by enterprises or state authorities, they can predict, for instance, how subsidies will affect prices of products manufactured in the relevant industry, healthcare-related initiatives will impact doctors’ incentives, or a specific bill may influence a poverty rate. That is why political actors engage economists in cooperation and make politics linked to economics.

Monetary and Fiscal Policies

The monetary and fiscal policies put in place in any given country directly influence the performance of its economy. Monetary policies greatly influence the rate of growth of aggregate demand, changes in money supply and the associated price inflation.  This therefore influences the value o...

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Effects of Hidden Cost on Various Aspects

Hidden cost of food

Hidden cost refers to expenses that do not normally form part of a commodity or equipment. It includes expenses incurred on maintenance, supplies as well as improvements on the equipment or the commodity. Hidden costs are usually difficult to easily notice and, in so ...

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The Economy of a Region

The economy of a region is greatly determined by factors that are intertwined in the community set up. This beliefs and values that may influence the regions economy is focused on the culture, geographical setting as well as the economy of the area.  Economic development in Africa is highly ...

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Manufacturing

The manufacturing industry is a sector that deals with the production of goods; this includes all the intermediate processes required and the integration of a products component. It comprises the use of mechanical, physical, or chemical transformation of raw materials, substance or parts (compone...

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Price Elasticity

The price elasticity of demand is the measure of the rate of response of the amount of a commodity demanded as a result of price change. Several factors determine or rather influence price elasticity. These include availability of the substitute, the time one has to spend buying the product, the...

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Economic Perspectives

1) Gross Domestic Product (GDP) is the total value of all the final services and goods which are produced for one year in a country. Gross National Product (GNP) is the total market value of all the services and goods which are produced by the property and labour that is supplied by the country&r...

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The Federal Reserve System

Why was the United States one of the last major industrialized nations to form a Central Bank?

Most states were left to govern their own monitory policies. With the diminishing value of the Continental after the Revolutionary war, the United States became skeptical of the use of unbacked...

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Macro and Microeconomics

The economy adversity imbibes clear understanding of the macro economic and micro economic policies that will have an impact on the general functioning of the organization. Both macro and micro economic goals need to be incorporated into the business organization strategy in an attempt to achieve...

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Finance

The present day financial markets such as stock market continue to experience technological revolution since 1990’. Innovations in technology such as software, computer processing, evolution of the internet and telecommunications join, forming information economy (Zoltan 55). Regulations in...

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Free Markets

In the world today, there exists divided opinion over the different forms of market patterns best in practice. Some scholars are for the opinion that capitalism is best in practice. Others hold that liberalism or classical liberalism is the best choice for a market. These three different markets ...

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Greeks and the Introduction of Money

Money is widely defined as anything that is widely accepted and used as a means of making payments for goods and services, accounting for credits and debts in a given socio-economic context.  The value of money is widely recognized and everyone can estimate the value of money and buy anythin...

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Economic Geography

Both academics and scientists have laid special emphasis on trying to decipher the various aspects of the labor market as a related strategy of effecting broader and extensive processes of economic restructuring. Essentially, power struggles refer to the fight between individuals or ...

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Forecasting Exchange Rates

Forward exchange rate is the rate at which a currency will be exchanged at a future predetermined date. For instance the forward exchange rate may be stated as US$ 1.6200/UK£ or  UK£ 0.6173/US$, which means that the United Kingdom pound will exchange for 1.6200 US dollars at a ce...

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Extra Credit for Econ

Microeconomics is an economics branch concerned with studying individual firms and households’ behaviours on decision making in limited resource allocation. Its application occurs where there is selling and buying of goods and services. These decisions cause adverse effects on demand goods ...

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Federal Reserve System and Monetary Policy

The article, “Are We About to See the 1937 Mistakes Replicate?” was published by Bruce Bartlett In July 12 2011, 6:00am. The author played a major role during the administration of George H.W. Bush and Reagan, Where he worked under Jack Kemp and Ron Paul who were representatives in th...

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Fluctuations in the GDP of Developing Countries

In the year, 2008, the world experienced quite a stir in the oil price sector, which spiked to all time highs of about 147 dollars per barrel. The volatility of the price opened debates about what people consider as the number one source of energy and its reliability as such in the future. People...

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United States Agricultural Economy and International Market

Recently the effects of unforeseen climatic changes have constantly affected various sectors of the economy globally such as agriculture, tourism, construction industries among other vital sectors of the global economy. Of all these sectors, the most affected one is on agriculture. It is highly e...

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Financial Ratios

Financialratios indicate a firm’s financial position and financial performance. They are used to predict a company’s financial position in the future and to compare a firm’s financial position with other firms. These ratios are not only important to the firm but also to financin...

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Discouraged Workers and Economy

Economists define discouraged workers as individuals who have attained the legal age of employment yet do not hold any job. Most people experience long-term unemployment because they do not actively seek employment. Unfortunately, other people realize futile efforts because they constantly lack e...

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What is Gross Domestic Product?

Q1. Gross domestic product is the measure of all overall economic activities by final expenditure. According to the bureau of economic analysis of United States, real GDP for the year 2009, which is the output of services and goods produced by property and labor in that year, was estimated to be ...

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Google Stock Recommendation

Google is a global technology champion determined to improve the way people access information. Our interactive innovations as a web search engine have made our website the most popular and the first destination to the billions of internet users on daily basis. Currently, Google brand is the most...

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Oligopoly

Oligopoly, in most cases, takes place to the detriment of the consumers. Oligopoly is evident in the oil and automotive market where only a few companies control the markets. The following write up is a discussion of oligopoly and its effect on consumers.

By "Seldom do businessmen of the s...

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Contemporary Auditing

BDO Seidman’s attorneys pointed out correctly that professional standards do not prohibit auditors and client personnel from being “friends.” Well, such relationships may result in violations of the auditor independence rules and guidelines at some point. For instance, if the re...

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Expected US GDP Growth and the Local Economy

The US’s Gross Domestic Product has been a key economic indicator, showing the country’s economic growth rates and development. The country has had an average quarterly GDP growth rate of 3.30%, from 1947 to 2010. The country has experienced tremendous growth over the years, exemplifi...

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Beijing Jingneng Clean Energy Co. Limited

Depending on the financial base of a company, different companies adopt different methods of financing. The choice of a particular financing method depends on the company’s financial plan and the analysis results of the company capacities of financing. Usually a company turns to one or more...

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Marginal Product and Marginal Cost

Marginal product is an economic term that refers to additional output generated by utilizing an extra unit of input. It is the measure of change in quantity produced when the input of a factor of production such as labor is increased or decreased by one unit. Ferguson and Gould (2010) define mar...

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The Role of Black Slavery in the Economic and Social Life of Brazil

Although the institution of slavery comprised a part of the historical development of almost all countries worldwide, it is generally identified as one of the major tragedies in the history of humanity. Today, slavery is associated with illegal ownership of human beings, deprivation, forced labo...

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Job Loss Connection with the Economy

Introduction

Job loss, joblessness or unemployment is major social problem that affects many individuals, communities and countries today. There are various forms of unemployment such as frictional unemployment, structural unemployment, voluntary unemployment, classical unemployment and...

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Globalisation of Industries

Introduction

Globalization is a process which involves assimilation of markets and technologies between different nations or rather at a worldwide ground. This ensures that Industries and individuals are able to reach the outside world easily and at a cheaper price. All the same this ki...

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GDP and the Independent Variables

The concept of money and exchange inevitably has a real substantial worth in the study of economics, as economics were merely accentuated on such things and according to them these things were the one on which the economics of every country based. Economics is the name of how to earn the money a...

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Obama Doesn’t Have a Crystal Ball

As the “war against terrorism” which was firstly proclaimed by former U.S. President George Walker Bush is not over yet, the successor Barrack Obama is now the person who has high responsibility, especially in answering the American and the whole world’s question about the time...

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Business Research Project

This article incorporates information related to business research, problems in business, and data collection methods used in the research project. It is extremely important to have all the essential information related to these factors. In fact success and failure of any business depends on how...

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GDP Computation of Tanzania

Consumption Spending= $150 trillion dollars

Gross Investment= $55 trillion dollars

Net Investment= $50 trillion dollars

Government Purchases= $75 trillion dollars

Government Transfer Payment= $30 trillion dollars

Import= $25 trillion dollars

Export...

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Islamic Mutual Funds

Islamic mutual funds are growing phenomena in the business world among Muslims due to the need to connect spirituality with the economic aspect of life. Although very few inferences can be drawn on the general performance of Islamic mutual funds, there is a general observation that they have con...

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Variance Analysis

Variance is defined as the difference between actual result of performance and the budget expectation. Favorable variance occurs when there result of actual performance is better than the budget expectation, while unfavorable variance occurs when the actual result of performance is lower than th...

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