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International Baccalaureate: Economics
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there will be a shift in the supply curve towards the left (on the diagram, from the 'Original Supply Curve' to the 'New Supply Curve'). Another result of these changes will be that demand will contract. As a result, the equilibrium price will shift up and along the demand curve (on the diagram, from 'x' to 'y'). The price may also rise further as there will now be an increase in the relative scarcity of shellfish. As the hurricane may have lead to unemployment in the areas affected, there may also be a further drop in demand for shellfish.
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This organization was originally formed in 1960 to benefit the oil exporting countries. It consisted of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Eight other nations joined by 1973, raising the total number of members to thirteen. However, 2 of them left later, reducing the number to 11. As per the article, in its 47 years of existence, OPEC has not fulfilled its role as a cartel in the oil industry, as its members breached the production quotas regularly, except for the period from 1973-1980. Due to output restrictions imposed by OPEC, the price of crude oil rose sharply.
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Though it is difficult to define what a revolution truly is, it can be said to be an idea which is not only able to disprove its previous theory but is also able to benefit society in the way that other discoveries will be developed on the revolutionary theory. In this sense, it can be said that a revolution can really only be defined if a someone is able to make a breakthrough (in this case scientific) which in effect is able to change the way in which the field the revolution was made in is perceived.
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El Banco Central inform� que el �ndice Nacional de Precios Productor (INPP) de mercanc�as y servicios finales vari� 0.70 por ciento en febrero situando la tasa de crecimiento anual de este indicador en 4.23 por ciento. Este �ndice no incluye al petr�leo. Adem�s, el �ndice de precios subyacente se elev� o.47 por ciento en febrero de 2008, situando la variaci�n anual de este indicador en 4.14 por ciento. En enero la variaci�n fue de 4.06 por ciento. El sub�ndice de precios de las mercanc�as vari� 4.39 por ciento (comparado con 4.30 por ciento en enero), debido al incremento en los precios de los aceites y grasas vegetales comestibles.
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Below is the spectrum along with the different names that each economy may be known as. Centrally Planned Mixed Economy Free Market Economy Economy The most striking difference between a command economy and a free market economy is the degree of government intervention. In a command economy all the economic decisions are taken by the government, whereas in a free market economy all economic decisions are taken by individuals and firms, which are assumed to act in their own self-interest.
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those receiving age pensions. However, those with power to increase their incomes will gain during inflation. Moreover, Borrowers will gain at the expense of lenders. Uncertainty is also a cost of inflation. Because as inflation occurs the market forces keeps changing which doesn't give firms the confidence of investing in the country. This has a huge negative implication for economic growth. With inflation, households and firms will have to search for good returns from their savings to protect their real earnings. This involves extra costs called "shoe leather" costs. Furthermore, menu costs are also an example.
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List the strategies used to affect demand for cigarettes and how it would affect smoking(use diagrams to explain your answer). (15 marks)
List the factors that affect supply and how that would affect the market of cigarettes(use diagrams to explain your answer). (5 marks) 2. What is price elasticity of demand? Why is it so important in economics? (5marks) Price elasticity of demand is the ratio of the percentage change in the quantity demanded of a product to a percentage change in its price. Price elasticity of demand is very important in economics because it ensures the suppliers to know the change of quantity demanded when there is an adjustment in price.
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All the economies of the world were more or less agricultural economies at one period of time. The economy is called subsistence in that at this turn virtually a farmer can hardly grow sufficient food for his survival despite his utmost efforts at it. The economy is marred by the fact that the country usually has very low literacy rates, outdated means of cultivation. Poor transportation, short life expectancy, high infant mortality rates and widespread hunger. With the passage of time and scientific techniques being used by the farmers, there comes a stage when the farmer can excel in agricultural productivity.
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That results in the increasing in the amount of consumers who buy the food from the firm and for certain, the profit will definitely increase. It can be compared to killing two birds with one stone. To produce healthy food, the firms will have to follow the ethical objectives that they set up before. Specifically, the objective must be known by every employee in every stage of making food. The procedure must be carried out carefully to ensure that all bacteria, virus, harmful microorganisms were killed and as a result, produced food will be clean and healthy to the consumers.
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Economics Commentary- Prices of onions jumped yesterday, buoyed by a ban by India on the export of the item
On September 8, an Indian ministerial panel banned onion exports following a steep rise in prices, reports Reuters, quoting Food Minister KV Thomas. The restriction came in effect on Friday. ?We will review the ban every fortnight," said Thomas. Bangladesh meets much of its local demand for onions by importing it from the neighbouring country. Since Saturday, 80 onion-laden trucks entered Bangladesh till yesterday afternoon, our Chapainawabganj correspondent reports. No shipment took place at the Bhomra Land Port yesterday. The trucks carrying onions that came to the Ghojadanga Land Port on the Indian side returned without shipment, our Sathkhira correspondent reports.
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The effect of Cost Push Inflation can be observed in Figure 1. Figure 1: Market for food and other essential commodities In the diagram we can observe that in Cost-Push Inflation the Aggregate Supply curve is shifted inwards due to rising costs of production from AS to AS1. This leads to a decrease in GDP from Y to Y1, and inflation rate rises as the price level rises from P to P1. This means that the price for food and commodity rises drastically, in this case they rose by ?5.3% from a year earlier?.
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The government this week passed an emergency budget of $155bn (£100bn) to try to boost domestic demand, however the effects won't be felt for a few months. "The data underscores the sluggishness of domestic demand, as the economy's recovery has taken a breather because of a delay in reconstruction efforts and global economic slowdown," said Takeshi Minami from Norinchukin Research. Japan's economy bounced back from recession, triggered by the earthquake and tsunami, in the three months to September. However, the pace is expected to slow because of the pressure on exporters from the strong yen, as well as the bleak global outlook of growth.
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Economics Article Commentary - The article deals with the raise of a tariff on Chinese solar panels and their impacts on the market, as well as general tensions between the U.S. and China.
Other manufacturers will face tariffs of just under 250%. The levies will be retroactive for 90 days. The tariffs were in addition to fees ranging from 2.9% to 4.73% imposed last March. Chinese government subsidies helped drive down the price of solar panels by 80% over the last five years, and by 40% in the last year alone. The price drops drove some US solar panel makers ? such as Solyndra ? to collapse. The seven US-based solar panel makers which brought the complaint said the ruling from the commerce department would help American companies hold their own against Chinese competitors.
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Negative external impacts of women's oppression on the economic and environmental welfare of Pakistan
These are just a few examples of the environment that Pakistani women, or women in the muslim culture are forced to live in. Widespread poverty in Pakistan was a driving factor in Saima?s financial inability to maintain her house. Such a debt left by her husband was more of a hardship in these impoverished countries than anywhere else. This is because the means of acquiring goods to start a business are scarce due to minimal economic activity. This economic activity being primarily dominated by men is also considerably unfavorable to women, this is to be examined later on.
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Commentary - This article talks about the clear and significant rise in price of coffee due to the increase in the demand for coffee and the increase of fuel prices.
Kraft Foods Inc., makers of Maxwell House, raised prices 22 percent in March. Other price increases came from J.M. Smucker Co., the maker of Folgers, and Starbucks Corp. Even discount stores have raised prices. Costco's wholesale coffee costs increased about 25 percent over the past year. Retail prices have gone up 10 percent as a result. Price increases are the result of higher demand worldwide. Coffee imports have increased by 23 percent over the last decade, according to data from the International Coffee Organization.
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Analysis of "The End of Work" by Jeremy Rifkin discusses the decline of the global labor force and the dawn of the post market era.
Rifkin wrote, ?Today, all three of the traditional sectors of the economy: agriculture, manufacturing, and service are experiencing technological displacement, forcing millions onto the unemployment rolls?(Rifkin 2005: xvii). I think that the book The End of Work is very informative, and it helps provide an understanding to the unemployment rate in the world today. Rifkin makes the most important point on how technology today is taking over the work force, there by causing the mass of unemployed worker displaced from the economy.
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Explain the Main Sources of Market Failure that Can Occur in the Market System and Discuss the Positive and Negative Effects of Government Intervention to Deal with these
Classical economists said that government intervention only makes economy worse. The free market is not always efficient and the government has a role to play in ensuring that the market is efficient (Keynes 2007). Now, the paper will focus on the main sources of market failure and the positive and negative effect on government intervention. This paragraph will discuss about the main sources of market failure. There are six sources in market failure. In the free market economy, there are 6 main sources of market failure; such as information failure, factor immobility and inequality issues.
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Commentary on the article. The introduction of the weed pass in Amsterdam will lead to the closure of almost all the coffeeshops
T he BCD claims many of these people will stay away if they are unable to buy a joint legally. Amsterdam newspaper Het Parool also found that only an estimated ten percent of Dutch Amsterdammers who regularly visit coffeeshops would be willing to register as official members. The Amsterdam city council is currently discussing with the Justice Minister the possibility of making an exception to the regulations for the capital. The council fears the restrictions will lead to a dramatic increase in the illegal street sale of cannabis.
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Identify the components of Aggregate Demand. Explain the impact on an economy of a rise in interest rates,
Normally the government spending accounts for twenty percent of aggregate demand. The last two components deal with the trade between the UK and the rest of the world. Therefore by the term X is meant the exports of goods and services of a country. The exports sold to other countries give the producer country an injection in their circular flow of income and adds to the demand produced output. In turn M stands for the imports of goods and services.
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Discuss how demand side policies and supply side policies may be used to increase short and long term economic growth.
A problem that may arise in this case would be that consumers would save rather than spend the money. The use of fiscal policy in stimulating investment may take many forms. Reducing direct taxes like corporation tax, and indirect taxes on raw materials and power provision, also helps to increase retained profits and stimulate new investment and employment. Govt may also increase its expenditure in terms of direct or indirect assistance to firms (example upgrading of industrial estates, promotion in foreign markets, fiscal incentives for investing in alternative sources of energy, educational grants and training schemes etc.)
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Advantages and Disadvantages of High and Low Exchange Rates & of a Fixed and Floating Exchange Rate System
This would lead to greater economic productivity of the country. Yet, a result might also be the laying-off of workers. As visible, there are also disadvantages to a high exchange rate. Export industries might be damaged. Domestic companies will find it hard to sell their products abroad due to their relatively high prices, which could lead to unemployment in these industries. There also might be damage to domestic industries. As it is cheap for households to consume products from abroad, domestic industries might find that the demand, defined as the quantity of goods and services that consumers are willing, and able to buy at each possible price over a given time period, for domestic product falls.
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?Growth in cotton demand bodes well for total cotton trade,? Adams said. ?Increased mill use in China will require additional imports as available cotton stocks remain at low levels. In fact, for most countries, beginning stocks for the 2011 marketing year are at the lowest levels in recent years, and leave little room for further reductions during the upcoming marketing year.? He said the increased import demand will create a positive environment for U.S. cotton exports, which are forecast at 15.6 million bales for the 2011 marketing year ? the second highest level after the 2005 marketing year.
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The inflation was, however, not uniform?food items saw a sharper price increase, compared to non-food items. Food inflation stood at 11.6 per cent during 2008-09 to 2010-11, compared to non-food inflation at 5.7 per cent. In the non-food category, prices of many items declined. The fall in prices was more evident in the durables category, including television sets, washing machines and air conditioners. Crisil said contrary to the general perception, prices of several commodities declined even during periods of high inflation.
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"When meat prices rose from LE45 to LE80 per kilo, we stopped eating meat altogether. But what shall I feed my children if even vegetables and tomatoes are becoming unaffordable?" said Ghada Mahmoud, a housekeeper who has three children. Mahmoud explained that ever since vegetables prices have risen, she has had to cut the quantities of food she used to buy by half. "What else can I do?" she added. Since the start of 2010, the prices of several food commodities have increased. Among the items that are becoming more and more costly are basic goods such as meat, rice, poultry, sugar, wheat and cooking oil.
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Economics commentary. This article is about the performance of Germanys economy in the coming year after being affected by the global economic crisis in 2009
Private consumption within Germany also decreased, dragging GDP down by 0.2% in the forth quarter of 2011. Since GDP is made up of household?s consumption(C), firms? investments (I), government?s spending (G) and net export of a country (X-M) and is equal to aggregate demand (AD). So when C and (X-M) is reduced, AD for German goods shifts left to AD2, resulting in a decreased price level (P2) and real production at Q2. The diagram illustrates the AD and aggregate supply of German goods. Fig. (1) Decrease in GDP can also be shown in the business cycle, a diagram showing fluctuating levels of economic activity of an economy over a period of time.
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