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International Baccalaureate: Economics
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The rise in price acts as a signal for producers to put more factors of production into making food. The condition of demand that is taking place is the change in population size, "growing consumer demand... notably China and India" is written on the article. So an increase in population will bring an increase in demand for most goods. So for this demand will increase and so there is a n extension on supply. This would increase the price, but also quantity demanded will increase. The condition of supply that is taking place is changes in the cost of production.
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because most of their spending is borrowed from banks. The cost of borrowing these funds from the bank depends on interest rate because if the interest rate is high then the cost of the overall expenditure is high, as they need to pay back more. Therefore if interest rates are high, then consumption and investment expenditure decreases; as a result "interest rates will choke the global economy." Investment expenditure is expenditure made by the business sector. This therefore decreases aggregate demand. Aggregate demand is the total expenditure on final goods and services produced in the domestic economy, at a range of price levels, during a given time period.
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Comparative advantage is the ability for a person or country to produce a specific product at a lower opportunity cost than a competing person or country. The impact of trade liberalization on comparative advantage would be that it would benefit the countries involved. In the ideal example for comparative advantage, we assume that it is a free market, where countries are trading in perfect competition, with no barriers and tariffs. In the theory of comparative advantage, resource allocation is a key factor.
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However economic hardship is not the only factor contributing to the lack of emissions reduction. The recent cheap prices of oil has made it easier for developing countries to rely on this very dirty and heavily gas emitting fossil fuel. The increased use of oil has caused more emissions to be produced by the developing countries. But why does the United Nations want to reduce emissions? The simple reason is that emissions are negative externalities. Externalities are "spill over" effects that are caused by services and goods. In this case the use of oil by vehicles and other machines creates harmful gases such as carbon monoxide and sulfur dioxide.
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Elasticity of Demand is the responsiveness of the demand for a good or service to the increase or decrease in its price. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, non-essentials like cars show elasticity of demand whereas most necessities and items such as cigarettes and oil show inelasticity of demand (do not sell significantly more or less with changes in price). Although oil is said to be inelastic in both demand and supply, the laws applied to inelastic goods for supply, in which a change in prices would not change
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However, the government faces another dilemma with the expensive bailout. The opportunity cost involved in 85 billion tax dollars that could be spent elsewhere. Opportunity cost is defined as the relinquishing of the next best possible alternative in making a choice of 'Alternative A' over 'Alternative B'. By investing 85 billion into rescuing AIG, the government is passing on the opportunity to spend the money on other purposes. The government could have used the funds to create and improve infrastructure like roads, communication and power management instead of expending it on fixing the mistakes of one big institution.
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This shortage pushes up the price of milk, for at the originally supplied quantity Qe, people are actually willing to pay price Pe2 on the new demand curve. Although this new demand will attract potential producers into the market as they see a greater potential for making profit, during the process of adjustment, the new supply may not come fast. Currently, the milk industry is operating at optimum capacity to meet demands. There is a lack of spare capacity due to a shortage of cows and limited time to adjust to the rise in demand.
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the shortage had risen due to erratic production of pulses globally and nearly 3/4 million tonne of gap between the demand and supply. "The demand for pulses has rose over 20 million tonne with domestic production not exceeding 13 million tonne. Even the imports are not meeting the domestic demand adequately," he added. The report pointed out that the imports of pulses are growing costlier for two reasons: on one hand, the output of pulses in the country has not spiked and is still staggering around 13 million tonne per annum, while the demand is nearly 20 million tonne.
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Example of opportunity cost On a hot afternoon, a student spends �1.00 on an ice cream. The opportunity cost of this choice is having to walk home as the bus fare is the next best alternative use for the money. Economic Decision Making There are three main resource allocation decisions/choices arising from the economic problem of scarcity. * What to produce? - The consumption decision * How to produce? - The production decision * For whom to produce? - The distribution decision In economics, decisions/choices are made with two criteria in mind. Rational behaviour = people will behave in a logical or reasoned way.
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I am particularly worried at the 56,000 rise in the number of young unemployed people. These are school leavers who are unable to get a job or claim benefits, which is why the claimant count has not risen even faster than it has," he said. The number of Britons out of work and claiming jobless benefits rose by 31,800 last month to 939,000, the eighth monthly increase in a row, and August's rise was revised higher to 35,700. The City had expected a 35,000 increase for September. This so-called claimant count measure is always lower than the broader, internationally recognised ILO measure which includes people not claiming benefits, because some unemployed people are not entitled to claim benefits, or choose not to do so.
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Utility = the amount of satisfaction obtained from consuming a product. Marginal utility = the amount of extra satisfaction obtained from consuming an extra unit of a product. As the consumer consumes more of a product, the marginal utility obtained from it falls (diminishing marginal utility). This makes good sense: you will always enjoy your first bar of chocolate. But as you eat a second and third bar your enjoyment falls (i.e. diminishes), until you reach a sixth or seventh bar - by which time you will probably hate chocolate! Rational consumers aim to maximise the utility they get from spending their money, so the price they pay for a unit of a product is no more than the marginal utility they obtain from that unit.
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�31.81 Concessions - Senior Citizens, Students and Visitors with disabilities �9.04 GROUP RATES (PEAK TIMES until 28th October 2007) for 15 paying visitors or more Adults �9.95 Children (3-15) & Concessions �8.95 OFF PEAK TIMES (28th October 2007 - 20 March 2008) Adults �7.95 Children (3-15) & Concessions �6.95 The Zoo is open all year from 10.00am except Christmas Day & Boxing Day. From Sunday 28th October to 31st December (excluding Christmas Day & Boxing Day) the last admission is at 3:00 pm. Strengths In General It is very interesting issue education is a key theme for Chester Zoo.
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and the negative externality of consumption (cost of consumption by society but not the consumers themselves). The consumption of demerit goods impose negative externalities on the society, where the private costs incurred by the smoker where he/she damages his/her own health, are less than the social costs experienced by the society who involuntarily experience passive smoking, as well as air pollution. However, the price that is paid for each packet of cigarette is not priced with account of the social cost, thus the marginal social cost (MSC) (total cost directly incurred by the producer and any other member of society)
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Free Market System Price 0Quantity In the planned one is different from the free market because the state decides how to distribute resources with the plan system, so the government decide what to produce not the consumer. Then the plan decided by the government is passed to the managers and then to the people and to the industries. Planned Economy In the free market there is the private ownership while in the planned there is the public one. These differences causes when a country sifts from a kind of economy to another, lots of problems come out, such as organization.
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Even though Belgium has other factors that it can offer in order to increase investments, the introduction of the NITDS has seen a positive outcome on the economy and the country as a whole. Largely, the research carried out in my Extended Essay suggests that other countries should adopt this tax system in order to lure investors into their country so that they can ensure that they remain competitive internationally. Word Count: 294 Words 2. Acknowledgements I would like to thank my Extended Essay supervisor and teacher, Mr Ian Hibbert for his assistance and guidance.
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State governments must come forward and offer low sales tax on jet fuel to airlines in return for an assurance that the latter would neither cut flights, nor hike fares to those places," said a senior AAI official. In fact, the huge 30% to 40% growth recorded in past four years (after the advent of budget carriers) was substantially due to airlines rushing in with flights to places where bus and rail users could be shifted to air by the lure of low fares.
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the greater the quantity demanded and the higher the price, the less the quantity demanded Thus, in the diagram below, as the price falls from OP1 to OP2, the quantity demanded increases from OQ1 to OQ2. If price were to rise from OP2 to OP1, the quantity demanded would fall from OQ2 to OQ1. Individual demand - comes from an individual and is affected by desire, willingness and ability to pay Market demand (whole market) - millions of individuals, :.
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(The quantity / trade volume may somehow decrease from q1 to q2, too. But the precise determination needs more accurate data.) "Lead the Federal Reserve to cut its benchmark interest rate" whereas the ECB is considering raising the rate is another one of the greatest factors that pushing down the exchange rate of dollar against other main currencies. This can be explained in two ways. In terms of the price of money3, decrease in the interest rate of USD means the depreciation in the value of dollar.
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in Manila. The Philippines' $117 billion economy may expand 7.1 percent this year, UBS AG said last week. That exceeds the forecast of the government, which is increasing spending on roads and ports to attract investors. Funds sent home by nationals working abroad is boosting consumer spending. Bangko Sentral ng Pilipinas kept its benchmark interest rate unchanged at 6 percent on Aug. 23 after lowering borrowing costs in July for the first time since 2003 to spur growth. The expanding economy and ``manageable'' inflation allows the central bank to ``maintain a neutral policy stance,'' Governor Amando Tetangco said on Aug.
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Every well-managed firm should: have well-defined roles and list of competencies required to perform each role effectively. Such list should be used for recruitment, performance management, promotions, placement and training needs identification. The competency framework serves as the bedrock for all HR applications. As a result of competency mapping, all the HR processes like talent induction, management development, appraisals and training yield much better results. History of Competencies A team of Educationists lead by Benjamin Bloom in the USA in mid fifties laid the foundation for identifying educational objectives and there by defining the knowledge attitudes and skills needed to be developed in education.
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B. In some economies there might exist a deflationary gap. This deflationary has to be closed so that the economy can progress. To understand what should be done to attempt closing the gap we have to understand what a deflationary gap is. A deflationary gap is when GDP is below its full-employment level and therefore the demand is insufficient for the existing supply. The way of approach to close the gap can be different depending on the government economic view. In monetarist government, nothing would be done since they believe the economy will correct itself and every demand-side policy that would be applied would only make it worse.
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For example, TV producers in the USA may be disadvantaged, as firms will want to shift production to Mexico. This may cause structural unemployment in countries without the comparative advantage, as workers will have to re-train to work in areas for which that country has a comparative advantage in. While this may seem the more efficient path, reality is not as simple. In countries such as the USA, which have a comparative advantage in more educated professions, uneducated workers (such as those producing TVs)
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According to the law of demand, which states that the price and demand are inversely proportional, the quantity demanded by the Japanese falls when the price of chopsticks rises. Broken down into simpler terms, the Japanese consumers and importers are now less willing and able to afford the given product, and thereby respond by demanding a smaller quantity. Indeed China has a monopoly in the Japanese chopstick market, accounting for almost 98% of the market share. However, a few close substitutes do exist. These include Vietnamese and Japanese produced chopsticks. It is in human nature always to pursue one's self-interest.
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Another example would be a car crash caused by a person under the influence of alcohol or drugs. The other party involved in the crash, who had been driving safely, would have negative externalities as they might be killed or severely injured. An example of a business creating a negative externality is if it takes money from one area of the company, for example the marketing department, in order to fund another, for instance the pension department. The depletion of one department to provide for another falls into the category of moral hazards2. In situations such as the ones mentioned above, the marginal social cost is greater than the marginal private cost, because the costs are greater to the community than to the individual.3 This can lead to the good and/or service being over consumed.
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Exports of finished manufactures are down 3.8 per cent. It is China, Hong Kong and South Korea who are demanding UK exports. The value of exports to the Euro-zone big-four is declining." Despite the insatiable Chinese demand for capital goods (which has also had beneficial impact on German exports and growth), China's trade surplus reached a record of $26.9bn (�13.5bn) in June, twice as high as a year earlier, as Chinese manufacturers rushed to fill orders before reductions in official export incentives came into force on 1 July.
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