- Join over 1.2 million students every month
- Accelerate your learning by 29%
- Unlimited access from just £6.99 per month
International Baccalaureate: Economics
Meet our team of inspirational teachers
==> In order to attract foreign investors, Special economic Zones (SEZ's) were set up. ==> These reforms, introduced in 1978, were not because of any compulsion from the World Bank or IMF, as was the case in India-NEP in 1991. It was because the new leadership in China was not happy with the slow growth rate under the Maoist rule, which was based on de-centralization, self sufficiency and shunning foreign technology, goods and capital. * Present/Sectoral Contribution to GDP: ==> China has the second largest GDP (PPP) in the world, of 7.2 trillion dollars, while India's GDP in PPP is 3.3 trillion dollars.
- Word count: 1481
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.
- Word count: 1195
Good prices have lifted the inflation rates in Europe. European Unioin's Eurostat agency said that inflation hit 3.6 percent. Economist Sonil Kapadia s tated that food and oil Prices are the main driers of inflation. Food prices rose 21 percent in China. The oil prices have caused a major dilemma by cutting extra consumer cash and affecting the poor countries negatively. Economists say tat inflation relief might be on the way in the coming months. In addition, inflation threatens economies in Af rica by encouraging governments to take "knee-jerk" reactions to cope with stress. Real estate agents urge foreign consumers to by land in the United States.
- Word count: 559
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.
- Word count: 1633
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.
- Word count: 1594
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.
- Word count: 1221
Trade sanctions.In order for the UN to urge Iran to accept to halt its nuclear activities, a series of economic sanctions were enforced against Iranian banks and companies especially in terms of the sale of nuclear material and technology,
These sanctions were somehow in addition to the sanctions that the US government had previously imposed on Iran and the international companies that entered into transaction with Iran at amounts over 20m dollars. At the same time, the international community did not have enough reasons to impose a full-fledged economic sanction against Iran, because on the one hand, the IAEA had reported that there were no signs of deviation of Iran's nuclear activities towards production of nuclear weapons and on the other hand the world could not tolerate another oil rich country to be excluded from the international energy market at a time when the world was facing shortage of energy.
- Word count: 802
High levels of inflation are always associated with negative consequences. According to an article, since 1980 the Zimbabwes agricultural output has fallen by 850,000 tonnes. Even if the wages of farmers, i.e. the majority of workers in Zimbabwe
High inflation levels also adversely affect the value of people's savings. Therefore, as it is currently happening in Zimbabwe, people prefer to spend their money as soon as it is earned to prevent further loss of its value. This contributed to a demand-pull inflation in the economy, aggravating the situation. Due to its exorbitant inflation rate, the Zimbabwean dollar has lost its value as compared to international currencies. As a result, the big Zimbabwean producers have lost their confidence in the currency of their country and demand either foreign currency or gold in exchange of their products.
- Word count: 772
There is big negative externality in smoking and over-consumption of alcohol. The damage caused by smokers and binge drinkers extends over and above the individuals using them.
There is big negative externality in smoking and over-consumption of alcohol. The damage caused by smokers and binge drinkers extends over and above the individuals using them. Cigarettes and alcoholic beverages can therefore be classified as demerit goods. The social costs of the use of these goods are higher than the price paid for them by their consumers. This means that there is a marginal external cost to such goods. As a result, a welfare loss triangle (the blue shaded area seen on the diagram above) is formed. Governments attempt to correct the market failure by introducing excise taxes on goods such as alcohol and cigarettes to cover this external cost.
- Word count: 838
So firms have to establish the price fairly, and make no more than a normal profit. Firms aim to gain profit, so instead of maximizing their profits to gain supernormal profits, they try to cut costs by utilizing as minimum resources at the same time producing the maximum possible output with those resources. Demand curves can shift according to the price of complimentary or substitute good, the income of the population, and taste changes. Supply curves can shift according to price of producer substitutes, price of factor of production, government interference of indirect taxes or subsidies, technological improvements, and natural disasters.
- Word count: 2731
A customer travelling aboard to the US reported that her 'bags were so stuffed with Juicy Couture T-shirts, Guess watches and Croc sandals that her nieces would have to wear the Ugg boots she was giving them for Christmas on the plane.' 1The depreciation of the dollar is evident here; clearly people are taking advantage of the weak exchange, in which the customer can afford to purchase double, if not more, than if she was purchasing the same goods in the UK.
- Word count: 669
Life expectancy, as the article reports, suffers as a result. The decrease in life expectancy results from people nationwide with no access to necessities such as food, water, sufficient healthcare. Crime rates potentially rise as a result; people often resort to crime when other aspects fail to sustain their quality of life. The deprivation of job opportunities inevitably means that income is restricted or very minimal at the most. This will fundamentally remove people's access to everyday resources to sustain personal health for example.
- Word count: 789
Multilateral aid involves a third party who is politically neutral, e.g. the International Monetary Fund (IMF). The IMF regulates the donation of aid, and also gives professional advice on how the developing countries can have a sustainable development in the future. The IMF suggests the structural adjustment program (SAP) to the developing countries in order to let them have sustainable development. This include: sound fiscal policy (government revenue = government expenditure), a broad tax base (the introduction of indirect tax, or Value Added Tax, in order to make more people pay unavoidable tax), government invest on infrastructures, market driven economy instead of command economy, etc.
- Word count: 815
Special thanks to: > Our TLE teacher, Ms. Joan Samonte, who gave us advice and moral support. > The panel for grading our feasibility defense. > The people who gave us some ideas in conceptualizing this study. > The people who took the survey, for giving us some their time. > Our parents, for helping and guiding us throughout the study. > The Bookstore assistant for the reproduction of the copy of our survey. > The little but useful means of information like Yahoo!, and Wikipedia. > And lastly, to the stressed community, for who in the first place we decided to be of assistance to them.
- Word count: 6096
Both the Canadian and the American economies have been highly affected by the change in the prices of their currencies. Discuss.
which is the sum of all expenditure of an economy over a period of time. This policy is usually used to control the rates of inflation and recession whenever the government cannot. However, in this case, manufacturing jobs need to be protected because as the value of the loonie increased the price of Canadian products increased reducing the demand for these products outside the borders reducing exports this leads to less production which needs fewer workers leaving people unemployed as there is no demand for them. This can be seen in the figure below. As previously mentioned, it is believed that a cut in interest rates will make things better; because a decrease in the
- Word count: 709
There have been closings of schools because of the recent kidnappings of children and residents are fearful to go to the corrupt police force. Meanwhile, the government has been powerless to stop the crisis. The situation began in 2004 after the removal of President Jean-Bertrand Aristide which sparked civil unrest among his supporters and started the string of kidnappings across the nation. Haiti, already a nation with a ruined economy due to decades of coups and political instability, is sinking further into destabilization.
- Word count: 742
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.
- Word count: 1469
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.
- Word count: 1064
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.
- Word count: 1945
* A good or service is said to inelastic if the change in price has no or minimal effect on the volume of units sold. (iii) Full-Cost Plus Pricing Benefits: * Simple to calculate, this does not need a full accountant to work out the prices and can be done by a trainee/junior. * When costs raise its simple to put up prices, prices can also be justified to show why prices are what they are. Limitations * Full-cost pricing ignores the notion of price elasticity of demand see section (ii)
- Word count: 985
Although the unemployment rate performance good, the article mentioned that there are still hidden unemployment problems in the calculation. Many people have part-time work, but really like to be working full time.They might not earn as much as they would like, but have to stay in part-time job as it is better than no job. The old Japanese people are lack of confidence in Japan?s Economy,and they go out and looking for a job, but they might only get part-time jobs as they have some difficulties to get a job as their high age. Japanese firms prefer part-time workers as well due the low wages and less payment for the their insurance.
- Word count: 746
Narendra Modi * Number of sectors : 25 * Investment Proposals received : INR 2000 crore (till Oct 9th,2014) * ?MAKE IN INDIA? campaign is dedicated to patriot, a great philosopher and political leader Pandit Deen Dayal Upadhyaya who was born on the same date in 1916 Information and Communication Technology: ICT can be broadly viewed under two sectors, Information Technology ( IT ) and Communication. It refers to technology that gains access to information via telecommunications. ICT includes various communication mediums like Internet, wireless networks, Mobile phones etc. Modern Information and Communication technology has constructed a ?Global Village? where people all around the world can communicate with each other as if they were living next door.
- Word count: 5668
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.
- Word count: 1460
With the aid of at least one diagram, explain three factors that may cause the demand for a commodity such as copper to increase.
They are many factors which can affect the demand for a commodity. They are called determinants of demand. One factor that influence the demand of commodity is the size of consumers? income. With increase in the level of income, there is increase in the demand for goods and services. A rise in income causes a rise in consumption. As a result, a consumer buys more. For normal goods, the income effect is positive, hence an increase in consumer income will result in a greater quantity of the commodity demanded (Q1 to Q3)
- Word count: 582
With the aid of at least one diagram and examples, explain why the demand curve for a normal good (define this term) is downward sloping.
P1; a rightward shift of the demand curve of the commodity (D1 to D2). The demand curve for a normal good is downward sloping because of diminishing marginal utility, and the substitution and income effects. Firstly, diminishing marginal utility results in the curve being downward sloping. Consumers buy goods and services because these provide them with some utility (benefit or satisfaction). The greater the quantity of a good consumed, the greater the utility derived. However, the extra benefit provided by each additional unit increases by smaller and smaller amounts. For example, you buy a chocolate bar (Q1), which provides you with a certain amount of benefit (P5).
- Word count: 619