• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economics HL High Quality Commentary

Extracts from this document...

Introduction

Commentary Number 4 Extract Article: Shellfish suffer in hurricane's wake Author: Joyce Howard Price Source: The Washington Times Article Dated: September 16, 2005 Date: October 25, 2007 This article talks about how the Shellfish industry in Louisiana and Mississippi was affected by Hurricane Katrina. The article discusses how most of the of the oysters and shellfish in the affected area did not survive, the companies in those areas lost most of their assets and the majority of the infrastructure in the areas affected was destroyed. This can be related to the economic theory we have learnt about Demand and Supply Curves, factors of production, economic growth and development and stakeholders. Demand and Supply Curves The above diagram displays how we can relate the economic theory we have learnt about Demand and Supply Curves to the subject of this article. Because there is a decrease in several factors of production, i.e. natural resources (Oysters and Shellfish), labour (Workers would have moved to other areas of the country and so less labour will be available for the same price) and capital (the article states that "extensive damage occurred to the whole seafood industry's infrastructure, including harvesting vessels, docks and processing facilities"), ...read more.

Middle

Capital will become scarce as the capital (machinery, boats, factories) of several companies in the shellfish industry may have been completely destroyed as a result of the hurricane. Economic Growth & Development Taking economic theory of economic growth and development into account, this article indicates that Hurricane Katrina is going to severely effect the economic growth and development of the USA. Because there are no more oysters or shellfish in the affected area, most fishermen and employees of companies in the shellfish industry may lose their jobs, this will cause a decrease in the real national income per capita and therefore a decrease in real GDP. The unemployment will lead to less demand for oysters and shellfish and therefore it will then lead to further unemployment as a result of the demand multiplier effect. Relief efforts will also put a strain on tax payers as taxes may increase and therefore the national income per capita and real GDP will fall further. Another effect on the economic growth will be that the oyster firms affected by the hurricane will be less productive and competitive because of rising costs and increasing scarcity of the factors of production, therefore there will be a ...read more.

Conclusion

Consumers - as supply of shellfish and oysters will decrease, consumers will face difficulty finding oysters and the prices will also rise so consumers may not want to pay more for shellfish and oysters and so may resort to substitute goods or look towards cheaper foreign imports. The Government - will face a crisis as rising unemployment will cause problems for the economy and raising taxes won't raise enough money, government expenditure will increase. The government may also have provide aid to fishermen and other workers made redundant from the shellfish industry. The government will also have to work harder and spend more money in order to clean up any pollution caused to the ocean as a result of the hurricane and if undamaged oysters and shellfish are found, they will have to carefully control harvesting of such creatures so as to not wipe out those species from the affected areas of the ocean. Environmental Groups - will have to increase expenditure as they will want to provide aid to animals and people affected by the hurricane. Should a small amount of oysters and other shellfish be found undamaged, they will probably campaign to make sure firms don't exploit these small amounts so as to wipe them all out. ?? ?? ?? ?? By Angad Chaturvedi and Wilson Wong ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Economics HL - IA

    The equilibrium price as well as the equilibrium quantity increase (P� - P�; Q� - Q�). Different sources, as described in the article, now eye the opportunity of promoting and boosting the manufacturing of Japanese chopsticks, in order to strengthen and expand the Japanese businesses even further.

  2. Growth and Development Problem Set - IB Economics exam questions and answers.

    to lead a long, healthy and creative life with a decent standard of living, freedom and dignity. The HPI in developing countries uses the following indicators: * deprivation in longevity, measured by the probability at birth of not surviving to age 40 * deprivation in knowledge, measured by percentage of

  1. IB Economics H.L. Coursework

    year 2008, due to the strong backing the government is giving it amidst an international financial crisis" "This dynamism in the construction sector will also promote 380 thousand direct workplaces in the year 2009, which will help counteract the effects of the financial turbulence, the minister Vilchez affirmed" "2700 millions

  2. Economics Commentary on Foreign Capital Shuns India

    overall foreign investing activities in India stem from the government intervention, or let's say, their inefficiency. However, if we put ourselves into the government's shoes, we might find arguments for the government. Since India is a developing country with a very high annual economic growth rate, the government does not

  1. Economics HL Demand of Housing

    Changes The latest figures show a continuing divergence in house price trends in reports from two of the UK's leading lenders. The Nationwide Building Society, which published its survey for August two weeks ago, said that prices in 2009 had risen by �7,000 since the start of the year -

  2. LDC Essay Economics Aid

    One aspect of income distribution is the progression of the tax system, designed so that people on the higher incomes pay a higher proportion of their income tax, in which the money will be redistributed to the poor. For many developing countries this is not the case and this form of redistribution might not occur.

  1. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    This growth brought about great changes in technology and methods of production. During this time period, Great Britain saw their economic staple shift from agriculture to textile and machine-based manufacturing. A variety of crucial things were brought up through this time of change including the textile industry, iron founding, steam power etc.

  2. Economic article analysis. The statement made by Ongkili indicates that the fishery industry of ...

    This causes a leftward shift of the supply curve from S0 to S1. The Equilibrium point moved from E to E'. As the equilibrium point changed, the price of marine product increases from P0 to P1, meanwhile, reduce of supply also caused the quantity of marine products in the market to reduce, as the quantity moved from Q0 to Q1.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work