- 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
A few of these banks do lend extensively to rural areas most don?t even look at the rural areas of the country for lending money. But the poor people do not get access to formal financial institutions due to the lack of physical collateral. Unlike other countries, Bangladesh does not a have a proper substructure of small banks operating at a local level, and thus a strong structure NGO microfinance sector had been developed in Bangladesh. These MFIs have been able to reach the poor with collateral-free loans at affordable costs and can thus help the poor become self-employed.
- Word count: 2083
Thus a part of the people?s and country wants, they wish to preserve their cultural identity. But needs need to be satisfied, while there is a scarce in resources. As well with the notion that keeping cultural identity with no interference of the outside world would be impossible, economic growth is essential. With Bhutan?s dilemma to modernize and develop the country, while preserving its traditional and cultural uniqueness/identity, an external dimension has to be attained through foreign policy. Small countries like Bhutan, which are politically, economically and militarily weak, are vulnerable to external influences.
- Word count: 672
Most of the profits go to the shippers, roasters and retailers. For example, while a cup of coffee costs $4-5, farmers get only 10% of that cost. To sum up, this is unfair with farmers who should receive more money for their coffee products. Besides the price of coffee beans is low, speculators also make the price pressure with the farmers? productions. For example, after harvesting the coffee beans, farmers immediately have to sell their products to collect the capital and prepare for next season.
- Word count: 497
Economics Commentary #1 Patent Lawyer Demand Rises Following U.S. Legislative Overhaul Bloomberg, Oct. 8, 2011
Patent lawyers account for 15% of the job opportunities in law firms; however, the supply for such an attorney is low and makes up only 3% of U.S. lawyers. This has caused a shortage. Because of this shortage, the price that a patent attorney charges is much higher than that of an average lawyer, as is addressed in the extract. As price increases, the quantity demanded by consumers typically decreases; so in the case, innovation will only be discouraged due to the high price of a proper attorney.
- Word count: 566
Prior to the seizure of Antwerp was the existence of Antwerp?s stock exchange otherwise known as a bourse. Five years after the influx of Antwerp?s merchants was the birth of The Bank of Amsterdam. Established in 1609, The Bank of Amsterdam was between the first if not the first true central bank. The newfound financial institution allowed Amsterdam to become the financial powerhouse of the globe. The flow of capital was an incentive for the people of Amsterdam to invest in the lucrative business ventures that made their country so wealthy in the first place. As a result of war, weather, and other uncertainties, the maritime ventures that the Dutch Republic were reaping profits through was seen as relatively risky.
- Word count: 11065
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.
- Word count: 1586
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.
- Word count: 1461
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.
- Word count: 1185
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.
- Word count: 1331
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.
- Word count: 1095
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.
- Word count: 1225
Discuss and evaluate the proposition that perfect competition is a more efficient market structure than monopoly.
Below are the graphs for each market form. Perfect competition, by nature, is more competitive than a monopoly. This is due to the fact that there is a large amount of firms present in the market. Due to the sheer amount and small size of the firms, their price is regulated by the price set by the industry, in other words, they are price takers. Changing their price would result in them making losses, and due to this all firms set one price. This is due to the fact that the demand is perfectly elastic, so any change in price results in all loss of consumers.
- Word count: 968
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.)
- Word count: 1250
To begin with , we have to understand what is the graduation tax and what role does it plays in the economic and educational system .According to BBC news in 2010 it was reported by the Scottish Conservative Party that the graduation tax in Scotland will represent the Australian model where students have to pay back to the government their tuition fees and the living costs by the time they were in university .So as we can clearly see the students will have to pay this tax after their graduation and when they do have a specific amount of earnings .
- Word count: 828
Using income elasticity of demand, explain the difference between normal, necessity, and inferior goods.
With this information, the income elasticity of branded clothes can be calculated. His income has risen by $1,000 from an original income of $10,000, which is a change of +10%. This can be calculated by the equation (+1,000/10 000) x 100% = +10%. The quantity demanded of branded clothes has increased by $200 from an original demand of $1,000, which is a change of +20%. This can be calculated by the equation (200/1,000) x 100% = +20%. When the two values are substituted into the equation for income elasticity of demand, we end up with (+20%/+10%)
- Word count: 648
This essay will analyze how economically smart war is, specifically World War I, from the view of the United States of America
The US had been supplying Europe with weapons, bullets, and other equipment into the war. The term mobilizing is used in warfare, but our economy was getting a boost without the US sending any soldiers out of the country. These products were inelastic, meaning that the consumers of the goods were unresponsive in change in price. For the US, this meant that they could set prices at extreme prices and the countries that could not make these goods themselves or get from another source had to buy the goods at these extreme prices.
- Word count: 491
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.
- Word count: 1428
?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.
- Word count: 1178
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.
- Word count: 1264
"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.
- Word count: 1724
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.
- Word count: 1078
It is projected that the stockpiles in the United States will drop to 2.56 billion bales by July 31, 2011, according to a group of analysts at Bloomberg News. The United States Department of Agriculture (USDA) is projecting a yield 2.7 billion bales of cotton. This great decrease in supply has brought cotton futures into the limelight of much needed consideration. With the supply of cotton going down in the United States, another large exporter has emerged?China. But the cotton supply has also reduced in China, causing there to be a global shortage?when there is not enough of a good or service to satisfy the demand for a good?of cotton.
- Word count: 840
With India as an example we will discuss Malthus, the population growth theory and see if Malthus theory was maybe mistaken in the past but has some valid aspects today.
Malthus defined two types of checks to population growth: preventive checks and positive checks. Preventive checks are those that affect the birth rate and include marrying at a later age. He also called these ?moral restraint?. So Malthus stated that a family should not have any children before they cannot make sure that they can supply their kids. According to Thomas Malthus, positive checks are those, that increase the death rate. These include war, plague, disease and famine. Malthus felt that the fear of famine or the development of famine was also a major impetus to reduce the birth rate.
- Word count: 1369
Economics Commentary - Even though there is a weak trend in global markets, the price of gold has increased in the Indian markets
Gold is denominated in US Dollar; change in the value of US Dollar will hence reflect the price of gold. The steady depreciation in the value of US Dollar due to the ongoing recession has led to a weak trend in gold in the global markets. If the price of gold is valued higher in any other currency, it shows us that the demand for gold is high and hence increasing its value. The below graph shows the depreciating value of gold due to the depreciation of US Dollar.
- Word count: 759
A seller charging a different price according to the type of consumer practices what economists call first-degree price discrimination. For each consumer, the price reflects the maximum that consumer is willing and able to pay. In other words, the seller tries to reap as much profit from each consumer as possible. Examples of first-degree price discrimination abound among professional (such as lawyers, accountants and artists) and health (doctors, nurses, and other care-givers) service providers. Second degree price discrimination occurs when the seller charges a different price according to the volume or quantity a consumer buys. What is more important in this case is the correct perception of a consumer group?s ability and willingness to pay.
- Word count: 853