...The economic issue in the article “Less Bang for a Buck” is that the military excessively spends so much on weapons for the war; it decreases economic sufficiency by investing in excess military ventures. By investing in such ventures it causes several repercussions such as consumption of resources in an immoderate manner. The Government kept spending so much money on the war that they did not think about the long term affects on the economy. The demand for weapons increased while supply decreased which cause the price to increase. Leading to a shift in demand and supply; supply would shift to the left since it decreased. At the rate the military is going, their incentives are more like a punishment to the economy. They had the property rights to the resources which meant that they had the enforceable rights to use the resources of any kind. The resources used to produce the materials were taxed away from the productive population which meant that they would get less of it and the demand would shift to the left. It is basically change in demand versus change in quantity demand. The Government spending was over the top which diverted from making civilian goods. If the Government keeps spending so much money on the war, it may lead to another depression. The economy becomes so fixed upon with its own inefficiency that it loses track on the current state of itself while the value of the dollar continues to drop and fixed institutions slowly get into a bigger...
Words: 257 - Pages: 2
...such as increased international trade, increased competition and an overall increase in economic growth, this has been coupled with issues such as increased domestic unemployment, a heavier reliance on other countries for domestic growth and an increase in economic inequality. To deal with these economic issues the government employs countercyclical strategies that are designed to resolve or minimize these issues. Such examples of current strategies that the government has employed are: a contractionary fiscal policy which attempts to decrease government spending in inefficient sectors in order to increase long term economic growth, investment in infrastructure, attempting to increase the incentive for employment of those over the age of 50 through subsidies, and reducing the incentive for welfare payments. Unemployment is an on going and current issue as the short and long term prospects seem uncertain in the globalized economy. Possible reasons as to why in recent months the unemployment rate was at its highest since the global financial crisis are: a shift in production patterns, a decrease in demand for labour and consistent long term unemployment. In dealing with these issues the government has implemented policies in the 2014/15 Federal budget, such as cuts to welfare and business subsidies to incentivize employing those aged over 50. In addressing increasing unemployment issues, which exceed demand for labour, the government has implemented policy such as reducing...
Words: 2339 - Pages: 10
...Economic Assessment: Outcome 2 &3 [Pick the date] 1a).What is Gross Domestic Product? GDP stands for Gross Domestic Product. GDP is the monetary value of all goods and services produced in a country within a given time period. Any goods or services produced outside the specified country is not included the country’s GDP. GDP is usually used as an indicator of an economy’s health and it also measure a country’s standard of living. GDP is often calculated quarterly and yearly and is used as a comparison to the previous quarter or year. GDP is composed of overall consumption of the country, government spending, investments and net exports (exports – imports). The formula for calculating is GDP = C + I+ G + (X-M). b).Distinguish between real gross domestic product and nominal gross domestic product. Nominal Gross Domestic Product is a monetary measure of the value of finished goods and services produced for a period of time (quarterly or annually). Nominal GDP does take inflation into consideration. Real Gross Domestic Product calculates the value of economic productivity in a given year accustomed for changes in price. It takes into consideration inflation before giving results. Real GDP is very different from Nominal GDP. This is proven below: 1. Nominal GDP does take inflation or deflation into consideration in its calculation whereas Real GDP is obtained only after including the effect of inflation or deflation. 2. Nominal GDP is calculated at current...
Words: 1771 - Pages: 8
...Mongolian Economic Issues Mongolia has many problems and issues as such as Economic. It is a one of the biggest issue of mongolia because the country exist on economics and other situations which means if the state development related into economics and politics. Why mongolian economic has been decreasing, because it influences lower gross domestic products and increasing unemployment. Many public and private companies and organizations couldn't give overtime payment and enough salaries and bonuses for overtime then employees and employers don't like that conjuncture. There is an important thing which enough salaries and higher prices of goods and products. So many people leave their major jobs and attending where and which companies or what kind of businesses give more income then they more interest those jobs which are foreign countries industries and manufacture. And there are many unemployments because they had not know enough education and knowledge for working force. On other hand, Mongolian currency is a very low as other countries and government didn't help small and mid businesses if we maintain them, then our industrial function and economic will growing and increasing gross domestic product. High foreign currencies more influenced our economic situation and market. Because mongolian currency affected GDP and goods prices which means our country product price is much higher than other developed countries so state government didn't attention to currency balance...
Words: 410 - Pages: 2
...ECONOMIC ISSUE Title of Issue: Progress under Aquino but more reforms needed- Foreign Bizmen Date of Issue: March 1, 2016 Source of Issue: Rappler (Business Economy Watch) Instructor: Mr. Jerry Mabag Name of Student: Ma. Francesca Paulina D. Serrano BSBA MM2 I. SUMMARY Foreign business executives say that Philippines BPO, infrastructure, manufacturing, and tourism are sectors where progress has been made in policy and economic reforms. The Aquino Administration made such improvements in the reforms sought by the largest coalition of foreign investors in the country but economic growth under its watch has not yet decease the numbers of unemployment and underemployment in the Philippines. The Joint Foreign Chambers of the Philippines unveil the progress of the Philippines and its rated “active or moving”. It also identifies reforms needed for 7 sectors: agribusiness; information technology; manufacturing and logistics; mining; and tourism; medical travel; and retirement. According to JFC it is focusing on the weakest areas but there’s a danger of backsliding under a different leadership. Since many changes and improvements had made, this enable the Philippines business environment to be competitive and the fiscal policy is also good because of the K to 12. But despite of this, number of binding constraints still remains, deterring the country’s track to achieving inclusive growth. JFC highlighted that the Philippine government needs to initiate bolder measures that will transform...
Words: 1381 - Pages: 6
...Econ Economic Issues Lindsay Honea HCS/440 June 7, 2016 Christopher Clarke Economic Issues Health care economics provides theories of production, inequalities, effectiveness, regulation and competition to help keep health care running smoothly and efficiently (Getzen, 2013, p. 2-15). One key factor that health care economist are watching is medical plans provided to help cover the cost of care for individuals. These plans are put in place to help take some of the burdens off of the person while helping find affordable, reliable, quality care. Castor Collins is a health insurance group that provides insurance plans to companies to help cover their employees. In the University of Phoenix simulation (n.d.), two large organizations have come to Castor Collins to determine the right plan for their employees. As the VP of Castor Collins, it is my job to help them find the plan that fits their budget, one that is cost effective, and provides quality care. Castor Collins Health Plan is a regional HMO plan that started in 1999. This plan provides coverage to 100,000 people in its state. They are looking to increase the number of individuals that it covers. My colleagues (Helen Feuerman CEO, Jonathan Wilkes, MD, Chief Medical Officer, and Adam Hunter Executive Vice President of Planning and development) and I will be looking at options of the best way to provide this coverage for the individual, the companies who employ them, and Castro Collins (University of Phoenix, n.d...
Words: 1101 - Pages: 5
...Assessment #1: Economics and Ethical Issues “Markets bring together buyers (“demanders”) and sellers (“suppliers”)…” (McConnell-Brue, p. 43) In order to predict the economic issues associated with supply, demand, and equilibrium price of a particular product, I will need to explain the relationship between these components. Supply is the number of goods and services that businesses are willing to sell at different prices at a specific time, and demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. (Ferrell, p.13) Supply and demand will meet at a certain point where the sellers are willing to sell products and services at a certain price and consumers are willing to buy at a certain price, this point is called the equilibrium price. The equilibrium price will also help to determine the equilibrium quantity, the price and the amount of product and services demanded and supplied at the equilibrium price in a competitive market. At this amount of equality, there is neither a shortage nor a surplus of product and services. The supply and demand of the products Tylenol, Aleve, and Advil depends basically on the consumer’s preference and taste. First, let me state that all of these products serve the same purpose, to relieve headaches and pain. What makes the difference is the characteristic of each product which is the active ingredient. “Tylenol and certain generic brands rely on acetaminophen. The active ingredient...
Words: 1228 - Pages: 5
...Current Issues Final Portfolio “One definition of an economist is somebody who sees something happen in practice and wonders if it will work in theory.” – Ronald Reagan. Is there any better way to sum up the past four months in Econ 404W: Current Issues? Day after day we performed experiments to see first hand how certain economic theories and phenomenon work in practice, and afterwards try to understand how the theories relate. Throughout the semester, we participated in 27 games/experiments that covered a wide range of economic theories and principles. Of all the different concepts that have been discussed, two have stood out time after time. These are backward induction and the free riding problem. The first experiment that used any sort of backward induction was Network Externalities. In this experiment my strategy was to think as a group of people would, rather than how I would personally, and act in the first round to maximize profits. Each decision, as simple as the two choices were, had one choice that I believed would appeal more to the rest of the class, regardless of what my personal preference was. One round, for example, had a choice between a blue and white paper and a red and white paper. As appealing as the red and white was to me, I knew that a class of Penn State students would clearly choose the blue and white as opposed to the aesthetically repulsive colors of Ohio State. Thinking of how others would act allowed me to get into the superior...
Words: 1823 - Pages: 8
...Assignment #1 Economics and Ethical issues Matthew V. Gibbons Dr. Nick Nayak BUS 508/Section 025016 – The Business Enterprise July 18, 2010 Strayer University 1. Discuss what will happen to supply, demand, and price in the short term. The impact of supply in the short term for Mrs. Acres Homemade Pies if Shelly does not hire more staff or expand her current production will be she will not be able to keep up the amount of orders, demand, which she is currently receiving for her product. This is not necessarily a bad situation for the company to be experiencing. As the demand for the product increases Mrs. Acres Homemade Pies will be able to raise the price of the product to also offset the cost of hiring more staff and expanding production the production facilities in order to keep up with the demand of the product. In the short term Shelly needs to heavily consider raising the price of the pies to so that she can than afford to expand and keep production of the product under her control. The success of Mrs. Acres Homemade Pies is based in that it is not like your typically massed produced items that will sacrifice quality to keep the cost down. It would appear in this situation that part of the attraction of the product is the fact that it is of a better quality which is driving the demand of the consumer for the product. As we have discussed in previous discussions the consumer will dictate how much they will spend for a product which in turn will also create part...
Words: 1231 - Pages: 5
...Economics and Ethical Issues BUS508 The Business Enterprise Introduction In this paper, I will discuss two types of businesses, homemade pies and soft drinks. Mrs. Acres Homemade Pies is small business that produces specialty pies to local supermarkets and select family restaurants. This company is growing rapidly in profits and employees (Ferrell, 2009). I am going to analyze the supply and demand for this company along with pointing out challenges Mrs. Acres should consider in managing the growth of her business. The next business that I will discuss is a soft drink company that operates in a monopolistic competition market. Monopolistic competition exists when multiple businesses are selling the same goods with very small differences (Ferrell, 2009). I will discuss the economic factors needed to operate this type of business and identify how each factor could give the business a competitive advantage. Mrs. Acres Homemade Pies Mrs. Shelly Acres love for cooking motivated her to start her own business called Mrs. Acres Homemade Pies. Mrs. Acres had taken her grandmother’s homemade pie recipe and turned it into a successful pie business. Mrs. Acres sells her pies to local supermarkets and select family restaurants for $4.50 each (Ferrell, 2009). During the first six months, Mrs. Acres produced 2000 pies each month. Her success comes from three productive part time employees who produced...
Words: 1173 - Pages: 5
...ASSESSMENT # 1: Economics and Ethical Issues by George Ugrekhelidze Strayer University Business Enterprise: BUS508 Professor: George H. Barbosa, PH.D 10/27/2009 ASSESSMENT #1.1 Introduction The paper responds to the questions posed in section titled “Mrs. Acres Homemade Pies” at the end of Chapter 1. Shelly Acres, a founder of the company, faces the dilemma in producing homemade pies. Mrs. Acres Homemade Pies struggles to keep up with demand. Question 1: Discuss What Will Happen to Supply, Demand and Price in the Short Term. Supply is a various amount of product that producers are willing or are able to produce for selling at different prices at a specific time. In our case supply is an amount of pies Shelly Acres’ company, Mrs. Acres Homemade Pies produces. In the first month of the business she sold 2000 pies. Following month amount of sold pies rose to 8000. Demand is a various amount of product that buyers are willing or are able to purchase at different prices at a specific time. In our case, demand for Mrs. Acres’ homemade pies is rising. Good quality product and a reasonable price of pies caused rising demand. It continues accelerating beyond what Shelly can supply. The most of the time when company produces a high quality product in reasonable price, demand for this product will increase. This is happening to Shelly Acres’ business. In short term, demand will keep rising. Also, the necessity of...
Words: 1809 - Pages: 8
...Introduction (Background of Mrs. Acres Pies) Mrs. Acres Homemade Pies derived from Shelly Acres whose grandmother gave her a family recipe for making pies. Shelly Acres loved to cook so she decided to start her own business called Mrs. Acres Homemade pies. The company produced specialty pies and sold them in local supermarkets and selected family restaurants. In the first six months Shelly Acres and three part time employees sold 2,000 pies for $4.50 each, netting $1.50 profit per pie. The business was so successful they could not keep up with demand. In order to meet demand Shelly Acres had to expand operations, borrow money, and increase staff to four full-time employees. Production and sales of the homemade pies increased to 8,000 pies per month and profits increased to $12,000 per month. Shelly Acres’ homemade pies continued to increase beyond what she could supply. Now Shelly has the dilemma of making a decision of how she should proceed with her company in the short run and long run to continue to make profits. Short-Term Supply, Demand and Price In the short run with supply staying constant and demand increasing. Shelly Acres will have to make a decision whether to increase price to maintain supply and demand. With an increase in demand in pies will raise both the equilibrium price and equilibrium quality. In the short run Shelly Acres has expanded her operations, borrowed money, and increased her staff in order to keep up with demand. In the short term of things...
Words: 1207 - Pages: 5
...Economic Issues Simulation Understanding Economic Issues for HMO’s Castor Collins Health Plan is a regional Health Maintenance Organization that has been contracted to provide health care coverage for Constructit and E-Editors. Castor Collins has to expand the coverage for another employee group by the name of Dearden. It is Castor Collins Health Plan’s goal to provide the necessary coverage, and still make a profit. At the time of renewal, Dearden’s policy will need to be reviewed and modified to add coverage and update if indicated to be profitable. The management team responsible for this review and implementation of coverage consists of the CFO, the Chief Medical Officer, and the Executive Vice President of planning and development, and the Vice President of strategy and financial planning. Constructit The management team reviewed Constructit and its need for coverage. This company needs coverage for 1,000 employees and is willing to pay $4,000 in premium. The age group is 26-45 with 43% in a sedentary work style. The other 57% is active, either moderately or severe, in the workforce. The workforce under the age of 30 is 40%. The biggest obstacle for this group as there is a 39% obesity rate among the employees. The team reviewed both standard and enhanced policies for this group and decided that the customized policy best fits the need of Constructit. Under the Castor Enhanced minor policy, the basic needs of medical services under inpatient and hospital...
Words: 950 - Pages: 4
...Economic Issues Simulation Budget constraints increasingly determine the provision of health care services. One of the promises of cost-effectiveness analysis is that it can demonstrate how to maximize the health care benefits attainable within a specific budget.1,2 Despite this promise, cost-effectiveness analysis has been criticized for setting health care priorities in a way that violates people's values.3-5 For example, many people value equity in the distribution of health care resources, yet equity is not accounted for in cost-effectiveness analyses.6-13 A basic assumption of cost-effectiveness analysis is that one should always prefer a health care intervention that provides a population with more benefit per dollar than another intervention. However, sometimes budget constraints make it impossible to offer the most cost-effective intervention to everyone in the population, raising issues of equity.14 For example, suppose one has a fixed budget of $200,000 with which to screen a specific population for colon cancer. Test 1 costs $200,000 to offer to everyone in the population and prevents 1000 deaths from colon cancer. Test 2 costs $400,000 to offer to everyone and prevents 2200 deaths from colon cancer. Because of the budget, it is impossible to offer test 2 to everyone. However, it is possible to offer it to half the population, thereby exhausting the $200,000 budget and preventing 1100 deaths from colon cancer. Test 2 is more cost effective than test 1, because for...
Words: 996 - Pages: 4
...appropriate because of their direct stimulation of the demand. Moreover, due to the lack of accurate and reliable estimates, IMF also recommends the diversification of the fiscal policies used in order to maximize their effectiveness. The global nature of the current crisis and the different capacities of the worldwide governments involved imply the necessity to coordinate the stimulus plans in order to yield better and quicker benefits that will help out the countries with lower abilities (free-rider externalities effect). By analyzing the situation from 2008 to end 2010, it appears that the recovery is on track but risks and uncertainty remain. The next move then is to consolidate and create an adequate environment for balanced and sustained economic growth, fiscal sustainability and financial stability on a worldwide level. Using short term fiscal policies, the governments should first increase their credibility and consolidate their budgets by employing fiscal rules. Second, the exit from the exceptional fiscal policies used should be well timed to a strong growth or delayed if conditions are still weak: “difference between US - Europe vs. Japan”. Third, the fiscal policies used in developed countries will generate capital inflows towards emerging countries. These inflows will boost real-estate sector, increase the value of the stock market, and strengthen the local currency which will affect their competitiveness on the international trade level and might create a resilience...
Words: 1566 - Pages: 7
