Economics is the study of production, distribution and consumption of goods and services whether in a city, country or a single business. Questions about supply and demand and economic theory are welcome here.
Why stock market is good example for perfect competition?
The stockarket is an example of perfect competition in that everyone has the same chances of ups and downs in a certain market. Laws also help to ensure it's perfect competition by makin insider trading illegal. In theory, a stock market is perfect competition. However, in reality, it is actually an example of very poor competition. Both in laws and in actual construction, stock markets heavily favor those able to purchase super-high-speed computers (and host them in the exchange itself), and also tend to restrict information to a privileged few while denying it to the majority of users. The consequence is that a stock market actually is very imperfect competition, heavily favoring the established members of the exchange over the ordinary exchange trader. Answer 2 It isn't. As a technical term in Economics, "perfect competition" is the (ideal or theoretical) market structure characterised by a large number of price-taking producers with identical U-shaped cost curves (the minimum of the firm cost curve occurring at an output small in comparison with market demand), who face no barriers to entry, producing a uniform product and selling it to a large number of price-taking consumers, without collusion or price-discrimination. The stock market is characterised by non-uniform commodities (shares in different companies) each with a monopoly supplier. If anything it's an example of monopolistic competition, not perfect competition.
Asked in Warriors Book Series, Economics
Why has inflation become a necessary evil?
Inflation is a necessary evil for the development of an economy. Inflation is unavoidable but it must be kept in control. Inflation is NOT unavoidable. In fact, there have been several recent periods where deflation has occurred. Inflation is generally a side-effect of a growth-based economy with a fiat currency. Inflation itself can be caused by several factors: a too-fast expansion of the money supply, fluctuation in consumer demand, and changes in supplies of goods or services. While most people thing of inflation as "evil", the consensus of economists is that a small (<2-3%), consistent amount of inflation is actually "good" - it allows for adjustments in the labor market during small downturns, avoiding recessions, and it avoids a monetary liquidity problem which would cripple a central bank's ability to properly adjust the monetary supply. In addition, moderate amounts of inflation (5-10%) can also serve a useful purpose: moderate inflation reduces debt loads (as debt fails to accumulate interest faster than inflation reduces the real value of the debt), and encourages spending rather than saving. That said, without commensurate (or at least moderately similar) rise in income levels, inflation (of any kind) does lower the standard of living of the population.
Asked in Germany in WW2, Economics
Is redistribution of wealth socialism?
That depends on who it is redistributed to. If wealth were redistributed to individuals (say for example to make people's shares more equal), but remained privately owned and controlled by individuals, that would not be socialism. But if it were redistributed to collective ownership in any form, or retained in government ownership, or if its use were controlled by the government despite different assets nominally belonging privately to individuals that would be socialism. Whether the USA needs socialism, and whether socialism goes against human nature, and whether redistributive change is counterproductive to the entire society are questions that are not related to which forms of redistribution are socialist. NOTE: it is well worth paying close attention to the difference between a redistribution of wealth and a redistribution of income.
Asked in Economics, Mexico
What is Mexico's economy?
Mexico is the eleventh largest economy in the world, with a Gross Domestic Product of $2.41 trillion (2017). It is also considered an emerging market, with a GDP per capita of $19,500 (2017), on par to medium-income economies such as Iran ($20,000) or Lebanon ($19,500). Its GDP composition includes 64% towards services, 31.6% to industry and only 3.9% to agriculture. Unlike other emerging markets, whose economies run on commodities, Mexico has a diversified, manufacturing and export-oriented economy, being an active rival of China for access to the North American, Eastern Asian and European markets. Its exports accounted for $407 billion, and its imports for $417 billion during 2016, setting Mexico as the 12th/13th largest exporter/importer in the world, respectively. The largest Mexican exports include crude machinery and equipment (37%), and motor vehicles and parts (25%), while the largest imports also include machinery and machine parts (39%), as well as motor vehicles and parts (10%). Some of the largest challenges to Mexico's economic potential include market inefficiencies, corruption and security issues; especially those found in Mexico's southern region which still lags in terms of economic advancement and governance. For example, the state of Oaxaca has the health, education and income of the Sub-Saharan country of Botswana, while Mexico City, capital of the country, has the quality of life of Quebec in Canada, or Aragon in Spain (GDP Per capita: $34,223).
Difference between micro and macro ethics?
Macroethics is a new domain of ethics formulated by analogy with macroeconomics. Rather than addressing the rationale and effects of individual actions, it considers effects of entire social systems of morality, with particular attention to moral ironies and externalities. Most of Western ethics is micro in its approach. Aristotle addresses some macroethical issues; as do Mencius and Confucius, Aquinas and some other Catholic thinkers. Recently there are several contributions in the area, including a systematic framework for doing macroethics in Gowri's The Irony of Insurance (PhD diss, USC 1997, proposes that private insurance tends to reduce risk pooling within communities). The world's best macroethicist is Joseph Furtenbacher, who says he wishes someone equal or better would show up so he can cut back on his 16/7 work schedule...
What is auto-traffic?
Traffic exchanges are an easy and affordable way to put eyeballs on your websites. You already know you can get great results from manual traffic exchanges like Soaring4Traffic and ProClickExchange. People sometimes ask me about "autosurfs" or auto traffic exchanges. I own manual exchanges, so I'm biased, I'll say that straight out, but here is my take on auto traffic exchanges. Most people want to use autosurfs because less work is required to use them. Sites are rotated automatically on a fixed timer for your viewing pleasure. You don't have to click surf icons to view the next site and earn credit; your account is credited automatically with each new site. In fact, you don't even have to sit and watch the sites go by either. That's the big draw of autosurfs. You turn them on and forget them. Now, that can save the traffic exchange user some serious time. Turn on a few autosurfs, then concentrate on writing email copy, working on a new splash page or making a few phone calls. Advertise, earn advertising credits, and work all at the same time! Autosurfs are fantastic for multitasking. Or are they? The main draw of using an autosurf is the automation of the site rotation. Why is automation attractive? It frees you up to do other things. If you are doing other things, you aren't viewing the sites. So you don't see the sites, big deal. You still earn credits, and that's what you need, so you can keep your site in rotation, right? What is the main goal of using a traffic exchange? Earning credits is important, but credits are useless if your sites rotate on computer screens that nobody is watching. You want to show your site to people who need your products and services, to people who will opt-in to your email list. If you aren't watching the sites rotate, who do you think would? But hey, like I said, I'm biased, so put it to the test yourself. Track your results in the autosurfs. Compare the results to what you get in manual traffic exchanges. Heck, compare them to your results everywhere else you advertise. You should know what kind of return you get from your various promotional efforts. Another great way for natural traffic is backlinking. Getting higher ranked in the search engines is great for increasing traffic. This is basically having your site added to other high pagerank websites to be crawled by search engines. The object is building links month to month, creating a higher chance you be found all over the web. Autosurfing is time consuming and your site is only seen by other people wanting you to see their website. Most with no interest in anyone elses promotions. HigherMyPageRank.som is my favorite backlink spot around. I highly suggest it! Internal Linking is also one option to that. Reciprocal linking is now penalized by Google Penguin update. Getting links from pages High on there domain authority and also from the businesses in the same verticals as they are the preferred ones in terms of PR of ones home page.
Asked in Monopoly (game), Economics
What is shared monopoly?
Shared or Joint monopoly refers to anticompetitive behaviour by firms, normally an oligopoly, in order to secure monopoly profits for the firms as a group. Essentially, shared monopoly requires some form of collusion but stops short of being a formal cartel. It is therefore similar to tacit collusion. In a shared monopoly firms may not compete for the same customers and have instead local monopolies.
What do you mean by Indian mercantile law?
Give three examples of specialization and division of labor in what areas are you and your friends thinking of specialization what might be the perils of over specialization?
The enormous efficiency of specialization allows the intricate networking of trade among people and nations that we see today. very few of us produce a single furnished good; we make but the tiniest fraction or what we consume we might teach a small part of one college's curriculum, or empty coin from parking matter or separate the genetic material of fruiting files, in exchange of this specialized labor we still receive income adequate to buy goods from over the world. Advantage economics engage in specialization and division of labor, which increases the productivity of their resources. ANSWER Explain what happens if the market price starts too high or too low? i belong to Pakistan so i definitely try to think about the specialization in agriculture because my country has 70% dependency on agriculture... cost of production of agriculture products are far less than other countries... so my area will be agriculture. the perils of specialization are its disadvantages... in some cases monopolies generated through this type of specialization.
How do you conduct an external strategic management audit Specify three external forces that have recently affected your organization in one or another way and what measures have been taken to cope?
How much was a loaf of Brad in 1975?
$8,710.72 To find the answer, we must first quantify the value of Brad. So how much is a human life worth? According to research by Stanford economists, a year of human life is worth about $129,000. Wolfram Alpha tells us that the average age of a person named Brad is 35 years, and that the average life expectancy for a human male (worldwide) is about 69 years. Assuming that procuring a loaf of Brad involves cutting down a Brad in his prime, we would be depriving him of 34 years of life - a value of $4,386,000. Next we must decide if a "loaf" is a unit of volume, or a unit of weight. In the UK, government regulation defines a loaf by weight: 400 grams is a "small" loaf, and 800 grams is a "large" loaf. So let's go with weight, and let's split the difference and assume that we want a medium sized loaf of Brad... that's 600 grams, or about 1.3 pounds. Since the average weight of a human male is 166 pounds (according to Wolfram Alpha), we can assume that Brad should sell for about $26,421 per pound - which, using our previous loaf weight of 1.3 pounds, sets the price for a loaf of Brad in 2010 at $34,348. Finally, inflation must be factored in. According to an inflation calculator at westegg.com, what cost $34,348 in 2009 would have cost $8,710.72 in 1975. Thus, it is safe to say that a loaf of Brad in 1975 could be purchased for $8,710.72. Additional answers from our users: Typical of this site, the answer above is very US-centric, when there is no indication in the question as to where the 1975 Brad was to be purchased. Brad - in 1975 - was a rarity in Ireland, and research in the vaults of the Natural History Museum, cross-referenced with the data from the Irish maternity hospitals, show that a loaf of baby-Brad was retailing at £459.25. However, as the questioner has not specified if the Brad in question is an adult or a child, we need to cross-reference again, this time with the League of Irish Undertakers. Their files tell us that - at death - the average Brad cost £2,749.37. Therefore, the answer to the question depends on how mature the Brad in question is required to be. The maturity/price is a sliding scale. This answer - obviously - only applies to Irish Brads. When Ireland joined the European Monetary Union, it became illegal to trade in male humans for fun or profit. Priceless! - not the loaf, the question! And a final word of apology to Brad for any inference that he is a loafer. One Pitt without a Jolly (1975). We would need to know when in 1975 the loaf of Brad was to be purchased, and where. We would also need to know the number of Brads available at the time of purchase. For example, if the last loaf of Brad were to be purchased from a Brad the day before, we must assume the price of a loaf of Brad would go up (according to the laws of supply and demand). From here, there are a few possibilities: The supply of Brads just dropped, and the demand for a loaf of Brad stays the same. The supply of Brads just dropped, but so does the demand, as one family now has a loaf of Brad. It is very difficult to determine the exact price, so just assume that when you travel back in time to acquire this loaf of Brad you'll need (at the very least) $8,710.72. When you return, please tell us how much you had to pay. Buy it at the most available store, so we can get the general retail price. (If you would like to know the answer to the question "How much was a loaf of bread in 1975?", click on the Related Question below.)
Asked in History, Politics & Society, Economics, Texas
What is the economy of the coastal plains of Texas?
What is financial deepening?
Financial deepening usually refers to the improvement or increase in the pool of financial services that are tailored to all the levels in the society. It also refers to the increase in the ratio of money supply to GDP/Other price index which ultimately postulates that the more liquid money is available in the economy,the more opportunities exist in that economy for continued and sustainable growth.It basically supports the view of: Development in Financial sectors leads to development of the economy as a whole.
Asked in Economics
What is meant by aggregate demand and aggregate supply?
Aggregate simply means a collection of things. So aggregate demand is the total quantity of an economy's final good and services demanded at different price levels. Aggregate supply is the total quantity of final goods and services that firms in the economy want to sell at different price levels. These are used primarily in Macroeconomics to calculate how the economy is doing as a whole.
Asked in Economics
What is the lean against the wind policy?
Use monetary policy to counteract the expansionary phase of the business cycle. Intention is to tighten policy in a way to restrain the credit cycle on the upside, with a view to mitigating the magnitude of the subsequent downturn. William R. White, "Should Monetary Policy "Lean or Clean"" Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute, Working Paper No 34 (August 2009)
What are the five subjects of social science?
Asked in Bachelors Degrees, Economics
What's ba in economics mean?
"B.A. in Economics" means "bachelor of Arts degree in the field of economics". In English-speaking countries the bachelor's degree is the qualification issued at the end of undergraduate studies, usually after three or four years of study at a university or (in the USA) a college. (A person with a bachelor's degree may go on to higher studies leading to a master's degree or to a doctorate.) In some countries (such as Australia) if you get a bachelor's in economics that is called a "bachelor of economics" degree, abbreviated to "B.Ec.". In other countries, for historical and traditional reasons, degrees are categorised into one of the faculties of the 19th-century university: Arts, Medicine, Law, or Science. (The arts in question are the "liberal arts", not Art, which is "fine arts".) Someone who studies economics as an undergraduate in such as country is usually awarded a degree of "Bachelor of Arts in Economics". (Note: American universities have stopped awarding bachelors' degrees in law or medicine. Nowadays you need an BSc in "pre-medicine" to get into an American medical school, and a BA to get into an American law school. But Yale awarded LLB (bachelor of laws) degrees until 1971, and medical training is still available in some Commonwealth countries as a double bachelor's degree (bachelor of medicine and bachelor of surgery). A B.A. undergraduate degree generally has more liberal arts courses such as a foreign language or social sciences while a B.S. degree generally has more mathematics courses. For example, a B.A. in Economics may have more social science courses while the B.S. in Economics degree would have math requirements such as calculus and other higher level math courses instead.