Vivian Le Mr. Moore Online Econ 09/21/15 Chapter 1 Section 1 p.6 Section Assessment 2, 6, 8, 10 2. The idea of scarcity being a starting point for thinking economically is because the aim for economics is to solve the problem of scarcity. This occurs because resources are limited and needs or wants are unlimited. 6. In the economy entrepreneurs play an important role because they’re in control of combining land, labor, and capital in order to establish new factor production. 8. The factor of production that is represented by each of the following is An office building is an example of physical capital because it aids workers to do their jobs and provide a safe environment. An assembly line worker …show more content…
Yes, the trip is worthwhile because the trip requires $10 in gas therefore the total amount of money you can save is $40. In addition, the money can be used towards goods and services for one 's benefits. 9. Factors an employer should consider if he/she were trying to decide whether to hire an additional worker is if the company will benefit with the extra help, will the company be able to pay for the new worker, and will there be enough room for the new worker in the company. Chapter 1 Section 3 p.18 Section Assessment 4, 5, 7 4. If the number of farms have decreased since 1950, this means that the production possibilities for the farm output has decreased because there are only a few farms available to produce goods. 5. A. The invention of the computer would increase the production possibilities curve because they were in such high demand compared to farmed goods which became an opportunity cost. B. 1 million farm workers remained unemployed for six months would move the production possibilities curve inwards because there are no services or goods being produced. C. A drought would move the production of possibilities curve inwards because factory goods would not be able to be delivered and farmed goods production would not be
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Corn yield has increased, so there are more corn plants per
I am amused by the answers provided here. The most amazing thing is no one have any idea about how economics work. I am not an economics expert, but this is the probably first thing you'll be taught in economics after demand/supply curve. Currency prices works like an index of prosperity in the respective nation.
The second half to Charles Wheelan’s first chapter of Naked Economics: Undressing the Dismal Science, is much like it’s first half. However, it comes off as more abridged. Wheelan talks about more things at a lesser scale in the last ten or so pages than he did in the first sixteen. It still conveys the same message started in the first, a brief introduction to economics. Some of the topics mentioned are that even with fixed prices firms will find other ways to compete and how transactions make everyone better off.
In our society, political ignorance still today exists on a very large scale. Consequently, Even in highly developed capitalist countries like ours, a large amount of unemployment rate and instability of The economic system is often seen. Therefore, These issues and affairs have continued firmly despite rising education levels. In “what are people for?” Wendell Berry is attempting to persuade readers the government doesn’t know how to manage to the economy, and is the symbol of our ignorance of the fact that modern culture is destroying the agricultural culture.
In The Worst Hard Time, the author explains how new technology led to overproduction of many crops. A tractor was able to do the work of ten horses and a combine was able to thresh grain in one swoop. A farmer’s harvest could even go up by the thousands. As the farmers made more money they bought nearby land and ripped the grass out to make more space for more crops (Doc. C). With the overproduction of land came bare fields.
If a farm is producing efficiently enough, it determines whether an industrial farm is competent or not. Berry notes, “Today, with hundreds of farm families losing their farms every week, the economists are still saying, as they have said all along, that these people deserve to fail, that they have failed because they are the ‘least efficient producers,’ and that the rest of us are better off for their failure” (105 ). If farms are not producing efficiently enough, they are seen as failing and farmers end up losing their farms. ‘Better off for their failure’ meaning if growers fail then machines will take their place and will be more efficient, producing more products. Pollan asserts, “’Efficiency’ is the term usually invoked to defend large-scale industrial farms, and it usually refers to the economies of scale that can be achieved by the application of technology and standardization” (377).
In chapter 8, the core economic principle that displays itself often is The Consequences of Choices Lie in the Future. This principle presents the idea that what we are doing in today’s economy will have an impact on the future. Whether it is decisions on cutting benefits or raising taxes, any of these could cripple our futures economy. In the chapter, it discusses the fiscal policy and how it saved America’s economy after the depression. By monitoring the nation 's spending budget and taxes, so another depression or a recession does not occur.
The second case – controlling the market – is where the contrast between small firms and big business contrasts is most evident. The small firm lacks the capacity to influence prices, as both their market share and purchasing power are limited; however, big business possesses an abundance of both. Big business is able to exert their power by influencing prices because their decision to buy can be the difference between survival and failure for suppliers. Furthermore, Galbraith (1967, 30) suggests that the influence of size enables firms not only to control price but also quantity sold. Although Galbraith acknowledges that influence on demand is inexact; One should not discount its importance.
Between 1865 and 1900 American agriculture was changed through things like, government policy, technology, and economic conditions. Through 1865 and 1900, the market of agriculture experienced political adjustments in management of the land by the government whom increased prices and controlled land sales. Government also regulated economic changes with the debut of up and coming equipment and technology that greatly influenced the growth of the farming business. Many farmers reaction to the decline in agriculture due to the political and economic alterations was to become more involved in government and politics in order to favor laws that would benefit the agriculture society.
Farm technology made a lot of progress from 1890-1920. Before this time, all the farming was done by hand. There were many inventions from wire to tractors to help make farming easier. Three inventions that really changed farming were gas tractors, cream separator and horse drawn combine. Gas tractors were created so that you didn’t have to use your horses so much and so you could pull more.
With machines that could mass-produce and a plethora of workers, factories could now produce much more than they could have
In the 1920s new technology and industry for agriculture was increasing. New equipment was being invented to help farmers and their lifestyle. Tractors were upgraded to have internal combustion engines, rather than the old steam engines they once had the tractor was now allot like automobiles. The new technology that was used in tractors helped to open 35 million new acres to cultivation, the tractors were helping famers to produce more crops with fewer workers. New innovations were continuing to be invented, which was supposed to help farmers increase in production, but rather than increase the production decreased.
In our textbook Principles of Macroeconomic, chapter 10 touches on the demand for money and the relationship with the money markets, bond markets and interest rates. The demand for money is defined as the relationship between the amount of money consumers want to hold and the circumstances that determine the quantity. In an economy, money enables people to consume goods and services. Money is needed to be able to complete transactions, for instance, I need to buy food week after week, as long as I am alive; this requires me to keep money on hand to complete my purchases, this is called transactions demand for money. I hold money because I expect the food purchases week after week.
ROLE OF MONEY IN MACROECONOMICS 1. Introduction Money can be seen as the medium of exchange which is acceptable while transaction is being undertaken between two parties. Some of the common forms of money are: - Commodity money: This is when the value of the good represents its value in terms of money like gold or silver. - Fiat money: This is when the value of the good is less than the value it represents - Bank money: It is the accounting credits that can be used by the depositor Money serves a variety of crucial functions in the economy and this is why it has gained an unparalleled influence in the matters of economy at micro as well as macro levels. Some of the features of money that make it so important for any economy are as follows: