Examples of Macro and Micro Economics - 840 Words

?Economics is a social science that mainly focuses on different fields of knowledge dealing with the proper distribution, allotment, production and consumption of resources. Economics has been divided into two significant branches; one of it being the microeconomics and the other one being the macroeconomics. Microeconomics can be easily understood through the term micro itself which means small, microeconomics focuses on small level that is to say it includes areas of individual decision making and its core components include production, exchange, distribution and consumption. Macroeconomics on the other hand focuses on a much aggregate level. Unlike microeconomics it influences those areas in its study that mainly focus on the economy†¦show more content†¦The concept can be understood through the example of cellular networks. Whenever a Cellular connection company decreases its prices and provides more benefits in less prices, than its demand automatically rises amongst the customers as compared to other networks. d) The law of diminishing returns also finds its application in our daily lives. The law states that during a production process the marginality of a product tends to increase if certain variable factors that are involved in its manufacturing are added each time. For example in an industry if there is a large machine being used in the production process than by employing more than one labor to work on it will increase the marginal products produced out of it. The above mentioned examples told us a great deal that how microeconomics finds its application in our daily lives. Now we will talk about how macroeconomics establishes itself as an important essential in understanding some of the mechanism of different transactions and workings in our daily lives. a)Macroeconomics gives economists and state representatives of any country to look over the economical situation of the country. The concept of National Income in Macroeconomics provides them with this opportunity. For example by calculating the national income we are able to have a clear idea whether the different sectors inShow MoreRelatedMicro Marketing And Macro Marketing1510 Words   |  7 PagesMicro-Marketing and Macro-marketing have to completely different meanings. According Basic Marketing the 9th edition by William D. Perrault, Joseph Cannon, and Jerome McCarthy define micro-marketing concerns the marketing activities of an individual firm, whereas macro-marketing deals with how the whole marketing system works (Perrault, Cannon, McCarthy 2014, p 526). I will be discussing organizational domestic and international, micro and macro marketing impacts on business and society, and identifyingRead MorePart 1 Introduction to Macro Micro frameworks: The Business firm consist of a set of internal800 Words   |  4 PagesPart 1 Introduction to Macro Micro frameworks: The Business firm consist of a set of internal factors and is confronted with a set of external factors (i.e., Environment). This is the relation between a firm and its environment. Business environment (external factors) is classified as (1) Micro Environment (2) Macro Environment Micro Environment: The micro environment consists of the factor of the firm’s immediate environment, i.e. a) Suppliers b) MarketingRead MorePolitical Risk948 Words   |  4 Pagesinvestment. 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It is a place in time when an individual knows and understands his or her goal and where they are headed. It is also when an individual that they are ready for change. An example of personal empowerment is a wife and mother who have decided that a change is necessary for her and childrenRead MoreThe Levels Of Social Work1314 Words   |  6 PagesMicro-level social work involves working with individuals, whereas, macro-level social work involves improving conditions on a larger scale, for groups of people such as a community. The levels of social work practice are not only related, but they influence each other and often display characteristics of a cause and effect relationship. This essay will explain how the levels of social work practice influence each other, followed by examples of this influence, particularly focusing on attachmentRead MoreAnalysis Of James Henry Whitakers s A Mini Club Man Essay1625 Words   |  7 Pagesnatural products without any traces of impurities has been the backbone of the company. Apart from the use of original milk products, the inclusion of pure cocoa butter too has contributed to the success. Macro and Micro Environment Factors Crucial for E-Marketing Strategy of Whittaker Macro Environment Factors Social Whittaker has been crowned as the ‘Most Trusted Brand for 2015’ and that accomplishment was something that is not as easy as it appears to be achieved. One of the successful strategiesRead MoreMarketing Micro and Macro Environmental Factors1669 Words   |  7 PagesMacro and micro environments both fall into the categories of environmental scanning. The general scope of environmental scanning is that it is a component of global environmental analysis. While analyses are typically carried out on the macro environment, the micro environment still has an important role to play. In summary, the macro environment is involved with the industries, companies, markets, clients and competitors, while the micro environment can be represented by the suppliers, competitorsRead MoreDifference Between Macro And Microeconomics Essay983 Words   |  4 PagesMICRO AND MACROECONOMICS 7 SEPTEMBER 2016 Abstract: Two branches of economics that are vital to our study are macro and microeconomics. This piece of writing will attempt to differentiate them and provide a summary of an article from the internet that is relevant to the topic. The writer will also attempt to define a sunk cost, how it differs from a marginal cost and how he has used marginal analysis to solve a problem. The difference between macro and microeconomics A decent

Impact of British Imperialism on Malaya - 1320 Words

Introduction Malaysia was once a colonized land and known as Malaya back then. Malaysia is one of the Commonwealth countries, which means Malaysia was one of the British colonies. Malaysia was under British powers for approximately 446 years (from 1511 until 1957) The Portuguese, Dutch, British, Japanese even Siamese had colonized Malaya before. 1. Portuguese: 1511-1641 2. Dutch: 1641-1824 3. British: 1824-1942, 1945-1957 4. Siamese: 1821-1909 5. Japanese: 1942-1945 The British first came in the late 1700s. In the late 18th century, the British East India Company traded in and partially controlled India. When Malaya caught their attention, they began to look for a base in Malaya. The British under Francis Light had occupied Penang†¦show more content†¦Consequently, the communist insurrection had led to a protracted Predicament, the rise of communalism, and an authoritarian regime to combat communist subversion and influence, ethnic urbanization and polarization, the end of colonial rule and the birth ad building new nation, which saw the communist insurgency equally as a menace. Accordingly, despite the negative aspect of the communist insurgency in Malaya, the Malaysian government did not give up to destabilize the motivation of the insurgency and isolate it further. Even after years of fluctuation back and forth to demolish prejudice and depressing oppression from British imperialism. As a result of never ending quest for better economic growth, industrialization, an independent non-aligned foreign policy, as well as flexible policies of multi-culturalism in education and culture. Ultimately, the conception of democracy and freedom, which is apprehended in the heart of Great Britain, has continued here and now Malaysia is a dynamic democracy country. Impact of British Imperialism on Malaya’s Society Impact of British Imperialism on Malaya’s Economy Malaya has been known as Suvarnabhumi. This means ‘Bumi Emas’ or ‘Land of Gold’. The Malacca Straits has seen many merchants and traders from the East and West. The richness of Malayas soil had been known all over the world and the strategic location of theShow MoreRelatedThe British And French Colonization2452 Words   |  10 Pagescenturies, and another third of the world s population were in colonies, dependencies, protectorates, or dominions. In this essay, I will focus on the British and French colonization in Southeast Asia. The British-controlled Burma, most of the Malayan peninsula, and Singapore, which was a strategic port and later became a naval base for the British. 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Reducing The Number Of People Living In Absolute Poverty Free Essays

Absolute poverty measures the number of people living below a certain income threshold or the number of households unable to afford certain basic goods and services. Much of the poverty in developing countries, such as South Africa, tends to be absolute poverty. Economic growth can be defined as steady growth in the productive capacity of the economy. We will write a custom essay sample on Reducing The Number Of People Living In Absolute Poverty or any similar topic only for you Order Now Short term growth is measured by the annual percentage change in real national output, which is affected by shifts in short run aggregate supply curve (SRAS), whilst long term growth is shown by the increased in potential growth can is illustrated by an outward shift in a country’s long run aggregate supply curve (LRAS). Whilst a rise in real GDP can lift millions of people out of absolute poverty, a reduction in the number of people living in absolute poverty can help to achieve economic development. In order to reduce the number of people living in absolute poverty, they would have to get jobs in order to gain a living. This means that people would have more disposable income, thus increasing consumption which is a factor of aggregate demand and would therefore shift the aggregate demand curve to the right, causing economic development. This would also mean that the government would also have more money which can be used to invest in education and training or other forms of spending. A lack of education and training is what keeps people in absolute poverty as it prevents them from getting jobs and moving up, however, if education and training were to increase, more people would be getting jobs, thus increasing real GDP whilst resulting in economic growth. Furthermore, government spending is also a component of the aggregate demand formula and therefore an increase in that would result in an increase in aggregate demand, thus causing an outward shift in the SRAS whig would eventually result in economic development. Gold and diamond are the major exports from South Africa although agricultural products are also exported. If the government were to spend their money on training in mining, those who were living in absolute poverty could get jobs as miners and not only would this increase the real GDP of South Africa, but it would also increase exports which is another component on aggregate demand, thus again resulting in economic development. South Africa has debts similar to many other developing countries which are burdened with international debt which they cannot afford to pay and which acts as a constraint to economic development. However, if there was a reduction in the number of people living in absolute poverty in South Africa, the government would have more money to repay their debts. Poor infrastructure make it difficult for a country to attract foreign and domestic investment thus providing a constraint on long term growth potential. The government could also invest the money which would have originally gone towards those in absolute poverty in infrastructure and healthcare. Better healthcare would mean that South Africa would have a more reliable workforce and an improvement in infrastructure would mean that workers would be getting to work on time and it would be easier to travel. These are qualities which attract foreign and domestic investment; this would result in more jobs available, thus increasing employment as well as the real GDP of South Africa. Corruption and poor governance is one of the causes of absolute poverty, however, it is also a significant factor for a constraint on economic growth. High levels of deeply embedded corruption and bureaucratic delays can harm growth in many ways for example inhibiting inward investment and also making it more likely that domestic businesses will invest overseas rather than at home. Governments need a stable and effective legal framework to collect taxes to pay for public services. However, in order to reduce the number of people living in absolute poverty, corruption would have be to decreased, thus resulting in economic development. Many poor countries have governments which are not democratically elected. Countries such as South Africa tend to spend money raised through taxation unwisely leading to government failure and thus find it difficult to attract FDI. However, a correction in corruption and poor governance would mean that South Africa may be able attract FDI, thus increasing the real GDP and resulting in economic development. South Africa is a primary-sector economy, which produces gold and agricultural goods and is therefore primarily product dependent. Primary product dependency is a constraint on economic development. The dependency makes South Africa very vulnerable in the event of natural disasters. Furthermore, downward price fluctuations caused by exchange rate movements or variable harvests can have a devastating impact due to the low price elasticity of demand for primary products. Moreover, the Prebisch-Singer hypothesis claims that countries that specialise in primary products, such as South Africa, face declining terms of trade within time. This is because prices of primary products have declined over the long term due to increases in productivity in agriculture and less demand for other commodities. In addition, as the country gets richer over time dmand for secondary and tertiary products increases whilst demand for primary prices rises by only a little due to its low income elasticity of demand. As a result, prices of manufactured goods and services rise relative to prices of primary products. This means that the country which is specialising in primary products experience declining terms of trade as the income they receive from their exports buys fewer imports over time. However, investment in education and training as well as FDI in South Africa would mean that it would not be such a subsistence economy. Many sub-Saharan economies, such as South Africa, are severely affected by droughts followed by flooding, making it difficult to establish any industry and attract any foreign direct investment. However, if there is a decrease in the number of people who need aid and support, the money raised by charities and the money the government originally used to support those in absolute poverty could instead by used fix any damages caused by bad weather conditions which means that not only would the country come across as more appealing to FDI’s, it would be easier to go crops, thus increasing exports and therefore leading to economic development as this results in an outward shift in the aggregate demand curve. To conclude, all the factors above depend on the number of people who are no longer in absolute poverty; the less people in absolute poverty in a country, the more economically developed the country is going to be and therefore it depends on the magnitude. Economic development is an increase in living standards which could be measured by an increase in income per capita, life expectancy and access to education and healthcare. Despite it being difficult to say whether a reduction in the number of people in absolute poverty would lead to economic growth because it is unknown whether that means that they would immediately get a job, thus increasing GDP, resulting in economic growth, it is safe to say it would lead to a rise in economic development as their living standards would increase as they are no longer living in absolute poverty and can therefore afford necessities. How to cite Reducing The Number Of People Living In Absolute Poverty, Essays

Reducing The Number Of People Living In Absolute Poverty Free Essays

Absolute poverty measures the number of people living below a certain income threshold or the number of households unable to afford certain basic goods and services. Much of the poverty in developing countries, such as South Africa, tends to be absolute poverty. Economic growth can be defined as steady growth in the productive capacity of the economy. We will write a custom essay sample on Reducing The Number Of People Living In Absolute Poverty or any similar topic only for you Order Now Short term growth is measured by the annual percentage change in real national output, which is affected by shifts in short run aggregate supply curve (SRAS), whilst long term growth is shown by the increased in potential growth can is illustrated by an outward shift in a country’s long run aggregate supply curve (LRAS). Whilst a rise in real GDP can lift millions of people out of absolute poverty, a reduction in the number of people living in absolute poverty can help to achieve economic development. In order to reduce the number of people living in absolute poverty, they would have to get jobs in order to gain a living. This means that people would have more disposable income, thus increasing consumption which is a factor of aggregate demand and would therefore shift the aggregate demand curve to the right, causing economic development. This would also mean that the government would also have more money which can be used to invest in education and training or other forms of spending. A lack of education and training is what keeps people in absolute poverty as it prevents them from getting jobs and moving up, however, if education and training were to increase, more people would be getting jobs, thus increasing real GDP whilst resulting in economic growth. Furthermore, government spending is also a component of the aggregate demand formula and therefore an increase in that would result in an increase in aggregate demand, thus causing an outward shift in the SRAS whig would eventually result in economic development. Gold and diamond are the major exports from South Africa although agricultural products are also exported. If the government were to spend their money on training in mining, those who were living in absolute poverty could get jobs as miners and not only would this increase the real GDP of South Africa, but it would also increase exports which is another component on aggregate demand, thus again resulting in economic development. South Africa has debts similar to many other developing countries which are burdened with international debt which they cannot afford to pay and which acts as a constraint to economic development. However, if there was a reduction in the number of people living in absolute poverty in South Africa, the government would have more money to repay their debts. Poor infrastructure make it difficult for a country to attract foreign and domestic investment thus providing a constraint on long term growth potential. The government could also invest the money which would have originally gone towards those in absolute poverty in infrastructure and healthcare. Better healthcare would mean that South Africa would have a more reliable workforce and an improvement in infrastructure would mean that workers would be getting to work on time and it would be easier to travel. These are qualities which attract foreign and domestic investment; this would result in more jobs available, thus increasing employment as well as the real GDP of South Africa. Corruption and poor governance is one of the causes of absolute poverty, however, it is also a significant factor for a constraint on economic growth. High levels of deeply embedded corruption and bureaucratic delays can harm growth in many ways for example inhibiting inward investment and also making it more likely that domestic businesses will invest overseas rather than at home. Governments need a stable and effective legal framework to collect taxes to pay for public services. However, in order to reduce the number of people living in absolute poverty, corruption would have be to decreased, thus resulting in economic development. Many poor countries have governments which are not democratically elected. Countries such as South Africa tend to spend money raised through taxation unwisely leading to government failure and thus find it difficult to attract FDI. However, a correction in corruption and poor governance would mean that South Africa may be able attract FDI, thus increasing the real GDP and resulting in economic development. South Africa is a primary-sector economy, which produces gold and agricultural goods and is therefore primarily product dependent. Primary product dependency is a constraint on economic development. The dependency makes South Africa very vulnerable in the event of natural disasters. Furthermore, downward price fluctuations caused by exchange rate movements or variable harvests can have a devastating impact due to the low price elasticity of demand for primary products. Moreover, the Prebisch-Singer hypothesis claims that countries that specialise in primary products, such as South Africa, face declining terms of trade within time. This is because prices of primary products have declined over the long term due to increases in productivity in agriculture and less demand for other commodities. In addition, as the country gets richer over time dmand for secondary and tertiary products increases whilst demand for primary prices rises by only a little due to its low income elasticity of demand. As a result, prices of manufactured goods and services rise relative to prices of primary products. This means that the country which is specialising in primary products experience declining terms of trade as the income they receive from their exports buys fewer imports over time. However, investment in education and training as well as FDI in South Africa would mean that it would not be such a subsistence economy. Many sub-Saharan economies, such as South Africa, are severely affected by droughts followed by flooding, making it difficult to establish any industry and attract any foreign direct investment. However, if there is a decrease in the number of people who need aid and support, the money raised by charities and the money the government originally used to support those in absolute poverty could instead by used fix any damages caused by bad weather conditions which means that not only would the country come across as more appealing to FDI’s, it would be easier to go crops, thus increasing exports and therefore leading to economic development as this results in an outward shift in the aggregate demand curve. To conclude, all the factors above depend on the number of people who are no longer in absolute poverty; the less people in absolute poverty in a country, the more economically developed the country is going to be and therefore it depends on the magnitude. Economic development is an increase in living standards which could be measured by an increase in income per capita, life expectancy and access to education and healthcare. Despite it being difficult to say whether a reduction in the number of people in absolute poverty would lead to economic growth because it is unknown whether that means that they would immediately get a job, thus increasing GDP, resulting in economic growth, it is safe to say it would lead to a rise in economic development as their living standards would increase as they are no longer living in absolute poverty and can therefore afford necessities. How to cite Reducing The Number Of People Living In Absolute Poverty, Essays

Monopolistic Competition Market Structure Analysis Get Solution

Question: Discuss about theMarket Structures in Australiafor Monopolistic Competition and Oligopoly. Answer: Introduction All industries have a prevailing market structure. Market structure refers to the specific social organization that prevails between buyers and sellers in a market. It is the pattern in which the constituent parts of a given market are arranged. This structure examines how buyers and sellers are linked together. It determines the relationship between buyers and sellers in the market and the relationship between the sellers in the market to each other. In addition, it examines the relations of buyers in a market to each other. There are various types of market structures among them perfect competition, monopoly, monopolistic competition and oligopoly. It is worth noting that certain characteristics of a market influence the firms behavior and strategy. One of the most distinguishing features is the number of firms in a particular market. Usually, this affects the output size and price decisions of companies in the market. Additionally, the presence of similar or differentiated products determines the pricing techniques of firms (Khan 2016). Likewise, the cost of information is an important aspect in any market. The lower the cost of information, the fewer opportunities available for a firms pricing policies and quality distinctions. The barriers to entry also determine whether economic profits will exist in the long run. Monopoly Market Structure A monopoly market structure is one in which there is only one seller. In this market, the single firm dominates the entire market, and there is no competition. The single firm determines and sets its prices and output levels that maximize their profit. Furthermore, the products produced by the monopolies are unique and have no close substitutes. As a result, the demand for monopolist products is inelastic, and an increase in output price may not lead to a loss in sales. There are also high barriers to entry and exit attributed to high technological and capital investments required in the development of monopolistic firms. What is more, there exists imperfect information between the sellers and buyers regarding the quality and price of the product In most cases, monopolies in Australia arise due to blocked entry caused by existing firms. Often, incumbent firms use economies of scale in production to smother entrants by supplying the entire market with cheaply priced products than its potential rivals. Also, government legislations and enactment of barriers to entry in the form of permits, patent rights, and licenses result in monopolies in Australia (Irvine 2010). Other firms opt to control the supply of all strategic raw materials thereby making it difficult for rival companies to operate. The Australian Post is an infamous example of a monopoly in Australia. The company uses its market power to deliver most of its monopoly profits. It uses predatory pricing and legal barriers to deter other firms from attaining a market share in its niche. Monopolistic Competition This market structure is a merge between the perfectly competitive market and a monopolistic market. The number of sellers is large enough to create competitive conditions in the market. However, the goods and services provided by the various sellers in the market are heterogeneous and slightly differentiated. The firms are price makers since they have market power over the product that they sell, given that they do not have close substitutes. Moreover, there exists imperfect information among sellers and buyers brought about by product differentiation, product quality and price differentials (Baum and McPherson 2009). The market demand curve of a monopolistic competitive firm is negatively sloped. In the short run, the economic profits are positive. However, in the long term, the economic profits are zero due to low barriers to entry into the market. The pizza places and restaurants are a perfect example of monopolistic competitive firms in Australia. The main places and restaurants that produce pizza include Dominos Pizza, Australias Pizza House, Borrusos Pizza and Pasta, Little Caesars Pizzeria and Pizza Gusto, among others. All these pizza restaurants compete on the same item, but each business has slightly differentiated its product. As such, each pizza place offers something different and possesses some element of uniqueness while competing for the same customers (Pettinger n.d.). It is the perceived or real differences in their pizzas that determine customer loyalty to a particular pizza house. Oligopolistic Market Structures An oligopolistic market structure is made up of few large firms that dominate a particular market. As such, few large firms have a significant market share and market power, enabling them to control the market conditions. There is limited competition in this market structure. Usually, the large firms collude explicitly or implicitly to prevent rival firms from entering the industry by erecting high barriers to entry. It is crucial to note that companies are price makers and collude with each other to set high prices that maximize their profits (Australian Oligopolies 2014). The collusion of oligopolistic forms may result in the development of cartels. It is noteworthy that oligopolistic firms often compete on non-price criteria such as warranties, advertising and gift certificates to entice and inculcate customer loyalty. Technological and cost barriers discourage the entry of potential competitors into oligopolistic markets. Besides, there is imperfect information between the sellers and buyers in this market. The Air transport sector is an excellent example of an oligopolistic market structure. In this sector, there are many airlines. However, few large firms dominate the market and hold a huge market share of the industry. The major airlines in Australia include the Qantas Airways, Pacific Blue Airlines and the Airnorth (Major Airlines 2016). These firms dominate the air transport industry and set prices that maximize their profits while at the same time keeping their competitors at bay. Conclusion A market structure could either be perfectly competitive, monopolistic, oligopolistic, or monopolistic competitive. By and large, the market structure is a vital element in every market as it determines the relations between the buyers and sellers in a particular market. What is more, it determines the degree of competition and the pricing techniques of individual firms. Knowing the market structure is crucial as it allows a firm to determine its strategies and techniques for profit maximization. Besides, the form of market structure determines the degree to which a business can alter its prices without necessarily losing its loyal customers. Reference List Baum, S. and McPherson, M. 2009, Monopolistic Competition and the Very Small College. [Online] Available from: https://www.chronicle.com/blogs/innovations/monopolistic-competition-and-the-very-small-college/31279 [Accessed 6 Dec. 2016]. Esposito, B (2014), 15 Australian Pizza Places You Need To Visit Before You Die [Online] Available from https://www.buzzfeed.com/bradesposito/aussie-pizza?utm_term=.kyzKYLQvJ#.bneK3wGR9 [Accessed 6 Dec. 2016] Irvine, J. (2010). Get out of monopoly free cards can't be left to the roll of the dice. [Online] The Sydney Morning Herald. Available from: https://www.smh.com.au/federal-politics/political-opinion/get-out-of-monopoly-free-cards-cant-be-left-to-the-roll-of-the-dice-20101026-172ax.html [Accessed 6 Dec. 2016]. Khan, S. (2016) Oligopolies and Monopolistic Competition [Online] Available from: https://www.khanacademy.org/economics-finance-domain/microeconomics/perfect-competition-topic/monopolistic-competition-oligop/v/oligopolies-and-monopolisitc-competition[Accessed 6 Dec. 2016]. Nations online. (2016). Major Airlines of Australia/Oceania. [Online] Available from: https://www.nationsonline.org/oneworld/Airlines/airlines_oceania.htm [Accessed 6 Dec. 2016]. Pettinger, T. (n.d.). Monopolistic Competition. [Online] Economics Help. Available from: https://www.economicshelp.org/blog/311/markets/monopolistic-competition/ [Accessed 6 Dec. 2016]. Policonomics (2016), Market Structures [Online] Available from: https://www.policonomics.com/lp-market-structures-market-structure/ [Accessed 6 Dec.2016] The Grapevine. (2014). Australian Oligopolies. [Online] Available from: https://blog.adonline.id.au/oligopolies/ [Accessed 6 Dec. 2016].