Human productivity is affected by many different things that include labor and capital as inputs. Whereas the output is usually measured in the revenues as well as other GDP components such as the amount of inventory a business has present.
Public policy affects the availability of resources that people need to be productive by changing factors in a community. These include the public policy affecting access to food, housing, health care and education which help everyone to be more productive in any of their daily routines.
If the government lowers the tax rates it will encourage people to save more money and spend less. This will boost savings accounts at banks which then allows them to loan that money out to people wanting to make investments this shows how public policy can promote productivity growth over the long term as the economy grows.
Sunday, June 28, 2015
Saturday, June 20, 2015
Chapter 11 Reflection
A single person cannot change the rate of inflation with what they purchase because with using the CPI it is looking at how much goods are changing in price and what the majority of people are buying. So if only a few people are changing what they are purchasing for a better alternative the CPI will most likely not change because a majority of the people are still purchasing the original. As well over time the CPI continues to get more and more out of date and therefore is overstating the rate of inflation.
Yes the improvement in goods causes more distortion in the CPI as you look at how much cars have improved from the 1980's to today you can see how many more options are available in comparison. In turn a car in the 1980's was much cheaper than a car today but when you look at all of the features that come with a new car and how much they cost it makes the price between the two not look quite as bad.
Yes the improvement in goods causes more distortion in the CPI as you look at how much cars have improved from the 1980's to today you can see how many more options are available in comparison. In turn a car in the 1980's was much cheaper than a car today but when you look at all of the features that come with a new car and how much they cost it makes the price between the two not look quite as bad.
Chapter 10 Reflection
Intermediate goods are goods that are sold to be used to make a final good such as cotton an intermediate good which can be made into clothes which would be a final good. We care about this because you need intermediate goods to make most all final goods and the prices of the intermediate goods help to determine what the price of the final good will be.
GDP is not a good measure of well-being because it only measures the sum of all the final goods produced in a country but only those that are on the market. It also does not show what the effects of a growing population are causing. As well GDP does not look at the effect to the environment with more pollution which can lead to worse living conditions and shorter life expectancies.
Sunday, June 14, 2015
Chapter 7 Reflection
Efficiency from the eyes of an economist is getting the most out of a resource that is possible and on the other hand if their are gains that are not made from a resource it would be seen as inefficient. Producer and consumer surpluses are important for market equilibrium because if a producer values their goods to be worth more than the current market value they will not sell their product as well if a consumer values a product at less than the producers are selling the good for they will not buy the product once you determine these values you can find the zero point or the equilibrium of the market. I don't believe that market efficiency should always be a goal of policy setters because you will end up with too many of one product that you are not able to sell because it is valued too high by the producer or on the other hand you will end up with not enough of another product because the value is set too low and you will never be able to reach a market equilibrium and therefore you will not be efficient in the eyes of an economist.
Chapter 6 Reflection
This story in the New York Times relates to chapter six with how the government stepped in to lower grocery prices so that the poor can afford groceries to feed themselves as well as their families. Now however the companies making these goods and selling goods cannot make any money and if they do it is very little so they have stopped manufacturing or carrying certain items that families need for everyday life. Which is causing the people of Venezuela to wait in line for hours to get some flour or cooking oil.
If price controls would have been imposed on bottles of water after Hurricane Katrina it would have ended up much the same as it did in Venezuela. The people in the front of the line waiting for water could get as much as they could grab and pay for all of it and those later in the line would not receive any if price controls had been imposed. However with having price controls everyone could receive a few bottles of water because the people at the front of the line couldn't take as much as they wanted because they could only afford a few bottles of water.
In this article it talks about Los Angeles minimum wage increase to $15.00 dollars an hour making it into the biggest city to raise the minimum wage. However many people do not think about the downsides to raising minimum wage while it may seem a good way for everyone to make more money. If you look at it from the manufacturers standpoint they now must raise all of their workers wage to $15 dollars an hour which in turn will increase their manufacturing costs and that will also raise they price of their goods or force the company to lay off some of their workers to make the same amount.
http://www.latinpost.com/articles/59621/20150614/los-angeles-becomes-biggest-city-to-raise-minimum-wage-to-15-an-hour.htm
If price controls would have been imposed on bottles of water after Hurricane Katrina it would have ended up much the same as it did in Venezuela. The people in the front of the line waiting for water could get as much as they could grab and pay for all of it and those later in the line would not receive any if price controls had been imposed. However with having price controls everyone could receive a few bottles of water because the people at the front of the line couldn't take as much as they wanted because they could only afford a few bottles of water.
In this article it talks about Los Angeles minimum wage increase to $15.00 dollars an hour making it into the biggest city to raise the minimum wage. However many people do not think about the downsides to raising minimum wage while it may seem a good way for everyone to make more money. If you look at it from the manufacturers standpoint they now must raise all of their workers wage to $15 dollars an hour which in turn will increase their manufacturing costs and that will also raise they price of their goods or force the company to lay off some of their workers to make the same amount.
http://www.latinpost.com/articles/59621/20150614/los-angeles-becomes-biggest-city-to-raise-minimum-wage-to-15-an-hour.htm
Chapter 5 Reflection
One sale based on price elasticity that I recently took advantage of was a package deal where if you bought one led light bar you received six free led light pods. This is a way that the company was able to attract many new customers by buying a item that is high in price and adding other lower price items in for free. This worked for me specifically because I was looking for an led light bar for my jeep and the addition of the free light pods peaked my interest and made me buy with this company instead of one of its close competitor. As well they will most likely keep my business now because they have deals such as this one monthly and they sell very high quality products.
The topic that made the least amount of sense to me in this chapter was how to change the graphs as the markets would change. It was hard for me to figure out which line I should change and in which direction to change it. However with more practice I am getting better at it and I am understanding the topic a lot more as I continue to practice these types of questions.
The topic that made the least amount of sense to me in this chapter was how to change the graphs as the markets would change. It was hard for me to figure out which line I should change and in which direction to change it. However with more practice I am getting better at it and I am understanding the topic a lot more as I continue to practice these types of questions.
Chapter 4 Reflection
I think that with Uber and Lyft taxi medallions would rise in price because with these services it would be easier for the taxi drivers to get fairs and they would not have to constantly drive around looking for people in need of a taxi. I think this would raise the price for taxi medallions because of the ease of finding customers and saving the taxi drivers from putting numerous miles on their vehicles and along with that the gasoline they burn looking for customers. I believe that the demand for taxis will stay the same. However I think the supply of taxis may go down a little because with the ease of getting a taxi to your location and not needing a lot of taxis in a general area because they can get exact locations for their next customers and when the customer wants them to be at the location.
One example of a good that changed rapidly was in the mountains they opened a spa shop that sells hot tubs and for the first year or so business was booming. Before their store had opened there was not a store like this in the town or any nearby towns and it encouraged those who had been paying to go to the recreation center to buy their own hot tub instead of paying to use the rec. centers hot tub. However it was a very limited market for those who could afford hot tubs and many found it cheaper to just pay to use the rec. centers hot tub. In the end once people bought their hot tubs they didn't need another one until theirs broke. The store ended up going out of business but in turn it allowed another business to come into town that repairs hot tubs and their business has been able to thrive on fixing household hot tubs.
AirBnB affects the supply of rooms for rent in San Francisco by the amount that they charge for the room per month. This will determine the demand for the property by who can afford to pay the allotted amount each month. As well they can lower the price of rent which if they had more properties for rent would increase the amount of people who would be able to afford the monthly rent.
One example of a good that changed rapidly was in the mountains they opened a spa shop that sells hot tubs and for the first year or so business was booming. Before their store had opened there was not a store like this in the town or any nearby towns and it encouraged those who had been paying to go to the recreation center to buy their own hot tub instead of paying to use the rec. centers hot tub. However it was a very limited market for those who could afford hot tubs and many found it cheaper to just pay to use the rec. centers hot tub. In the end once people bought their hot tubs they didn't need another one until theirs broke. The store ended up going out of business but in turn it allowed another business to come into town that repairs hot tubs and their business has been able to thrive on fixing household hot tubs.
AirBnB affects the supply of rooms for rent in San Francisco by the amount that they charge for the room per month. This will determine the demand for the property by who can afford to pay the allotted amount each month. As well they can lower the price of rent which if they had more properties for rent would increase the amount of people who would be able to afford the monthly rent.
Sunday, June 7, 2015
Chapter 3 Reflection
The concept that surprised me the most in chapter three was thinking about how a country must balance the goods they produce to make balance between the many goods and not to make to many or too few. However this is where trade could step in and help them acquire good that they couldn't produce or that was too expensive for them to produce.
My view on international trade is that it is a very good thing to have for every country. With international trade countries are able to get everything that they need in exchange for goods that they have in excess. My opinion changed only a little and it helped me to look at international trade even better. This chapter made it easier for me to see how it is cheaper for different countries to make a certain good and they can find another country that needs that good for some of theirs.
My view on international trade is that it is a very good thing to have for every country. With international trade countries are able to get everything that they need in exchange for goods that they have in excess. My opinion changed only a little and it helped me to look at international trade even better. This chapter made it easier for me to see how it is cheaper for different countries to make a certain good and they can find another country that needs that good for some of theirs.
A recent purchase that I made that was mostly made overseas were beadlock wheels for my jeep. There are a few that are produced in the U.S. but they tend to be a lot pricier and didn't come in the designs that I wanted. The wheels that I ended up buying are from a company in Colorado but most of the material comes from China. There were not many trade offs to buying a beadlock made in the U.S. other than the price as well as the design that I wanted to complete my jeep.
Find Rubric
Chapter 2 Reflection
These simplified models help to see different aspects of economy such as trade. Instead of having dozens of different materials being traded if you only use two materials it is much easier to see such things as who is benefiting from the trade and why it is cheaper to trade for some materials than it is to manufacture them. As well as to see which nations can make materials for cheaper and would be more willing to trade for other materials that are more expensive for them to make.
A statement such as "Government should provide all citizens with healthcare" is a normative statement. Which means that it is an attempt to show how the world should be as compared to a positive statement which is a claim that attempts to describe the world as it is right now.
A statement such as "Government should provide all citizens with healthcare" is a normative statement. Which means that it is an attempt to show how the world should be as compared to a positive statement which is a claim that attempts to describe the world as it is right now.
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