1. Given the information I would suspect, even without evidence, that the economy might not be able to produce all the schools and beds it wants because there are inevitable constraints on any nation’s economy despite how big or small it is. On an economy’s production cycle, there are four main constraints (DukeEconomics, 2012). These are land, labour, capital and entrepreneurship. Land resources include natural resources like arable land, animals, water, etc (Jain and Ohri, 2010, p. 159). Capital encompasses man-made items like buildings and equipment; and these items are integral to present and future productivity in an economy. Under the labour category, this resource includes both the physical and mental capacity of any worker in the economy. Labour is directly related to education, training and wage. Lastly, entrepreneurship couples various resources together and it relays the provision of a good or a service (Hubbard, Garnett, Lewis, and O'Brien, 2011). These four constraints intermingle with one another and their limits in turn determine the limits of an economy.
The production possibilities curve (PPC) is an economic model designed to convey economic theory in a real world scenario. The PPC is used to grasp the trade-offs faced by a society in terms of its production possibilities. The PPC for an economy is drawn as a curve and not as a straight line in order to clearly portray increasing opportunity cost. If the PPC were drawn as a straight line, then each additional technical hospital (one more of each ‘unit) would necessarily require the forgoing of (or, reduction of) a constant amount of hospital beds. This forgoing, or the opportunity cost, is not constant and a straight line would indicate as much. The economy canno...
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Hubbard, R., Garnett, A., Lewis, P. & O'Brien, A. (2011). Microeconomics. Sydney: Pearson Education.
Jain, R. & Ohri, V. (2010). Principles of microeconomics. Oxford: Oxford University Press.
Mjmfoodie. (2009). Microeconomics modules, episode 7 individual PPC, 31 January, viewed 14 November 2013,
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Supposedly, the national average occupancy rate of hospitals is lower than it should be because of rising costs of hospital care. Factors causing variations in occupancy rates are hospital size, product diversification, and urgent versus non-urgent
These economic models are immensely useful and help us to understand what is going on in the world economically speaking. These particular economic models are usually shown in graph or diagram form as they are clear representations of data. The production possibilities curve is a model used to understand how the economic problem relates to a nation’s productive capacity. The PPC (Production possibilities curve) enables economists to gather information on what level of production is possible when all resources are being used and what will occur when there is no availability or unemployment of particular resources. This particular model, PPC, is represented by a two dimensional diagram, therefore assuming that resources can be used to produce either product on the model. The PPC can clearly visualize opportunity cost between two products as the model demonstrates that to produce more of one good, e.g. vegemite, whilst using the same amount of resources, economies must produce less of the other good, e.g.
The amount of funding for education was the most difficult to determine. This education system seems to be very inefficient and the huge backlog of teacher pensions restricted the more favorable budget. Well educated students leads to a more productive economy but there are many who do not take ad...
These entire factors can eventually open up all the possibilities for more and more emerging adults to experience life and explore their independence, as countries become wealthier chances are that more young people can go to school and move in to a dorm and have a semi independent lifestyle until they reach adulthood. This can benefit our future generations to come and potentially increase the life expectancy and become achievable adults that live a longer and prosperous life. This will be a new evolution for the young people now and the young people to come, this means more educated people, which call change the way our jobs, economy, and development of our countries can be. More young people will explore their horizons and develop to be the best they can be instead of being forced to work a full time low paying job and hit a dead end. Perhaps one day the new
...nians to look for education elsewhere in other countries. Thirdly while Panama is developing its infrastructure due to the nature of its education systems, its division of classes and its levels of corruption it is doing so in such a way that it will not be creating a system that will be sustainable for a number of reasons including ecological over taxation of systems, lack of trained personal to maintain its systems leading to a reliance on foreign personal in order to accomplish this objective and the lack of diversification in its infrastructure that will leave the economy vulnerable to instability from possible competition or changes in world markets and focusses. In conclusion this current direction of development while profitable in the short term will lead to loss of opportunities for the Panamanian population and prevent the enrichment of specific regions.
The lack of profitable education taught in Middle Eastern schools leads to unpreparedness for the workplace and mass unemployment. The learning crisis extends to the workplace and affects people’s ability to perform simple life skills such as communication and critical thinking. Since these basic skills are not being learned and taught in schools, forty percent of employers in the Middle East say skill-shortage is a “top constraint to business operation and company growth” (Jalbout). As the job market picks up, the education in the Middle East is declining and problems arise. Studies show that only about one-third of new Middle Eastern graduates are ready for the workplace. There is a “chronic misalignment of the education system and employment markets,” which ultimately sets the children up for failure in the workplace (“Education Failures Fan the Flames in the Arab World”). In a knowledge-based economy, the amount of people who possess relevant skills are limited, which is detrimental to the workplace and to their economy. The education crisis is toxic to the Middle East’s economy and causes civilians to be out of work and ill-prepared for the
The example used above (which demonstrates increasing opportunity costs, with a curve concave to the origin) is the most common form of PPF. It represents a disparity, in the factor intensities and technologies of the two production sectors. That is, as an economy specializes more and more into one product (such as moving from point B to point D), the opportunity cost of producing that product increases, because we are using more and more resources that are less efficient in producing it. With increasing production of butter, workers from the gun industry will move to it. At first, the least qualified (or most general) gun workers will be transferred into making more butter, and moving these workers has little impact on the opportunity cost of increasing butter production: the loss in gun production will be small. However, the cost of producing successive units of butter will increase as resources that are more and more specialized in gun production are moved into the butter
An important population is necessary for the nation’s success. With a growing population more and more jobs are going to be needed. If schools continue to fail, our generation won’t learn the skills needed to do these jobs. We are the future generation and if we are not taught our nations past mistakes, how are we expected to learn from them. We will just continue to make mistakes instead of bettering the country. The economy can also benefit from an educated population, if people learn and develop new skills, new jobs can be created. More jobs can lower the unemployment rate and raise wages.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Finally, research has shown that basic education is paramount to a nation’s ability to develop and achieve economic development and sustainability targets. Once these targets are identified, a country will need to re-examine its education curricula at all levels, that is, pre-school to tertiary education. Also, as a government develop policies within their countries they should ensure that there is an interconnection between the environment, economy, and social structures and that they become an integral part of formal education, starting with kindergarten and continuing through primary and secondary school and then on through training at the college, university and professional levels.
Economic growth is the most effective instrument for reducing poverty and enhancing the quality of life in developing countries. The benefits brought about from economic growth is strong growth and business opportunities enhance incentives. This may lead to the rise of a strong and growing group of entrepreneurs, which should generate pressure for enhanced administration. Strong economic growth therefore advances human development, which in turn promotes economic growth. But, under different conditions, comparative rates of development can have altogether different consequences for neediness, the occupation prospects of poor people and more extensive pointers of human development. The extent to which growth decreases neediness depends on the extent to which the poor take an interest in the growth process and share in its returns (Riley, G.
Education is a basic objective of development, and it is one of the most important core values in economic development. A strong education system that provides children of all backgrounds, classes, races, and ages an equal opportunity to receive a quality education is vital in economic development. Educating children is essential in ensuring they have a rewarding, successful, and bountiful life in the future. Investment in human capital—such as education—must be given direct attention; it cannot be wrapped into the problem of income inequality because investing human capital is just as important as addressing income inequality. There have also been many imperative studies that prove giving a family a higher income does not automatically
An increase in human population can influence our economy. Some of the factors that are affected are unemployment, poverty and the restriction of economic expansion. When the population increases, the cost of health, education, and other areas of urban growth are affected. Unempl...
A dusty, one-room schoolhouse on the edge of a village. An overworked teacher trying to manage a room full of boisterous children. Students sharing schoolbooks that are in perpetual short supply, crammed in rows of battered desks. Children worn out after long treks to school, stomachs rumbling with hunger. Others who vanish for weeks on end, helping their parents with the year-end harvest. Still others who never come back, lacking the money to pay for school uniforms and school supplies. Such is the daily dilemma faced by many young people in the developing world as they seek to obtain that most precious of all commodities, an education.
Over one billion people are living in poverty, lacking safe water, housing, food, and the ability to read. There is a high concentration of communities in poverty in Africa; particularly Central Africa. States that are considered in Central Africa are the following: Cameroon, Democratic Republic of Congo, Central Republic of Africa, Chad, Equatorial Guinea and the Congo. The majority of these Central African states’ economies are dependent on agriculture. As a result of this dependency, natural disasters, droughts and wars can displace subsistence farmer from their land resulting in poverty becoming even more prevalent and harder to come back from. Also with a history of dependency on farming there tends to be the trend of education not being a primary focus for the youth which is another factor into the stagnant poverty trend in Central Africa.