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Economics is best defined as the
Impacts of the Great Recession on the current economy
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1. What are the three economic stances that a government may have? Describe each of these stances. Neutral: a neutral stance indicates a balanced economy. In most cases, this stance leads to more tax revenue for the government. Expansionary: this stance implies that the government is spending or allocating more money than it collects. Contractionary: this stance implies that the government is collecting more money than it spends or allocates. 2. What are the four different types of economic resources? Describe each type. Land: refers to the natural resources that we use, including lumber, minerals, oil, and so on. Capital: refers to all the manufactured tools and acids used to produce consumer goods. Capital includes the tools, machinery, …show more content…
What is a stock market? What is an example of a stock market? The stock market is simply a place where stocks or shares in a company are bought and sold. An example of a stock market is the New York Stock Exchange. 4. What is an open outcry? An open outcry is a sort of auction for stocks in which traders verbally submit their offers. 5. What is trading? Describe some of the ways that trading takes place. The trading of stocks occurs in different ways. Some stock markets have physical locations, such as the New York Stock Exchange. In these physical stock markets, the buying and selling of stocks often happens on the trading floor in what is known as open outcry. The other type of stock trading occurs through a virtual network of computers. In this type of trading, trades are made electronically rather than in person or through an open outcry. Critical Thinking Questions: 1. Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might this have at the individual and societal levels? The Great Recession was a resulting loss of wealth that led to sharp cutbacks in consumer spending. This loss of consumption, combined with the financial market chaos led to a collapse in business investment. Massive job loss followed as consumer spending and business investment dried
First, the budget deficit. It’s basically the idea that the government spending is greater that its earning. They are two ways to manage this deficit, either to cut spending (Medicare, Medicaid and social security etc.) or increase taxes. However, each solution has its disadvantages. If the government increased taxes, people will spend less money and if they cut spending, people will complain about it arguing that this may hurt the nation.
neutral' outlook upon it; that is, a side must be chosen, for or against. It is
Since the birth of the New York Stock Exchange in 1792, many have become extremely wealthy and even more have lost much of their life savings in the markets. The original stock market was first debuted in Belgium in the 1530’s, it was located in Antwerp (Beattie). The idea of the market in the time was for business men to congregate during the day to do business, work on the government issues of the time, and for individuals to take care of their debt (Beattie). Although the NYSE it is one of the most renowned stock exchanges in the world, it was not the first one in the United States, that award goes to the Philadelphia Stock Exchange (Beattie). The PSE was brought about in 1790, and has continued to be on the smaller side of stock exchanges. The economy has fluctuated to the positive and negative over the centuries it has been open, one of the most recent downturns was in 2008.
Deficit spending happens when a government grows its debt, meaning that its spending is greater than its income. (Deficit Spending, 2008) Deficit spending is a fiscal policy, that when used appropriately can do some amazing things, like pull the United States up from its bootstraps effectively ending The Great Depression. President Hoover increased government spending by 50% and used the money to fund public works and infrastructure projects from 1928 to 1932. (Deficit Spending, 2008)
The stock market is a centralized area where buyers and sellers comes together to perform stock transaction. When one thinks of the stock market, the first thing comes to mind is Wall Street which is sometimes referred to as the New York Stock Exchange as well as the NYSE.
What are three economic stances that a government may have? Describe each of these stances. A neutral stance indicates a balanced economy. In most cases, this stance leads to more tax revenue for the government. Expansionary stance is a stance that implies that the government is spending or allocating more money than it collects. Contractionary stance is a stance that implies that the government is collecting more money that it spends or allocates.
· Land: the land itself, and raw materials such as oil and minerals beneath it. The natural resources that is available without alteration or effort on the part of humans. Land as a resource includes only unique fertility and mineral deposits, topography, climate, water and vegetation. Trees grown are not categorized as land because they have been deliberately grown on the other hand Trees in a natural rainforest are a natural resource and thus classify as land. The reward for letting others use land is called rent.
When the government steps in and conducts the expansionary fiscal policy, taxes are cut and government spending increases for positive economic purposes. When the taxes are decreased, the aggregate demand and GDP increase as well. The reasoning behind this is when the taxes
In economics, the fiscal multiplier is the ratio of a change in GDP due to change in government spending. When this multiplier exceeds one, the enhanced effect on GDP is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in GDP greater than the increase in government spending.
It believes that when it comes to social issues the decision, which allows the individual to have the most freedom, or ability to make the most choices. However the economy is viewed conservatively, and endorses ideas that leave decisions to the free market. It also believes that the Government should not play a major role in all areas. It is believed that the government should only rule on issues that affect the function of the state.
The economy tend to move from boom to recession, it is difficult for government to maintain and achieve macroeconomics objectives. At this time, there are “conflicts between government macroeconomic objectives”, which is this extended essay main theme. This essay will look at the government macroeconomic objectives, the conflicts between macroeconomics objectives, the best policy or mixture of policies to minimize the conflicts between macroeconomics objectives and recommendations, which are classified as main objectives and additional objectives.
Understanding what is meant by land is relatively simple. This comprises all of the natural resources that a particular producer has at their disposal. Most often this means immediate natural resources, like oil or the property on which the production facility is located. This can also include the water or ocean that is close to the facility. The factor of production called land most often comprises the natural and raw materials which are used in production and are at the disposal of the production facility.(2)
Something that may come to everyone’s mind now days and the number one thing that is looked at after a presidential election and every New Year is stock. Stocks determine the health of the economy, the money people are willing to invest, take risks on and win back or lose, but because of the crash, it discouraged people from investing in stocks and instead a huge amount of withdrawals happened leading to the economic collapse that occurred. The U.S government began to worry it would run out of gold because everyone began to turn the couple dollars they still had into gold so the Federal Reserve decided to increase the value of the dollar. Banks began to fail and lose savings; people had to withdrawal the money they had left, leaving banks no other choice but to shut down.
The stock market is an essential part of a free-market economy, such as America’s. This is because it provides companies the capital they need in exchange for giving away small parts of ownership in their company to investors. The stock market works by letting different companies sell stocks to gain capital, meaning they sell shares of their company through an exchange system in order to make more money. Stocks represent a small amount of ownership in a company. The more stocks a person owns, the more ownership they have of that company. Stocks also represent shares in a company, which are equal parts in which the company’s capital is divided, entitling a shareholder to a portion of the company’s profits. Lastly, all of the buying and selling of stocks happens at an exchange. An exchange is a system or market in which stocks can be bought and sold within or between countries. All of these aspects together create the stock market.
What is the stock market? Businesses share part of the company by selling stock, or shares of ownership. When investors own shares of a company, that company is considered public because the general public has an ownership stake in that company. At the high ranks of the companies are the board of directors, whose job it is to make sure the business’s managers are working in the best interests of the multiple owners and shareholders. Companies sell shares so they can expand their businesses and make them better, such as by building manufacturing plants, buying other companies, and developing new and improved products to keep their business profitable. America’s railroads, steel manufacturers, car companies, and telephone companies all started with the help of money from opening up their business to the Stock Market. The Stock Market started in the 1920’s. People who were smart enough to buy them back then could build up a fortune since the market was growing so rapidly. One wh...