Economic Essays

Economics is an ever–changing field of study. Within that area of interest, there are many people who have influenced the world with their individual economic point of view. Some of those people have made a fundamental impact upon not only the United States of America, but also upon the world. Adam Smith, David Ricardo,John Maynard Keynes, Friedrich Von Hayek, Milton Friedman, and Fengbo Zhang are six men who have accomplished just that. Their opinions, actions, and words have forever changed the world of economics.

Adam Smith

The "father of economics" was born in Scotland. His birth occurred during the year of 1723. Adam Smith's renowned book The Wealth of Nations examined the idea of capital and money, the progress of industry,...show more content... He felt that, except for certain extreme instances, the government should not interfere with the market. Adam Smith died in 1790, but his economic ideas have lived on. Adam Smith and his pioneering ideas and opinions are the basis on which economics has been built upon.

David Ricardo

David Ricardo was born in 1772 and was submerged into politics and government at a very young age. After he finished his schooling, Ricardo's father placed him at the London Stock Exchange, where David had a full time job at the early age of fourteen. In 1819, by the advice of James Mill, a close friend, Ricardo joined the British Parliament. This opportunity, introduced Ricardo to the world of economics. He first became interested in economics due to Adam Smith's 1776 book The Wealth of Nations when he was approximately twenty–seven years old. Thanks to his friend James Mill, Ricardo began recording his own economic ideas onto paper. Following in Smith's footsteps, he was a classical economist, having a very strong idea that markets can regulate themselves. In 1815, Ricardo wrote the Low Price of Corn on the Profits of Stock Essay. In this Essay, David Ricardo discussed his hypothesis that as a company hires more labor with a fixed amount of land and capital, eventually there will be a point where hiring more workers will be less efficient. This is theory later became known as the law of diminishing marginal returns. The law of diminishing marginal returns can be

Introduction

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country's plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a...show more content...

Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at what price. The role of the state is limited to ensure right precision in the prices charged by the sellers. Prices also have the function to allocate and distribute a country's resources. Market leads to complete effectiveness bringing about the best possible distribution of a country's resources in a perfect world. This would only happen in a state of equilibrium and there is a unique price for every commodity. But in a realistic world which is imperfect by nature, prices are never at equilibrium and very unstable depending upon the vagaries of the market forces. This generally harms people living below the poverty line. It is impossible for them to pay high prices in cases of demand shortage. Thus, the free market model is not a viable option in developing countries which has a large number of poor. Besides, producers are aim to minimize profit and maximize rent of production. Examples of countries that are using this economy system are Hong Kong, USA, and UK. Many developing countries like India and China are moving towards totally free–market economy. The command economy is government directed. The market forces have very little say in such an economy. There is no private property. On the other hand, a command economy aims at using all available resources for developing either

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Germany and its Economy

Known as the "fair" capital, Germany lies in the center of Europe and in the center of the European home market. Approximately two thirds of the top international fairs take place in Germany. Germany is successful. A leader in world trade, Germany is the third largest economy in the world and the biggest market in Europe. It wasn't always this way though; European power struggles wounded the country in two devastating World Wars in the first half of the 20th century and left the country dominated by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945.

Germany has been through all of the phases of the business cycle many times. It even suffered immense depression after...show more content... In addition to this, an attempt is made to prevent restraints on competition resulting from monopolies and cartels. Since Germany is a market economy, the three economic questions are answered almost the same was as we in the United Statesanswer them. The consumers of Germany answer the three economic questions by what they buy and don't buy.

Given that Germany is known as a large exporting nation, many kinds of goods are produced there. A large amount of what they export is made up of vehicles, chemicals, machinery, metals & manufactures, foodstuffs and textiles. They also have a large agricultural industry with products such as potatoes, wheat, barley, sugar beets, fruit, cabbages, cattle, pigs and poultry. Germany is also among the world's largest and most technologically advanced produces of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages. They make an estimated 506 billion dollars every year in exports and spend 472 billion on imports. The currentinflation rate in Germany is around 2.4% and the unemployment rate is 9.4%. Income is measured as the value of an economy's gross domestic product divided by its population. The purchasing power parity was an estimated 2.2 trillion dollars with parity per capita of $26, 200; the growth rate of GDP was 3% from 2000 to

Economics : Basic Economic Concepts Essay

Kingman Academy of Learning

Economics a Social Science

Basic Economic Concept

Jordan Mcdowell

Civics

K.David

5 December 2016

. Economics a Social Science

Basic Economic Concept

Scarcity

Supply and Demand

Utility

Measurement of Economic Performance Gross domestic product (GDP)

National Income and Price Determination

Stabilization Policies

Demand management policy

Fiscal policy

Monetary Policy

Economic Growth

Open Economy: International Trade and Finance

To understandeconomics, one must first explore the basic economic concepts. The first of the basic economic concepts is scarcity, "a situation in which there is not enough of something" (Coolridge). So an economic scarcity is the limited resources or goods compared to the unlimited wants and needs of consumers. For example, pumpkin pie is sold largely in the fall and is abundant. However, in the later months of winter, pumpkin pie is still in the same demand as in the months of fall. Here is where scarcity will become apparent. The supply of pumpkin pie can not meet the demand the amount of pumpkin pie consumers want. Scarcity can also dictate what a consumer may buy and the amount of a product they may buy. For instance: Fossil fuels use in the United States of America. "Should the tile world continue to be dependent upon its fossil fuels for its energy requirements, the peak of coal production would probably be reached within the next 200 year, and that of oil in about 50

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"Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national economy as a whole. Macroeconomists seek to understand the determinants of aggregate trends in an economy with particular focus on national income, unemployment, inflation, investment, and international trade" (Wikipedia, 2007). Government tends to use a combination of both monetary and fiscal options when setting policies that deal with the Macroeconomic.

According to McConnell & Brue (2004), governments make adjustments through policy changes which they...show more content... dollars into gold at $35 per ounce, has made the U.S. and other countries' monies into fiat money–money that national monetary authorities have the power to issue without legal constraints.

Money is used in all economic operations; money has a powerful effect every economic activity. The increase in supply of money put more money in the hands of the consumers and increased spending. When the money supply continues to expand and the prices begin to increase, particularly if the output growth reach to the capacity limits as the public begin to expect the inflation, lenders insist on higher interest rates to offset and expected decline in purchasing power over the life of their loans. Contradictory results happen when the supply of money falls, or when the rate of growth cries off. The U.S. money supply comprises currency–dollar bills and coins issued by the Federal Reserve System and the Treasury–and various kinds of deposits held by the public at commercial banks and other depository institutions such as savings and loans and credit unions. On June 30, 1990, the money supply, measured as the sum of currency and checking account deposits, totaled $809 billion. Including some types of savings deposits, the money supply totaled $3,272 billion. And even broader measure totaled $4,066 billion

Businesses know that they face demand curves, but rarely do they know what these curves look like. Yet sometimes a business needs to have a good idea of what part of a demand curve looks like if it is to make good decisions. If Rick's Pizza raises its prices by ten percent, what will happen to its revenues? The answer depends on how consumers will respond. Will they cut back purchases a little or a lot? This question of how responsive consumers are to price changes involves the economic concept of elasticity.

Elasticity is a measure of responsiveness. Two words are important here. The word "measure" means that elasticity results are reported as numbers, or elasticity coefficients. The word "responsiveness" means that there is...show more content... When it is greater than one, economists say that demand is elastic.

Products which have few good substitutes generally have a lower elasticity of demand than products with many substitutes. As a result, more broadly–defined products have a lower elasticity than narrowly defined products. The price elasticity of demand for meat will be lower than the price elasticity of pork, and the price elasticity for soft drinks will be less elastic than the price elasticity for colas, which in turn will be less elastic than the price elasticity for Pepsi.

Time plays an important role in determining both consumer and producer responsiveness for many items. The longer people have to make adjustments, the more adjustments they will make. When the price of gasoline rose rapidly in the late 1970s as a result of the OPEC cartel, the only adjustment consumers could initially make was to drive less. With time they could also move closer to work or find jobs closer to home, and switch to more fuel–efficient cars.

The concept of elasticity can help explain some situations that at first glance may seem puzzling. If American farmers all have excellent harvests, they may have a very poor year financially. They may be better off if they all have mediocre harvests. If a bus company decides it needs more revenue and tries to get it by raising fares, its revenues may decrease rather than increase.

Economic Indicators Economic indicators are various layers of statistics that provide insight and information into how an economy is functioning. An economist might use economic indicators to paint a picture of current economic performance, or make future economic predictions. As a team, we will profile six economic indicators: Consumer Price Index, Capacity Utilization, Unemployment Rate, Producer Price Index, Interest Rate, and Inflation Rate. Historic charts for each indicator are included in our Power Point Presentation. As we move forward, we will use this information to help us better understand our selected business, the airline industry.

Consumer Price Index (CPI)

The Consumer Price Index is published by...show more content...

Capacity Utilization The performance of the airline industry can be measured in its overall ability to fill seats on flights, measured in available seat miles per month. The industry experienced steady growth through the 1990's until Sept. 2001. The airline industry increased the number of flights, and the size of planes used, particularly in higher traffic routes. In 1992 there were 45 billion available seat miles per month on domestic flights, which grew to 62 billion seat miles by 2001. After Sept. 11, 2001, the downturn in air traffic caused the available seat miles to drop to under 50 billion, a 20% decrease in a short time. By July of 2003, the available seat miles had increased back to 57 billion, and improved to 62 billion by July of 2004. The other factor in this comparison is the number of unused seat miles, "the difference between available seat–miles and revenue passenger miles, are used as a measure of airline capacity utilization." (www.bts.gov/publications /transportation_indicators/October, 2002)

The number of unused seat miles has fluctuated between 15 and 20 billion per month during this same time period. This comparison shows that the airlines have increased percentage of filled seats on the average as the available miles have increased but the number of empty seats has remained relatively constant. In 1992 there was an average of 40% empty seats on all flights. By 2000 this figure has dropped to 30%. The last part of 2001 was an exception

A free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called "hands–off" or "let it be economics". The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self–interest. Competition is one of the main components of the free market economy. Competition means that the companies compete with one another to make more benefits to themselves. According to the concept of the free market economy, the competition means a good thing because it is a basic...show more content...

The government does not necessarily need to intervene how the marker goes. Therefore, the competition is a significant factor of the free marker economy.Active but limited government is another main part of the free market economy. This means that the government undertakes a significant, active role in the market, but at the same time the government's role is ver limited because all the investments and decisions in the economy are controlled by the market than by the government. An invisible hand will control the market. Limited government is a type of government in which there is a minimum intervention in personal properties. Overall, the government tries to keep the economy in a law and let it free by limiting itself. Hence, the limited government is an essential factor of the free market economy.Last, self–interest is a significant part of the free market economy. Self–interest refers to one's desire to buy something. The market will be generally controlled by people's interest; the companies will compete with one another to fit the best taste. This is because the people's interest will be the main trend in the market and it will control what should be made in the market. Consequently, the market will be self–regulated according to the theory of a free market. Therefore, the self–interest is another significant factor of the free market economy.Therefore, the competition, the

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Inflation and the Economy WHY UNDER MONETARY FREEDOM INFLATION COULD BE STOPPED WITHOUT BRINGING ABOUT UNEMPLOYMENT

1. Unemployment and inflation do coexist and inflation causes much unemployment which would cease with it.

2. Excessively inflated prices would fall to market prices and so promote sales and employment.

3. Less government spending would mean more private spending. 4. Prices and wages could be adjusted fast. If this is not done then this is not the effect of stopping inflation!

5. Price adjustments through gold–value clearing could take place already during a continuing paper money inflation – leaving no adjustment problem.

6. While FALLINGprices do indeed deter from buying and promote...show more content...

2. Paying men not to work (unemployment "insurance").

3. Deflationary withdrawal of notes from circulation – while free banking remains suppressed.

4. Replacing the old currency at an arbitrary rate, not the free market rate, and most likely supplying not enough new currency because under monetary despotism there is no yardstick like the free market rate for currencies.

5. Continuing monetary despotism with all its uncertainties and the expectation of further inflation.

6. Tax increases and their stricter collection– with their deflationary effects. 7. Delays in spending of tax–collected funds after the official currency

8. Issuance of a new "reformed" currency in quotas only.

9. Insistence on gold payments or gold redemption – regardless of the availability of gold and existing or possible alternative private contractual arrangements, i.e.: part redemption (revival J.Z., 1999) of monetary despotism in the form of an exclusive gold standard.

10.Issuance of the new currency only to the extent that foreign loans are available as "backing".

I have no doubt that there are more right ways and that many more mistakes could be listed. This listing was only made to throw some doubts on unchecked premises, official announcements and "expert" views on the subject, including e.g. those of Milton Friedman, F.A. Hayek, Murray Rothbard and Mark Tier. The essence of my case is contained in the above

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Definition of Topic: Economics is the study of supply and demand. It defines the ways that human beings allocate resources and how resources are distributed amongst a market. It allows you to see trends in current market places and predict what may happen in the future. Many different subjects were once regarded as a part of economics. Political science and even sociology were once considered part of the field. These subjects still play a major role in understanding economics but are also completely separate disciplines today. History: Since ancient times, humans have contemplated basic economic problems. Many great minds have tried to master the subject. Aristotle and Plato were probably the first to document such studies. Both...show more content...

For Marx, capitalism's fatal contradiction was between improving technological efficiency and the lack of purchasing power to buy what was produced in ever larger quantities. John Maynard Keynes was a student of Alfred Marshall and an exponent of neoclassical economics until the 1930s. The Great Depression bewildered economists and politicians alike. The economists continued to hold, against mounting evidence to the contrary, that time and nature would restore prosperity if government refrained from manipulating the economy. Unfortunately, approved remedies simply did not work. In the U.S., Franklin D. Roosevelt's 1932 landslide presidential victory over Herbert Hoover attested to the political bankruptcy of laissez–faire policies. New explanations and fresh policies were urgently required; this was precisely what Keynes supplied. In his enduring work The General Theory of Employment, Interest, and Money, the central message translates into two powerful propositions. Existing explanations of unemployment he declared to be nonsense: Neither high prices nor high wages could explain persistent depression and mass unemployment. Instead, he proposed an alternative explanation of these phenomena focused on what he termed aggregate demand–that is, the total Get more content

Behavioural economics is the study of the effects that psychology has on the decision making of the economy. This tends to be the way that people think and feel when they are spending money on a certain good or service. The great economist Adam Smith was the first follower of this idea through his book "The theory of moral sentiments" which dates back to 1759. However, it took over 100 years to get a more clarified meaning of how big of a role the psychology of a buyer plays in economics. In behavioural economics there are seven basic principles which all contribute to the decision making process. Behavioural economics can explain how people will react to different situations such as times when there are no economic problems and times when...show more content...

In other words most people would prefer to pay more and buy a more expensive product thinking that by paying more it is also superior to the other products of the same category that are cheaper. However, although the phrase "you get what you pay for" might have some validity in it that is not always the case, due to the fact that sometimes the products that might be cheaper are just as good as the competitor brand which has a higher price. In this instant it would be logical to buy the cheaper product however most human beings would opt for the expensive product, assuming that it is of better quality than the cheaper product. On the other hand, Dan Ariely rebuffs this claim and states, "We choose what we like, not what's best." Sometimes humans don't make decisions based on their preferences; instead they choose what they want and that leads to a process of rationalisation in order to get what they really want. However, they still want to give the impression that they were acting according to their preferences. Secondly, the framing effect states that presenting the same option but in a different format can change people's decisions. Plous (1993) states that, "individuals have a tendency to select inconsistent choices, depending on whether the question is framed to concentrate on losses or gains." A good example of when framing is apparent is when stores advertise sale on their products. For example two stores both sell the same product which is priced at ВЈ50

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ern Capitalistic views in.

The European Economic Community

Ever since the treaty of Rome, the 6 members of the now European Economic Community had been experiencing economic prosperity and a rapid development in all areas of society.

Politically, the EEC aimed to reduce tensions in the aftermath of World War II. In particular, it was hoped that integration would promote a lasting reconciliation of France and Germany, thereby reducing the potential for war.

EEC governance required political cooperation among its members through formal supranational institutions. To reduce the risk of there being political separation (some groups supporting communism, others supporting other ideas E.g. capitalism, Western Politics Etc.) the EEC...show more content...

With the construction of the berlin wall, Khrushchev confirmed that the GDR would still be in existence. It also meant that Western powers would have to acknowledge East Germany, pretty much ignoring the ideas in the Hallstein Doctrine. With people unable to leave East Germany, it meant Ulbricht could develop a New economic system which was supposedly meant to 'revolutionize' the GDR'S economy and gain acceptance for socialism.

The Berlin wall shifted a large amount of focus onto Berlin and Europe. During this time the EEC stayed relatively quite as they still were only involved with west berlin, not east berlin.

The European Economic Community Turing into the European Community 1967.

Members revamped the organization several times in order to expand its policy–making powers and to revise its political structure. On July 1, 1967, the governing bodies of the EEC, ECSC, and Euratom were merged. Through the Single European Act , which entered into force in 1987, EEC members committed themselves to remove all remaining barriers to a common market by 1992.

After the European Economic Community turned into the European Community in 1967, other countries soon joined. In 1973, the European community 'opened up' and let in a few more countries such as the United Kingdom, Denmark and Ireland (see illustration). The small group of six countries was slowly growing.

The EEC turning into the EC could be seen as the true start

Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money,economics is more than just the study of money.

It is concerned with:

В·The production of goods and services: how much the economy produces; what particular combination of goods and services; how much each firm produces; what techniques of production they use; how many people they employ.

В·The consumption of goods and services: how much the population as a...show more content... There are three types of resources:

В·Human resources: labour The labour force is limited both in number and in skills.

В·Natural resources: land and raw materials The world's land area is limited, as are its raw materials.

В·Manufactures resources: capital

All inputs into production that have themselves been produced: e.g. factories, machines and tools.

One must bear in mind that our wants are virtually unlimited, while the resources available to satisfy these wants are limited. In other words when society demands more of a product than can actually be produced to fulfil those wants we have a problem of scarcity. An example of this would be the OPEC oil price shocks between 1973 and 1980. Yes, it is true that the price of oil rose and some individuals used substitutes but

the economies of oil importing countries like Germany and Japan fell because OPEC now had more buying power since they had the control over a scarce resource. We can therefore think of oil as having become scarcer in economic terms when its price rose.

Earlier I stated that economics is concerned with consumption and production. We can look at it in the terms of demand and supply. It is simply the quantity of a good buyers wish to purchase at each conceivable price. Three factors determine demand:

В·Desire

В·Willingness to pay

В·Ability to pay

Whilst supply is the quantity of good sellers wish to sell at each conceivable price. Supply is

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Table of Contents 1.INTRODUCTION 2.MAIN BODY 2.1THE NATURE OF RESOURCE COST STRUCTURE AND THE PRACTICAL SIGNIFICANCE OF DIFFERENT COSTS 2.2THE FACTORS INFLUENCING OPTIMUM SIZE AND THE SIGNIFICANCE OF DEMAND AND SUPPLY RELATIONSHIPS 2.3UNDERSTANDING OF THE RELEVANCE AND LIMITATIONS OF ECONOMIC THEORY TO MANAGE DECISIONS 3.CONCLUSION 1.INTRODUCTION: From the economic perspective, there are a full range of wants from individuals, firms and government but there is only a few number of resources or factors of production such as land, labour, capital and enterprise. The raw material will come from land, taking the example of oil, gas. The labour relates to the individuals able to work. The capital covers machinery,...show more content... Equipment, everything used to bring all the materials together, for example, cranes, welding sets, computing time, mobile offices. It is also important to know how much money committed to spend at any point in time. 2.1.1The microeconomics perspectives: This focuses on the market behaviour of individual consumers and firms to help understand the decision making process of firms and households. This is at a level of individual buyer and individual seller, meaning demand and supply. How much to produce and how much to charge for it. The law of the demand is that the demand decreases when the price increases and the demand increases when the price decreases. Also more demand of a product results in an increase of the price the price of that product. (See graph below). 2.1.2The macroeconomics perspectives, focuses on the big picture of the national economy as a whole and provides a basic understanding of how things work in the business environment. The macrocosmic policy goals will be achieved by the monetary policy and the fiscal policy. The monetary policy is the management of the nation money supply, the decision of the interest rate and the banking system to promote economic growth, lower unemployment and inflation. 2.2The factors influencing optimum size and the significance of demand and supply relationship: The demand and the supply are two main concepts of the economy. Demand is what quantity of product or service

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Economic Stratification in the US Everywhere you look at the United States you can find economic stratification. From the kind of vehicle you drive, to the kind of house you live in, to the kind of restaurants you eat at the most you will find economic stratification. Some might ask, does any of that truly matter today? Yes, unfortunately, it does. An important goal for most people is what's referred to as The American Dream. Whether it is to attend a good college, get a respectable job, purchase the perfect house, and have a small family or maybe just to start your own business; that dream starts with wealth. People with more money will have an easier time with achieving the dream than a lower income person would. With wealth comes power and prestige as well. People with more money have better life chances because they can afford better healthcare, education, healthier food, and safer neighborhoods just to name a few things. First, let's look at education. Someone with a higher income would have access to better schools, with better teaching materials, and academic programs. While a lower income person that lives in the inner city, in a poorer community with a rundown school, teachers that are not paid as well, and out of date teaching materials. Once both students graduate from high school, the higher income person can immediately move on to college if they wish, whereas the lower income person would have to obtain aid through a Pell grant, scholarship, student loans or

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Economic Growth Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is thetotal value of production within the economy. The total value of production is the total value of the final goods or services less the cost of...show more content...

Real GDP is measured by the following formula; [(current yearquantity) x (based year price)]. A more reliable measure of economic growth is real GDP per capita; this measurement takes into account both the total production of the nation and the total population. Real GDP per capita measures the real income per head of the population.

This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of Get more

Economic Tools and Concepts As one leader in the free world more money is spent on health care in this country than any other industrialized nation. The major expense to the health care system is managing chronic diseases and illnesses. Each year trillions of dollars are spent on health care, which continues to be an economic burden in this country. The impact on the economy can be attributed to increasing health care costs, declining health of Americans, and decrease productivity among workers (Preventive Medicine, 2009). The goal of this paper is to discuss the various economic tools and concepts such as supply and demand curves and price elasticity, and marginal analysis in the managed health industry. The government has poured...show more content...

Any change in cost leads to a movement along the demand curve. For example if the cost of bariatric surgery rose significantly, many obese people would seek another means of treatment for weight loss. So if the income increases and the price of the surgery decreases there will be a shift in the demand curve. Demand Management is an additional way to manage health care costs. Through this approach, the patient decides his or her health care with or without the provider's support. Demand management assists clients in managing their need and demand for health care services. By providing self–care information such as advice lines, self–care videos, workshops, and publications, the consumer will be able to make informed medical decisions (AIPM, 2011).

Medical Price Elasticity

The curve's elasticity is dependent on the degree to which the demand or supply curve responds to the change in price. The price elasticity will provide an estimate on the effect of consumer demand changes in regards to price changes. "For instance, the price elasticity of medical service is defined as the percentage change in quantity of medical care demanded divided by the percentage change in price of the same product" (Health Economics, 2010, para 3). Based on this definition the price elasticity for medical services is between zero and negative one, so if the costs increase by 10%, the demand for medical services should Get more content

When we talk about economics we must first defined the word. Economics is a social science that studies human behavior and how to allocate our limited (scares) resources, efficiently and effectively to meet our unlimited human wants. Now as we dive deeper in to the field of economics we realized that there are two separate categories that the study of economics breaks off into. The first is macroeconomics, macroeconomics is the study of the whole picture when it comes to economics. Macroeconomics will ask questions about how respected countries economies will work and how and why they make certain decisions. The other category, which this class is about, isMicroeconomics. Microeconomics is the study of the individual. It is the study of individual firms and households and how they make decisions that affect themselves personally. Another pillar of Microeconomics is the study of wants. Wants and needs are to totally different things that each care a different respected weight in economics. Wants are things that can be done without and still sustain life. Needs are those items that essential to life i.e.: water, food, and shelter. The biggest difference is that human wants are unlimited and can't all be satisfied. Which leads us to another major point about economics, economics is about choice. In economics we will ask questions like: what to produce, what resources to use, and how much to produce. In addition, when we deal with choices we must deal with the marginal

Economic Equality

Economic Inequality

The growing economic inequality in the United States is an ongoing issue and over the years has changed. According to past studies done by the US Census Bureau changes in earnings distributions have had a huge effect on this inequality. Just take a look at some of the people in the fields where you work or maybe family members work and the income inequality is very evident for many different reasons. With help of studies done by professionals and my own experiences we will pinpoint some of the ongoing issues of the reasons behind this inequality. "Structural changes in the economy which translates into differences in wage premiums paid to workers with certain skills." Barry Bluestone paragraph 5. This research shows...show more content...

When you have someone who is income wise a lot better off than someone who makes half of that then of course they will have more access too better resources and different way of managing what they have. I also think that even if you do not have many resources available to you because of the income inequality, you as a person have the opportunity to make the best out of what you do have and take small steps to rise up the ladder. There are many ways to go with such a vast subject; I found it very difficult to choose the major ones. Even with all the articles and keeping it within the studies, one has their own opinion of what caused income inequality, and me personally I think there are many to blame for the inequality standards that all American people have, and whether you are wealthy or not we are all equal.

Works Cited

Graham, Phillip and Steve McMillan. "The Real Causes of Income Inequality." Wall Street Journal Online. 6 Apr. 2012. Web 28 Sept. 2012. <http://online.wsj.com/article>.

Gutman, Huck. "Economic Inequality." Common Dreams. July 2002. Web. 28 Sept. 2012. <http://www.commondreams.org>. Jones, Arthur F., Jr. And Daniel Weinberg "The Changing Shape of the Nation's Income Distribution: Consumers Income." US Census Bureau. 60

204. June 2004. Web. 28 Sept. 2012. <http://www.census.gov/hes/income/data>.

G. William Donhoff.