With reference to extract one, assess the likely effect of a fall in the sterling exchange rate on the UK’s deficit in the trade of goods and services. (12 marks) A fall in the exchange rate of 25% means the pound becomes weaker, this means imports are more expensive, and exports are cheaper. As a result of this, this may mean a large increase in demand for exports and a considerable decrease in demand for imports, therefore decreasing the deficit of the balance of payments in the UK as predicted. However, if the goods we are importing and exporting are inelastic, meaning they have a less than proportional response to price, an increase in the price of imports, and a decrease in the price of exports may not have a great effect on the trade of goods and services and so therefore not improve on the deficit the UK holds. As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling.
346 – 349. See PCW page 385 numbers 1,4, 7,8, 12, for Cause and Effect Essay Possibilites Week 9 Oct 16 Rough Drafts of Cause and Effect Essays Due Read St. Martin’s Handbook 6 “Conducting Research” pp. 222 - 248 (In-class quiz and writing on reading) Oct 18 Introduction to Argumentative Writing. Read PCW 555 – 581. Focus on writing a thesis.
According to Keynes, why might deflation create problems for an economy? ▪ In expectation of increased spending, too many entrepreneurs would begin businesses and most would fail. ▪ The cost of repricing goods would increase costs, and therefore reduce profits, for businesses and they would cut production. ▪ People would drop out of unions because unions would become ineffective at keeping wages of members high. ▪ Consumers might expect prices to fall further and cut back consumption now.
“For instance, the fall in the wage lowers people’s income and thereby reduces demand. That reduction may feed back to firms and reduce the demand for their goods, which might reduce the firms’ demand for workers” (Colander, The Limitation of Supply/Demand Analysis, 2010). “If these effects do occur, and are important enough to affect the result, they have to be added for the analysis to be complete. A complete analysis always includes the relevant feedback effects” (Colander, The Limitation of Supply/Demand Analysis,
| Is Raising Minimum Wage Going to Affect the Economy? | Principles of Microeconomics | | Jenell Craddock | 2/21/2013 | | Jenell Craddock Principles of Microeconomics Professor Kerr February 21, 2013 Is Raising Minimum Wage Going to Affect the Economy? President Obama wants to raise the minimum-wage from $7.25 an hour to $9.00 an hour. They say that minimum wage earners don’t get a lot of money but that’s because they’re usually young people in entry level positions. If Obama raises minimum wage it could put small businesses in an unacceptable bind that helps no one.
ACC 380 Week 5 Final Project Purchase here http://chosecourses.com/ACC%20380/acc-380-week-5-final-project Description Final Project The purpose of the Final Project is for you to demonstrate understanding of the reading as well as culminate the learning achieved in the course by describing your understanding and application of knowledge. Focus of the Final Project Review the financial information pertaining to Lee College in problem 11-8 on pages 357 and 358 of your text. Prepare the following: 1. A Statement of Activities using the format presented in Illustration 10-1. 2.
Minimum wage is the "lowest hourly wage firms may legally pay their workers.” To simplify, minimum wage is the base wage created to guarantee the ability of the worker to supply his/her needs (or family's), and to prevent the firms, by chances, exploiting their employees. In 1938, minimum wage first appeared with $0.25 per hour, and through out the time, it has been adjusted to $5.15
A firm’s performance is negatively impacted because it hires fewer employees, which decreases output and profit. Consumers and taxpayers end up paying for such costs through higher prices. The ability of the United States to stay globally competitive is diminished, thus efforts to cut costs push many companies to send jobs abroad. In the long-term, members of a union also become affected due to changes in the market environment—e.g. new entrants, including foreign competition within the domestic boundaries, so they may have to adapt to such changes by accepting lower wage rates.
Some believe that raising the minimum wage would hurt people by making it harder to find jobs, when it actually will create more job opportunities for Americans. How does our economy expect families to live comfortably making $7.25 an hour? With inflation constantly on the rise the worth of money is becoming less and less valuable. Why can we not raise the minimum wage if everything else is increasing in price? The minimum wage needs to be updated to correlate with the times and value of the American dollar.
The article “No Babies” by Russell Shorto discusses how the population in Europe is drastically decreasing because the low birth rate and higher death rate. He discusses how the birth to death rate is very unbalanced as well, which is a result of the declining population. European culture is feared be lost due to the fact that the majority of the European population is mainly made up of older generations and few younger. In the article Population “7 Billion”, Robert Kunzig discusses how the population worldwide is increasing drastically. He discusses that although the population is growing, our planet may not have all the resources it needs to accommodate the growing population.