Evidently there is an unequal relationship between the north and south, which could be mainly due to the fact many of the southern countries were owned by the north in the past. The level of consumption differs greatly between the north and south. The northern countries tend to be more developed, with larger and more stable economies, which result in most of the population sustaining a higher standard of living and having more money to spend on goods and services. The north also has an excess of Transnational Corporations which encourage the high consumption levels. Whereas in the south; large percentages of the population cannot afford to buy goods which are not absolutely necessary, as they live in poverty.
Part 1 Terminology Macroeconomics use terminology that is rather distinct from other fields of study. To describe the massiveness of a nation’s economy a numerical measurement is essential. There are many ways to measure economic activity, but a single, common measure is important for purpose of comparison between two different countries or even the same country to itself at different times. Economists have generally agreed that the best measure is the Gross Domestic Product (GDP). This is the sum of cost of all the final products and services sold in any economy.
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Immigration reform will create an increase in the U.S. GDP and that means an increase in earnings for both native-born and newly legalized immigrants (HinojosaOjeda, 2010). b. IRCA immigrants were able to earn higher wages and in turn, native-born Americans’ wages also increased (Paral et al., 2009). c. In the State of California, they have the highest number of undocumented immigrants and those undocumented immigrant workers earned a lower wage than any other state. The state of California lost out on about $3.2 billion on potential income in 2009 (Pastor
6. How can GDP per capita and poverty rates indicate standard of living in each system? In your opinion, are these two statistics influenced by the Economic System? Why or why not? 7.
While it has been argued that an exceptional economic growth caused some problems, the advantages that came with it, outweigh the negatives. Germany’s economic growth was exceptional, industries such as the production of coal and iron doubled in the years up to 1914. By 1900, Germany’s particularly strong steel industry had exceeded that of Britain’s and by the beginning of the first world war, Germany‘s share of trade in the world was equal to Britain’s. Therefore, the power of the elites was not being threatened, as the country was benefitting from the money that the economic growth had brought in, to a high extent. Germany led the way on Europe with the creation of new industries such as chemicals, pharmaceuticals, electrics and motor manufacture.
The fiscal policy has a basic tool which is the federal budget. The federal budget is made up of two parts: revenue which is gained through taxes and expenditures which are spending programs. When the revenue and expenditures from the federal are equal in any year, it is called balanced budget. However, it is almost never balanced and the budget is either a surplus or a deficit. Budget surplus occurs in any year when revenues exceed expenditures.
Since there will be more high income earners in an inequitable distribution of income, and the higher the income an individual earns the greater the proportion of income will be saved, savings will increase in the economy and this will reduce Australia’s reliance upon foreign capital. Unfortunately the advantages of economic inequality are accompanied with the disadvantages. Firstly, overall utility, the satisfaction for the goods and services by the consumer is reduced in our society. This theory is based on the assumption that high income earners gain less satisfaction from an increase in their income than people who earn lower incomes. The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer.
Economists still argue whether Reagan’s actions were helpful or harmful to the United States economy. They question whether it was Reagan s policies that pulled the United States out of the 1982 recession, or whether it was new money being poured into the economy by the Federal reserve. Also many people believe that Reagan’s policies are having more effect on the economy today than they did during his presidency from 1980 to 1988. I feel that Reagan and his policies were extremely helpful to the economic status of our country. I feel that even though his policies produced a large deficit, his other improvements, such as increased GDP, more jobs, and pulling out of a recession, helped to make Reagan’s time as president a success.
The median household income in the region is significantly higher than the national average, and is substantially higher in Suffolk County than Nassau County ($85,994 vs. $76,847). According to 2000 census Nassau County is the third richest county per capita in New York State, and the 10th richest in the nation. The region had a lower poverty rate (5.2%) than the U.S. as a whole (9.8%) and significantly more households making over $100,000 a year (38.3% vs. 18.9%), although there are still pockets of poverty and unemployment.