Instead of studying social economics as a whole, other social sciences may study about the distribution of economic goods and how it affects an individual. In other words, a sociologist emphasizes social behavior, but a psychologist will focus more on individual behavior. Karl Marx believed that economics was the underlying key to understanding human society. His idea was that social conflict leads to change in society. Conflict resulted from the struggles of different social classes over the means of production.
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why? With classical economists believe that people supply things to the economy so they have income to demand things of value they supplied.
It can be argued that quality of people’s lives depends on more things than simply the material resources that are available. Another common problem with using GDP as a way to compare is the problem with exchange rates. GDP is calculated initially in terms of local currencies and then later it is converted into US dollar using official rates. The conversion into US dollar itself is a problem since the rates used are likely to be influenced by government intervention. This is especially true in developing economies where the currencies are normally pegged to another currency such as the US dollars.
Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate. Government price controls distort the economic theory of supply and demand. Supply and demand is a significant underlying feature of free-market economies. This theory allows individuals and businesses to make decisions based on self-interest. Businesses often pay individuals a wage based on current market standards.
Should the government influence the economy or stay away from it? Should economic policy be focused on long term results or short term problems? This and other such beliefs form the difference between the two major schools of thought in economics: Classical and Keynesian economics. For one thing, Keynes refuted Classical economics' claim that the Say's law holds. The strong form of the Say's law stated that the "costs of output are always covered in the aggregate by the sale-proceeds resulting from demand".
Krieken, R. et al. 2014, p. 205 defines class as referring to a “social group, defined in terms of its economic position in a hierarchy of inequality and with material interests that differentiate it from other classes.” This essay will set out to explain how sociology helps to understand class, and how the theories of Marx and Weber have influenced the basis for most modern sociological theories of class. Social class is a concept that has been argued about for hundreds of years. According to the Business Dictionary social class can be defined as “a status hierarchy in which individuals and groups are classified on the basis of esteem and prestige acquired mainly through economic success and accumulation of wealth. Social class may also refer to any particular level in such a hierarchy.” Sociologists have given a threefold classification of classes which consists of upper class, middle class and working class.
Proponents of the notion of a "political business cycle" suggest that: A. The standardized budget is a better indicator of the state of the economy than the actual budget B. Cyclical swings in the economy are produced by the inherent instability found in capitalist economies C. A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes D. There is a tradeoff among goals that tends to make the economic policies of state and local governments procyclical 19. One of the timing problems with fiscal policy is an "operational lag" that occurs between the: A. Beginning of a recession and the time that it is recognized that the event is occurring B.
Factors like the strength of the economy, activities of international investors, and foreign trade all have something to do with the change in supply and demand. Given the size and mobility, the flow of capital is a determining factor of how the exchange rates will comply. Once the influences mentioned above affect the interest rates, the exchange rates among the market determined currencies are also influenced because currencies are extremely vulnerable to changes in interest rates and sovereign risk factors. The key drivers of an exchange rate stem from international capital and trade flows, the interest rate differentials net of expected inflation, trading activities in other currencies, monetary policy and central banks, and financial and political stabilities. If local prices in a country increase more than prices in another country for the same product; being is that foreign exchange forward markets are linked to interest markets; then the local currency may decline in value via its foreign counterpart, presuming there is no change with the structural relationship between the two.
Review Questions What is the Davis-Moore thesis? It is a thesis that states social stratification has good consequences for society. They argued that societies have many different occupations or take in them and jobs differ in their importance to society. List and define three different systems of stratification in society. It's based off of wealth, property, and power.
What signs do you see that others are being affected by global, economic, and social influences? Environmetal effects: * Competitive * Distributive * Economic * Socioeconomic * Financial * Physical/Geographic * Political / Legal * Sociocultural * Labor * Technological What signs do you see that others are being affected by global, economic, and social influences? A) economic/ finance: The Economic / Financial environment includes considerations such as the GDP Gross Domestic Product