The Key Concepts in Economics

In: Business and Management

Submitted By JenniM77
Words 969
Pages 4
Assignment: The Key Concepts in Economics
Jennifer McDonald
Professor Camille Castorina
ECO 100 - Principles of Economics
February 28th 2016

The Key Concepts in Economics The economic article that I analyzed is “Unemployment rate falls to 5.1 percent, but Americans are not finding pay increases,” from The Washington Post, written by Chico Harlan and Ylan Q. Mui. The key points of this article discuss a possible slight increase in interest rates, the decrease in the unemployment rate, non-management employees’ wages not increasing, and economic uncertainty in China. This possibility of uneven growth in the economy is causing the stock market to become uncertain (Harlan & Mui, 2015).
With unemployment and the price of oil being so low the economy should be growing, but with wages not increasing this could be the cause of the uncertainty in the markets. This could also be due to the last financial crisis that economy is still trying to recover from. Job growth and inflation are linked, if more people are employed prices for goods and services go up do to consumption, but even with job growth consumers are not making purchases, this can be due in part to the wage stagnation (Harlan & Mui, 2015). Another factor to the slow rise in inflation, could be a global economic slowdown which could be due in part to a decline in China’s economy; this could cause ripples in other nations’ economies now and in the future. Which could further lower prices of oil, other imports and exported goods from China, this could cause more issue with the stock market. These are all indications of a weaker global economy, increasing the uncertainty of economic growth and inflation forecasts for economists (Harlan & Mui, 2015). Lastly, this article points out the effects that industries have on the economy, the slow recovery from the financial crisis…...

Similar Documents

Economics Concepts

...AP MICROECONOMICS CH 20 QUIZ NAME___________________ _____1. Economic costs can be best defined as a. any contractual obligations that results in a flow of money expenditures to resource suppliers b. any contractual obligation to labor or material suppliers c. payments a firm must make, or income it must pay to resource suppliers to attract those resources from alternative uses, including opportunity costs d. all costs exclusive of payments to fixed factors of production _____2. Normal profit is a. determined by subtracting implicit costs from total revenue b. determined by subtracting explicit costs from total revenue c. the return to the entrepreneur when economic profits are at zero to keep him/her engaged in the business d. the average profitability of an industry over the preceding 10 years –––––3. Economic profits are calculated by subtracting a. explicit costs from total revenue b. implicit costs from total revenue c. implicit costs from normal profits d. explicit and implicit costs from total revenue _____4. Marginal cost a. intersects both AVC and ATC at their minimum points b. is defined as the difference between total cost and total variable costs c. rises for a time, but then begins to decline when the point of diminishing returns is reached d. declines so long as output increases _____5. Economies of scale will allow firms to: a. move upward on the AVC curve and hence reach a lowest cost point ...

Words: 569 - Pages: 3

Economic Concepts

...------------------------------------------------- Top of Form  Powered by JRank Bottom of Form Reference for Business Encyclopedia of Business, 2nd ed. Reference for Business » Encyclopedia of Business, 2nd ed. » Man-Mix » Managerial Economics MANAGERIAL ECONOMICS Ads by Google 1 year diploma courses - Info on Courses, Scholarships & Admissions from IDP Experts. -india.idp.com/18001022233  SWOT Analysis Tool - Get a free 30 day trial of Mindjet the leading Mindmapping Tool! -www.Mindjet.com  online gcp courses - Online, Classroom & Blended Courses Certification Programs & More! -www.cfpie.com  CAT Scholarships-T.I.M.E. - Must for all cat and mba aspirants Register Now-Upto 100% scholarships - www.time4education.com/ttse  Photo by: nyul Ads by Google MBA - Supply Chain Mgmt. 100% Online backed by Textbooks Academic support,E-Library.Join Now utsglobal.edu.in Rapid eLearning Train your employees with Rapid eLearning, cut your business costs www.niidtech.com MBA Distance Education Online 1 Yr MBA @ 29000. Approved from AIMA India & IAD UK. Enrol Now www.iibmindia.in Papermaking Technology Download white papers on new papermaking machines and processes www.risiinfo.com/whitepapers Decisions made by managers are crucial to the success or failure of a business. Roles played by business managers are becoming increasingly more challenging as complexity in the business world grows. Business decisions are increasingly......

Words: 7613 - Pages: 31

Economic Concepts

...Economic Tools and Concepts Rakia Rountree HCS/552 October 28, 2013 Chester Brown Economic Tools and Concepts Trillions of dollars are spent on health care related issues in the United States each year which is more than any other industrialized nation; the majority of the expense is related to treating and managing chronic diseases such as various types of cancers. The impact of the declining economy can be attributed to the significant rise in health care cost which has affected work productivity and reduced the quality of health care services (Wiseman, 2011). The paper will discuss the two major economic principles; Marginal analysis and opportunity cost that commonly used to underlie and evaluated the current health system of today. Marginal Analysis Marginal analysis in health care is defined as the examination of additional benefits or costs that arises from additional consumption of goods, in today’s health care industry more money is being spent on health related services because of the increase of supply and demand; to simplify the definition cost rise when the consumption of goods increase, it is the principle of economics that shifts or changes the mix of resources used in health care spending (Mitton & Donaldson, 2004). Marginal analysis in health care is the better option to use when prioritizing services or goods, prioritizing goods based on the total needs will lead to inefficient use of resources. Resource allocations in health organizations......

Words: 1111 - Pages: 5

Key Concepts of Organizational Design

...Key Concepts of Organizational Design Rosalind Patterson MMPBL550 August 30, 2010 Professor Josey Crisostomo Key Concepts of Organizational Design Given the importance of organizational design, why is it so often the blame for inefficiency and ineffectiveness? The reason is because good organizational design helps communications, productivity, and innovation. Organizational design is the process of aligning an organization’s structure with its mission. This means looking at the relationship between tasks, workflow, responsibility and authority, and making sure all these support the objectives of the business (www.mindtools.com). In this paper we will explore the importance of organizational design choices, the advantages and disadvantages of various organizational structures, assess the relationship between strategy, structure, and process in organizations, and analyze the relationship between organizational design and decision-making processes. Importance of Organizational Design Choices Hiring talented people is not enough to ensure the success of an organization. The best and brightest employees will not be able to do their best work in a poorly designed workplace. Consequently, poor organizational design is one of the leading causes of low employee morale and productivity (www.leadership-and-motivation-training.com). Effective organizational design creates a culture of commitment. The employees fully understand their......

Words: 1362 - Pages: 6

Key Concepts of Organizational Design

...Key Concepts of Organizational Design Allison Battles University of Phoenix / MMPBL 550 November 1, 2010 Professor Frederick Janson Key Concepts of Organizational Design Organizational design is an important aspect of organizational theory that designates many of the processes and the structure within an organization. It can shape the organization’s culture and help the organization to achieve its goals. Organizational design is also important to change management within the organization. The most important factor, though, is that it supports the company’s strategy for success. As many organizations are experiencing growth, the concepts of organizational design become more complex. The organizational designs and structures discussed here will simplify the terms in order for a clearer understanding of the concepts. Importance of Organizational Design Choices Organizational design is vital to an organization’s success. Part of developing a strategy for a company to achieve its goals is to create a dynamic organizational design that fits the company’s purpose, culture, and processes. “To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve” (Autry, 1996, para. 7). In the most basic terms, the organizational design should be aligned with the organization’s strategies-the goals, the objectives, and the mission-and support the desired outcome. It is important that the organizational design of a company......

Words: 2218 - Pages: 9

Key Concepts of Organizational Design

...Key Concepts of Organizational Design Ryan MMPBL/550 December 13, 2010 Key Concepts of Organizational Design [The introduction goes here. It should be one or two paragraphs explaining the findings of your paper. The introduction should prepare the reader for the contents of the paper by previewing the four main topics in your paper. Be sure to end with a transition word or sentence to lead into Section 1 of your paper. Triple click anywhere in this paragraph to begin typing your own introduction.] In this paper, I will provide some key concepts of organizational design and its importance, assessing the relationships between strategy, structure, and process in organizations and the relationship between organization design and decision-making processes are analyzed. In the next section, I will describe the five best design choices and the characteristics, advantages, and disadvantages of various organizational structures. Importance of Organizational Design Choices [This should explain the importance of organizational design choices. Be sure to end with a transition word or sentence to lead into the next section of your paper. Triple click anywhere in this paragraph to begin typing.] One valuable element of developing a strategy for a company is to form an organizational design that fits the company’s purpose, culture, and processes. Organizational design has become a top priority because of increased competitive pressures and the use of information......

Words: 2065 - Pages: 9

Economic Concepts

...Abstract This paper is on the economic concepts of opportunity costs, absolute and comparative advantages as well as the purpose of trades. The paper takes a scenario and using the data, analyzes the opportunity costs each person achieves as well as who has the absolute and comparative advantages between both products of corn and pigs. Also, using research from the book and the internet, I was able to tie in these concepts to international businesses and nations alike, determine the important of these concepts in the economy. Opportunity costs are the true cost of anything that you have to give up (Krugman, 2009). We face decisions with the concept of opportunity costs in mind on a day to day basis; deciding whether to spend money on lunch or save it for another time. The opportunity costs in this situation are to have lunch to eat while giving up savings you can use for later. According to the scenario given between Mary and John which both produces corn and pigs, we can see that for Mary, the opportunity cost for producing corn are ¼ pigs. We came to this deduction by taking the total amount of corn and dividing into 1. Taking the result of this number we multiply by the amount of pigs that’s produced. Mary can produce 200 corns per year or 50 pigs per year if all her resources are allocated respectively to either corn or pigs. Using the formula mentioned, we come up with ((1/200)*50) which results to .25 pigs. To find the......

Words: 843 - Pages: 4

Key Concepts

...potty training which has resulted in a fixation of messiness and generosity or obsessiveness, tidiness and meaningless. Phallic – This is from masturbation. The key influences are the Oedipus and Elektra complexes, as a result of this, it results in a fixation of vanity. Latent – This is from little sexual motivation, the influences are acquiring knowledge and understanding of our world. Genital – This is from heterosexual intercourse, which is looked as it being normal. Defense Mechanisms Two commonly used defense mechanisms are denial, where somebody refuses to accept something and acts like it doesn’t exist. Many people use this in every day life to avoid dealing with things they don’t want to admit. Example, An alcoholic will deny they have a drinking problem and come up with reasons to support their claim like ‘I am not an alcoholic, I don’t drink much and I am good at my job and haven’t touched a drop’. Also, projection is very common where somebody may feel something which maybe unacceptable and they will project it onto somebody else. For example in a relationship you may have cheated but will blame your partner instead to take the heat off of you. Key strengths * Has a strong explanatory power * Individual differences (case studies) * In depth * Psychoanalysis * Subjective Key Limitations * Unscientific in its analysis of human behavior because many of Freud’s theories are subjective and are scientifically impossible to test eg,......

Words: 692 - Pages: 3

A Key Concept in Information Systems

...A Key Concept in Information Systems Strayer University - CIS109 A Key Concept in Information Systems In this paper we will provide an overview and history of computer and network security. We will identify one current use of computer and network security and provide an example of this concept in practical use. A discussion of attitudes towards computer and network security will be made and justifications towards the attitude. We will explain the fundamental strengths and weaknesses toward computer and network security and will provide expert views regarding computer and network security. An overview of the origin and history of computer and network security. Lately enthusiasm for security was energized by the wrongdoing submitted by Kevin Mitnick. Kevin Mitnick carried out the biggest computer related wrongdoing in U.S. history. The misfortunes were eighty million in United States dollars, and licensed innovation and source code from a mixture of organizations. From that point forward, data security came into the spotlight. Open systems are being depended upon to convey budgetary and individual data. Because of the development of data that is made accessible through the web, data security is moreover needed to develop. Because of Kevin Mitnick's offense, organizations are underscoring security for the protected innovation. The web has been a driving power for information security change. Web conventions in the past were not developed to secure themselves. Inside of......

Words: 2196 - Pages: 9

The Key Concepts in Economics

...Assignment 1: The Key Concepts in Economics Markisha Dill William Creamer Principle Of Economics May 31, 2015 Before sitting down to complete this assignment, I thought thoroughly about economics as a whole. My interest was whether economics was considered an exact since, i.e. Mathematics. Economics has been described as a science, numerous times. So in my search to find out whether economics was a science, I looked at an online dictionary to see how these words were defined. First I looked at economics. The definition stated, “Economics is a social science concerned chiefly with description and analysis of the production, distribution and consumption of services and goods. Then I looked for the word “science”. Science was defined as knowledge or a system of knowledge covering general truths or the observation of general laws, especially as obtained and tested through scientific method. Both of these definitions together made me think that economics may just be a science. But then I thought about how science can be mostly fact and how economics involves people, who are extremely unpredictable. So I looked up the word “social”. Social was defined as “relating to human society, the interaction of the individual and the group or the welfare of human beings as members of society. This word better describes economics. And if you look in the definition of economics, you see the word social science. But I do not agree with the idea that economics is a exact science. You...

Words: 851 - Pages: 4

The Key Concepts in Economics

...Assignment: The Key Concepts in Economics Curing Chronic Homelessness ECO100 The topic I chose is about homelessness and the cure that is sweeping the nation. There are multiple types of homeless, some are short termed, often uncounted as they are able quickly recover from the reason which left them homeless in the first place. Some are considered chronically homeless, which can mean a couple things; the first is that the homeless person has gone without a steady home at least four times out of the last four years. But, this can also mean that they have a disability that has caused them to be homeless for more than a year. Unfortunately, we have seen constantly increasing numbers of homeless Veterans since the Vietnam War (Haggerty, 2015). Not only is it doing the exact opposite of everything we have been told is the correct way to handle homelessness, especially chronic homelessness, but it is proving to be far more successful than anyone could have ever dreamed (The Editorial Board, 2015)! No matter where you live, the signs of homelessness are there if you take the time to look for them.. They are the most obvious when you are within great city centers because there is an ease of access to assistance that comes with being close to major hubs. Nevertheless, even an hour outside of a major city where we have nothing but farmland and wild land as far as the eye can see, we still have the same problems, they are just harder to find. One good example is during the warm......

Words: 1479 - Pages: 6

Key Concepts in Economics Week 8

...The Key Concepts in Economics “Unemployment & Our Economy” Zarina Gilchrist Professor Denalane, Economics 100 November 20, 2015 Upon doing my research, I viewed several different articles about our economy and the effects in the United States. The articles I read in USA Today & Buzzle, discusses several different areas of our economy and lack of growth such as our Fiscal Crisis, Unemployment, Outsourcing, Reduction In the Output, Reduction in Tax Revenue, Rise in Government Expenditure, and Iraq and Afghanistan Wars. In my paper, I will discuss unemployment. I will elaborate on its types, the causes and effects on our economy and the consumer. According to the definition of unemployment according to Investopedia states, unemployment occurs when a person who is actively searching for employment is unable to find work. It also states, unemployment is often used as a measure of health in the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. The U.S. economy has slowed significantly in the recent years. According to an article from USA Today, the unemployment rate dipped to 5.1%, the lowest since April 2008, when the jobless rate was 5%, according to data from the U.S. Bureau of Labor Statistics. The economy created 173,000 new jobs last month. Many would tend to believe that the uncertainty of the future economy has been......

Words: 1364 - Pages: 6

Key Concepts for Operations Managers

...Over recent years, a small number of key concepts have become very significant to Operations Managers. Over recent years, a small number of key concepts have become very significant to Operations Managers. Four of these concepts are: Customer Care Kaizen Just-in-Time Total Quality Management Your task is to compare and contrast each of these four concepts, clearly describing each. Your work should help the reader to understand how each interrelates to the others and how, if properly applied, they will help any organisation to be a success. In order to understand the four concepts of customer care, kaizen, just-in-time and total quality management, there is a need to understand operations management and what this entails in the relationship between the four concepts and operations management. It is vital to the task to understand the meaning of each of the concepts in relation to operations management as well as to the business in which it is situated. Operations management is the area of business practice which is associated with the production of goods and services. It involves the responsibility of ensuring that business operations are efficient through the use of as little resources as possible and also that the customer requirements are met in and effective and efficient manner. According to Bartol et al (1998: p. 53), operations management Is the function, or field of expertise, that is primarily responsible for managing the production and delivery of......

Words: 1969 - Pages: 8

Key Finance Concepts

...KEY CONCEPTS OF FINANCE A QUALITY E-LEARNING PROGRAM BY WWW.LEARNWITHFLIP.COM ©Finitiatives Learning India Pvt. Ltd. (FLIP), 2010. Proprietary content. Please do not misuse! Accounting All businesses have financial transactions all the time. These are recorded in a particular way. Businesses can be structured in 3 ways: 1. Proprietorship: business with a single owner. Owner has complete liability for all debts of the company. 2. Partnership: business with 2 to 10 equal owners. All partners share complete liability for all debts of the company. 3. Limited company: Many owners with limited liability for debts of the business; this liability is only up to their capital contributed. There are t two types of limited companies: private and public. The former is held by 2-50 owners privately. The latter has unlimited number of owners, and any member of the public can be a part-owner. A business has numerous transactions which need to be recorded following certain accounting principles and process. Accounting Principles These are called Generally Accepted Accounting Principles, or GAAP. Key GAAPs are 1. Going Concern Concept: This principle assumes that a business will go on, that is, it will continue in the foreseeable future – it has no finite life. We use this principle to project cash flows in the future. 2. Legal Entity: The business is an entity separate from owners; even if it’s a small, one person business running out of home. Therefore the business......

Words: 2036 - Pages: 9

Economic Concepts

...Economic Concepts and Current Events The Federal Reserve, fiscal policy and comparative advantage are all macroeconomic theories and/or concepts that play a large role in our current economy. The Federal Reserve has a large impact on the banking system and how they create money to have a positive output where the fiscal policy takes a slower rate to get started (Amadeo, 2011) but once executed can be extremely productive. As long as the US has an absolute advantage in some industries and can produce at a lower opportunity cost then they can have a comparative advantage with other countries. The Federal Reserve was created to avoid a possible tragedy spun from a financial panic that could create a major depression. They are here to safeguard the financial system (Williams, 2012) which is exactly what they did in late 2008 when it seemed our economy was starting to fall apart. They were able to provide many bail outs for our financial institutions as well as backstopped the market that corporations use to get short-term funding to finance payrolls and inventories (Williams, 2012). These actions taken by the U.S. Treasury and Federal Reserve have succeeded in halting the financial panic and allowing us to avoid a depression. Although we are still in the midst of a recession, this is not to the fault of the Federal Reserve not doing their job but rather to the damage done by the housing bubble and a large financial crisis. Along with the current recession the government......

Words: 767 - Pages: 4