Essay On Economics

A Reflection on the Study of Economics
Part 1
Some of the most compelling topics that I learned in this topic only came into focus at the end of
the course. Economics is a very large and complex study and reflecting on this subject, piece by
piece, requires some patience and ability to put the pieces together. The relationships between simple
choices, such as supply and demand, drives all economic and commercial exchange but only through
the lens of economic models that attempt to layout this system by combing mathematical principles
and psycho–social evaluation. All in all, this was very interesting introduction to some of the
complex drivers that propel society.
Discussions are always useful because we are allowed an opportunity to weigh and evaluate our
own personal thoughts with those of others. This comparison helps gauge where I stand on many
political and social issues that derive from economic theories and philosophies. Knowing where I
stand amongst my peers is a helpful measurement to contrast and qualify my own thoughts. For
example, when the topic of monetary policy came up, I was very shocked to find out the
importance of currency and how it is used in global markets.
What was more revealing is the United States' relationship to the Federal Reserve and that
organization's power of the monetary policy set in this country. It is very difficult to fathom how the
entire economic systems sometimes works without a major disaster every day. The ability of the
economic markets in the world to bring
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Extended Essay on Economics
Ho Wei
ACS (International)
Extended Essay
Subject: Economics
Word Count: 3988
Investigation Question
To what extent do the Singapore Government's policies on housing and immigration, help to increase
the demand of the private property sector in the housing market.
Abstract
The research question of this Economics Extended Essay is, "To what extent does the Singapore
Government's policies on housing and immigration, help to increase the demand of the private
property sector in the housing market." For this investigation I used a variety of gathered raw data
and policies from the Singapore government websites, on top of that I kept a collection of newspaper
progressively monitoring the local property market. The...show more content...
The lack of housing access was a serious problem, hence the government undertakes mulitple
measures to tackle the massive housing shortage inherited from the colonial government to ensure
that all of its citizens had access to affordable housing.[1]
.
This research topic is significant to the current property market in Singapore and its sudden increased
demand for houses despite the economic downturn, exploring deeper as to whether the government
policies were the real influential causes to this boom in property demand. It has relevance to the
economic concepts of demand and supply, elasticity, inflation and monopolistic competition. This
topic is worthy of investigation because it is a hot media topic in Singapore, and is widely debated
in the country because it's the most expensive household asset.[2]
My focus question of this extended essay will be
|To what extent does the Singapore Government's policies on housing and immigration, help to
increase the demand of the private |
|property sector in the housing market? |
I shall look into details how policies in the public and private housing market and the immigration
policies affects the private market, despite property prices steadily increasing, the private property
market in Singapore continues to boom. There are many factors that play a role in this drastic

demand for private property

Essay on Principles of Economics
Principles of Economics Paper
Individual decision making is either you do, or you do not. Most people are rational beings basing
their decisions on a formula, benefits versus cost. Are the benefits of buying a $1000 television
worth it? Are the marginal benefits worth the marginal cost?
Just this morning, I was faced with such a scenario. I was invited over to a friend's house to try a
new video game. I did not go, however, because I knew that I had to read several chapters for my
class and write a paper. The benefits were that I would have some time to hang out with my friends
and enjoy some much needed free time. The cost would've been that I could have not gotten all of
my reading done and possibly been late on my...show more content...
Centrally planned economies are of a lower caliber quality, because the government decides who,
what, and how products will be handled. This however does not meet the consumers wants, only the
needs.
Market economies are quite different from centrally planned. Market economies base their who,
what, and how answers on the consumers. This gives the consumers more choice and power on their
buying habits. In a market economy, products will tend to have higher quality and higher probability
of satisfying the consumers. This does, however, target the more willing and capable buyers.
There is a third economic system that was brought about in the nineteenth century: a mixed
economy. This mixed economy is a combination of both centrally planned and market economies.
This allows for the answers to "who, what, and how?" to be decided by consumers but in which the
government has a significant role in the allocation of resources.
Simply explained, social interactions change from one economic system to another. A centrally
planned economy restricts free will as far as the questions who, what, and how. Perhaps leaving the
society a little less satiated. A market economy will allow for higher paying jobs, better quality
products, but targets only a certain demographic. A mixed economy attempts to combine both
systems and allow for high quality products, high paying jobs

Essay on Economic Growth and Development
Economic growth is a necessary but not sufficient condition of economic development.
There is no single definition that encompasses all the aspects of economic development. The most
comprehensive definition perhaps of economic development is the one given by Todaro:
'Development is not purely an economic phenomenon but rather a multi – dimensional process
involving reorganization and re orientation of the entire economic and social system.
Development is a process of improving the quality of all human lives with three equally important
aspects. These are:
1. Raising peoples' living levels, i.e. incomes and consumption, levels of food, medical services,
education through relevant growth processes.
2. Creating...show more content...
Amartya Sen defines economic development in terms of personal freedom, freedom to choose
from a range of options. While economic growth may lead to an increase in the purchasing power
of people, if the country has a repressed economy, there is lack of choice and hence personal
freedom in restricted. Hence once again growth has taken place without any development.
While economic growth may result in an improvement in the standard of living of a relatively small
proportion of the population whilst the majority of the population remains poor. It is how the
economic growth is distributed amongst the population that determines the level of development.
Taking into consideration the trickle–down theory of economics by
Lewis, if the growth in economy is not sufficient to satisfy the needs and wants of the upper sections,
nothing or very little shall trickle down to the lower sections in the hierarchy of society. Thus, the
gap between the rich and poor widens and though economic growth has impacted a certain section of
society, this cannot be considered development. Another example is an increase in the defence
output of a nation, which accounts for an increased GDP but does not in any way contribute to
economic development.
Economic growth is not enough in itself to measure economic development as even if there has
been a leap in the income of people in a particular nation,

Economics And Economics On Economics Essay
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, is
Microeconomics. 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

Why I Want to Study Economics
My father always encouraged me to read books and magazines as a way to nurture my curious
mind. The eagerness to explore new concepts and ideas eventually led me to read magazines like the
Economist. As a young reader, I never made an attempt to fully understand words like poverty,
economic development, and inflation. I thought these were just jargons that adults used in order to
provide depth to their articles. However, when I took A–level Economics in my junior year of high
school, my perception towards these words changed. Economics was not some decorative dictation;
rather it helped me understand the economic, political and social changes that were taking place.
Nevertheless, the reason that got me really intrigued to the field of Economics and inspired to
continue learning it in future was the infusion of mathematics with theories to analyze the
real–world situation.
With the aim of being a successful Economist, I focused on equipping myself with various
theoretical courses in Economics along with Econometrics during my undergraduate studies at Smith
College. Simultaneously, I also devoted my time towards taking rigorous classes in Mathematics and
Statistics. As I realized the importance of quantitative techniques in economic research, I enrolled in
the prestigious and challenging General Course program at the London School of Economics (LSE)
where I focused on taking advanced Econometrics and Mathematical Statistics. Therefore, through
the courses I took during my

Essay on History of Economics
Economics 515
Midterm 1
1.Economic growth vs. economic development, define extensive growth & intensive growth
Economic growth is the sustained increase in the output of goods/services of a society.
Economic development is economic growth plus changes in technical and institutional arrangements
by with output are produced.
Extensive growth– increase in output due to increase in inputs (labor force grows, land stock
increases)
Intensive growth– increase in output per unit of input – productivity increases (technological change)
2.List 2 data sources researchers use to estimate historical standards of living; three indicators of
economic development other than National Income measures of interest to economists
Data...show more content...
List 4 contributions of the earliest civilizations (those that eventually formed the Babylonian Empire)
and explain how each was important to continued economic growth.
п‚§Writing– originated in Sumarian civilization o 3500 BCE–Sumarian draw pictograms on clay
tablets o Bureaucratic necessity: records of tax collection/tributes o 3200 BCE– ideograms– symbols
for sun, moon, phonograms, cuneiform script="wedge" writing
п‚§Arithmetic– keeping track of accounts, creation of 0 value
п‚§Weights/measures– standard of trade
п‚§Geometry– measurement of fields/buildings (architecture)
п‚§Code of Law– civilization required development of law, regulate interactions of men/women o
Code of Hammurabi c. 1700 BCE– regulation of contracts, irrigation procedures, regulating lending
parties (max interest

Macroeconomics Essay
"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

business economics Essay
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

Economics in One Lesson Essay
"Economics in One Lesson" is an introduction to free market economics written by Henry Hazlitt
and published in 1946. Hazlitt begins his monumental book by describing the problems with
economic science, showing that its fallacies are greatly exacerbated compared to other scientific
fields because of special interests in government. The special interest groups consistently advocate
policies that they benefit from at the expense of everyone else. Many people, however, believe
these fallacies because of man's nature to see only the "immediate effects of a given policy, or its
effects only on a special group." Those people neglect the long–term effects and the implications on
other groups by an economic policy. Hazlitt goes on to explain that...show more content...
Considering the role of government in lending and the overlap on taxation, Private lenders are
more stringent in their lending policies and, consequently, have to turn down some high risk
borrowers. The government is willing to lend these borrowers the money they need for capital to
carry out their businesses. These borrowers will then be able to acquire the resources they need to
produce what they need. What is overlooked at this point is the fact that, because these high risk
borrowers were able to get what could have been acquired by low risk borrowers from private
lenders, the resources ended up in the hands of less efficient producers who may not be as
productive as the producers who qualified for private lending. Furthermore, high risk borrowers get
the money from the taxpayers and taxpayers can not fet benefit from this lending and this means the
practice to the benefit of a few at the expense of everyone else. For the short–term result,
government lending can encourage entrepreneurship to create more GDP and bring benefit for the
high risk borrowers. But for the long–term result, high risk borrowers may not produce and use
money efficiently when get money from the government. The worse is that this only benefit for
special groups.
For the synergy of technology, production and employment, Many labor unions exist to argue against
the need for self sufficient machines as this is a threat to

Finance, Economics, And Finance Essay
Statement of Purpose
As a child, I often accompanied my uncle to the stock market. Looking at the share index numbers
on the large overhead screen, I was fascinated with this world. As I grew up, I gradually came to
appreciate the importance of financial sector in the modern world. In the university, I was fortunate
to have been exposed to many interesting and challenging fields. Though I ultimately chose to major
in Accounting, I also studied business, management, economics, and finance. These courses
impressed upon me the importance of the financial sector in the economy. Finance professionals
have the unique responsibility of managing assets and analyzing risks to ensure the future success of
a company or organization. It is difficult to overstate the importance of this role, as the financial
crisis of 2009 showed. It is due to my understanding of the importance of finance and investment,
coupled with my longstanding interest for this subject, that I have decided to pursue postgraduate
studies in finance at your prestigious university. Earning a master's degree in finance would ideally
complement my undergraduate degree in accounting. My background in accounting provides me
with fundamental knowledge of many finance–related theories and concepts, as well as familiarity
with statistics and data analysis. I learned the basic tenets of finance in courses such as Economics,
Management, Accounting and Corporate Finance. Through case studies and lectures, I broadened my

In the beginning of my high school years, I started off with my interest in history and politics. While
I was a freshman and sophomore at high school, I took classes such as US History and Government
and Politics. In these classes, I had the opportunity to briefly learn about the economy in U.S. and
other neighboring countries. At that time, I was not able to understand the mechanism behind
economics. For example, I couldn't understand why the United States suffered from such a great
depression after they prospered in the Roaring Twenties. At the end of the year, these curiosities built
up and encouraged me to further study into economics.
Since learning AP Economics in my senior year, I have always desired to further my studies in
economics. More specifically, I have wanted to study international relations in economics. Recently,
Donald Trump has won the presidential election, and his presidency is expected to bring a huge
change in the world's economy...show more content...
Learning history is always important as it reveals our mistakes and grants us the opportunity to
learn from our mistakes. My understanding of the history of economics will serve as a useful
base–knowledge as I continue my studies in economics. Furthermore, studying Japanese and its
history simultaneously will help me understand more about the Japanese culture and economy. In
my third and fourth year of university, I will broaden my field of study to an international level. As I
have mentioned previously, I plan to learn international economics through classes such as Study of
Global Political Economy or International Public Economic Policy. Moreover, I will take
business–related classes funded by corporates to get familiarized with industries in Japan and the
real–world problems that they face. By taking courses at the department of Global Political
Economics, I hope to utilize my knowledge to solve practical problems in the

Essay on Economics in My Life
Economics in My Life
When I was first given this assignment I was extremely perplexed at how I would even begin to
finish it. I had no idea how economics related to my life in anyway. I hadn't thought about it
critically and I struggling terribly. Thanks to some much needed help from a fellow classmate, he
allowed me to get an idea of things from his own essay. After reading not one, but two other
essays, I was so surprised at how oblivious I had been. I never realized that just about everything
that goes on in my daily life is, in fact, economics. I never realized that from the things I buy to the
money I earn from working is all economics. The things I miss out of while working or going to
school is a complete opportunity cost. Or even...show more content...
Certain books that were unbelievably hard to find were in the higher price range because they were,
in a way, rare. As appose to a book that was so common could easily be found at a cheap price.
They say that there is always something lost at the cost of another. Opportunity cost is something
that I always consider before most decisions. For example, I work weekends as a server, including
Fridays. That Friday shift is one of the best days to work to make good money, but almost every
winter and summer class is Monday through Friday. It's also a full eight hour shift so it makes it
extremely difficult to find even later classes. In my whole two years at ECC I've only been in one
sit–in winter class. Other than that I'm left with online classes. The opportunity cost for the much
need money I make on Friday sets me back enormously in school, because not every class is
available online. Work stands in the way of a lot things in my life. Because I go to school
Monday through Thursday I really only have Friday through Sunday to work. It's hard for me to
go on vacations or even hang out with friends at the beach during summer because I get off later
in the afternoon. Staying out late with friends is also an opportunity cost because I work early
mornings. So you can see that I give up a lot for work but I know that if I work hard now it won't be
so hard later in life. That's when I'll stay out late and go on vacations.
This was first year that I actually had to fill taxes and I

"I will be honest, there are some kids, I take them into the (kitchen) lab, and they can't even
measure...we are talking basic, basic skills. I think that has a lot to do with the family structure,
how the family has changed" (Wischmeyer). Home Economics was a mandatory and popular class
in the 1980's and 1990's. This class taught more than how to frost a cake, it taught basic and
detailed skills such as sewing a button, measuring and sanitizing skills. In this class learning to
manage a budget and preparing a meal were strong components as well as learning to use basic
tools. Some saw it as a Woman's' class, but it had important skills that all people must know. As
years pass, more schools are dropping the Home Economics programs, but they...show more
content...
Many of the basic skills that women and some men of past generations had are almost extinct.
These skills are simple, and are things that all people should know, and be able to do. These skills
were taught in Home Economics classes, in the past decades, and now it is rare for teenagers to
possess these skills, because they have not learned them. "I think it is unfortunate that home
economics has disappeared from the school curriculum. Learning practical life skills helps students
understand the importance of self–sufficiency. They are more likely to become independent young
adults, able to fend for themselves instead of relying on their parents" (Colombo). Having a class
that will teach you all of these skills and making the class mandatory, will help to learn basic skills
that will help you not only at home, but after high school. Being self–sufficient means to be able to
help yourself without others, and be independent. I believe that with this class the skills you will
be taught could help you in everyday life, from cutting a vegetable to sewing a button. These are
basic skills, and are needed to do everyday activities and repairs. However, these skills may help
students with particular situations in the future, at least one of these skills will be necessary in most
careers for their future.
In Home Economics classes basic skills and more in depth skills will be taught to help with job
searching, and experience. "Real problem solving, the

What is Economics? Essay
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

Economics
1. What is the 'economic problem'? The fundamental economic problem is related to the issue of
scarcity. Scarcity means that resources are limited and short in supply in the world (e.g. diamond).
Because of limited resources and unlimited demands, society needs to decide how much to produce
and distribute these relatively scarce resources. The basic economic problem can be define as what
to produce, how much to produce and for whom to produce. Some countries are lucky to have great
natural resources, whilst others do not. For example Africa and South America have little marketable
resources. That means there are uneven distributions of resources. Sometimes suppliers have issues
with shortage and surplus. A shortage is to do with...show more content...
The market mechanism is an alternative ( йЃёж“‡жЂ§зљ„), for example, to having such decisions
made by government. Often the incentives that consumers and producers have can be changed by
government invention in the market. For example, a change in relative price brought about by the
introduction of government subsidies and taxation. Indirect taxes can be used to raise the price of
de–merit goods and products with negative externalities designed to increase the opportunity cost of
consumption and thereby reduce consumer demand towards a socially optimal level. Subsidies to
consumers will lower the price of merit goods. They are designed to encourage consumption (and
output of products with positive externalities. A subsidy causes an increase in market supply and
leads to a lower equilibrium price. Government intervention in the market sets out to attain two
goals: social efficiency and equity. Social efficiency is achieved at the point where the marginal
benefits to society for either production or consumption are equal to the marginal costs of either
production or consumption. Also, due to the intervention, competition brings price down and drives
up the quanlity of goods and services. However, there are also some disadvantages. The
disadvantages vary dependant on what method is used to correct the failure. For example

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 understand economics, 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

What is It About Graphs in Economics? Essay
Graphs are the bread and butter of economics. The reason is that economics is a social science that
attempts to understand the overall functioning of whole economies, and within them the behavior of
firms and individuals engaged in producing and purchasing millions of different goods and services,
ranging from iPhone to house cleaning. To make matters worse, economies, individuals and firms
are dynamic and constantly changing over time. Since it would be impossible and cumbersome to
describe all these features of an economy in such minute details, economists put information on
graphs and summarize the world within the confines of two axes. They make complicated points
easy to understand. However, it was not always so. It all started with...show more content...
The equilibrium price and quantity of the commodity in the market are q1 and p1, determined by
the intersection of the two curves, S1 and D1. Marshall then proceeded to examine how changes
in technology, tastes, prices of complementary and substitute goods, as well as the weather
impact equilibrium market price and quantity. For example, the impact of a drought on the
supply of wheat is depicted by a shift of the supply curve from S1 to S2, meaning that a lesser
amount would be supplied at each possible price. The intersection of S2 and D1 result in a new
equilibrium price and quantity, between p3 and p1 and q3 and q1. Demand could also shift as a
result of a change in tastes or the price of substitute goods or income. Suppose that income in the
market under analysis goes up (down), the demand curve would shift to the right (left), implying that
consumers demand a larger (smaller) amount at each price. MarshallВґs analysis has been extended
to many areas, among them the impact of government mandated rent control on housing supply; the
effects of taxes and subsidies on the quantity demanded of a commodity; the supply of crime by
criminals, and the demand for crime protection by society ; to ethics and freedom as goods to be
valued for themselves; and, to family decisions such as choosing a spouse, having children ,
marriage in

Essay on Economics
Questions for Review 1. Give an example of an opportunity cost that an accountant might not count
as a cost. Why would the accountant ignore this cost?
Opportunity cost is where money does not change hands does not count as a cost. An example of this
is the owner's opportunity cost for an alternate employment, since money does not change hands. The
accountant would ignore this cost as no cash flow has occurred to cause an effect in the balance sheet.
2. Draw a production function that exhibits diminishing marginal product of labour. Draw the
associated total–cost curve. (In both cases, be sure to label the axes.) Explain the shapes of the two
curves you have drawn.
We know that the average product of labour is the total...show more content...
Problems and Applications 1. A commercial fisherman notices the following relationship between
hours spent fishing and the quality of fish caught:
What is the marginal product of each hour spent fishing?
Use the data to graph the fisherman's production function. Explain its shape
a) Hours| In pounds| MP| 1| 10| –| 2| 18| 8| 3| 24| 6| 4| 28| 4| 5| 30| 2|
b) Hours| In pounds| TP| AP| MP| 1| 10| 10| 10| –| 2| 18| 28| 9| 8| 3| 24| 52| 8| 6| 4| 28| 80| 7| 4| 5| 30|
110| 6| 2|
120| | | | | | 100| | | | | | 80| | | | | | | | | | TP| | 60| | | | AP| | | | | | | | | | | | MP| | 40| | | | | | 20| | | | | | 0| | | | | |
1| 2| 3| 4| 5| |
TP – constantly grow, so curve has positive slope
AP and MP constantly fall, so curve has negative slope
c)
| | | TC| | | 40| | | | | | 35| | | | | | 30| | | | | | 25| | | | | | 20| | | | TC| | | | | | | | 15| | | | | | 10| | | | | | 5| | | | | | 0| |
| | | | 1| 2| 3| 4| 5| |
TC – constantly grow because variable costs grow in equal proportion, so curve has positive slope

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