Ap Economics

Component 1 term scarcity-The basic condolence problem that a try outs be wooing commonwealth dedicate unlimited wants however resources atomic number 18 limited. Ameri sack ups In recent years had to egress back on lavish slap-ups beca theatrical role of the scarcity of gold. sparings- The science that deals with the production, dilutions, and con effectption of sounds and service, or the material eudaimonia of humankind. Economics involves many issues in the sparing administration of the awkward and world, from politics to money. Efficiency-A abundant term that implies an frugal state in which e precise resource is optim aloney allocated to serve individually person in the best way darn minimizing waste and In faculty.Economic efficiency backside be used In microstintings when discussing p rod Lice Equity- The property sum distri entirelying economic prosperity fairly among the members of society. If the voluminous contri thoe to a greater extent In taxes, t here would be a large distribution of equity. Opportunity Cost- The money or other benefits lost when pursue a unwrapicular lineage gain ground sense action Instead tot a mutually-exclusive alternative. Our companies 3rd quarter opportunity costs were extensive and go forth take a plot of land to recover Incentive-A cost or benefit that motivates a decision or action by consumers, businesses, or other participants In the economy.The Incentive for a reinvigorated CEO turned UT to be quite beneficial. Productivity-A measure relating a quantity or quality tot out present to the inputs required to produce It. If productivity continues to fall, our profits will before coarse fol poor. Inflation-The swan at which the global level of prices for goods and services is rising, and, subsequently, purchasing situation Is falling. The current low Interest grade for bank loans risks Inflation of the dollar. line of merchandise Cycle- A cycle or series tot cycles tot economic expans ion and contraction.The current business cycle Is bad, allow foring the CEO to make a few cutbacks Microeconomics-The part of economics about single factors and the personal effects of individual decisions. Microeconomics can be applied in work outs, businesses, politics, and finances to trammel trends of Individual consumers. Macroeconomics-The part of economics concerned with large-scale or general economic factors, such as Interest prise and national productivity. When noticen on a macroeconomic point tot view, nigh productivity can boost, rather than reduce, economic process.Demand-An economic principle that describes a consumers desire and willingness to dedicate a price for a specific good or service. As Apple moves forward in revolutionize electronics, the demand for their products rises. Supply-A fundamental economic concept that describes the total measuring of a specific DOD or service that is avail open to consumers. The high supply of oil was beneficial to the ec onomy due to the sudden decrease of foreign oil imports. Component 2 Problems 1) Describe some tidy sum-offs faced by each of the following a) A family decision do whether to buy a new car.A family that is decision making to buy a car energy occupy to face, de drop a lineding on the expense of the car and pecuniary status of the family, major cut backs on money to afford it. These cutbacks efficacy affect unnecessary things like dining out, doing expensive activities, vacations, etc. This all deals with scarcity the family wants a new car, but might not pick up the financial meaner to do so. B) A member of Congress deciding how a good deal to spend on national parks. A member of carnal k straightawayledge deciding how a great deal to spend on national parks has plenty of trade offs.The funding of the park is determined by many things including incentives, demand, and opportunity cost. If congress were to fund national parks more they may study to cut funding to other ca uses, but if they cut funding to the parks, then the money gained could go into a better cause. C) A company electric chair deciding whether to open a new factory. If a company president were to pen a new factory, the demand for that companies product would have to be high. However, for the president to open up a different facility, he may have to make cut backs on employees in the current facility for budget purposes.If the president decides not to open a new factory, this might lead to low efficiency and shadowy down the expansion of productivity. D)A teacher deciding how much to prepargon for class. If a teacher were to prep atomic number 18 minimally for class, he/she may run into a very busy schedule somewhere down the road. However, if the teacher were to plan accordingly and periodically, he/she would be able to be properly prep ard for the lass. If this were to happen, the teacher would have less compel for assignments. This all has to deal with efficiency, productivity, and incentive.The teachers incentive is to not be deleted with class preparations, so he/she would nave to work efficiently to reach the optimum productivity. 2) Discuss each of the following statements from the standpoints of equity and efficiency. A) Everyone in society should be guaranteed the best health care possible. If everyone were to be guaranteed the best healthcare possible, efficiency would have to be very high to have the capability to divide healthcare among the population. Right now it would be hard to do because we dont have high economic prosperity to spread.This could very well never happen because equity and efficiency concussion when it start outs to government policies. The reason they clash is because when the government tries to spread wealth until nowly, efficiency shrinks. B) When workers are laid off, they should be able to collect unemployment benefits until they find a new duty. When workers receive unemployment, they are get a cut of the economi c pie which is equity. During these metres when unemployment is high, the size of the economic pie, efficiency, is small because the overspent is distributing a large amount money to the unemployed.If the government were to issue unemployment until they find a Job it would cause an economic down fall. People are sitting around getting paid, why would they go out and get a Job, it is something else that people will Just take advantage of, like welfare. So, in essence, it would end up hurting the government more than it would help. 3) In what ways is your standard of life history different from that of your parents or grandparents when they were you age? Why have these changes occurred? there has been a big change in the standard of living even from my parents time to owe let alone when my grandparents were my age.We are now living in a technological age where everything is documented, sent, communicated, and even surveyed on electronics. People in the asss (when my parents were my age) were lucky to have their own television let alone a cell phone or car. Nowadays, teens have cars, TVs laptops, smoothness, etc. At their fingertips to use at their command. Back then not very many people had the resources or meaner to obtain electronic devices. Many of the things we have now, my grandparents didnt. My grandmother didnt even have an electric oven, she had a coal one to cook on.When my grandfather came here off of the boat, he got a Job paying 23 cents an hour. So, its not entirely material things that have changed in the standard of living, but wages too. People are paid so much more now than in the asss, but with the raise of wages, brought along fanfare. These changes have occurred because of the changes in education and regulations. People now more than ever are divergence to college to get a degree in whatever it is they want to pursue. With association comes better products that are more efficient and easier to use.With the change in regulations came changes in minimum wage, laws, and codes that have to be kept up with. Component Applications (See near full page for boy) This article posted by The New York clock states that although unemployment is lowering, it is doing it in a rather late and steady step. Stocks prices have come up and are upholding high along with mortgage loans and many others. Since the Job marketplace is growing at a slow rate, banks are now freeing to start raising lodge in and lengthening loan terms.As anticipated, the economy is expanding in the right ways. If as many lobs are created in July and August as they were in June, then the economy is on the dad to recovery. The Principal of Economics in which this would apply most to would be number 10 (Society Faces a Short-run Trade-off between Inflation and Unemployment. The reason that this article applies specifically to this principle is because in the article it is explained that unemployment is lowering and because of that, absorb evaluate are rising.This explains the short-run trade-offs. Also, since unemployment is lowering, largeness will occur because they will now have the money to buy goods and services. Nntp/ . Anytime. Com/201 06/business/economy-adds-1 Jobs-as- unemployment-rate-remains-at-7-6. HTML? Ref=desperate_r=O Steady Growth AS U. S. Games 195,000 New Jobs data on Friday standed try for for this elusive middle ground in the economy, as the plyeral arrest wrestles with when to ease its stimulus efforts without endangering the recovery and the markets.The pace of Job creation in June was sufficient to please investors and keep the exchange bank on course to slowly begin pulling back on its major bond-buying weapons platform this fall. But the Job gains were muted seemly to calm worries of an abrupt glide by by the Fed, a fear that has weighed on the markets lately. The employment report, which showed the economy added 195,000 Jobs, was the introductory since the Fed chairman, Ben S. Brenan, sa id in June that policy makers were ready to begin decrease the stimulus later this year if the labor market continued to improve.The light rate was unchanged, at 7. 6 percent. The timing of the Fed action is critical. The central banks computer program of buying $85 billion a calendar month in Treasury securities and mortgage-backed bonds has not only kept long- term interest rates low for borrowers, including big companies as well as individual star sign buyers, it has alike helped prop up Wall Street. The possibility that the Fed clutch move more rapidly than anticipateed to dial back the program has prompted investors to sell both stocks and bonds in the last six weeks and has raised rates on mortgages and other loans.Buoyed by the promise of moderate economic growth and a slow but steady tapering on the part of the Fed, traders pushed the stock market higher on Friday, with major indexes gaining about 1 percent. The 195,000 lobs added in June was significantly above the 165,000 periodic pace analysts had been expecting. And the government sharp revised upward figures for Job gains in April and May, increasing the intermediate monthly gain in the first half of 2013 to 202,000 bobs. But the picture multicolor by the data hardly reflected a booming economy.The unemployment rate, which is based on a different survey from the one that tracks Job creation, remained stuck at 7. 6 percent, far higher than the historical pattern for this stage of a recovery. some other measures of Joblessness actually rose, with the broadest one that includes workers forced to accept part-time positions Jumping to 14. 3 percent, from 13. 8 percent. Beyond the headline numbers for Job growth, it gets a slender more mixed, said Jan Hiatus, chief economist at Goldman Cash. There is til now a lot of slack in the labor market.Although the economy has held up better than some analysts evaluate in the face of tax increases and automatic pistol cuts in federal spending this year, overall growth in economic output NAS also been tepid economy grew at an annual rate of 1. 8 percent in the first quarter, short of whats needed to quickly lower the unemployment rate. Still, the Job figures for June were enough to prompt Mr.. Hiatus and other track economists on Wall Street to predict that the Fed could announce a shift in policy in September, rather than delaying until December. This was a solid report and it will be seen by the Fed as fully consistent tit tapering in September, said dean Make, chief United States economist at Barclay. In addition, Mr.. Make noted, average hourly earnings rose 2. 2 percent year- over-year, a pace that is near a high for this recovery. Before setting a theatre date, Fed policy makers will be closely watching to see if the Job market maintains momentum through July and August. Its not a through with(p) deal in September, Just more likely, Mr.. Hiatus said. That was benign enough for traders on Friday. The Standard Poors stock index rose 16. 8, or 1. 02 percent, to 1,631. 89, while the DOD Jones industrial average Jumped 147. 9, or 0. 98 percent, to 15,135. 84, and the Nasdaq gained 35. 71, or 1. 04 percent, to cease the day at 3,479. 38. In the bond market, interest rates move higher, as investors dumped debt on anticipation of faster growth and quicker Fed action. The 10-year Treasury note fell 1 30/32, to 91 17/32, while its yield Jumped to 2. 74 percent, from 2. 50 percent late Wednesday. The Feeds place has bolstered long- term rates, but the central bank is expected to keep short-term rates low at least until 2015.Component 4 Journal ledger entry 1 Uh-oh Americans favor funds over stocks for long-term investments http// none. CNN. Com/2013/07/29/ commit/cash-investments/index. HTML? Did=HP_LEN http// MN. Wanders. Com/ (definitions) Even Though we are on a slow track to an economic recovery, people still have a mental capacity that the economy is in recession. So, quite of people investi ng in long term investments, gold, stocks, real estate, etc. They are keeping it away in savings with very low interest rates. In a 2013 eminence survey, over 26% of Americans prefer cash for long term investments.Getting cash for long term investments might not be such a good mentation seeing as how you might come up short in the long run when it moms to education, children, and even retirement. Interest rate is a widely used term but many might not know the dependable definition of the word. The percentage of a sum of money charged for its use is the definition of interest rate. An investment is something you put time or money into to hopefully get something out of it in the future. This article is pretty much all about investments. incoming 2 The Senate on Wednesday approved a bipartisan deal that ensures lower interest rates on loans for students heading to college this fall. Http//money. CNN. Com/ 2013/07/24/news/economy/senate-student-loans/index. HTML http// On July 24th t he senate decided that bringing down interest rates on student loans was something they needed to do. On July 1st of this year, a new interest rate was set a 6. 8%, but was cut in half now at 3. 86%. This 3. 86% interest is not deprivation to hold over the years anticipating the growth of the economy. Students are to expect a 1% interest increase every year reaching 7% in the year of 2017.Although, there are requirements and provisions to applying for these low interest rates many people qualify for them. The students loan can not be a private loan but instead a Stafford In these improving economic times many things are changing, for example interest rates for students. After reading this article I gained the knowledge of knowing that the senate passed on lowering the rates to 3. 86. I am attending college the following year after I graduate and it is most-valuable that I know these things so I can plan accordingly. There were some language that I didnt know and one of them was provisions.A provision is an formation or preparation beforehand. Another word I was unsure of was subsidize, centre pay part of the cost of producing (something) to reduce prices for the buyer. Another term I was unsure was a Stafford Loan this is a student loan offered to in line students enrolled in accredited American institutions of higher education. Entry 3 http//money. CNN. Com/2013/07/1 5/investing/stocks-markets/index. HTML www. Answers. Com (definitions) Stocks gain as earnings come into focus For this week in the economy world the DOD and NASDAQ shut at record highs in over a decade. Both stocks bumped up about 0. %, Just enough to set a new record. However, the companies in SP 500 are expected to have a lower than ever growth. Coming in at less than 0. 1% for the quarter. Although companies nether SP 500 are optimistic to fly the coop the low expectations to come. on with the growth in the DOD and NASDAQ comes the New York federal official Reserve which rose 1. 8% i n the region of manufacturing. Some stocks are projected to better in the coming quarters of the year but some others, not so much. Since economics is mostly about stocks, government, and economy, I decided to pick this article to get a better idea on all of those perspectives.I learned particularly from this article that stocks for this quarter in the year are better than expected, but others are projected to have little growth. I also learned some new lexicon words. federal Reserve is a word that was not so much new to me, but not fully understood. The Federal Reserve is the banking permission in the US that implements functions of the central banking system. The next next term I learned isnt so much a word, but a department. The enumerate Bureau, something that gives demographic information to the people of the United States.There werent many new words or phrases learned trot this pa Entry 4 clathrate article, rather intimation on the current stock situations. Http//managem ent. Fortune. CNN. Com/2013/07/0314-reasons-to-stay- in-your-current- bob-for-now/ wry. Answers. Com/ 4 reasons to stay in your current Job (for now) For those who are looking to quit their Job and find a new one, hang in there a little longer. In this article, it is stated that although the economy is growing, stock are rising, and interest rates are higher, you should stay in your current Job for now.The article is backed up with reliable statistics that shows unemployment dropping (at a slow rate). A survey says that about 64% of Americans have gotten a Job offer from a different company in the last year. The quitting rate for Jobs in April was 39% when he unemployment was a little higher than usual. The first of the four-spot reasons to keep the current Job you are in is It is still a buyers market and competition is fierce. The next reasoning is New hires are under pressure. The third reason, a rather good one, Last hired, first fired. And lastly, different isnt always bett er. This article was a rather large one, packed with good information on the condition of the economy and projections on the economy. I learned that the unemployed are more optimistic than they were two years ago when applying for a Job. I also learned why people should wait to switch Jobs until the economy is growing at a faster rate. The word feeler was new to me, meaning a proposal intended to look into an attitude or opinion. Another term that I wasnt familiar with was compensation package.This is the combination of salary and benefits that a company is will to offer to applicants and employees. Entry 5 http//money. CNN. Com/2013/06/18/if/healthcare-costs/index. HTML . Answers. Com/ Health care costs to slow in 2014 Many people in the US are going on without healthcare. This is a serious risk financially and physically to themselves and their family. Although, health care wont save everyone from the rise in doctor visits, drugs, and surgeries. When the AC (Affordable Care Ac t) fully kicks in during the year of 2014, insurance rates for health care providers will raise 6. %. This spike in the rate is typically used by insurers to set premiums. Treatments for MS and cancer are expected to Jump the most at 22% in 2014. This news is making consumers change their behavior. Many people have switched to less-expensive health care services such as walk in clinics and urgent care units. I gained awareness in this article that the cost for insurance will rise along with he cost of the actual drugs and services. There were no new terms that were learned, it was mostly things happening in the health care system that are changing.I learned also that many people have switched from hospitals to clinics because of the cost. Along with that, people are limiting doctor visits and delaying procedures. Many people are outraged at the spike in rates, and arent sure its a good plan. Entry 6 http//money. CNN. Com/2013/07/16/news/economy/ICP-inflation/index. .Answers. Com Pri ces climb in June, but annual inflation still tame In the month of June inflation rose 0. 5%, this has been the biggest rise in inflation minute Feb.. Of this year. Economists took this as a surprise seeing as how they predicted a pretty lower rise at 0. %. Economists say that other indicators show that inflation remains docile of the long run. Prices of goods and services are up only 1. 8% since last year, that increase is considered consistent for a slow economic growth. The core inflation for food and gas was up only 1. 6%, the smallest it has been since June 2011. In this article I learned that in the month of June, inflation was at a low rate, but higher than expected. I also learned that the inflation rate right now is ere good because that meaner the country is on track to a slow economic recovery.Some words that I didnt know or was not too sure of were Federal Reserve, Hyperinflation, and manifest. The Federal Reserve is a word that I know of, but the true definition is a System is composed of a central governmental agency in Washington, D. C. And twelve regional Federal Reserve Banks in major cities throughout the United States. Hyperinflation is Just what it sounds like, inflation at a rather fast paced rate. And lastly the work manifest, this word meaner clearly or known. Component 6 Paper