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ECONOMICS in our life 1. Human wants are not limited, but the resources necessary to satisfy those wants are limited. Thus, every society is faced with the identical problem the problem of scarcity. Everyone individuals, business firms and government needs to make choice from among the things they want. In exercising the choices imposed upon individuals, business firms and government by their unlimited wants and limited resources, every society must come to grips with the fundamental economic questions: What goods and services are to be produced?
How are they to be produced? Who will receive them? The way in which society goes about answering these questions is known as its economic system. Economic system may be classified as traditional, command or market system. As the name suggest resources are allocated in a traditional and in a command economy by government planners. Resources in a market economy are allocated in accordance with the law of demand and supply.
So, the food we eat, the home we live, the clothes we wear, the way we spend our leisure time are all affected, in part, by economic forces. 2. Economic history developed from year to year and the development of modern economics began in the 17 th century. Since this time economists have developed methods for studying and explaining how individuals, business and nations use their available resources. Everybody now that Capitalism is a social system based on the principle of individual rights. I think that at the beginning of development this system it was really good idea based on the principles of competition. For the capitalist and the property owner they mean the power and the right, guaranteed by the State, to live without working.
It happened in 1989 after the fall of Berlin Wall. This wall divided not only East and West part of Germany, but also the whole world for South and West, for weak and strong. The first era of globalization was intensive but a lot of countries werent included in this poses. Everyday value of currency trading in 1900 was a few million dollars, in 1998 820 billions, in 1998 1. 5 trillion and grow up now.
Nowadays we have well-constructed structure. And the main problem we have now is cooperation between new system and old strategies. Economies are continually evolving and globalization is one among several other continuing trends. One such trend is that as industrial economies mature, they are becoming more service-oriented to meet the changing demands of their population. Another trend is the shift toward more highly skilled jobs.
Besides that we have another point of view. By some measures, the world is not much more integrated than it was before Principe stepped out of the crowd in Sarajevo. Much of the final quarter of the twentieth century was spent merely recovering ground lost in the previous 75 years and todays global village still effectively excludes billions of people. Most of the worlds citizens live on less than $ 10 a day; most dont have access to phones; four out of every five have never traveled further than 100 miles from their home. Osama BIN LADEN changed the debate about globalization in three important ways. First, the attacks on the World Trade Center and the Pentagon revealed the soft underbelly of globalization the way that the very tools of globalization can be turned against it.
Second, September 11 has made it harder for goods, people, and services to cross borders. Air travel has become more bothersome, and airfreight more expensive. Americas airports are currently struggling to install between 2, 000 and 5, 000 bomb-detecting devices, each costing about $ 1 million. The biggest question about September 11, one: Was the attack on the World Trade Center one of history's turning points? Are we witnessing the end of a process of global integration that has been gathering pace for decades? Many of globalization's opponents certainly think so.
John Gray, one of the most intelligent globophobes, argued just a few days after September 11 that the era of globalization is over. The entire view of the world that supported the markets faith in globalization has melted down. But all the evidence is that these changes would be taking placebo necessarily at the same pace with or without globalization. In fact, globalization is actually making this process easier and less costly to the economy as a whole by bringing the benefits of capital flows, technological innovations, and lower import prices. Economic growth, employment and living standards are all higher than they would be in a closed economy. But the gains are typically distributed unevenly among groups within countries, and some groups may lose out.
For instance, workers in declining older industries may not be able to make an easy transition to new industries. As globalization has progressed, living conditions (particularly when measured by broader indicators of well being) have improved significantly in virtually all countries. However, the advanced countries and only some of the developing countries have made the strongest gains. 3. Modern economics theory is not understanding without Keynes important contribution.
According his theory, the government should interfere in a market economy. First of all his theory about macroeconomic and macroeconomic regulation is the main part of economic development. I think that the main theory as for government interfere is really very necessary for stable development of economy. How to make macroeconomic policy more effective instrument economical regulation? How to insight the production growth at the same time not support inflation tendency?
All these questions its a central theme of Keynes theory. In nowadays economy has a big risk of government expenses grow up and budget deficits. Today it is necessary to use another instrument of regulation fiscal-credit policy. Reduction of interest rates and extension of credit opportunity will assist of rise investment demand. Now we have a renaissance of Keynes theory. Keynes economic prescriptions are now so generally accepted, that many of us find it hard to recognize what the argument is all about.
These days it is taken for granted that the government has a responsibility to stimulate the economy out of recession, at least to the extent of reducing interest rates, and modestly applying the brakes during exuberant expansion. It is accepted that two of the factors exacerbating economic downturns are the fearfulness of investors in the face of declining corporate earnings and the reluctance of consumers to put down money they suspect they may need later if they are laid off from their jobs. The USA President using the Keynes method too. Bush cut the tax for small business till 2000 dollars for every entrepreneur and whole this money is direct to investment.
He has the goal! He reduces marriage tax nearly 2000 dollars. Additional it reduces for families have children nearly 1000 to each child. Except for the fringes of the economic right, still mourning the demise of the gold standard, still reviling any new idea for being precisely that, Keynes ideas hold sway even when unacknowledged.
He was almost as farseeing as prophet as he was economically visionary; he knew what history would ultimately do with him. The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.
Not, indeed, immediately, but after a certain interval; soon or late, it is ideas, not vested interests, which are dangerous for good or evil.
Free research essays on topics related to: world trade center, economic system, market economy, interest rates, september 11
Research essay sample on World Trade Center Market Economy
