Economics

Increase in Interest Rates from in the Early 1980s Name Institution By the start of the 1980s, the United States economy was going through a painful inflation and the Federal Reserve Bank come up with a policy of raising the interest rates. The high inflation forced the federal bank to hike the interest up to 19.5%. The bank also increased interest rates for other monetary instruments (Ireland, 2015). Interest on short-term treasury bonds almost doubled from 9.3% to about 17% while that on long-term bonds increased by about four points. On the peak of inflation, the rates had risen to 20%. However, the economy started performing better, and the fed bank loosened the rates from the mid...

Financial Prospects In Iran Name: Date: Course: The Regional Economic Outlook report is a rendition of the financial security of various countries, issued regularly by the International Monetary Fund, to serve as a guide in the formulation of municipal economic policies. In its assessment, this report highlights the salient elements of an economy, its shortcomings, and the rationale behind the said failures. Such was the case in the May 2015 report on the Middle East and Central Asia. Speculatively, the report outlines the place of Middle East’s most lucrative product, oil, and how its fluctuations have affected the general economic climate in the region. While acknowledging that certain...

Adoption of Nigeria’s Floating Exchange Rate System Name Institution Adoption of Nigeria’s Floating Exchange Rate System High oil prices and debt default lead to the collapse of the gold standard in the 1970s which was being used to back most currencies. Consequently, countries were forced to move to other systems like the floating or fixed-exchange-rate system. Nigeria adopted a fixed exchange policy. Nigeria’s economy grew fast during the oil price boom thus overtaking South Africa to become the largest economy in the continent. It invested internally as well as in other countries. However, the economic weaknesses of the nations came to light when the oil prices fell drastically....

Moral Hazards and Health Disparities Name. Institution. Moral Hazards and Health Disparities Moral Hazards Moral hazards occur when a party gets involved if is risky knowing they are protected, and in case of any danger, the other party will be responsible for all the cost. Both the parties associated have incomplete information regarding the other. It occurs when the borrowing party knows that someone will take care of their mistakes. In health, it refers to added health care given when a person is insured. An example of moral hazards is when a patient purchases some medicine that is not necessarily important or spends extra days or hours in the hospital voluntarily since they are aware of...

Student’s Name Professor’s Name Course Title Date of SubmissionCompetitive Market Forces For a successful business undertaking, the entrepreneur has to be aware of the market economies. This will ensure that they will be in a position to identify the different market systems. It is vital that the business has knowledge of the industry in which the company belongs to and the market conditions affecting its operation as a result of being affiliated to that line of production. The perfect competition model is one of such market economies and is characterized by many seller and buyers in the marketplace. A competitive market is subject to the market forces of demand and supply, and this will...

Name Professor’s NameCourse Date Organic Agriculture How Organic Agriculture Affects the Cost of Production and the Prices The organic products are more expensive than their traditional counterparts whose prices have been decreasing. The supply of organic food is lower as compared to the demand thus making it costly (Reganold 15221). Besides, the production cost of these products is also higher due to the greater inputs required in regards to labor per unit of output. Besides, a huge diversity of enterprise means that economies of scale will not be achieved. Would the World have enough food if all farmers turned into Organic? Although organic farming can generate more profits and...

The History of the Sterling Pound in Britain By: Course code: Instructor: Date Britain adopted a floating exchange Rate in the year 1992 (Dawnay, 2001) which runs to date. This system entails the measurement of the Sterling pound against other freely traded currencies such as the Euro and the Japanese Yen. These exchange rates fluctuate based entirely on the investors who depend on their confidence in these currencies which is theoretical. Before this floating exchange rate, Britain has had several other exchange systems. Before the year 1816, Britain had a bimetallism system where the value of the sterling was compared to the value of several metals such as silver and gold (Redish, 1990,...

Name Instructor Course Date Healthcare Costs In the last forty years, the United States has experienced a rapid increase in government expenditures on public welfare. One that has been most significant is the rise in healthcare expenditures. In 2016, the total health care costs span to $3.3 trillion, which places healthcare among the largest industries in the country. It makes 17.9% of the country’s GDP. In the 1960s, healthcare cost stood at $27.2 billion which was just 5% of the GDP. This translates to an annual tfee of $146 per person versus $10, 348 per person in the year 2016 (Amadeo, n.p). One of the causes of the rapid increase in health care costs is government policy. The...