Economics

EFFECT OF UNREST ON THE MARKET Name Institution The recent terrorist attacks had a negative impact on the UK’s economy. Some of the major attacks were the famous London Bridge, Manchester, and the Westminster terrorism incidents. They claimed the lives of several citizens thus creating fear and uncertainty among the consumers. In the end, the UK economy recorded a sharp decline in its GDP. According to research findings by RAND Europe, the UK terrorist attacks led to an economic output loss amounting to € 3.5 billion (Morrison, 2018). Based, on such finding, it is clear that the attacks led to a decline in the quantity of supply. Most businesses hold on to their investment for fear of...

Labor Market Name Course Institutional Affiliation Labor Market In unfettered labor markets, the demand for labor is determined by the value and employee provides to the firm. Employees who bring more revenue to a firm are thus more valuable and able to bargain for more wages. Further, firms aim at maximizing revenue and minimizing cost. Therefore, if two potential employees bring the same value, a firm would prefer the one with a lesser wage demand to minimize cost. Besides, the more the wage rate, the more people are willing as well as able to work (Boyes and Melvin, 2014). The highest paid actors and actresses earn much more than the employees in the education and health services sector...

Student Professor Course Code Date Aggregate Demand and Supply As a result of oil drop, most definitely, there are likely chances that the consumption level will increase. This is because a drop in oil prices not only attracts people to buy but also firms; foreigners and governments would want to benefit from the low rates. The aggregate demand will be affected as a result of consumption level rise. The people, firms, foreigners among others are components of the total market. Since there is a fall in the current oil prices, this results to significant productions output fall too as well as firms’ confidences falling thus they buy less oil for supply; therefore, a leftward shift on the...

Discussion Responses Name Course Institutional Affiliation Discussion Responses According to McAuliffe (2015), the law of diminishing marginal utility posits that as one increases the consumption of a good within a specific period, the additional satisfaction one derives from an additional unit of the good declines, when keeping consumption of other products constant. The law applies to even free goods such that when one visits a public beach for the first time, they would highly enjoy, but the more frequently they visit subsequently, the more likely they would have lower satisfaction. Similarly, after holding one's breath underwater, one would highly appreciate the first breath of...

Price Elasticity Student’s Name Institution of Affiliation Price Elasticity Question 1 The continued consumption of tobacco has been linked to the manifestation of respiratory complication where the extremities lead to death. For beginners, the demand for cigarettes is higher following the recurrent characteristics of tobacco consumption among the youth. The government may decide to implement taxation as part of the public policy to safeguard the health of the teenagers. However, in the short term taxes will be insignificant into the quantity demanded because of the low PED. In the long run, the change will price will have already taken a toll on the amount of money spent consuming tobacco...