Aggregate demand

The minimum wage policy will cause more negative effects on people. Some people argue that minimum wage policy increases workers' productivity since the higher wage makes people more willing to find jobs and stay at their job positions. However, it will also create dead weight loss and inefficiency. Based on the graph shown below, minimum wage is set above market equilibrium price, functioning as price floor. Since the current wage is higher, employers that are willing to hire workers at a lower…

As humans, we tend to be massive consumers, we buy anything that we can buy and sell anything that we can sell. Money is our master while the people are its slaves, we listen to what the markets have to say and follow what everyone buys. This is something that people who don’t support the “Buy Nothing Day” would say. Buy nothing day is a day where people literally buy nothing to cause awareness of excessive consumerism. But in all honesty people need to see the good in things, and the good of…

The Spirit of Detroit is a sculpture made in the heart of Detroit. It is a large bronze statue, standing twenty-six feet high and is located at the Coleman A. Young Municipal center on Woodward Avenue. Behind the statue, is a Courts Tower's marble wall element that has various passages, symbols, and writings that symbolize Detroit. The extensively creative detail amidst the statue and the messages behind the sculpture provide a visual argument of hope for the people that walk by it every day and…

Affluenza, the debilitating addiction to purchasing a great deal of materials, made its first debut in American vocabulary via PBS in 1997. From “dire warnings” to “late-night TV jokes,” affluenza has stolen the spotlight of the American market. I believe that being completely fixated on material goods can potentially detrimental to one’s character; however, consumerism plays an extremely important role in a thriving economy. To begin, affluenza is commonly mistaken as the most efficient way to…

Being able to successfully pass legislation to increase the minimum wage is difficult because of opposer's claiming that Increasing the minimum wage will result in less jobs and less hours available to other workers. They also claim that with the sudden increase of the minimum wage will create profit loss on some companies. Opposers of this issue are mainly businessmen, which Mitchell Englander a businessman stated by saying “I know firsthand about the struggles that business owners and their…

2.10 Andrew and I considering the absolute advantage, when we should be thinking about the comparative advantage. Just because Andrew can sell Colts memorabilia better than anyone, and I can clean faster than anyone in my office, that is telling us that we have the absolute advantage, but not necessarily the comparative advantage. To have the greatest success, we should always do what we have the comparative advantage for because it means it will have the lowest opportunity cost, and therefore…

difference between marginal cost and average total cost? The distinctive between marginal cost and normal average total is that marginal cost is the adjustment in absolute cost emerging from the creation of extra units of output. Also, total cost is the aggregate of fixed and variable expenses 8. What was the most important concept presented in this video? Using your own words explain why you feel this way. The most important concept presented in this video is basically the difference between…

Imohiosen Longe 213737465 1) What does Heilbroner mean by the economic problem ? Robert Heilbroner believed that economics is essentially the study of a process we find in all human societies. In addition to that, Heilbroner believed that the economic problem was simply the process of providing for the material well being of the society. Heilbroner was able to bring light to the idea that we ourselves as humans are the major source of our economic problems and not nature. Although nature might…

Morath). The demand of trucks has increased because of consumers taste and preference. Furthermore, if an economist calculated the cross-price elasticity between gasoline prices and pick-up trucks, it would be negative. It would imply that gasoline and trucks are complements. In others words, if gasoline price increases, the demand for trucks would decrease and if the gasoline price decreases, then the demand for trucks would increase. The effect of lower gasoline prices on the demand for…

as the needs of the society as a whole. For example, capitalism allows the prices of all goods and services to be set by the market. One can observe this even today with the prices of certain goods rising and dropping due to supply and demand. Some might say that unstable prices make for an unstable economy. To address this, socialism has regulations so that prices stay fixed and the economy remains stable. However, this is not the case with capitalism. The changes in price create a…