Economic efficiency

Adam Smith Adam Smith was a Scottish political economist and philosopher. He has become famous by his influential book The Wealth of Nations in which he details the first system of political economy. At the age about fifteen, Smith proceeded to Glasgow university, studying moral philosophy “the-never-to-be-forgotten” Francis Hutcheson. Adam Smith argued about the trade of goods between countries. Like for example if England produces goods of wool at lower cost than he can trade with France…

Topics in Microeconomics coursework “The existence of positive or negative externalities resulting from the economic activity in the market for a good or a service can lead to market failure. Allocating property rights, regardless of who holds these rights, will lead to an outcome closer to the socially optimum as compared to that resulting from government intervention.” a) Explain the validity of this statement by defining and discussing the concepts of: Market failure and externalities  The…

Economies of scale refer to economic efficiencies as an outcome of conducting a process on a mass scale. Scale effects come to picture due to the presence of fixed and variable costs in the production process. In other words, ‘Economies of Scale’ or ‘Increasing Returns to Scale’, is a term used by economists to refer to the situation in which the cost of producing an additional unit of output (i.e., the marginal cost) of a product (i.e. a good or service) declines as the quantum of output (i.e.,…

Automatic Payroll withholding is a very efficient method to collect taxes because employees don’t even see this money, it is taken out of their checks before they even get paid. This is an example of tax efficiency. Tax equity refers to how fair the tax system is. However, like should rich people be required to pay more because they have more money. Or should rich people pay less because they may be the entrepreneurs that keep the economy going. Flat taxes…

greater goal of independence and individuality. The three main sub-groups are known as classical liberalism, reform liberalism and neo-liberalism. Classical liberalism supports a limited government, free market economy, and utilizes a laissez-faire economic system to pursue…

journal The Review of Economics and Statistics, Weitzman interprets the economics of catastrophic climate change. In his study was based off of the implications of structural uncertainty for low probability economics and high impact catastrophes. His theoretical model finds that large disasters with moderate probabilities are likely to create high cost. In the Technological Forecasting and Social Change journal Richard Rosen attempts to address what “we” know about the economics of climate…

Frances B. Menjor Macroeconomics October 11, 2017 The Night and Day Economic Comparisons of Sierra Leone and France. In the world that we live in today there are various countries with different cultures, government policies and economic outcomes. In 2016 I traveled to West Africa and France and immediately notice a drastic difference in the development of the two countries. Upon arrival into France a person will notice its many amenities and attractions. Frances is a rich…

The neoclassical economic approach assumes that working time is perceived in terms of time allocation and related choices taken by a rational actor with regards to the consumption of time. Thereby, time is considered as a scarce resource, as a day is limited to 24 hours and therefore the main aim of the rational actors is to achieve a maximization of personal time utility (Sirianny & Negrey, 2000). This implies that the actors act in order to achieve their individual preferences and this…

management, mathematics and economics. To begin with, there are various benefits and jobs related to mathematics such as high school math teacher, market research analysis and inventory control specialist. However, mathematics is very complex and will require a lot of time. On the other hand, economics degree course provides a range of advantages. For example, one can work as an accountant, as financial analysts as well as an investment analysts and statistician. Despite this, economics is also…

smaller overall economies. Yet, with the inclusion of Japan, the TPP would be anchored by the world’s two largest free trade economies and potentially entice Canada and Mexico to join in. (Auslin, 2012). The United States would realize much greater economic…