Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
Freaked12:
--- Quote from: Almostfreaking on June 08, 2010, 05:43:51 pm ---Inflation causes the average level of prices to rise so wouldn't consumers spend less because their purchasing power is now reduced?
This would lead to a fall in aggregate demand for goods and services and consequently firms would lay-off workers due to fall in derived demand. Isn't this how inflation creates unemployment in an economy? If people increase their spending then wouldn't firms increase their output, possibly increasing employment? :S
So perhaps your answer holds true for when the rate of inflation is RISING in the economy rather than when inflation simply exists.
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I am talking about Hyper Inflation and Galloping Inflation
rhea:
--- Quote from: Arsenal<3 on June 08, 2010, 05:47:03 pm ---I am talking about Hyper Inflation and Galloping Inflation
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um what is with public goods aND market failure?
Freaked12:
--- Quote from: rhea on June 08, 2010, 06:04:01 pm ---um what is with public goods aND market failure?
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Public goods are goods that have the characteristics that they are non-excludable and non-rivalrous and include national defense[5], public transportation, federal highways, and public health initiatives such as draining mosquito-breeding marshes. For example, if draining mosquito-breeding marshes was left to the private market, far fewer marshes would probably be drained. To provide a good supply of public goods, nations typically use taxes that compel all residents to pay for these public goods (due to scarce knowledge of the positive externalities to third parties/social welfare). This usually results in a government-run or sponsored monopoly to service the public good as a solution - though government monopolies often have the same social costs as private monopolies as mentioned earlier.
http://en.wikipedia.org/wiki/Microeconomics
rhea:
--- Quote from: Arsenal<3 on June 08, 2010, 06:05:25 pm ---Public goods are goods that have the characteristics that they are non-excludable and non-rivalrous and include national defense[5], public transportation, federal highways, and public health initiatives such as draining mosquito-breeding marshes. For example, if draining mosquito-breeding marshes was left to the private market, far fewer marshes would probably be drained. To provide a good supply of public goods, nations typically use taxes that compel all residents to pay for these public goods (due to scarce knowledge of the positive externalities to third parties/social welfare). This usually results in a government-run or sponsored monopoly to service the public good as a solution - though government monopolies often have the same social costs as private monopolies as mentioned earlier.
http://en.wikipedia.org/wiki/Microeconomics
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um i read this - i didnt understand this!
Freaked12:
--- Quote from: rhea on June 08, 2010, 06:13:44 pm ---
um i read this - i didnt understand this!
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What part dont you understand :)
its non excludable
non rivalrous
non rejectablity
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