Sample Essay Paper on Economics

The US has many states that read greater GDP compared to other countries. The fact that other nations such as China, Japan, and North Korea have a rising GDP does not mean that United States will be overtaken. The United States is the largest economy in the world that has experienced a rise in GDP each financial year. The GDP graph has been rising for over 200 years except for one case where the country experienced an economic downfall. The growth in GDP is attributed to the increased use of technology in production and marketing. Furthermore, only a few states put together can compare India, China, and North Korea. Thus, rise of other country’s GDP does not necessarily mean that they will overtake the U.S. In fact, this countries’ GDP can be compared to United States’ GDP several years ago.

Question Two

Cereal, Electricity, Gas, Day Care and buying a valentine gift on that day have a more elastic demand curve. This is because a fall in price of the above goods and services would lead to an increase in total revenue. Moreover, a decrease in prices of the above would lead increase in the quantity demanded. For instance, when the price of petrol goes down many individuals will buy more liters. This in effect will increase the overall revenue collected by the company.

Question Three

From the clip, Luke, the main character crosses the prisoner’s leader and engages in a fight with him. The guards and fellow inmates watches the fight from a distance. Luke wins the match and gets a nick name “Cool Hand Luke”. He further goes on and wins a poker game against other prisoners. The fact that Luke gets to win the fight and the poker game without interrupting other individuals and their activities presents a similar situation stated by the law of diminishing law of marginal utility. This principle states that when an individual increases consumption of particular goods while keeping other products’ consumption constant, leads to a fall in the marginal utility the individual derives from consuming additional unit of that particular good. This implies that the marginal utility of a good declines as the supply for the good or service increases.

Question Four

The common thing from table B-16 to B-16 is unemployment. We realize that the civilian unemployment rate has been rising over the years. Notably, along the table we see that the unemployment duration for non-agricultural employees has shot up. This has negatively impacted on economies since people are not involved in economic activities that generate revenue.