Open Always
Email: support@globalcompose.com Call Now! +1-315 515-4588
Open Always
Email: support@globalcompose.com Call Now! +1-315 515-4588

Sample Paper on Economics

This sample paper on (Sample Paper on Economics) was uploaded by one our contributors and does not necessarily reflect how our professionals write our papers. If you would like this paper removed from our website, please contact us our Contact Us Page.

A Database of over Million Scholarly Resources. Start your Search Now

Sample Paper on Economics
Opportunity cost

This is the value lost because of getting something else. This implies that in opportunity cost one has to give up something in order to get something. It forms the link between scarcity and choice (Buchanan 2008).A good example is if a student has $1000 and his choice is either to use it pay for a social trip or pay for an extra course in accounting. He chooses the field trip. The opportunity cost in this case is increased benefits in his career obtained from the accounting course that would have resulted if he had undertaken it.

Absolute advantage

This is a situation where an individual, group or nation has the capability to produce more goods and services than its equal partner with exposure to the same amount of resources. It is a concept where a Nation has the ability to produce more than other Nations using the same amount of labor are. This concept explains why not all Nations can become rich at a uniform rate (Marrewijk, 2007). Comparative advantage on the other hand is a situation where an individual or firm is able to produce a good or service at a lower opportunity cost than other firms thus making it easy to even sell it at a comparatively low price. In absolute advantage, the parties involved are Nations or countries while in comparative advantage it involves individuals of specific firms.

Benefits of Trade

Trade has numerous benefits, it enables consumers to get his desired goods and services for his satisfaction. Additionally, trade creates wide avenues for investments thus being a source of income for both a Nation and it Citizens, which improves the welfare of both National GDPS and citizen’s income.

Supply and Demand

In economical field, supply and demand are models, which are used to determine prices of given commodities in a market. The concepts of demand and supply states that in a well established economic market the price of a given commodity will contrast until a point where the quantity demanded by the consumers is equal to the quantity supplied by the suppliers (Braeutigam, 2010). The ultimate result of this situation is called the economic equilibrium of a market. At market equilibrium, the quantity demanded and quantity supplied are in balance. This determines the overall price and demand of the commodity keeping all other factors constant.

Inferior Goods

An inferior good or product is a good whereby its demand decreases as income raises (Mankiw, 2012) an inferior good is the direct opposite of a normal good or product. The demand of inferior goods also increases when the income level decreases. The concept of inferior goods is directly related to affordability. For instance, when I have a high income, I would go ahead and purchase a car for my transport.However, when my income is reduced, I would continue to use bus transportation. In this case, the bus is an inferior good.

Price Floor

A price floor is the low amount legally which a product can be sold. Price floors are mostly set by the government where a low price can be changed (Rockoff, 2008).Minimum wage is one type of a price floor. This refers to the lowest or minimum amount or price that can be paid for labor. Price floors are mostly used in the agricultural and other sectors with an aim of protecting farmers and traders from unscrupulous traders. The price floors are set using the equilibrium price. They must be above the equilibrium price and anything below it will render the price floor irrelevant. In instance where the minimum wage is put higher than the equilibrium market price, there is room creation for unemployment especially for unskilled labor. Employers will have to hire few workers thus leading to an increase in mount of labor required. The equilibrium wage for a normal worker will not only depend on the minimum wage but also the skills he has which is in line with the market stipulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Braeutigam, R. (2010). “Microeconomics” (4th ed.). Wiley.

Buchanan,J. (2008). “Opportunity cost.” The New Palgrave Dictionary of Economics Online (Second

ed.). Retrieved 2010-09-18.

Mankiw, G. (2012) “Principles of Economics.”South-Western Cengage Learning, 2012, p.70

Marrewijk, C. (2007-01-18). “absolute advantage” (PDF). Department of Economics, Erasmus University

 

          Rotterdam: world economy. Princeton University Press. Retrieved 2009-05-03.

 

Rockoff, Hugh (2008). “Price Controls.”(2nd ed.). Indianapolis

Sharing is: CARING

Are you looking for homework writing help? Click on Order Now button below to Submit your assignment details.

Homework Writing Help
We Can Help you with this Assignment right now!
Sample Paper on Economics

Are you looking for homework writing help on (Sample Paper on Economics)?Well, you can either use the sample paper provided to write your paper or you could contact us today for an original paper. If you are looking for an assignment to submit, then click on ORDER NOW button or contact us today. Our Professional Writers will be glad to write your paper from scratch.

 

We ensure that assignment instructions are followed, the paper is written from scratch. If you are not satisfied by our service, you can either request for refund or unlimited revisions for your order at absolutely no extra pay. Once the writer has completed your paper, the editors check your paper for any grammar/formatting/plagiarism mistakes, then the final paper is sent to your email.

Privacy| Confidentiality

Sample Paper on Economics

We do not share your personal information with any company or person. We have also ensured that the ordering process is secure; you can check the security feature in the browser. For confidentiality purposes, all papers are sent to your personal email. If you have any questions, contact us any time via email, live chat or our phone number.

Our Clients Testimonials

  • I appreciate help on the assignment. It was hard for me but am good to go now

    Impact of pollution on Environment
  • Am happy now having completed the very difficult assignment

    Creative Message Strategies
  • Your writer did a fine job on the revisions. The paper is now ok

    Ethics: Theory and Practice
  • The paper was so involving but am happy it is done. Will reach you with more assignments

    Title: Privatization in or of America
  • I expected perfection in terms of grammar and I am happy. Lecturer is always on our head but was pleased with my paper. Once again, thanks a lot

    Title: Bundaberg Inquiry
  • The paper looks perfect now, thank to the writer

    Health Care Systems
  • You helped me complete several other tasks as you handled paper. wonna thank you

    Critique Paper on Political Change

Related Articles

Sample Paper on Economics

Get more from us…

Would you like this sample paper to be sent to your email or would you like to receive weekly articles on how to write your assignments? You can simply send us your request on how to write your paper and we will email you a free guide within 24-36 hours. Kindly subscribe below!

Email Address: support@globalcompose.com