ECO201 Case Study/Module 1
A reduction in trade barriers will cause a countries production possibilities curve to shift outward. Reducing trade barriers allows countries’ economies to grow through import and export thus causing their economy to grow stronger. This economic growth would imply an outward shift in an economy’s production possibilities curve.
The production possibility frontier represents the point at which an economy is most efficiently producing its goods and services and, therefore, allocating its resources in the best way possible. If the economy is not producing the quantities indicated by the production possibility frontier, resources are being managed inefficiently and the production of society will dwindle. The production possibility frontier shows there are limits to production, so an economy, to achieve efficiency, must decide what combination of goods and services can be produced. This would mean the economy operating inside the production possibilities frontier is a weak economy.
The Essay on Production Possibility Frontier
The Production possibility frontier analyses the most efficient use of company resources to achieve different levels of production of output. Labour is one of the variables factors of production. One unique feature of the PPF is that one alternative is usually foregone in order to maximize the production of another product, for example, in a refinery a manager may decide to deploy more human ...
The two primary methods of achieving economic growth are increasing the quantity and quality of resources. Each method expands the economy’s production capabilities, which can result in a greater quantity of production that can then lessen the fundamental problem of scarcity. Economic growth is commonly illustrated as an outward shift of the production possibilities curve. The first method of achieving economic growth is to increase the quantities of available resources such as labor, capital, and natural resources. A direct implication of scarcity is that limited resources mean limited production of goods and services. If those resources are less limited, then production can be greater. Labor is involved in almost every act of production. As such, if the economy has more workers, then it can produce more goods. The quantity of labor is typically expanded in three ways:
* The first is natural population growth. Because labor is people, more births today, mean more workers in 20 years. So long as the birth rate exceeds the death rate, the size of the population increases. Once these people reach working age, then the labor force also expands.
* Immigration from other nations is a second way. Workers who move from one country to another immediately add to the labor force of the destination nation. Industrialized countries, such as the United States, have always relied on the immigration of workers from other nations to expand the quantity of labor.
* The third way is an increase in the labor force participation rate.
The factories, machinery, equipment and other capital goods that workers use to assist their production efforts are critical to economic growth. Capital must be produced using resources that could have been used to make something else, such as a want or satisfying a need. This act of producing capital, which enables greater future production but which means giving up goods that would have provided current satisfaction, is commonly known as investment.
Natural resources provide the economy with the materials that are transformed into goods. If the economy has more materials, then it can produce goods. Because natural resources are natural, that is, they are not man made, the key to increasing their quantity is not creating more so much as just finding them. Resource Quality
The Essay on Sandy Labor Good Company
1. John smith wrote about his experiences in his life. Example: He escaped from the Powhatan's He wasn't the best writer in the world and doesn't explain himself very well. It's based on an Indian Girl Named Pocahontas that was in love with him and through her at him to save his life. 2. Sir Edwin Sandy was of the adventures who watched with distress as the distress as the company's efforts came ...
The second method of achieving economic growth is to increase the qualities of available resources, that is, to improve the productivity of a given quantity of resources such as education and technology.
Education is the primary method of increasing the quality of labor resources. This also goes by the term human capital. Better educated workers are more productive workers. Education can be of the formal, sitting-in-a-classroom variety that awards diplomas and forces students to expand their conceptual understanding. Or it can be of the informal, on the job training variety that comes from experience and learning by doing. Both methods, formal education and experience, are valuable methods of increasing human capital and the quality of labor. Some knowledge is best acquired through formal education and some is best obtained by just doing it.
Technology is the knowledge and information that society as a whole possesses about the production of goods and services. Improving technology makes it possible to produce more output with the same resources or to use fewer resources to produce the same output, that is, to improve technical efficiency. While technology concerns all aspects of production, it most often surfaces in the quality of capital. That is, the economy uses technological improvements to build better, technically more efficient, machinery and tools.
In the case study, Diaz Mora found that comparative advantage corresponds to income levels of countries in the northern part of the European Union and the southern part of the European Union. Those in the north had a higher per capita income and higher levels of human capital and technology. She found these countries grew by specializing in the production of high valued goods. Countries in the southern part of the Union also gained by specialization. They did this though the production of low-valued goods. This specialization has increased the well being of people throughout the Union.
Free trade occurs when there are no artificial barriers put in place by governments to restrict the flow of goods and services between trading nations. Some advantages of free trade would be increased production, production efficiencies, employment and economic growth. Some disadvantages would be increased domestic economic instability from international trade cycles, as economies become dependent on global markets. Another disadvantage would be free trade can lead to pollution and other environmental problems as companies fail to include these costs in the price of goods.
The Term Paper on Vouchers And Education School Resources
l Gore vs. George W. Bush On School Funding Presidential candidates Al Gore and George W. Bush are whetting their stances on what is quickly becoming a central issue in the upcoming presidential election - education reform. Both perceive the issue as an opportunity to draw votes from the other party's followers, especially Bush, who stands to gain ground on minority groups, a segment of the ...
www.cals.ncsu.edu/course/are012/readings/prodposs.html
http://catalog.flatworldknowledge.com/bookhub/reader/21?cid=&e=###############
www.amosweb.com/…/awb_nav.pl?…economic+growth,+production…
www.harpercollege.edu/mhealy/eco212i/lectures/ch8-18.htm
.
