Economics Questions Essay Example for Free

Economics Questions Essay 1. Housing Prices 1.1 Fundamental and Non-fundamental Factors Pricing of a product depends on many factors such as demands for the product and how excessive the product exists in the market (supply). Housing price is influenced by `fundamental` and `non-fundamental` factors. The fundamental factor inn housing price is about supply and demand (Himmelberg, Christopher, and Sinai, 2005). 1.2 Market Bubbles and Fundamental Factors The question is whether market bubbles emerge from fundamental factors or what evidence that leads to a bubble in house prices. The fundamental factor inn housing price is about supply and demand (Himmelberg, Christopher, and Sinai, 2005). However, people know the theory of supply and demand are only the first steps towards understanding how setting up the market prices of a product. Furthermore, the theory also helps people to understand the way in which these prices help shape production and consumption decisions. It means that the law of supply and demand will explain any situation that might exist if the market price is too high and vice versa. At any given moment, where the market price is too high, we might expect that consumers will leave sellers since they are already have other options having the same characteristics, size, and the tastes with lower price. The supply-and-demand theory revolves around the proposition that a free, competitive market does in fact successfully generate a powerful tendency toward the market-clearing price. Without any conscious managing control, a market spontaneously generates a tendency toward the dovetailing of independently made decisions of buyers and sellers to ensure that each of their decisions fits with the decisions made by the other market participants. Were this tendency to be carried to the limit, no buyer (seller) would be misled that it wastes time attempting to buy (sell) at a price below (above) the market-clearing price (Kirzner, 2004) Since housing market attracts many investors to put their money for hope that it will raise significantly over times, the housing prices may reach a bubble period. The raise in house prices is influenced by fundamental factors, the supply and demand. This makes sense since the demand for having houses may be exploded when the bubble exist. By definition, bubble situation occurs when housing price is high because buyers/investors predict that the selling price of houses will rise dramatically in the future (Himmelberg, Christopher, and Sinai, 2005). 1.3 Current Housing Prices and the Bubble The housing prices continue to rising today. There are many underlying factor behind the uplifting housing prices. According to McCarthy and Peach (2004), one of the cause behind the rising housing price is because the existence of a speculative bubble in this asset market. This condition present potential threats as the asset market could experience a collapse that further harm the U.S. economy. Another reason of the uplifting housing prices is that the some home buyers Have the willingness and intention to buy the rising housing prices for hope that the houses will rise significantly in the future (McCarthy and Peach (2004). 2. Urban Land Theory Given the case that the town of Valley stream, Long Island is 20 miles by car from midtown Manhattan and in 2000, the median home value was $199,800. The town of Dix Hills, Long Island is 36 miles from Midtown Manhattan and the median home value in 2000 was $386,100. Explain why these facts do or do not disprove the standard `urban land theory` as formulated by economists such as Kain and Alonso. The case does not comply with the urban land theory since the price of housing does not merely relate to distance from a city center or any places of interests. Many factors or preferences have great impacts towards customers’ decision on buying housing that further influences the price as following: a) A Change in Buyers’ Incomes and Wealth According to Howard Community College, â€Å"the demand for most products will go up of buyers’ real incomes or real wealth, i.e., their purchasing power rises.† In the case of housing, if a buyers of the housing manage to earn $25,000 next year instead of $10,000 this year (and assuming there is no increase in the price level), it means that the costumer’s real income increases. This situation will affect the customer’s spending such as their preferences to buy houses that are more expensive. b) Buyers’ Tastes and Preferences Another factor that influences the demand for a product is buyers’ tastes and preferences. In case of housing, the existence of emotional benefits such as good neighborhood or areas where there are celebrities will raise the price of housing in the areas. In addition, the availability of transportation to distance location may increase the housing prices. Another theory says that fundamental factors, the supply and demand, may have influence towards the pricing of cities. Third, changes in underlying fundamentals can affect cities where in locations where housing supply is inelastic, prices tend to be higher relative to rents (McCarthy and Peach, 2004) c) The Prices of Related Products or Services In the housing case of Valley stream, Long Island and Dix Hills, Long Island, the difference of pricing may happen if in the areas there are many housing or other substitutes like apartment, condominiums, and townhouses. Therefore, it does not matter a housing is located hundreds miles away from the downtown, as long as there are value added that customers will obtain when purchasing the houses in the are, the price could be much higher than that near to a city center. The situation explains why Valley stream, Long Island that is 20 miles by car from midtown Manhattan and in 2000, the median home value was $199,800 is priced lower than town of Dix Hills, Long Island is 36 miles from Midtown Manhattan and the median home value in 2000 was $386,100. d) Buyers’ Expectation of the Product’s Future Price This factor will play a role when, for instance, Dix Hills, Long Island announces that the price of their houses will increase next month or year since there will be a shopping centers of any place of interests that located near to the housing. This situation will drive consumers to buy the houses in Dix Hills, Long Island quicker. Therefore, this kind of determinants will increase current demand for the housing in Dix Hills, Long Island and shift the demand curve to the right. 3. Feds and booms and busts in the housing market In the New York Times column of May 27, 2005 economist Paul Krugman wrote: After all, the Feds ability to manage the economy managing comes from its ability to create booms and busts in the housing market In 2004, inflation had picked up and had raised questions in the minds of some people about whether it might be on a rising trend that poses a risk to price stability. Total consumer price inflation as measured by the chain price index for personal consumption expenditures (PCE) has risen from 1.4 percent over the twelve months of last year to an annual rate of 3.0 percent over the first four months of 2004. Donald L. Kohn, a Governor of the Federal Reserve, says that price stability is Fed’s responsibility since it allow businesses and households to plan and operate without worrying about increases in the general price level over the long run is how we contribute best to fostering economic efficiency and rising standards of living (â€Å"Remarks†). Inflation has closed relationship with interest rates. In the situation where retail prices experience a significant increase, people might expect that interest rate will rise as well. The reason is that government try to control the amount of money exist in the market. According BBC News (2005), the increase of oil price and Katrina storm have caused investors in Wall Street to think of Federal Reserve that will likely to push up interest rates rapidly to control inflation. In the United States, the Treasury yield curve is the first indicator of all domestic interest rates and it influence global rates setting. Therefore, in the U.S., interest rates on all other domestic bond categories rise and fall with Treasuries yield. Below is the figure explaining the impact of inflation and interest rates on the Yield.

How to Become an Effective Hitter Essay -- Expository Process Essays

How to Become an Effective Hitter Babe Ruth is known for his 714 home runs. However, few people realize the other statistic he holds, which is having the most strikeouts of any player in the major league. This statistic helps to prove there is only a slight difference between a good hit and a strike. To become a good hitter in baseball, three fundamentals are necessary. First, the batter's stance in the batter's box, second, the batter's eye contact on the ball, and third, the batter's swing are the three fundamentals a good hitter will possess. First, a good stance in the batter's box is required to hit the ball successfully. The stance is not only important to the hitter, but it informs the defense of the location of the hit. Therefore, the batter wants to conceal as much information as possible from the opposition. A batter can conceal the ball's direction by having a proper stance. The proper stance is one where the batter's feet are comfortably apart about 12 to 24 inches. The front foot should not give any indication of pulling the ball down either base li...

Cis499

Gene Splicing Lab Question #1: DNA is made up of two separate strands of base sequences. The same sequence is found on both strands, but running in opposite directions. What word describes this characteristic? Palindrome Question #2: What does the term â€Å"sticky ends† refer to in gene splicing? When you splice a piece of DNA with a restriction enzyme, and want to insert the new gene, the â€Å"glue† that holds the two pieces together are the complementary bases, or sticky ends. Question #3: What is a plasmid? How is a plasmid used in gene splicing? A plasmid is a circular segment of DNA with an origin of replication.It can be duplicated and serve as an adjunct to the main bacterial chromosome. Question #4: What types of vectors are used to carry DNA from one species into the DNA of another species? Give examples. Generally plasmids and viruses, although naked DNA is a possible source as well. Question #5: What is a â€Å"transgenic organism†? Give examples. Or ganisms that contain dna from another organism. it is a type of gmo, or genetically modified organism. Ex: genetically modified crops, transgenic cows that produce different milk, mice with different genesQuestion #6: Why is it essential that the same restriction enzyme be used to cleave (cut) the DNA of both organisms used to create a transgenic organism? The restriction enzyme cuts in specifc sites on the DNA, for example complementary strands. A and T or C and G. So only with the same enzyme at both the DNA of organisms in places where the complementary base pairing can be cut, is used as the same enzyme enzyme, the DNA will be cut for example. at A and T on both the organisms the opportunity to tie the organisms at these sites via H-bridges as complementary bases.Therefore, it is allowed to bind the two organisms form a transgenic organism Question #7: Are there any factors other than technical ones that might slow — or even prevent — the use of bioengineering? The re are many social factors that will impede the progress of bioengineering. In the case of agricultural bioengineering, some people are frightened that bioengineered food would be less healthy. Bioengineered crops will also decrease the biodiversity of our food, making it more susceptible to disease (ergo famine). Also, genetically engineered crops will give developed nations a huge advantage over third world in food production.

Quotes from Faulkners A Rose for Emily

A Rose for Emily is a short story by Pulitzer Prize-winning author William Faulkner. Its a popular (and controversial) work, and its also often discussed in literature classrooms. Here some key quotes from the story. Quotes from A Rose for Emily Alive, Miss Emily had been a tradition, a duty, and a care; a sort of hereditary obligation upon the town, dating from that day in 1894 when Colonel Sartoris, the mayor—he who fathered the edict that no Negro woman should appear on the streets without an apron—remitted her taxes, the dispensation dating from the death of her father on into perpetuity. They rose when she entered—a small, fat woman in black, with a thin gold chain descending to her waist and vanishing into her belt, leaning on an ebony cane with a tarnished gold head. Her skeleton was small and spare; perhaps that was why what would have been merely plumpness in another was obesity in her. She looked bloated, like a body long submerged in motionless water, and of that pallid hue. Her eyes, lost in the fatty ridges of her face, looked like two small pieces of coal pressed into a lump of dough as they moved from one face to another while the visitors stated their errand. We had long thought of them as a tableau, Miss Emily a slender figure in white in the background, her father a spraddled silhouette in the foreground, his back to her and clutching a horsewhip, the two of them framed by the back-flung front door. So when she got to be thirty and was still single, we were not pleased exactly, but vindicated; even with insanity in the family she wouldnt have turned down all of her chances if they had really materialized. We did not say she was crazy then. We believed she had to do that. We remembered all the young men her father had driven away, and we knew that with nothing left, she would have to cling to that which had robbed her, as people will. She carried her head high enough—even when we believed that she was fallen. It was as if she demanded more than ever the recognition of her dignity as the last Grierson; as if it had wanted that touch of earthiness to reaffirm her imperviousness. I want the best you have. I dont care what kind. (Emily) When we next saw Miss Emily, she had grown fat and her hair was turning gray. During the next few years it grew grayer and grayer until it attained an even pepper-and-salt iron-gray, when it ceased turning. Up to the day of her death at seventy-four it was still that vigorous iron-gray, like the hair of an active man. Thus she passed from generation to generation—dear, inescapable, impervious, tranquil, and perverse. Then we noticed that in the second pillow was the indentation of a head. One of us lifted something from it, and leaning forward, that faint and invisible dust dry and acrid in the nostrils, we saw a long strand of iron-gray hair.