Date: Apr 26, 2019
Category: Economics Essay
Economics questions

Question One

Although it is imperative to not that recession affects all the people in a given economy negatively, economists have established that recession can be gender-biased. Lehr observes that the recession in the year 2008 exposed American men to the loss of over 700,000 jobs while their women counterparts gained nearly 300,000 jobs over the same period (Lehr, 1). In addition to the gain of jobs, the American women experienced stagnant pays while the men’s pay significantly decreased. The bias is due to the fact that men concentrate in industries that are highly vulnerable to recession as compared to the women (Lehr 1). Therefore, in order to alleviate the bias, both women and men should be allowed to explore the various industries equitably.

Question Two

Unemployment feature in different types: frictional unemployment occurs as a result of people moving between jobs. This may result from the accrued benefits that the employees associate with certain jobs; structural unemployment results from the mismatch of specified skills in a given job market for instance, when there exist difficulties in learning new but required skills, the job market will experience structural unemployment. Additionally, if an industry experiences labor-intensive technological change which, the employees find difficult to cope with, then the job market will experience structural unemployment; Classical unemployment, which mainly occurs in a labor competitive market, is paramount when the wages go beyond the market equilibrium. In this regard, the industry will face classical unemployment following the fact that the wages are restricted in terms of downfall while the employers are reluctant in servicing their employees with the demanded wage rates. The gap that exists enables the occurrence of classical unemployment. When the economy experiences a recession, frictional, structural, and classical types of unemployment increase significantly. However, when the economy experiences recovery, the three types of unemployment decrease significantly.

Question Three

The reason behind the government’s exposure in allowing oil fields to decline is the fact that the government does not employ sufficient technological investments necessary for the proper extraction of the oil that will meet the required demands of the oil industry, thereby resulting in the decrease of oil supply, which in effect enforces the increasing rates of oil prices. The alternative, in this case, is an enhanced technological advancement in the oil fields that will meet the demands of the market. Crowding out involves a significant increase in the rates of interest following the rising increases in government borrowing in the money market. A hotel can use the theory of crowding out to enable an increase in room rates, which will ensure improved profits over a specific period of time.

Question Four

The long-range effects of a stimulus plan in the banking sector are as varied as the economic condition at the given period of time. Governments employ stimulus plans to boost the economic growth of the country. In this regard, the banking sector experiences a decrease in public borrowing while at the same time increasing the aggregate demand for goods and commodities, which follow the inflow of money supply.

Question Five

An emission tax is employed to enable a reduction of the level of carbon dioxide that organizations emit to the environment. The tax is designed to enable the efficient management of the macroeconomic natural resources while ensuring that economies receive revenue from the use of the environment. The proper management of carbon dioxide emissions ensures the sustainability of various industries through the development and industrial growth.

Question Six

A fair tax system is one that enables both the stakeholders i.e. the government and the citizens to strike a balance in sharing the burden that results from the management of the tax. The advantage of such a tax system is to enable sufficient and sustainable management and government collection, thereby ensuring improved levels of economic growth. The disadvantage associated with such tax systems is the difficulty in ensuring a balance of tax burden sharing between the government and the general public.

Question Seven

Governments employ entitlement programs to enable the country to facilitate the repayment and management of their debts. When efficiently managed, social security entitlement program will enable many of the country’s citizens to access sufficient and manageable social services while providing the needed resources to support the proper and efficient management of such resources. Further, the efficient management of the Medicare entitlement program will enable the public and the government to sufficiently enjoy the benefits associated with the program.