Economists
due intentionally try to stay away from moral issues why?
Economists
stay away from moral issues do to the desire to maximize output from limited
resources. It may be known that maximum output may not lead to maximum consumer
welfare, however from an economist’s point of view
they will always look at the
welfare contrary to a business pointy of view. An economists considers a more
economical system to any other for any gains that accrue, he thus overlooks the
moral aspect just like a businessman may. Economists maintain neutrality in
achieving a solution and rather serve as an observer to give guidelines that
deems best. The fact that government policies are not neutral as well as social
and legal systems. A good example of economists where they have to divorce
morality is recommending retrenching people to increase the minimum wage laws.
Class,
What
about the business cycle, and knowing if you're in a growth phase, that a
decline phase will follow (and vice versa)?
In any
business cycle an unexploited niche is identified, this usually starts with the
very key players who make supernormal profits and may require less effort to
gain from such a niche. When such a niche is identified there will be entry of
new players who will join and create growth, more innovative ways emerge in the
industry, and more and more players will be attracted due to the lucrativeness.
In this case an increasing competition lowers the returns from such an
industry, as a result most of the players who are joining the industry leading
to lower and lower returns, this signifies the start of decline phase.
In the
event of a decline phase, the market is already flooded with players, returns
go lower and lower and as a result most players pull out of the industry due to
unattractive returns. This creates a shortage of players since the most
resilient will only remain, usually key players or the pioneers remain. As a
result the returns start growing higher and higher, this signifies the start of
a growth phase.
Backing Currency
Class,
If you
look at how the OMOC of the Federal Reserve works, you will see that buying and
selling gold would take too long in terms of having an immediate effect on the
money supply.
Markets
respond very quickly to the OMOC. But with a gold standard, this could
easily get bogged down and the corrections to the economy may not help.
What
does the OMOC do? Why?
OMOC
capitalizes on retaining and deriving value from declining minerals that
usually have varying prices. They create
the best practices for optimized strategies in money saving and increasing
productivity in a market of declining commodity prices in mining industry. The OMOC
consists majorly of mining companies, equipment providers and manufacturers,
engineering consultants, mining consultants and research institutions. The OMOC
sets the value of minerals based on demand and supply and imposes decisions
meant to keep value for products in the mining industry
No comments:
Post a Comment