Group items tagged

The company sells batteries to automobile manufacturers and the replacement market .But fall in sales and margins hit the company hard.

I found this article very interesting because it has to do with externalities and common goods. I think this article may be associated with the article "Trajedy of the Commons" which we read because instead of talking of men's overconsumption of grass lands, it talks about the overcosumption of the ocean's self-purifying system. Generally, when talking about production of electricity through fission power plants, there will be unusable waste that is highly harmful for men and the environment because it emits highly ionizing radiation. But producers of that energy simply throw that waste in the oceans and wash their hands of the problem. The cost of society for that energy is equal to the producer's cost plus the cost for that damage the nuclear waste does. The marginal social cost is greater then the marginal private cost. But since, in a free market, it the private who determines the quantity consumed, there will be too much nuclear electricity produced with respect to society. "too much" means that resources are not optimally allocated and therefore there is a market failure.

This article is about trying to bring down the inflation by imposing price controls for food, personal hygiene, home cleaning products, construction materials, automobile parts, medicines and health care services. I personally did not like this article since there were very little explanation of why things would occur. It was just stated one person thinks this will be a good idea, and another person thinks it is a bad idea. Nothing about why they think so.

This is a very interesting article because it presents a well-known health care reform in the context of a supply-side policy. The article is about how Republicans have been blaming Obamacare for having negative supply-side effects on the economy and the labour force by reserving budgets for subsidising the system.

Republicans believed that supply rather than demand was to be blamed for the economy's state. However, there has been clear evidence that the job market was held back due to low demand. The article then starts to delve int Obamacare and how it had negative supply-side effects on the economy.

Obamacare is nothing new - it has been debated about for months, if not years, in one shape or form. This problem with Obamacare is that it has negative supply-side effects. These effects were offset by a half, with the presence of Medicaid, but now that the subsidies for health care have shrunken, the marginal tax rate would rise, thus discouraging people to find work and keep working. Politicians are pushing for supply-side reforms, but the Congress isn't budging due to the possibility that Obamacare, an expensive and time-consuming venture, might be scrapped.

This article explains how the recent stand-off crisis in Ukraine is having a negative effect on the Russian economy, with the Rouble taking a further fall and GDP growth estimates being revised downwards. Predictably sanctions imposed by the west on Russia in response to the occupation of Crimea, an autonomous region of Ukraine populated largely by ethnic Russians, have affected businesses in Russia. We learn from the article that some $60 billion valuation has been lost by Russian companies in light of the tensions. This article relates to the macroeconomic concept of circular flow being a complex process with international trade and governments being involved majorly in proceedings.