IB Econ HL Section B

The article mentions about United State's debt expanding like a baloon, soon to blow up and fail the economy. During a recession, the govenrment must keep on running the economy even at budget deficit so they must keep on borrowing money. Yet, these loans must be returned in some way, and article reports a possible higher tax coming soon to compensate the loans.

In this article, the EU has come up with a strategy to improve the economy and pull itself out of recession. This shows the Keynesian view because the EU is trying to reach the third stage of the Keynesian view.

This article is about the decrease in world trade. As the world has just emerged from a recession, and many countries are still experiencing economic difficulties, aggregate demand is down. This means that people are buying less exports, decreasing world trade--all as a result of the recession.

This article is about the Canadian Government's investment into British Colombia's clean energy sector. This increased government spending is a Keynesian approach to expanding the economy.

As the articles describes the ways in which employment is increasing in the manufacturing sector in the US, it also proves that production is increasing, thus demonstrating the Keynesian view of the LRAS.

Unemployed immigrants are attending bars at weekly basis to develop skills like making eye contact and promoting themselves to strangers. The Upwardly Global, a NPO established to support job-search for immigrants from developing countries and help immigrant professional find jobs in their own field. This article is relevant to this weeks topic because these immigrants are 'unused factors' in the economy that can produce higher productivity if it were used at its fullest capacity.

This article is about teachers in Chad going on strike because their pay does not cover high food prices and other costs of living. This high cost of living, which many people cannot afford, means that people's lives are not improving. This shows a lack of economic development.

Ottawa makes it harder for people to get a mortgage. This is being done because they are trying to avoid market failure in the market for housing as is going on in other countries.

This article talks about how Toyota's electric car has always had problems that need to be fixed. Toyota manages to solve thes problems and always brings back a better model. This article relates to Public Goods because the electric car is an invention that was created to help with air polution. Air is not something that can be bought or sold, and it is our reponsability to keep it clean. Toyota's electric car is providing an alternative to only using petrol to power cars.

Education is a public goods provided by the government in almost all MEDCs. If education is a public goods, the previleidge to receive education does not get stripped away even if someone else receives. However, in Haiti where the earthquake hit hard, children cannot receive proper education. In a country under crisis, education may not be a public goods, but rather a produce only available for those who have the will to pay and the ability to pay.

This article is talking about Spain cutting some of its costs because they will still be in recession for another year. the negative externalities of doing this could be people losing their jobs, and Spain going into an even deeper recession.

Sara, this can not count as a megative externality, methinks.

Clean air is a public good, as it is non-rivalrous and non-excludable. The provision of clean air is a massive problem in China, because its rapid industrialization and high output has come at the cost of the environment, and subsequently created large amounts of toxic waste that is being released into the air and the water.

The government of Brazil has approved 61mn reals for the expansion of an airport. This expansion should reduce overcrowding in other airports. Because it is provided by the government, it is a public good. Because it reduces travel time, it creates a positive externality.

This article is about nuclear waste, a byproduct of nuclear fuel. This nuclear waste can be dangerous. As a form of pollution, it is a negative externality. The waste must be dealt with properly, or it can cause harm to society in the form of negative health effects.

This is an example of a negative externality created by the rapid industrialization of China. This externality is created because the market price does not take into account the costs incurred by third-parties not involved in the transaction. In this case polluted waters damage the natural environment and pose a hazard to the people, but corruption and lack of legislation means that little is being done.

This article mentions one oligopoly, relating to the internet, in which several competitors, including Google, eBay, Yahoo, have found several barriers to entry the market in China due to censorship.

This article talks about the different auto companies that exist in China. This refers to this week's topic because the market for cars in China is an oligopoly. The companies in this oligopoly however work together to make China the biggest auto market in the world.

Japan Airlines (JAL) has agreed on a tie-up with Delta Air Lines that will mean JAL joins the SkyTeam airline alliance, dropping its membership of the Oneworld alliance. This article is relevant to this week's topic because these alliances of airline companies mutually set pries for tickets and share information amongst themselves - it is an collusive competition. The companies rather "collude" than "compete" so that they can maintain their long-term profits.

This article talks about how Apple uses advertising and promotions to encourage consumers to purchase Mac products. Rather than competing with price, Apple promotes its products by incorporating new software, like the Intel Core i5 processor. This way, Apple competes with higher level software, rather than with a more competitive price.

OPEC is one of the most famous oligopolies in the world: an organization of 13 of the world's largest oil producing countries. Together they determine output and in so doing heavily influence prices, which in turn has an impact on other economies. Their actions have long been the subject of criticism and debate.