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Jan d

Euro-Zone Factory Output Rises Again - 0 views

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    The article talks about topic covered already in the title, with some interest to the growth of industry of southern euro-zone countries and exacerbation of German and French production. So obviously, here I can refer to PPF where resources (also human capital) are being used more efficiently; here is the movement inside existing frontier or perhaps even outward shift with improved quantities and qualities of goods (especially capital). Nevertheless, economists still fear the euro-zone might fall in recession again if there are two quarters of consecutive fall (if the economy contracted). The market clearing price of many durable goods can be determined only to some extent, due to the presence of outside disturbance (fiscal and banking crisis - therefore always introducing new policies and bail-out deals). Another thing associated with the previous sentence and the article is the price mechanism (interaction of demand and supply) which allocates resources. Under unstable circumstances which are currently taking place in euro-zone, incomes are plummeting (falling GDP per capita) except for some particular periods of time when the economy meets actual growth, meaning that there is less demand leading to an inverse effect for producers. Normally, producers wish to supply more at higher prices, especially if income of people soars so they buy more of that goods. Therefore, higher prices do not present an incentive for producers to produce more. All the producers want to increase their producer surplus; but the trend is clear - towards maximized community surplus, since producers depend on consumers' utility.
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