Abstract This paper presents definitions of economics, construction economics, microeconomics, macroeconomics, and construction microeconomics. The writer lists microeconomic principles and discusses the relationship between microeconomics and the production of goods and services within the construction industry. Diagrams are included in this paper.
Outline:
Economics
Resources for Goods and Services
Microeconomics and Macroeconomics
Price Theory (Microeconomics)
Construction Economics
Scarce Building Resources in Sustainable Development
Key Microeconomic Concepts
From the Paper "Microeconomics relates to finding components contributing to prices, including how they merge and change, and how firms respond to these factors. It includes examining new taxes' effects, the determination of a firm's production profit-maximizing levels; etc. Microeconomics "concerns the economic behavior of individuals - such as clients, contractors, surveyors and engineers - in various markets." Microeconomics, according to another source, constitutes one of the largest subfields in economics and is noted as "the study of the economic behaviour of small economic groups such as firms and families." (Economics 2008) Macroeconomics, on the other hand, relates to inflation rates, national unemployment percentages, the entire economy's growth rate, along with a number of other economic factors."
Abstract The principles of microeconomics are not just important to economists and scholars, the principles apply to many aspects of society that impact everyone. Microeconomics considers how goods are produced, how people create their income and how people make decisions to spend that income. In short, microeconomics refers to aspects of life that people encounter every day. With this relevance of microeconomics to everyday life, it is not surprising that principles of economics can be found in many places, including in the lyrics of songs. To illustrate how the principles of microeconomics are referred to in a song, Garth Brooks? "We Shall Be Free" is used as an example. Considering the lyrics of this song, it is seen that various items are mentioned that relate to microeconomics. As well as describing these items, the analysis also extends to a brief discussion of why they are important to people.
From the Paper "The lyrics of We Shall Be Free includes the following lines, ?And when money talks for the very last time / And nobody walks a step behind / ? / Then we shall be free.? This statement from the lyrics goes against the principles of the market economy and the concept of fairness in the market economy. "When money talks for the very last time" refers to money not having power. The market economy of current society is based on money as power, since money is the means to obtaining necessary and desired goods and services. If money did not "talk" in modern society, why would people work? It is fair to suggest that most people would not work if what they obtained from that work was worthless to them. If people did not work, companies would not be producing the goods that people buy with the money they work for. This illustrates that the lyrics suggest a different view of economics than what society is currently based on. The line "And nobody walks a step behind" also suggests that everyone is equal. "
Abstract This paper discusses microeconomics as it relates to the property market, particularly in the realm of property ownership. The paper begins by defining microeconomics and property rights individually and then relates the two to each other. The paper then identifies constraints in housing market behavior and looks specifically at the housing market situation today in the United States.
Table of Contents:
Property Rights Overview
Microeconomics Overview
Microeconomic Aspects Of Property Ownership
Constraints In Housing Market Behavior Identified
Microeconomics In Today's Housing Market
From the Paper "Other factors include falling housing prices which are noted by Barber to have been "falling at a 16 percent annual rate..." and as well Barber relates that these prices are expected to continue their decline meaning that "homeowners will build little or not equity throughout he duration of plans like this...the study shows that under these plans, homeowners will get to keep their house, but will be paying 85 percent more than if they rented a similar property." (Barber, 2008) The potential for equity being accrued in the home with falling prices and subprime rates and ARMS with variable interest in the terms of the mortgage. The problem is that a likelihood exists that taxpayers will pay approximately $75,000 for "each homeowners who stays in their home." (Barber, 2008) Barber indicates that "particularly problematic" are the decline in prices in the housing market."
Abstract The paper discusses current events in the light of microeconomic principles. United States is facing a slow down in the economy which is leading to reduction in consumer spending and is also negatively affecting borrowing and investment in the country. Applying microeconomics concepts, we notice that demand for money is quite inelastic these days, as reduction in fund rates is not producing desirable results.
From the Paper "To understand what is happening to our economy from a microeconomics perspective, we must first take into account some of the current events in order to get a clearer picture of the economic situation. The economy was already facing a recession-like situation when it was given the rudest shock of the century on September 11th. The country's economy since then has been sliding downwards because the government has been unable to generate enough consumer spending despite several announcements of tax cuts which are aimed at giving people more purchasing power and several reductions in the federal fund rates. We need to analyze the current events from microeconomics perspective as this would give us clear understanding of the compelling issues our economy is encountering today. "
Abstract This paper analyzes a survey that appeared in "The Economist," which examined the economic and social impact of the legalization of drugs around the world. It focuses on the microeconomic effects legalization would have and analyzes data presented in the survey using tools and methods that are taught at intermediate level economics classes. This paper examines the effects of legalization on price, demand, consumption and distribution.
From the Paper "Regardless of the moral or political positions one takes on the use or trade of illicit substances, one has to appreciate the complexity and the organization of the world drug trade. The drug trade is a truly global industry, as the production and distribution of illegal substances requires participation from, and relatively unmatched cooperation between, different groups from nearly every corner of the world. As impressive as the geographic scope of the drug trade is the economic prowess of the industry, which generates annual sales of somewhere between $150 and $400 billion, based on different estimates. The industry's illegitimate status also makes it one of the most dangerous in the world for those who participate at all levels, from producers to distributors, and even to consumers. The drug trade also causes enormous problems, both financially and socially, to nearly every nation involved - and not just from the questionable nature of the drugs themselves, but also because of the tactics employed by the world's most powerful governments, especially by the United States, to eliminate, curb, or otherwise control the flow of illegal substances. In the survey in The Economist, powerful arguments are presented that try to establish that the policies and enforcement strategies of the world's powers against the drug trade cause far greater harm than the industry does itself. Further, the survey argues a great deal of the problems caused by the drug industry to nations and peoples around the world are more a result of these policies and tactics than anything inherent in the industry or the substances themselves. The survey presents a number of arguments from both a social standpoint and an economic perspective as to how the United States and the rest of the world might benefit from the legalization of illicit substances. In this paper the focus will be on the economic evidence presented in the survey and its correlation with the theory of the firm and the consumer in microeconomics."
Abstract This microeconomic paper discusses how employment and resource prices are determined in resource markets. It also discusses market demand and supply of resources, market demand, market supply, price ceiling, price floor, individual firm demand, monopsony resource markets and the multiple resources.
Abstract This paper explains the use of microeconomics to analyze cetain aspects of the economy today such as employment, consumer beahvior, environemntal policy, and the effects of taxation.
Abstract The National Environment Policy Act of 1969 (NEPA), jointly established by the White House and the United States Congress, outlines more than a dozen major laws that form the basis of the Environmental Protection Agency (EPA). This paper begins by outlining some of the major laws enacted by the NEPA. The paper then presents a review of Mankiw N. Gregory's book, "The Principle of Microeconomics", in which the author presents a new style of comprehending the NEPA laws through subjects such as politics, science, and economics. The paper also includes several appendices that contain graphs.
From the Paper "Within the principle discipline of economics is the newly developed subject of environmental economics that seeks to understand the relationship between the environment and the economy. It goes without saying that a healthy and sustainable economy is dependent on an equally healthy and sustainable environment, not withstanding the often-conflicting elements present within the business entities and concerns. To totally eliminate this conflicting atmosphere that tends to be a hurdle, and somewhat disturbs the approach towards the accomplishment of a healthy environment at the cost of the economy, numerous attempts to bring about a reconciliation to develop a so-called free market environmentalism are being pursued."
Abstract This paper summarizes a 2003 article found in the "Washington Post" that explains how produce consumers once found exotic becomes common in America's supermarkets. "Ripe Dreams: How Produce-Aisle Exotica Becomes Everyday Fare", by Hamilton Martha McNeil, highlights the key microeconomic concepts of demand, supply, and market equilibrium, as well as household behavior and consumer choice.
From the Paper "As demand rose, others saw opportunities and entered the market place, devoting resources, (farm acreage and labor) to growing kiwis. Importers saw opportunities to increase supply and lower costs, by importing kiwi fruit from Chile and New Zealand where the costs of input, mainly farm labor, are cheaper. As the supply of kiwis increased and more and more companies entered the market, the price to consumers began to be pressured downwards. As consumer demand cooled off, nicely illustrating how household behavior and consumer choice influences demand and supply, market equilibrium seems to have been reached."
Abstract This report provides a microeconomic analysis of crude oil behavior over a 25-month period (March 2001 to April 2003). The conclusion drawn was that supply expectations, as opposed to actual supply or demand changes, were the greatest influence on crude oil prices during the period of analysis. The paper includes 4 charts/graphs and 1 table.
From the Paper "Over the past six months crude oil prices have been especially volatile although the general trend has been upward over this period. Over a two-year period however crude oil prices have also ..."
Abstract This paper defines monopolies. The author states that monopolies are not outlawed in the U.S. and names several public and private monopolies. The paper examines various microeconomic issues relating to monopolies such as the existence of natural monopolies, near monopolies, monopoly power, oligopolies, legal monopolies, government sponsored monopolies and the proper role of government.
From the Paper "The concept of a monopoly is not merely an economic theoretical possibility. Monopolies exist in the United States. Monopolies were not declared illegal under any of the federal antitrust laws including the Sherman Act the Clayton Act the Robinson-Patman Act or the Federal Trade Commission Act. A few of the many monopolies that currently exist are the U. S .Postal Service, the Organization of Petroleum Exporting Countries, various public utilities, Microsoft Corporation, Major League Baseball, Intel Corporation and the International Long-shore Warehouse Union. A monopoly involves artificial restriction of production ..."
Tags:Microeconomic, monopolies, natural monopolies, oligopolies, economic theory, government intervention, trust busting, near monopolies, Intel, Microsoft, consumer prices, choice
Abstract This paper discusses different elements of microeconomics that contribute to the overall economy in the U.S. The author of the paper cites research that has been carried out on minimum wage issues and describes how the downturn of the housing market impacts on other sectors of the economy.
Outline:
Minimum Wages
Antitrust Laws
The Housing Industry & Employment
From the Paper "Economic theory itself tends to undermine the argument that minimum wages are somehow beneficial. Economic theory states that if the price of unskilled labor increases then employers are just as certain to seek alternative labor sources that are less expensive (Wolfson & Belman). In practice, this theory plays out by managers who, when faced with increasing labor costs, refrain from hiring the 3 employees they might have hired were it not for the increased cost of labor and instead only hire two more skilled laborers but still at an overall savings. This point is made exceedingly clear in Solomon's article where she observes that: "At Petite Provence eatery in Portland, co-owner Didier Blanc says the minimum wage...has had an 'aftershock effect' forcing him to raise wages for all employees...the costs are passed on to customers"(par.13). Alternatively, these managers or companies may seek to invest in the automation necessary to ensure that the manual labor is no longer necessary or to off-shore the work entirely to less expensive markets. In that sense, elevating the federal minimum wage does in fact manifest a positive influence on productivity and output because industry is inclined to automate and become more efficient across the board which is good. However, while the minimum wage increase in Portland can be viewed as a positive argument for raising the federal minimum wage, it also indicates that the benefit to the low-wage workers most impacted will be short-lived:"
Abstract This paper examines the theory of that all resources are finite. The author points out that key to the concepts underlining the study of microeconomics are the laws of supply and demand. The paper stresses that the laws of supply and demand are very much in evidence in the restaurant industry. The author relates that one beneficiary of the economic downturn are fast food restaurants, especially among the market segment with the least inclination for cooking or interest in health, predominantly male, age 18 to 29.
From the Paper "The prices of substitute goods also affect supply and demand. If Dunkin' Doughnuts cuts the price of its coffee and breakfast sandwiches, discount merchandiser McDonald's may see a decrease in sales of its coffee and Egg McMuffins, but not in its sodas and hamburgers, because these are not substitute good for breakfast beverages and foods. Changes in the price of complementary goods--gas and large vehicles being an obvious example, will also affect supply and demand, as the price of gas goes up, demand for gas guzzling-vehicles will decrease."
Abstract This paper analyzes the American beer industry market, which is an excellent microeconomic model of an oligopoly. The author writes that the beer industry is a fully mature market, with Anheuser-Busch firmly entrenched as the market leader and is difficult for it to be unseated. The company's status offers it many benefits over rival competition, including substantial production economies of scale advantages. The paper also describes the two kinds of oligopolies-- pure oligopoly and differentiated oligopoly.
From the Paper "The U.S. beer industry frequently is cited as an example of a differentiated oligopoly. This is a market almost completely dominated by a few very large firms, and particularly by the market elephant, Anheuser-Busch. It is interesting to look at the U.S. beer industry in terms of the economic model that describes oligopolistic behavior. Comparing the model to the real-world behavior of the beer industry, one find that in the majority of instances, the microeconomic model does a good job of describing behavior within the industry.
McConnell gives a good definition of an oligopoly that can serve as a jumping off point to an examination of the U.S. beer industry. Oligopoly "exists when a few large firms, producing a homogeneous or differentiated product, dominate a market. 'Fewness' means that the firms are mutually interdependent in that each must consider the possible reactions of its rivals to price, advertising, and product development decisions." (McConnell, P. 220)"
Abstract Discusses microeconomic effects of breaking up Microsoft. Microsoft as a monopolistic company. Its oligopoly market structure. Expansion of Microsoft. Analysis of the market in which Microsoft competes. Competition within that market.; Netscape. Pricing strategy. Justice Department ruling. Dividing Microsoft into two different companies (operating systems and applications software).
From the Paper "Introduction
The modern industrial age has given rise to companies which span international borders and which can employ hundreds of thousands of individuals. There are considerable profits to be made in this global environment, and companies often seek to become as large as possible in order to realize economies of scale as well as pose significant competition to others. Monopolies and trusts have long come under fire from government regulators, and Microsoft is only the latest company to struggle against possible government intervention. But it is not always clear what the long-term ramifications of breaking up large monopolies will be. For example, the breakup of Standard Oil resulted in several large oil companies, including Exxon and Mobil, which are now considering mergers with other oil companies. This research ..."
