Macroeconomics Essay Example | Topics and Well Written Essays - 2500 words - 1

Macroeconomics - Essay Example â€Å"Although technology, tastes, and public policy each have important independent influences on the pattern and pace of economic integration in its various dimensions, they clearly interact in important ways. Improvements in the technology of transportation and communication do not occur spontaneously in an economic vacuum. The desire of people to take advantage of what they see as the benefits of closer economic integration—that is, the taste for the benefits of integration—is a key reason why it is profitable to make the innovations and investments that bring improvements in the technology of transportation and communication† (Mussa, n.p.).   Balance of payments is a balance through international operations, expressed in value of all complex economic relations of a country in the form of the ratio of receipts and payments. Balance of Payments is a statistical report that provides data on the foreign trade of a country with other countries over time. Simply speaking, this document reflects economic transaction of a country with the rest of the world. From the accounting point of view, the balance of payments is always in balance. However, deficit or surplus may occur in its separate sections, when receipts exceed payments, or when payments exceed revenues. The principle of double-entry accounting is used in a balance of payments, every transaction has two sides - debit and credit. Under this accounting system total of the debit should always be equal to the total amount of the loan. Generally, any balance of payments consists of two accounts – current account and capital account. A current account reflects operations with real assets, while capital account – with financial assets. According to the majority of experts, current account plays more significant role in the overall balance. For instance, negative current account of the USA has played a tremendous role in negative dynamics of the country’s balance of pay ments. It can be seen on the following graph. The other important theoretical item in international economics is exchange rate. Simply speaking, exchange rate is a price of a motional currency in some particular amount of a foreign currency. There are nominal and real exchange rates. Nominal exchange rate - is the relative price of currencies of two countries, or the currency of one country, expressed in the currency of another country. In turn, the real exchange rate describes the ratio in which products of one country can be sold in exchange for goods of another country. The following law is related to the problem of exchange rates. â€Å"The law of one price is the theory that the price of a given security, commodity or asset will have the same price when exchange rates are taken into consideration. The law of one price is another way of stating the concept of purchasing power parity† (Financial Theory, n.p.). Chapter 9 A curve of production opportunities is dependence tha t graphically illustrates the possibility of simultaneous production of two products based on limited resources spent on producing these products. A simple production possibilities curve is presented on the following picture. The curve is constructed in a coordinate system, each of which reflects the output of one of the products. It restricts the production capabilities so that any point on the curve shows the maximum possible resource constraints on the combination of production of two products. Aggregate supply is the total amount

Philosophy Essay Example | Topics and Well Written Essays - 1250 words - 16

Philosophy - Essay Example But both the types of existentialists think that existence precedes essence. In simple words, idea of the object comes first and then, based on that idea, objects are created. Thus, according to Christian existentialist, man is the result or realization of a specific concept of God. Atheist existentialist says that human reality was created that gave identity to man and it was man himself, who defined how and what he will be. Therefore, according to atheist existentialist, since God does not exists, there is no concept of human nature but once man comes into existence, he is, what he makes of himself to be. This is a very interesting concept of human reality. Man, being a subjective reality, can mold himself into any desired image that he can conceive for himself. When a man makes a choice, he needs to be responsible because he is also representative of mankind and indirectly responsible for all men. It means that man cannot transcend human subjectivity. When a man decides to act in certain manner, he does so because he thinks that is the right way to act and that is how he would expect others to act. Similarly when he makes a choice, he opts for something that he accepts is important and which has considerable value for him. One can never deliberately choose evil so it can be correctly interpreted that we always make effort to choose things and actions that are good. Since things can only be good for one if they are considered good by one and all, therefore, it can be said that one’s responsibility becomes greater because it involves all human-being. Indeed, when he says that â€Å"Existentialism is nothing other than an attempt to draw all the consequences of a coherent atheistic position†, he implies that man acts in a certain manner because he knows those actions have some definite value for him and therefore,