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Causes for Success and Failure in the Economy, Success :star:, Failure …
Causes for Success and Failure in the Economy
Market Control
** - Buyer or seller possess the power to determine the price of goods and services in the economy. Can be a bad thing when the prices are exceedingly high.
This power prevents natural force of supply and demand.
Sellers can set higher prices to maximize their returns and make a profit.
Single large buyers can dominate by colluding to set prices at which they are willing to buy products from producers.
Can create monopolies within the industry
Political Instability
uncertainty with an unstable political environment may reduce investment.
Government collapses increases potential collapse of their economy.
Change in GOv't officials leads to uncertainty of new polices
If businesses don't follow polices, they can move to different countries which leads to higher prices for the materials.
Many government officials see big business as a threat and add a lot of red tape to limit their power.
A failing economy can cause a political party to fall, vice versa.
Natural Resources
Oil, or mineral deposits boost economic growth as it can increase the Production Possibility Curve
Land water, forests, and natural gas can allow more companies to be built
Companies being built on your own country's soil will be cheaper to build and operate
Technology
increases availability of more detailed information, provides easier access to stocks, prices, marketing .
** - Technology can save time. Like the time it takes to deliver a service or produce a good.
Keeps transactions kept neatly and shows direct amounts of money and safer for consumer
https://youtu.be/FAfTbPd-160
- Easier access to purchasing and buying
4.1% economic growth rate estimate for the Bureau of Economic Analysis in July, 2018
Human Capital
An increase in investment in human capital can improve the quality of labor force.
Quality in work is more than Quantity.
A skilled labor force has a significance effect on growth in economy.
Skilled employees are needed to make the work force more productive.
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Low Level of Education and Poor Health
the lower level of education leads to less knowledge on economical issues.
poor health causes sickness and medical bills all the time.
sickness causes fear and the loss of jobs, increasing unemployment
https://youtu.be/f9v6givfTEA
Success
:star:
Failure :red_cross:
