IB Economy,Philips

The United States of America (US or USA) is the largest and most important economy in the world. In 2010, The US economy was responsible for 20.218 percent of the world’s total GDP (PPP) or US$ 14.624 trillion.

They are facing a financial criysis since WW2.The usa is unable to recover from 2008,which was the worst Economy Crysis,Like that from the great depression,On the other hand,they must pay alot of dept to other countries.Especially china,USA owe them alot.Which causes USA to grow slowely.

It will affect us because,if the country earn less,the prices may rise,so the government can get right on track again.

Domestically, the US economy’s frailties were cruelly exposed during the 2008 financial crisis. The US economy has found it harder to recover from the 2008 financial crisis, believed to be the worst financial crisis since the Great Depression, as compared to previous downturns. Consumer confidence within the country is at all time low, perpetuating the slow economic growth since 2008.

tourism in Germany

 

In the recent day,the president of Germany and France.Both president and councellor decided to raise money to fund it to greece to prevent an euro crysis,like the one in 2008,to be able to do that,the banks of both countries must be able to have money for their own needs as well.The banks must be also willing to spent money. So the President of france Sarkozy and the councellor Merkel met in berlin,they gathered to dicuss about that.
It will affect us,there might a change in currience,different countries must change to their own one.this will cause alot of panic.The banks have to work alot.Their old currencies would have to be resurrected and Euro reserves converted back to the mix passed to the European Central banks from the beginning of the Eurozone.The world's Foreign Exchange Markets would be in chaos,The dollar will go high and the yuan as well.

Chapter 1.Laws of suppy and demand

laws of supply and demand

The law of supply:It means whenever the income of the producers increase,the ability to produce more good is possible.
Example:If many people are buying your product,your are likely to produce more
The law of demand:If the price of a certain good increase,then the Demand of consumers will decrease.
Example:If you increase a price from your product,for example oil,instead of selling it for 8dollar,you sell it for 10 dollar,which in fact will decrease the consumer wanting to buy it.

Veblen good:If Demand rises,therfore the price rises too,because the majority of people would think that if you buy something more expensive,you will get something that is more high quality,something that will last for a while.
Example:Instead of buying a cheap car from europe,some rich people are more likley to buy the luxury cars,because they are more reliable.
Giffen good:When the price of the good increase,then the demand rises,if the price decreases then the demand will decrease too.
Example:Comparing two goods,for example if people buy more rice instead meat.Because the prices of both are the same but the quatity you get is different.for instance if you buy meat for a 2 dollars,you get 200g,but if you buy a bag of rice for 2 dollar,you get 1kg,Therefore the poor will buy more rice.