How the Economy Works - 712 Words

The theoretical contributions from the schools of Classical Economics, Monetarism and Keynesianism on the demand for money have always been subject to debate by economic scholars alike. The Quantity Theory of Money is an economic theory that states that the money supply is an economy is directly proportional to the general price level. This theory is commonly associated with neoclassical economics. Milton Friedman, a famous economist, modified this quantity theory of money by formulating a theory called the general theory of asset demand, where money demand is a function of wealth and returns of other assets relative to money. The Keynesian school also came up with a different theory of money: the liquidity preference theory, which famously eliminated the famous dichotomy of real and monetary variables in classical economics. In this essay I will first explain the Quantity Theory of Money and then proceed to show how Keynes and Friedman’s modern quantity theory is different f rom the classical quantity theory of money, in terms of changing the theoretical understanding of the functions and demands of money. The main assumption of the quantity theory of money is that money is neutral. This means that monetary factors such as the money stock do not affect real variables such as output and employment levels. This concept is related to the classical dichotomy. This means that monetary and real variables do not mix (Snowdon, Vane, Wynarczyk, 1994). For example, real variablesShow MoreRelatedThree Principles Describe How Economy as a Whole Works11284 Words   |  46 PagesSolutions to Quick Quizzes Chapter 1 1. There are many possible answers. 2. There are many possible answers. 3. The three principles that describe how the economy as a whole works are: (1) a country’s standard of living depends on its ability to produce goods and services; (2) prices rise when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. A country’s standard of living depends largely on the productivity of its workers, whichRead MoreA Circular Flow Diagram Is A Visual Model Of How The Economy Works840 Words   |  4 PagesA circular flow diagram is simply a visual model of how the economy works (cite school book). It also shows the players and how they interact with each other to organize to make up the economy. It is a valuable tool for micro-economic understanding. The models have two sections; expenditure and output. All of this is an important factor since a circular diagram does create a pattern. There is production, income, spen ding and back to production. The players or participants of a circular diagram areRead MoreHow Venture Capital Works : Invention And Innovation Drive The U.s. Economy Essay2076 Words   |  9 PagesHow Venture Capital Works Invention and innovation drive the U.S. economy. What’s more, they have a powerful grip on the nation’s collective imagination. The popular press is filled with against-all-odds success stories of Silicon Valley entrepreneurs. In these sagas, the entrepreneur is the modern-day cowboy, roaming new industrial frontiers much the same way that earlier Americans explored the West. At his side stands the venture capitalist, a trail-wise sidekick ready to help the hero throughRead MoreUnpaid Work : An Outdated Social Norm Essay1285 Words   |  6 PagesUnpaid work is a key theme emphasized in Stanford’s text Economics for Everyone. The importance of unpaid work is explained in a variety of ways throughout the chapters. The unequal distribution of unpaid work, towards women, is highlighted for being an outdated social norm. Stanford enlightens readers on the reality of how unpaid work significantly affects economics. The content shows that if unpaid work in the economy was properly understood, it could influence a change in the way the economy is evaluatedRead MoreThe New Opportunities Within The Gig Economy759 Words   |  4 PagesHaws (2015) document the many new opportunities within the gig economy: â€Å"Enabling access to work for people who would otherwise be excluded, (e.g. people with disabilities and people in developing economies), enabling consumers to access affordable services on a just-in-time basis. Creating new opportunities for flexible ways to combine work and private life. Enabling low-cost entry into the market for new enterprises or firms trying out new products or services, thus contributing to growth andRead MoreThe Macroeconomics of Unemployment1126 Words   |  5 PagesThe Macroeconomics of Unemployment In any economy, no matter whether it is controlled by the government or by free markets, people need to work in order to support it. The government does not generate tax revenue by magic. There have to be people in that economy earning an income to ensure that the government continues to collect taxes. In a free market economy, the same applies because there are some services which only an organized government can supply (such as protection from extra-nationalRead MoreEnd This Depression Now by Paul Krugman Essay1497 Words   |  6 PagesDepression Now by Paul Krugman and Changing Contours of Work: Jobs and opportunities in the New Economy by Stephen Sweet and Peter Meiksins. The textbook offered a sociological analysis of the nature of work in the new economy, such as the new opportunities in this economy as well and the challenges many workers now face and ultimately how this change the family lives of many. The book also discussed about the new face of the workplace and work in general, which includes issues on inequality and discriminationRead MoreMarket Society1582 Words   |  7 Pages consisting of various job titles from health care, transportation to real-estate. However, this array of options was not always the case. The world we know of today has transitioned into a market economy. Polayni’s definition of market economy is â€Å"a self-regulating system of markets. It is an economy directed by market prices† (Polayni, 43). To elaborate, this means every product is controlled by supply and demand, and the price is not determined by the government. Differing from today, in the pastRead MoreEconomic Critique1396 Words   |  6 PagesCritique Currently, our country is in a recession, and the unemployment rate is at an all-time high. The unemployment rate consists of people not only out of work but also those who can work and are actively looking for work (Colander, 2010). Unemployment also means there are more people out of work than there are jobs available (Colander, 2010). Unemployment has extremely negative effects on many people and businesses. The government budgets funds for unemploymentRead MoreThe Political Economy Of Communication792 Words   |  4 Pagespolitical economy of communication is using political economy approach to analyse the media and communication. Therefore, before discuss the political economy of communication we need to figure out what is political economy and what is communication. The definition of political economy is not simple. This essay uses the definitions given by Vincent Mosco and explores its origin in Greek and inspiration from the Classical Political Economy. Apart from the Classical Political Economy, this essay

Summary Sm And Imperialism - 1455 Words

sm and imperialism are two topics that have been seen as an inseparable pairing in history and economics. Even today, both of their legacies live on– they are what brought east Asia and Europe closer together (eventually, after their policies greatly damaged– and in some places erased– the existing ideas in these areas) and are the entire reason a majority of the United States population are of European or African descent– rather than indigenous americans– or that Iberian languages are spoken in Central and South America rather than the native languages there. Common thought today almost unanimously agrees that without European and Afro-American influences, the Americas would be a very different place. It is also commonly thought today that imperialism– being both similar and coming after in terms of time– is a direct offshoot of mercantilist policy. While it is true that without the first the latter would be very different, the fallac y that it is the direct descendant is completely untrue. While mercantilism fueled the fires for the imperialist ideas of Europe, it was not the deciding factor– many other factors completely unrelated from mercantilism helped create imperialist thought. Mercantilism can be found as early as the crusades, when republics like Venice and Genoa traded between Europe and the Levant– not only bringing in valuable goods, making them powerful trading states in of themselves, but also seeding the ideas that would become mercantile concepts; theShow MoreRelatedInternational Relations: Liberalism and Realism2281 Words   |  10 Pagesprogress of the human race, they tend to discourage conflict based on the premise that the good nature of humans allows for peaceful and diplomatic solutions. Violence is only justified when it is a means of self defence from existing threats. Imperialism is also as a primary cause of conflict to a liberal. This is as a result of countries in the position like that of the USA extending its’ hegemonic state to justify unnecessary use of its’ military forces. This extension of power and influenceRead MoreFrom Extravagant Movie Theatres to Lowly Bomba Houses: Investigating the Degeneration of City Spaces Along Claro M. Recto Avenue, Manila10891 Words   |  44 PagesAmericans to colonize the Philippines. These war-themed films gained much popularity and reverence from the pre-dominantly white, male audiences back then. In summary, Deocampo explains how the early history of film and cinema in the Philippines, is dominated by the concepts of war and conquest, as influenced by America’s desire for imperialism and its fixation with its so-called manifest destiny. Quirino (1983), similar to Deocampo (2007) points the rise of cinema in the Philippines to the arrivalRead MoreAN EMPIRICAL ANALYSIS OF ENVIRONMENTAL IMPACT OF FOREIGN DIRECT INVESTMENT IN THE MINING SECTOR IN NIGERIA15805 Words   |  64 Pagesmethodology. Chapter two talks about the conceptual, theoretical and empirical review of the study.Chapter three deals with the research methodology. Chapter four is concerned about the analysis and interpretation of data. Chapter five includes the Summary, Conclusion and Recommendations. 1.7 Definition of Term Economic Growth: An increase in a country’s total output. It may be measured by the annual rate of increase in a country’s Gross National Product (GNP) or Gross Domestic Product (GDP) as adjustedRead MoreReed Supermarket Case32354 Words   |  130 Pages6 Forces for global integration and market responsiveness 1.7 The value chain as a framework for identifying international competitive advantage 1.8 Value shop and the service value chain 1.9 Information business and the virtual value chain 1.10 Summary Case studies 1.1 Build-A-Bear Workshop (BBW): how to manage the global comeback? 1.2 Arcor: a Latin American confectionery player is globalizing its business 1.3 Video case study: Nivea Questions for discussion References 3 5 5 6 6 7 17 19 21Read MoreManaging Information Technology (7th Edition)239873 Words   |  960 PagesStrategic E-Business Opportunities (and Threats) B2B Applications 260 B2C Applications 263 Two Dot-Com Retailers 264 Two Traditional Catalog Retailers Two Traditional Store Retailers Summary: B2C Retailing 268 266 267 259 239 Contents Dot-Com Intermediaries 269 Summary: Successful Online Intermediary Models 273 Special Issue: What Makes a Good Web Site for Consumers 273 Special Issue: What Makes a Good B2C Social Media Platform 275 Review Questions 276

Hydraulic Fracturing Free Essays

Is hydrologic fracturing a suitable form of energy production? Over the past 85 years, the American Petroleum Institute, API, has been developing and refining engineering standards and practices for the industry. The past decade has brought about a new practice which involves hydraulic fracturing in order to produce oil and natural gas in places where conventional technologies are ineffective. This is a rather in depth process. We will write a custom essay sample on Hydraulic Fracturing or any similar topic only for you Order Now Firstly, a production drill is drilled through the rock layers to intersect the coal seem that contains coal bed methane, CBM. Next, fractures are created or existing fractures are enlarged in the coal seem so that the CBM can be drawn from the well and pumped to the surface. These fractures are created or enlarged by using a thick water-based fluid which is gradually increased by rate and pressure. Then, over time the coal seam is unable to keep up with the fracturing fluid which results in high pressure causing the coal to fracture along the weaknesses within. Sand is pumped into these fractures to keep them ‘propped’ open after the pressures are released. The first diagram in the appendix shows what occurs in the subsurface during a typical hydraulic fracturing event. After a period of fluid recovery or groundwater extraction is when the extraction of CBM occurs. As pumping continues, the pressure eventually decreases so that the methane desorbs from the coal, flows and is extracted through the production well. The fracture created acts as a conduit in the rock or coal formation, allowing the CBM to flow more freely from the coal seems through the fracture system and to the production where gas is pumped to the surface. Unlike conventional gas production, the amount of water extracted declines proportionally with increasing CBM production (US EPA, 2004). The demand of natural gas is expected to increase drastically over the next 20 years, causing the need for innovative production to fill the growing demand. Many may believe that there are other ways to fulfill the need of natural gas, due to production concerns, but this is a suitable form of energy production. Hydraulic fracturing should be used because it will provide a significant increase in jobs, economic growth, and clean burning energy. The Keystone XL pipeline has had much controversy in the news recently. This pipeline is an extension onto the existing pipeline running from Canada to the United States. The pipeline would increase crude oil capacity between the two countries allowing for a more diverse supply among the United States’ worldwide crude oil sources, shorten the transportation pathway for crude oil supplies, and increase the crude oil supplies from a major non-organization of petroleum exporting countries producer. â€Å"The use of hydraulic fracturing will help make our country more energy self-reliant and more secure† (Green, 2012). This statement was made by the API President and CEO, Jack Gerard during the second State of American Energy event January 4. He also proceeded to state that the United State’s resources on and offshore are among the largest in the world. This means that with the right policies in place, there could be 100 percent of our liquid fuel needs supplied domestically and from Canada by 2026. Also, with a pro-energy development approach 1 million new US jobs by 2018 could be produced along with billions of dollars in additional revenue to government (Green, 2012). The increase in jobs from this production is approximately 334,000 in the past two years after the 3 million manufacturing jobs lost from 2001-2007. Hydraulic fracturing has rapidly increased the domestic production of natural gas and has seen low domestic prices for households. Figure five below shows the increase in production rates over the last several years (Green, 2012). The oppositions to this vision are primarily political on an ecological level. In order for the process to run smoothly water use is needed. Many think that the water used for hydraulic fracturing could deplete fresh water supplies and impact aquatic habitat. Some also say that the groundwater could be contaminated. Some hydraulic fracturing fluids can also contain chemicals. Typically a mixture of water, proppants and chemicals are what is pumped into the rock or coal to fracture the wells. Eco-friendly leaders and environmentalists are taking a stand to state that these chemicals, use of water and damage to groundwater are not acceptable and this energy method should not be used. Firstly, chemicals typically make up just 0. and 2% of the total volume of the fracturing fluid with the majority being water. Secondly, natural gas emits fewer greenhouse gases than other fossil fuels, about half as much of carbon dioxide as coal which contributes to less global warming. Thirdly, with the halting of fracturing in some states due to pressures from environmental and public health groups asking the EPA for tests and proof that it is safe to continue with this type of energy production, supporters are concerned that it could hinder U. S. job growth and energy output in a time of need (McLendon, 2010). The tests from the EPA will take roughly two years, so until then it is a waiting process. As you can see, this is a roughly new energy production that does need to be researched more. From my point of view the pros seem to outweigh the cons. I think more tests and actual data about contamination and whether it is really safe will be the true test. The increase in jobs, economic growth, and clean burning energy is most definitely what this country needs right now. The true outlook on this issue will come towards the later part of this year when the test results conclude. References Green, M. (2012, January 05). Starting the energy debate. Retrieved from http://energytomorrow. org/blog/starting-the-energy-debate/ McLendon, R. (2010, December 10). Big frack attack: Is hydraulic fracturing safe?. Retrieved from http://www. mnn. com/earth-matters/translating-uncle-sam/stories/big-frack-attack-is-hydraulic-fracturing-safe US EPA. (2004, June). Evaluation of impacts to underground sources of drinking water by hydraulic fracturing of coalbed methane reservoirs. Retrieved from http://www. epa. gov/safewater/uic/pdfs/cbmstudy_attach_uic_exec_summ. pdf Appendix How to cite Hydraulic Fracturing, Papers Hydraulic Fracturing Free Essays What is hydraulic fracturing or fracking, and is it safe for our environment? What types of environmental issues are there with fracking? Are the laws in place for fracking good enough or should they be stronger? How much energy does the United States need for the future and is hydraulic fracturing the answer? These are all good questions that deserve good answers. Simply put hydraulic fracturing is taking a lot of water pressure and blasting it deep into the earth to create fractures in rock. By creating those fractures it allows oil and natural gas to seep out of the well within the rock. We will write a custom essay sample on Hydraulic Fracturing or any similar topic only for you Order Now Technically speaking, hydraulic fracturing is drilling into the earth. Steel pipes are placed inside the well as companies drill deeper into the earth. This is done to ensure that no groundwater is contaminated during the procedure. Once the well is at the desired depth, water, sand and chemicals are forced down the well with immense pressure. Depending on the drilling site, the chemicals that are used will vary. Different sites require different chemicals. It is because of these chemicals that there are environmental issues. There are generally four major environmental issues to speak of. Water contamination, management of waste water, air quality and the chemicals used are those major issues. Water contamination may be the largest issue at hand though. Water contamination is normally done through spills and faulty well construction. This can be such a major issue because if test are not done on a regular basis people may be drinking and bathing in harmful water. â€Å"In 2010, residents of Pavilion, Wyoming complained about the condition of their well water. In December 2011, EPA released a report finding that compounds associated with fracking chemicals had been detected in the groundwater beneath the community and health officials advised residents not to drink the water. † (Reece O’Day) In this particular instant the people of Pavilion may very well have developed major health issues due to fracking. It took at least a year for anyone to come to a conclusion as to what was wrong with the water. Mismanagement of the waste water can be almost as bad as water contamination. The waste water that comes from fracking has a number of things in it that are harmful to the environment. The waste water can contain anything from radioactive materials to the chemicals used in the process. However, there are several things that can be done with the waste water but most of them aren’t really solutions. In fact the only real solution is taking the water to a treatment or recycling facility. The other alternatives include surface impoundments for storage or deep well injections. Neither of these options takes care of the problem. They are simply out of sight, out of mind solutions. Air quality is another issue with fracking. The process will release methane and other greenhouse gasses. While there are steps being taken to reduce these gasses, they are still being emitted into our atmosphere. The gasses that are released into the atmosphere are contributing to the global climate change. Too much of these gasses and the world will start to shut down and die. The last major issue with hydraulic fracturing is the chemicals that are used in the process. Because each well requires different chemicals operators are only required to keep records of the chemicals they use. There is a long list of chemicals that are generally used in fracking. Hydrochloric Acid, Acetic Acid and Thioglycolic Acid are just some of the chemicals that are being used. State and federal regulations on hydraulic fracturing are trying to achieve the same end goal. As with all state and federal laws and regulations, federal is more broad and simple. State law and regulations tend to be more precise and detailed. They take what federal has set in place and expand on it. Federal regulations for hydraulic fracturing are truly simple. They really only focus on three things, the constructions of the well, the treatment of flow back water and the discloser of the chemicals used in the process. The integrity of the well most be verified using a cement bond log. All the chemicals that are used must be submitted to the Bureau of Land Management. State regulations however, are much more in depth. Each state has their own laws and regulations. Wyoming for example requires that all water supplies within a quart mile of drilling sites be identified before drilling. While Pennsylvania requires that pressure testing is done prior to completion. New York on the other hand focuses more on visual, noise, greenhouse gas and invasive species mitigation plans. While each state has their own rules and regulations, they are all trying to do the same thing, protect their states land and best interest, as well as bring down the price of energy and lower Americas dependency on foreign fuels. America’s energy demand will almost definitely never go down. It is probably a safe bet to say that it won’t even maintain its current level. As more and more people come in to America and lifespans continue to get longer, the need for more energy is almost certainly going to continue to rise. Hydraulic Fracturing is a relatively safe way for America to meet its growing demand for energy. According to the Institute for Energy research’s Senior Vice President Daniel Kish â€Å"Safe, innovative hydraulic fracturing technologies have freed the United States from years of fear mongering that America’s energy future was bleak.† (Unk) Furthermore â€Å"Of the 900,000 barrels per day increase Energy Information Administration has reported, 750,000 of it came from shale plays on non-federal lands in Texas and North Dakota. † (Unk) With all that being stated, it looks like America will be ok in the near future. Who’s to say what will happen in the future but with hydraulic fracturing America will be better off. While some people may say that we should stop hydraulic fracturing others are saying just the opposite. The environmental issues that come with fracking are not necessarily bad enough to stop the process. Without the fuels we get from the process, America may not be able to produce or obtain enough fuel to sustain our energy use. With the laws and regulations that are in place now and the ones that will continue to improve the whole process, fracking may become one of the safest and most reliable sources of energy. There is no doubt that we as a nation will continue to do hydraulic fracturing and continue to broaden the number of sites in use. How to cite Hydraulic Fracturing, Papers