Khan Afraz-Economics Culminating by Afraz Rehman Khan

Elon Musk`s Gigafactories could save the World

13925 — 2017-06-14 07:04:21 UTC

_{Mack, Eric. "How Tesla And Elon Musk's 'Gigafactories' Could Save The World."}_Forbes_{. Forbes Magazine, 03 Nov. 2016. Web. 14 June 2017. <}_{https://www.forbes.com/sites/ericmack/2016/10/30/how-tesla-and-elon-musk-could-save-the-world-with-gigafactories/}_>.

Summary Of The Article

13925 — 2017-06-14 07:12:05 UTC

This article goes over the construction of Tesla Motors’ “Gigafctory”. The one of its kind factory is located in Nevada and is described as the key to a sustainable future. The factory itself is set to mass produce high- capacity batteries in order to store energy collected for renewable sources. Tesla Motors plans to send the batteries to rural areas not yet connected to a power source. Doing this will result in small areas running solely on clean energy, all without the presence of a single source. Thus far, Tesla Motors plans to build 20 factories identical to the Nevada gigafactory. An interesting fact: Elon Musk claims the a hundred of these gigafactories will be enough to supply the whole world with clean energy.

How it Relates The Economic Way of Thinking

13925 — 2017-06-14 07:13:32 UTC

On of the sections in The Economic Way of Thinking is the four factors of production which include: Land, Labour, Capital and Entrepreneurship. The factors of production list the resources needed in order to produce goods and therefore create a strong economy. This article relates directly to Entrepreneurship, the factor that brings the three others together. Entrepreneurship ensures constant innovation, therefore creating bypasses in the factors which could potentially allow a country to produce goods that were previously unattainable. Elon Musk, one of the founders and CEO and Tesla Motors, is the main driving force behind the gigafactory. By engineering a unique method of efficiently collecting clean energy, he has bypassed the need for a large amounts of land. Musk`s technology has made it is possible to store large amounts of energy, therefore reducing amount of solar panels/ wind turbines/ dams required. Through his entrepreneurship, Musk saw a vision of a future with renewable energy and pursued it. By doing so he has created thousands of jobs hence creating a stronger economy.

Key Terms

13925 — 2017-06-14 07:18:04 UTC

Archipelago- A group of Islands that belong to a single territory

Exporting- To send goods/ services to another country

GDP- Gross Domestic Product, the value of goods/services that are produced in a country within a year.

Last Of the Vikings By Marcus Blesdale

13925 — 2017-06-14 07:18:33 UTC

^{Abbasi, Jibran. "Last of the Vikings by Marcus Bleasdale."}^{Business Recorder}^{. Business Recorder, 13 June 2017. Web. 14 June 2017. <}^{http://www.brecorder.com/2017/06/13/354163/last-of-the-vikings-by-marcus-bleasdale-2/}^>.

Summary Of The Blog

13925 — 2017-06-14 07:19:42 UTC

_{This very brief blog goes discusses how the traditional economic system in Norway is diminishing. Lofoten archipelago consisting of multiple islands, was once a thriving fishing community. The people sustained themselves through small scale economic activities including: farming and whaling. Today, the demand for whales has decreased rapidly due to environmental concern. Moreover most of the Youth have left the}_archipelago_{in order to be part of the more modern Norwegian market economy. Only a few families remain in the Lofoten archipelago and it is only a matter of time before their way of life diminishes.}

How It Relates to Economic Systems

13925 — 2017-06-14 07:20:52 UTC

_{A traditional economy is one that operates on a small scale and is intertwined with cultures and traditions. While it is a a very effective system due its simplicity, it tend to resist change, which is why this type of economic system is diminishing. In this chapter, the traditional economic system is introduced and its pros and cons are stated. A major upside that is mentioned in the book is that there are little to no disputes over economic rules due to tradition/culture being the main force behind economic decisions. A major downside is that assigning roles can often lead to decreased productivity, especially if the individual is not suited to the task. According to the chapter, the reason traditional economics are disappearing is because of their inability to change. For example, Norway has shifted from relying on fishing and farming to}_exporting_{oil and gas. Since traditional economics cannot simply change their economic activity due to tradition, they begin to contribute less and less to the total}_GDP_{. Once they reduce to a certain amount, the youth often being leaving in order to pursue a more modern and rewarding lifestyle. The blog directly ties itself into the chapter since the blog discusses the demise of traditional economic system.}

EU Starts Legal Action Against Italy Over Fiat Chrysler Emissions

13925 — 2017-06-14 07:22:52 UTC

^{Reuters. "EU Starts Legal Action against Italy over Fiat Chrysler Emissions."}^{Business Insider}^{. Business Insider, 17 May 2017. Web. 14 June 2017. <}^{http://www.businessinsider.com/r-eu-starts-legal-action-against-italy-over-fiat-chrysler-emissions-2017-5}^>.

Key Terms

13925 — 2017-06-14 07:23:19 UTC

Emissions Test- A system designed to measure the amount of pollutants exiting a cars exhaust. The rating of a car has to be lower than the government rating In order for the car manufacturer legally sell the car within a country.

European Commission- A branch of the European Union that deal with making decisions and maintaining law in countries that are Part of the European Union.

European Union- A political alliance between certain European Countries that share similar policies in both politically and economically.

Summary Of the News Article

13925 — 2017-06-14 07:23:28 UTC

_{Italy is facing going to court for the Fiat Chrysler}_{emissions test}_{cheating scandal. The}_{European commission}_{stated that Italy refused to respond of the allegations. This resulted in the commission launching an investigation between possible collusion between Fiat Chrysler and the Italian government. Fiat Chrysler is suspected to have been manipulating using an illegal device that temporarily alters emissions for the vehicles.}_{European Union}_{is exerting pressure on both Italy and Fiat in order to obtain evidence of the collusion. Furthermore there is extra pressure because Germany, Spain and Britain were also part of a case as manufacturers in these countries were also cheating the emissions test. The article also states that the commission is due to receive the power to fine car manufacturers upwards of 30,000 Euros per affected vehicle.}

How it Relates to Market Structures

13925 — 2017-06-14 07:24:55 UTC

_{In the market structures section, one of the subsections include collusion. Collusion is defined by two organisations illegally working together for personal gain. This article goes over possible collusion between Fiat Chrysler and the Italian government. European governments are meant to closely monitor car manufacturers and ensure the emission rates do not exceed a fixed amount. This is due to multiple climate agreements signed by the European Union. If the allegations are true, it would mean that the Italian government helped Fiat Chrysler cheat the emissions test. Since the government is helping a manufacturer commit an illegal act for personal gain, it can be identified as collusion.}

How it Relates to the The Role Of Labour

13925 — 2017-06-14 07:28:08 UTC

_{The article directly relates to the subsection: Why wages differ. One of the factors as to why wage differ because of government action. In this case, since the provincial government of Ontario has decided to raise the minimum wage, it falls under this category. By increasing the minimum wage, the government is ensuring a higher}_{price floor}_{, therefore ensuring an increasing in the workforce due to the increased incentive. An issue the article places emphasis on is business not being able to afford the same number of employees, therefore posing a risk of}_downsizing_._{Human capital}_{is also an important factor that is emphasised in this chapter, without it businesses cannot produce goods as efficiently. In order to be able to keep up with the minimum wage laws, prices would have to would have to rise while, hence presenting a potential risk of}_inflation_{as output would remain the same.}

Summary Of The News Article

13925 — 2017-06-14 07:28:56 UTC

_{The Province of Ontario has decided to raise its}_{minimum wage}_{for $ 11.40 (Canadian dollars) to $ 15 (Canadian dollars). This increase is believed to ensure equality for part time workers. Currently, approximately 30% of Canadian make less that $ 15 (Canadian dollars) an hour. This increase in wage is believed to help workers, as most people who make minimum wage struggle to keep up with their finances, especially if they have to support a family. The government plans to increase the minimum wage gradually in order to avoid major inflation by give businesses an opportunity to slightly increase output, hence the two year time period. While most workers are pleased with the decision, some argue that the increase is too drastic and most business will not be able to afford it.}

Key Terms

13925 — 2017-06-14 07:30:33 UTC

Minimum Wage- the lowest salary an employer can legally pay an employee.

Price floor- a limit over how low a price can go.

Downsizing- Reducing in size due to economic hardships.

Human capitol- The amount of people possessed by an organisation.

Inflation- A situation where prices of a good/service increase while production decrease/remains the same.

Ontario To Increase Minimum Wage to $ 15 An hour by 2019

13925 — 2017-06-14 07:30:44 UTC

^{Jessica Smith Cross and Allison Jones. "Ontario to Increase Minimum Wage to $15 an Hour by 2019."}^{Global News}^{. N.p., 30 May 2017. Web. 14 June 2017. <}^{http://globalnews.ca/news/3488127/ontario-increase-minimum-wage-15-hour/}^>.

How it Relates to Economic Indicators and Measurements

13925 — 2017-06-14 07:34:08 UTC

_{One of the main economic indicators is the GDP of an economy. When the of a country GDP rises, the economy is grows as a result of more jobs. When the GDP of a country decreases, it indicates a weakening economy due to job loss and reduced business opportunities. The relation between the video and that chapter is that both mention the Underground economy and how it is not included into the GDP. Both sources also mention how underground jobs are not recorded due the absence of reliable transaction history. This means that people can hide their taxable income, hence avoiding income tax. Since the Underground economy Of Canada has been growing, it means that an increased number of people are evading taxes. For the normal Canadian taxpayer, this phenomom could result in higher taxes since a reduced amount of people are paying due to}_{tax evasion.}_{Overall, both the video and the chapter discuss the Underground economy and how it negatively affects the normal taxpaying who contribute to the GDP.}

Summary of The Video

13925 — 2017-06-14 07:35:36 UTC

_{This youtube Video published by CBC news is about the growing underground economy of Canada. The underground economy itself is not recorded or taxed. While the jobs can be perfectly legal, the method of handling payment is not.The province of Ontario has the largest underground economy in Canada, worth approximately $ 15.3 Canadian dollars. The largest underground economy jobs are part of the residential industry, as this industry includes jobs such as: roofing, plumbing, repairs etc. The reason it is the largest part of the underground economy is because most transactions are in small amounts, therefore are done in cash. Since there is no electronic proof of the}_transaction_{. This means one can avoid placing it as}_{taxable income}_{, hence avoiding income tax on the transaction. As a result of this, the Underground economy is worth the equivalent of 2.4 percent of the total GDP recorded in 2012. The segment also discusses the potential effects of the growing underground economy, including higher taxes for Canadian citizens altogether.}

Key Terms

13925 — 2017-06-14 07:36:00 UTC

Transaction- Buying or selling a good/service.

Tax evasion- The illegal act of avoiding taxes.

Income Tax- Tax taken form a persons income.

Taxable Income- The amount of money taken from income as taxes.

The Ethics Of Canada`s Underground Economy

13925 — 2017-06-14 07:36:09 UTC

^{CBS News (April 30th 2015). The Ethics Canada`s ‘Underground Economy’. Retrived from}^{https://www.youtube.com/watch?v=J6kkAayRO-8}

Spiking Inflation and Violence Bring Venezuela Close To the Bottom

13925 — 2017-06-14 07:37:33 UTC

^{Imbert, Fred. "Spiking Inflation, Spiraling Violence Bring Venezuela 'close to the Bottom'."}^CNBC^{. CNBC, 15 May 2017. Web. 14 June 2017. <}^{http://www.cnbc.com/2017/05/15/spiking-inflation-and-violence-bring-venezuela-close-to-the-bottom.html}^>.

Key Terms

13925 — 2017-06-14 07:38:14 UTC

Inflation Rates- The percentage of price increase over the span of a specific timeframe.

Infrastructure- Basic tools needed to maintain a functioning economy.

Black Market- An illegal market where goods/services can be attained

Summary of The News Article

13925 — 2017-06-14 07:38:20 UTC

_{This article covers the high}_{inflation rates}_{that have plagued the Venezuelan economy. Inflation is believed to have reached a staggering 93% as of 2017. Due to poor}_{infrastructure}_{, Venezuela has been experiencing a food and goods shortage for over a year. The only way people can now obtain the goods is by buying them off the}_{black market}_{. The problem is that the black market value and the governmental value of the Venezuelan bolivar are completely different. According to government exchange rates, $ 1 (U.S) should cost around Bs 723.55 ( Venezuelan bolivars). In the black market, $ 1 (U.S) costs close to Bs 5000 (Venezuelan bolivars). Since the government is not producing enough goods, Venezuelans are forced to pay extra in order to purchase good form the black market. Therefore, the Increasing price of the Venezuelan Bolivar in the black market and the decreased production by of goods is the reason behind the inflation.}

How it Relates to Facing Economic Challenges

13925 — 2017-06-14 07:38:46 UTC

_{One of the}_{subsections of chapter 13 labeled : Causes and consequences of Inflation, goes over the various reasons inflation occurs and the negative impact it has on a country's economy. According to the chapter, inflation occurs when the production of goods/ services reduces or remains unchanged whilst the price of the goods rise. Since the output of goods/services by a country decreases and the prices increase, the currency experiences devaluation. Devaluation is a phenomenon where the value of a currency decrease, therefore more money is required to buy the same amounts of goods. This ties to Venezuela since they are experiencing inflation due to the price rising and the production output of goods falling. The inflation is occurring since people are reduced to buy good off the black market, therefore people have to pay more in order to purchase U.S dollars. This means that people are buying less for more amount of money, all while Venezuela's production output is drastically reducing; hence causing inflation.}

South Korea Incoming Fin Min Sees Bigger Role For Fiscal Policy

13925 — 2017-06-14 07:42:06 UTC

^{"South Korea Incoming Fin Min Sees Bigger Role for Fiscal Policy."}^Reuters^{. Thomson Reuters, 21 May 2017. Web. 14 June 2017. <}^{http://www.reuters.com/article/us-southkorea-politics-minister-idUSKBN18H0SE?il=0}^>.

Key Terms

13925 — 2017-06-14 07:42:36 UTC

Finance Minister- a government personal responsible for handling finances within a government.

National Budget- The amount of money that a government plans to use in a year.

Expansionary Fiscal Policy- A fiscal policy designed to increase money supply in the economy and stimulate economic growth.

Contractionary Fiscal Policy- A fiscal policy designed to decrease the money supply in the economy and decrease or slow down economic growth.

Summary Of The News Article

13925 — 2017-06-14 07:42:51 UTC

_{This news article goes over what the New South Korean}_{Finance Ministe}_{r Kim Dong-yeon plans to do in order to combat the stalled growth of the economy. According to Kim, youth unemployment was one of the reasons why economic growth is suffering as approximately 11.2 % of the youth are unemployed. Plans for a $8.96 increase in the}_{national budget}_{, promised by President Moon during his election will help combat the unemployment. Apart from unemployment, housing debt and increasing need for welfare also pose a risk. Kim plans to combat the problems by using an expansionary fiscal policy, which will stop the unemployment and produce a growth rate of no more than 7%, in order to avoid inflation.}

How It Relates to Using Fiscal Policy

13925 — 2017-06-14 07:43:28 UTC

_{The first section of this chapter provides an introduction to the two types of fiscal policies: Expansionary fiscal policy and c}_{ontractionary fiscal policy}_{. A clear connection between this chapter is present as South Korea is in the process of implementing an}_{expansionary fiscal}_{policy. This is because an expansionary fiscal policy involves reduced interest rate, creation of jobs, reduced taxed rates etc. What all this does is encourage people to spend money, which in turn gives the economy a boost in terms of}_{GDP. A clear correlation can be seen as the chapter is heavily based on fiscal policy and South Korea is in the process of implementing an expansionary fiscal policy.}

Key Terms

13925 — 2017-06-14 07:46:00 UTC

Interest Rate- Extra payment, equivalent to a small percentage of the money borrowed.

RRR- The Reserve Rate requirement is the minimum amount of money a commercial bank can have whilst serving the public.

Deposit- Rate ceiling- The maximum interest rate that a commercial bank can charge when taking a loan.

Economists React: China Cuts Interest Rates Again As Growth Loses Momentum

13925 — 2017-06-14 07:46:24 UTC

^{Staff, WSJ. "Economists React: China Cuts Rates Again as Growth Loses Momentum."}^{The Wall Street Journal}^{. Dow Jones & Company, 24 Oct. 2015. Web. 14 June 2017. <}^{https://blogs.wsj.com/chinarealtime/2015/10/24/economists-react-china-cuts-rates-again-as-growth-loses-momentum/}^>.

Summary Of The blog

13925 — 2017-06-14 07:48:02 UTC

_{China's central bank reduced it}_{interest rates}_{six times in 2015, moreover they also decreased the}_{RRR (Reserve rate Requirement)}_{ratio for banks in order to encourage growth. This was part of an expansionary monetary policy that would help them achieve their goal of a 7.5 % increase in the GDP. The article also emphasis the fact that his move was not well thought out due to pressure stemming for the possibility of a decline in the GDP. Furthermore the article also states that the interest rate charged by commercial banks is not likely to reduce but does pose the possibility of increasing. This is because The government of China also removed the}_{deposit-rate ceiling}_{. Since banks in China are growing due to the rapid development, they require high interest rates in order to fund the expansion. Overall the author of the article believes that the reduction of interest rates and the removal of the deposit-rate ceiling are not the answer to the decline in economic growth.}

How It Relates to The Federal Reserve and Monetary Policy

13925 — 2017-06-14 07:49:34 UTC

_{The article is about monetary policy, something that this chapter thoroughly covers. According this chapter, there are two types of monetary policies: Expansionary monetary policy and Contractionary monetary policy. Expansionary monetary policy is when the government lowers interest rates in order to get encourage people to take loans therefore allowing for the banks to increase their money supply. An expansionary monetary policy involves the central bank reducing interest rate in order to commercial banks, which in turn attracts customers as the overall interest rate is lower. A contractionary monetary policy involves central banks increasing their interest rates therefore reducing the money supply, since the public and commercial banks prefer low interest rates. In this article, China is making use of an expansionary monetary policy in order to get more money into the economy and promote overall economic growth. Another way this article is related to this chapter is that both sources discuss the reduction of the RRR (reserve rate requirement), which is also part of an expansionary monetary policy. By allowing banks to have a reduced reserve, more money can circulate through the economy, hence stimulating economic growth.}

How it Relates to Issues of Economic Development

13925 — 2017-06-14 07:50:43 UTC

_{Chapter 13 have a subsection dedicated to China and its SEZs (Special economic zones), which discuss how it have help China gradually move towards a market economy. The section also discusses how in 1978 Deng Xiaoping introduced the Chinese Economic Reform, in order to expand the Chinese economy.  The video also highlights how SEZs have helped China transform and develop as phenomenal speeds. Had The Chinese Reform Policy not been implemented, China would have most likely  have followed The Soviet Union countries their}_s_{hock therap}_{y approach and suffered similar issue including: devastating inflation and stunted economic growth.}

Summary Of The Video

13925 — 2017-06-14 07:51:39 UTC

_{This youtube video by CGTN America (CCTV-News) investigates how the turning Shenzhen into an}_{SEZ (special economic zone)}_{in transformed it from a simple fishing village to a world leader in shipping in less than 30 years. Moreover it has also laid the foundation for tech companies such as Huawei which have boosted the GDP of Shenzhen, therefore making it one of the most developed cities In China. This piece is meant to commemorate the late Chinese leader Deng Xiaoping, the man being the Chinese Economic Reform, which involved China opening its doors to foreign businesses.}

Key Terms

13925 — 2017-06-14 07:52:14 UTC

SEZ- Special Economic Zones in China are areas where free market rules apply in terms of economics.

Shock Therapy- The process that involves a rapid shift form a command economy to a market economy.

Special Economic Zone In China Deemed a Success

13925 — 2017-06-14 07:52:23 UTC

^{CGTN America (August 22 2014). Special Economic Zone in China Deemed Success. Retrieved From}^{https://www.youtube.com/watch?v=ND_Y4hfkesA}

How it Relates to Personal Finance

13925 — 2017-06-14 07:54:01 UTC

_{One of the themes of this unit revolved around minimising the usage of credit card due to the risk of decreasing}_{credit score}_{. This business article also covers the fact that credit cards pose the risk of a reduced credit score. Credit scores are crucial for the later stages of life such as finding mortgage for a house. A high}_{credit card balance}_{is what can harm one's credit score as debt accounts for 30% of the total score. By avoiding extensive use of credit cards, an individual can protect their credit score and reduce the risk of property seizure, should they miss payments.}

Summary Of The Blog

13925 — 2017-06-14 07:54:28 UTC

_{This business blog provides an alternative to using credit cards and gives the pros and cons of each method. The alternative method is called a personal loan. A personal loan is an unsecured loan that is payed off in set monthly payments, and can be used for almost anything with value i.e a house, car, Television etc. This article also goes over the upsides and downsides of using personal loans versus using a credit card.}

Key Terms

13925 — 2017-06-14 07:54:50 UTC

Credit Score- A rating given by banks to an individual designed to determine weather they can we trusted with repaying their loan. A high credit means highly trustworthy whereas a low credit rating means the opposite. Credit scores also determine weather one is likely to get a loan.

Credit Card Balance- The amount of money an individual has to pay back to the credit card provider.

The Credit Card Alternative You Might Have Overlooked

13925 — 2017-06-14 07:55:00 UTC

^{"The Credit Card Alternative You Might Have Overlooked."}^{Fox Business}^{. Fox Business, 19 July 2016. Web. 14 June 2017. <}^{http://www.foxbusiness.com/features/2016/07/19/credit-card-alternative-might-have-overlooked.html}^>.

How It Relates to Population Demographics

13925 — 2017-06-14 07:55:46 UTC

_{During the Unit a lot of emphasis on the population demographics was placed. Population demographics determine what a government needs to do in order to maintain a strong economy. The current population pyramid for the United States resembles a beehive structure, which means low population growth rate but a large proportion of young working class individuals. The strongest connection between the blog and the unit is that both the unit and the article mention an increase in social welfare, in order to support the retirees. Moreover an aspect of the unit that blog hints towards is the need for funds for the social welfare programs, since a larger amount is required by the 56% of retirees with insufficient savings due to the aftereffects of the 2007-2009}_{financial crisis. The United States government is likely to raise taxes in order to fulfill the extensive need for social welfare programs, a tactic that is also mentioned in the Unit.}

Summary Of The Article

13925 — 2017-06-14 07:56:06 UTC

_{This Video and blog discuss an issue that is beginning to concern economists in the Unites States. The baby boomer generation, born between 1946-1964 are beginning to retire by the masses. According to this blog, around 10,000 people from this generation retire per day. Baby Boomers, aged between 55-65 as of 2017, make up one of the largest percentages of people in the United States. This means the government has to be able to facilitate the large influx of retirees through}_{social welfare programs}_{, which itself is manageable considering the working class is nearly proportional to that of the baby bloomers. What is making the situation slightly worrisome for the United States is that approximately, 30% of people over the age of 55 claimed they had no retirement savings, while 26% of people in this age group had less than 50,000. This is mainly due to the recession experience in 2007-2009, where unemployment was extremely high. Moreover the stock market crash also affect the investments of a lot of baby boomers. it is up to the government of the United States to provide for the growing elderly population, especially those with insufficient savings.}

Key Term

13925 — 2017-06-14 07:57:52 UTC

Social Welfare Programs- A system designed to help individuals that struggle financially by providing them with regular payments and discounts for essential items such as food and water.

Are We In a Baby Boomer Retirement Crisis

13925 — 2017-06-14 07:58:00 UTC

^{Friedberg, Barbara A. "Are We in a Baby Boomer Retirement Crisis?"}^Investopedia^{. N.p., 07 June 2017. Web. 14 June 2017. <}^{http://www.investopedia.com/articles/personal-finance/032216/are-we-baby-boomer-retirement-crisis.asp}^>.

Key Terms

13925 — 2017-06-14 09:39:17 UTC

Sustainable- The ability to replenish indefinitely.

Renewable sources- Sources of energy that are unlimited and are able to replenish themselves as a rapid rate.

Clean Energy- Energy that is produced using renewable resources and does not have a negative impact on the environment.

13925 — 2017-06-14 14:51:46 UTC

Throughout the duration of this course, four main units were covered. These include: supply and demand, Government Intervention, international trade and Economic responsibilities. To begin with, supply and demand covered the fundamental basics such as scarcity, and the various principle of the fundamental economic theory. The basic function of the of the unit was to lay a strong foundation in economics since all units revolved around the principles of this unit. Government intervention was based on why the government places directly relating to businesses in a country. Moreover the importance of taxes was also discussed. International Trade was based on the reason why it was crucial for countries to trade with each other and how they could trade with maximum efficiency. The unit Economic responsibilities went over why each individual capable of working should work and how doing that contributes a healthy and growing economy. The fours units are also intertwined very closely and are built off on another. For example chapter one involves the business cycle and the various stages involved. In the Next unit, Government Intervention, fiscal and monetary policies were introduced. When Looking at the bigger picture, one realizes that different stages of the business cycle call for different types of monetary and fiscal policies. For instance, If the Economy is in the trough phase, the government would most likely utilize an expansionary fiscal policy. An expansionary fiscal policy calls for a reduction in taxes and interest rates as well as the creation of jobs by the government. This would result in people spending therefore bring the economy out of the trough phase. Moreover an expansionary monetary policy would also be used which would see a reducing in RRR (Reserve rate requirement) for banks and a reduced interest rate. Once again this would encourage people to take money and spend it therefore increasing the money supply within an economy. When studying International trade, content from supply and demand as well as government intervention was present. On one occasion, a discussion was being held on what would happen if the demand for foreign goods increased, the demand for local goods reduced. This was creating a situation where more money was being sent out of the country then was coming in, since local businesses were struggling produce and sell their goods. Government Interventions such as Tariffs- fee charged for importing a produce and Quotas- maximum quantity of good that can be imported, are placed to avoid situation like this where local businesses in a country die off due to imports. Once local businesses are no longer present, the country cannot sustain itself as no jobs are present. By allowing a free flow of imports, countries are setting themselves up for a situation where they begin to send money out of the country for imports but do not have a sufficient source. This is also where material from economic responsibilities comes to play. As a consumer, it is one responsibility to support the local economy by limiting their use of imported products, especially if the laws do not protect local businesses. Moreover It is the government's economic responsibility to make decisions with the well-being of the economy in mind in order to avoid events such as recessions.

In terms of applicability in the real world, I believe the material I learnt in this course will help me excel in day to day life because of multiple reasons. Supply and demand has taught me why prices of goods vary through the principle of elasticity. Elasticity has taught helped me understand why some increasing prices of essential goods such as food and water does not affect demand, while increasing the prices of an elastic goods like smartphones will reduce their demand. Using this principle, If I decide to run a business one day, I know I will have a better chance at making more profit if I sell inelastic goods as people require them to live. Government intervention has taught me how and why it is important to place laws in businesses in order to protect the consumers. In terms of helping me, One of the aspect of this units was investing in stocks. I learnt that investing in ETFs (electronically trades funds) and indexes was the best way to make money as constant transactions as well as constant maintenance is not necessary. This simple piece of knowledge will help me pay my potential financial needs. Another part of this unit was the different signs of both a growing and shrinking. If the government of the country I am residing in decides to implement an expansionary fiscal policy and I were about to buy a house, I would wait for the expansionary policy to be implemented before taking the loan, since interest rate would reduce, therefore I would pay have to pay less once I begin to return the money. International trade has also taught me a multiple key points. To begin with, If I were to import to a country, I would import goods to a country that has an alliance with my country. For example, If I am in Germany, I can trade with Belgium with little to no trading restrictions. If I were a deciding member in what my country produces, I have the knowledge to start producing and exporting the product I have an absolute advantage, as it will make the most money. Economic responsibilities has taught me how to become a contributing and taxpaying citizen. The biggest lesson this unit has taught me is to chose sustainability or short terms profit. A sustainable business, for example, will continue to generate profit whereas a short term business will generate large amounts of money before shutting down rather rapidly. Apart from this, I now know the importance of paying taxes as without them the government will not be able to invest in new project to improve the country. Moreover evading taxes will also result in stunted economic growth as less governmental budget means less jobs for people. Adding on, if a large percentage of the population began evading taxes, the tax paying citizen would have to pay extra just to keep the economy from crumbling. Overall, this course has been very informative and has taught me principles that I can use in my day to day life in order both live a financially successful future and become a model taxpaying citizen.