This website uses cookies to ensure you have the best experience. Learn more

Interpreting Micro Economic Conditions Essay

1315 words - 6 pages

Indicators of Micro-economic conditions in economy (Quarterly).
|Economic Indicators |Dec’2010 |Mar’2011 |Jun’2011 |
|GDP Growth (In Billion) |14,755.0 |14,867.8 |14,996.8 |
|GDP (Changes in %) |2.3 |0.4 |1.0 |
|Unemployment(Million) |14,637 |13,542 |14,086 |
|Unemployment (Change in %) ...view middle of the document...

S. economy is by looking at Gross Domestic Product (GDP), which is the statistic used to measure the economy. In other words, the U.S. economy, as measured by GDP, is everything produced by all the people and all the companies in the U.S. In the second quarter of 2011, the GDP was 0.4 which was decreased in compare to December 2010. Though the GDP was slightly increased in second quarter, as regards in inflation rate was increased both first quarter and second quarter, the sign are not good for healthy economic.
Unemployment: The unemployment rate in second quarter was increased 9.2% as compared to 8.8% in first quarter. Unemployment affects the economy in ways that most people do not visually see. If more people are unemployed, less people pay taxes or have money for spending. Spending money boosts the economy through taxes which is why everything is taxed. The taxed money adds up when everyone shops. If one is unemployed, they live on what is saved or what unemployment departments give them. Therefore, they do not have money to be frivolous, they only buy necessities.
Consumers Price Index: On a seasonal adjusted basis, the CPI-U increased 0.05 percent in second quarter of 2011 as compare to December 2010. It was decreased in December 2010 and also decreased again in second quarter in 2011.  This index is considered to be one of the most accurate indicators of confidence for consumers. A drop in the CCI indicates pessimism in the consumer area. This equates to a direct impact on the spending habits of consumers. An increase in the CCI would also affect the spending habits of consumers. Personal wealth and consumer credit are impacted by the CCI as well. Changes in personal income are part of the CCI and changes in personal income affect the spending habits of the public. An increase in personal income results in an increase in spending.
Income: Income was slightly increased in first quarter (0.5 %) as well as second quarter (0-2 %) of 2011. When an individual's income increases, other things remaining the same, that person will demand more goods and services; thus increasing their consumption. The degree to which a person or economy will spend more of their income on consumption is called the marginal propensity to consume (MPC). The MPC depends on the individual's economy's savings characteristics. As regards in inflation rate are higher that income rate, the increase of income will no positive effect in economy.

Interest Rates: Interest rate have been decreased both the first quarter (0.18%) as well as second quarter (0.09 %) Interest rates are defined in several different ways. There is the rate for real interest which is the nominal interest rate adjusted for expected inflation. This is the rate which influences a firm’s investment decisions.  Changes in nominal interest rates are felt within the consumer community as adjustments to the cost of borrowed funds. i.e. lower federal interest rates equate to lower...

Other Papers Like Interpreting Micro-Economic Conditions

Role Of Ngo In Bd Essay

6827 words - 28 pages position. NGO is the short form of non-government organization. Main objective of NGO is to help poor people in the society. NGO helps poor people by providing the basic needs form which they are deprived. NGO provide their support to underprivileged people through their activities. Activities of NGO such as Micro-credit, Health & sanitation, Education, Advocacy and Employment are main activities which are conducted by NGO. In Bangladesh

Unit 4 Marketing Principles Essay

2332 words - 10 pages , targeting and positioning §2.1 macro and micro environmental factors which influence marketing decision Macroenvironment – “… the social, political, economic, etc. conditions that affect a particular industry or business …” [2] Microenvironment – “… the conditions relating to a particular organization, such as management, competitors, customers, etc.: Shareholders are part of company’s microenvironment …” [3] Figure 1 [4

Online Communities - Functional And Social Benefits

949 words - 4 pages which customers enter into and engage in know-how exchanges with other customers.” The MOA variables will operate in an additive or a compensatory manner only if each variable has achieved its minimum threshold and certain conditions are met. Motivation H1a H2a,b H4  H3a Opportunity H1b H3b Overall Value of the Firm’s Offering  H5  Motivation is the primary factor; Opportunity and Ability will influence the

Philosophy, Politics And Economy

1220 words - 5 pages system. With these struggles come economic factors as well as how it shapes the social structures of each state. The Civil War had the greatest impact of all. This was the deadliest time of all with many lives lost. The root of the conflict was slavery. The South depended greatly on slavery. According to Mcgraw “…a planter could expect one of his slaves to produce more than $78 worth of cotton- which meant that about 60 percent of the

Enterpreneurship

3332 words - 14 pages Priority Sector Schemes- a) Credit assistance to women entrepreneurs in tiny and SSI sector b) Credit Assistance to women beneficiaries in other Priority Sector Schemes c) Credit facilities to women entrepreneurs under various Govt. sponsored  schemes like -Prime Minister's Rozgar Yojana(PMRY) -Swarnjayanti Gram Swarozgar Yojana(SGSY) -Swarnjayanti Shahari Rozgar Yojana(SJSRY) -Differential Rate of Interest Scheme(DRI) -Micro Credit to

Economics

1295 words - 6 pages ). As established by the economic domain, microeconomics focuses on consumer decisions and procedures employed to address conditions principal to bad customer decisions by the government. The economy has suffered a serious setback form the current global recession with the government taking on a nominal part in trying to address these issues. The most notable recent microeconomic event is the global credit crisis that has wrecked the current

Busu Ge

2518 words - 11 pages addressed, this report seeks to apply the theories of OB and apply the principles to the military Addressing relevant issues with the design and implementation of military customs and traditions established working conditions of night check versus day, working at night or during normal working hours. People who put in more work hours versus people who work less hours and receive the same compensation. The issues of group dynamics between the

Busness Evironment

3371 words - 14 pages Competition Policy. However, the policy is still not seen as the ultimate solution to the problems of either economic making policies or micro-economic analysis. Even though, there has been evolution/revolution in both economic making policies and microeconomic analysis. This has resulted to the intersection of economic regulation and competition policy in the UK. The 1998 Competition Act, for instance, has undergone through several transformation

Entrepreneurs In Sri Lanka

2936 words - 12 pages MACRO AND MICRO ENVIRONMENT ANALYSIS FOR NINTENDO Macro Environment Macro environment is said to be the most general layer of the environment. This consists of broad environmental factors that have an impact on the organisation. The PESTEL framework helps us to identify the future trends which might impinge on Nintendo and therefore identify the key drivers of change. On the other hand the five forces framework helps to understand how the

International Trade

3689 words - 15 pages . Unfortunately, these conditions do not hold, so there is relatively little direct empirical evidence on this question.[i] There are many different kinds of liberalisation, the following are trade, capital account, foreign exchange, credit and domestic competition. Although others are clearly significant and they are obviously inter-related, the main focus is on trade liberalisation. Trade liberalization The economic argument for more free

Proposal

1691 words - 7 pages region are largely dependent on the financial institutions, segmented financial institutions, micro finance institutions and of several insurance companies who are operating their business in that region. These organizations helping the nations in providing overview of the market conditions and economy. As they are directly indulged to the people they are quite capable of learning the notions of the people (the demand of the people in terms of

Related Essays

Micro Finance Essay

5439 words - 22 pages Microfinance in Assam: Hymns, Myths and Realities. Dr. Jyotish Bordoloi, Associate Professor, Haflong Govt. College. Ms. Brahnisikha Bordoloi,Assistant Professor, Lakhimpur Commerce College. Introduction: Microfinance has emerged as an effective method to fulfil the financial needs of small borrowers and poor sections of the society to uplift their economic conditions. In spite of creditable expansion of institutional credit

Msme India Essay

1728 words - 7 pages PROLOGUE: An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services Sector, as follows: * Manufacturing Sector: Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is as below: | | * A micro enterprise is an enterprise where

Business Essay

1949 words - 8 pages External Micro- Environment Micro environment includes those players whose decisions and actions have a direct impact on the company. Production and selling of commodities are the two important aspects of modern business. Accordingly, the micro environment of business can be divided. The various constituents of micro environment are as under: Suppliers of inputs: An important factor in the external micro environment of a firm is the

Oraganizational Manangement Essay

1619 words - 7 pages The Nature of Entrepreneurship Danielle Norris Missouri Southern State University Abstract The two keys to a sustainable social enterprise are the economic factors and the enabling technology. Economic factors are key to the social enterprise because when a social entrepreneur has the economic factors align with their mission it can be huge contribution to it’s success. Enabling technology provide many benefits to the social enterprise