Essays on How Recession Works Assignment

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The paper "How Recession Works" is a great example of an assignment on macro and microeconomics. At a point inside the production possibility curve, the opportunity cost is zero. This is due to the fact that at this point the resources are underperforming. The resources can be used in a more effective way without affecting the other resources as in the case where machines can be used in a more effective way without affecting the production of food highlighting that there is no opportunity cost and the resources are underperforming. ii. Factors which helps to improve the efficiency of the resources and helps to produce more goods or service using the same resources results in a shift in the production possibility curve.

For example, the development of technology shifts the possibility curve outwards highlighting the change in efficiency. Producing goods at the production possibility curve shows the most efficient point and any point other than it calls for the economy to move towards efficiency. Any point inside the curve represents inefficiency and wastage of resources as the economy is under producing. Any point outside shows growth inefficiency to produce more using the same resources.

The concept of production possibility was developed due “ to the concept of scarcity” . (PPF, 2010) The unlimited wants depleted the natural resources forcing the economy to manufacture products which will provide them with the maximum advantage and help to achieve efficiency. This model thereby highlights an important fact that production has a limit in every economy and the economy needs to decide what it wants to produce and in what quantity. b. i. This is a positive statement because it brings forward a statement which can be true or false.

Since the statement highlights the positive mood and is concerned about what which doesn’ t require any approval or disapproval it is a positive statement. ii. This is a positive statement because the value judgement is not desirable. It brings forward a statement which can be true or false. Since the statement highlights the positive mood and is concerned about what which doesn’ t require any approval or disapproval it is a positive statement. The statement shows a fact which can be truthful or false which requires validation and shows a positive light.

References

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Harris, T. How Recession Works. 2010. Retrieved on April 19, 2011 from http://www.howstuffworks.com/recession.htm

Inflation. When inflation starts to hurt. 2011. Retrieved on April 19, 2011 from http://www.livemint.com/2011/01/04202350/When-inflation-starts-to-hurt.html

Moffat, M. How can you tell when there is recession. 2010. Retrieved on April 19, 2011 from http://economics.about.com/cs/businesscycles/a/depressions.htm

Recession, What is Recession, 2008, retrieved on April 19, 2011 from http://getanswers.co.in/what-is-recession

USIP, United States Industrial Production. 2010. Retrieved on April 19, 2011 from http://www.tradingeconomics.com/Economics/Industrial-Production.aspx?Symbol=USD

Unemployment rate, US Unemployment rate recent history, 2010. Retrieved on April 19, 2011 from http://www.data360.org/dsg.aspx?Data_Set_Group_Id=248

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