Economics essay fact in policy theory

Because of an editing error, an article on Page 36 this weekend about the failure of economists to anticipate the latest recession misquotes the economist John Maynard Keynes, who compared the financial markets of the 1930s to newspaper beauty contests in which readers tried to correctly pick all six eventual winners. Keynes noted that a competitor did not have to pick “those faces which he himself finds prettiest, but those that he thinks likeliest to catch the fancy of the other competitors.” He did not say, “nor even those that he thinks likeliest to catch the fancy of other competitors.”

Theory and observation set out the conditions such that market prices of outputs and productive inputs select an allocation of factor inputs by comparative advantage, so that (relatively) low-cost inputs go to producing low-cost outputs. In the process, aggregate output may increase as a by-product or by design . [36] Such specialization of production creates opportunities for gains from trade whereby resource owners benefit from trade in the sale of one type of output for other, more highly valued goods. A measure of gains from trade is the increased income levels that trade may facilitate. [37]

According to Thomas (2004), Malaysia is heavily depending on foreign trades, the nation's exports account contributes large proportion of GDP, and manufactured goods are one of the main exports of Malaysia. As Malaysia is dependent on generating revenue through exports, many problems would occur if the exporting sector fails. Mainly, it will cause a major unemployment issue that would cause many of its people to suffer economic downfall. This is because manufacturing factories fail to sell and export their products, causing them to face financial problem. Therefore, it would result in the closing down of the factory, thus, the unemployment rate rises.

Economics essay fact in policy theory

economics essay fact in policy theory

Media:

economics essay fact in policy theoryeconomics essay fact in policy theoryeconomics essay fact in policy theoryeconomics essay fact in policy theory