Introduction to Economics Assignment Essay Example | Topics and Well Written Essays - 1750 words

Introduction to Economics Assignment - Essay Example Free Market Economy is also characterized by the rights of individuals to buy and hold private property (Lipsey & Chrystal 2003). This characteristic is an incentive for both buyers and producers. It allows both buyers and producers to make bold and brave decisions. Since producer knows that he can own land, capital and other factors of production, he invests money into the system. Buyers also know that they can acquire goods, property or other thing of value now and can either consume it or store it for future consumptions. This moves the wheels of the economy and leads to equilibrium quantity demand and quantity supplied in the market. It also leads to price adjustments in the economy at a point where the motives of the buyers meets the motives of the sellers or producers. This is also called market creation or market searching. Market searching is the process when the market is trying to adopt or settle at the equilibrium price. Eventually market settles down at equilibrium becaus e in over priced market supply is greater than demand which eventually leads to price going down. If the market is under priced demand is going to be higher than supply and this will result in price hike and eventually equilibrium will be reached. Free Market Economies encourage the process of market searching through market forces working without any intervention from government or other control factors. (Brue & McConnell 2006) Adam Smith also pointed out an interesting phenomenon in the system. He laid the foundations for the concept of â€Å"Invisible Hand† in the free market economy. He was referring to the fact that everything changes in response to the movement in prices. In essence, he was telling the world that in order to achieve their own motives, buyers and producers end up doing good for the system. This interesting fact can be explained in the following example. When a person earns income in this system, he spends it on his necessities, needs and wants. The money spent in the economy changes hand and transfers from the hand of the person spending the money to the producers of goods and services wanted by that person. This encourages producers of these goods and services to employ more resources and produce more goods and services. This leads to employment generation in the economy and when people are employed they tend to invest and save more. This leads to further employment generation and the cycle continues. The focus in this example is on the trickledown effect in the Free Market Economy. Many countries where the socialism dominated previously have realized the importance of Free Market Economic System and are opening up themselves for more private investment and encouraging the development of private entrepreneurs that will provide the impetus for high economic growth rates. The debate here is not about how good or bad the free market system, but it is more about why aren’t countries adopting the model of free market economy in its perfect sense. Even USA is not a totally Free Market Economy. Government controls and regulates the economy in the United States of America as well. The reason for this is simple. Extremism in any system is bad. If a system is totally dominated by private sector without any government regulation of the economy, then there are chances that private businesses might exploit the resources, consumers and the environment. This would lead

Grant proposal for skagit conty to prepare Flood awareness brochure in Essay

Grant proposal for skagit conty to prepare Flood awareness brochure in Spanish - Essay Example The project plan helps in sensitizing the people on the response to an emergency and the steps necessary to ensure that they are safe. The plan is expected to capture the audience that mostly do not understand English and feel let put on the local authority disaster management plan due to language barrier. The projects objectives include the Hispanic and Latino community living in Skagit County, Washington for flood disaster that looms in their neighborhood. To achieve the goal, there is a need for the community to understand the sub objectives that supplement the main goal. Identify the warning systems. The warning systems are the media of communication that is accessible to many people. The systems include the radio stations weather channels and warnings from people in the authority. Identify members of the Hispanic and Latino community and create a community directory. Discuss the evacuation procedures in place with the community in regard of what to carry like medicines and clean water. The procedures should be encouraged to be on family levels where the head of the family is to ensure that if an alert is given all the family members are together and leave as a family (Veenema, 2003). The community level involves familiarizing the Hispanic and Latino community on the roles of the police during an evacuation. To discuss the precautions to take during and after a flood in order to avert waterborne diseases. The community will be advised on how the best practices to avert water bone diseases that are common during and after floods in the area. Community resilience is essential and critical in any community. It ensures that when disaster strikes the community recovery and restoration be fast tracked in terms of essential services (OLeary 2004). Community resilience involves identifying and evacuation route in Skagit County. This is done in collaboration with the residents and the authority that best know the area. The process of community