Economic Activities - 690 Words

Economic activities occur continuously. From buying groceries, experiencing massive layoffs, and decreasing taxes everyone is a part of the economic process. These things have an effect on government, business, and households. This analysis is a simplification of a complex process. Buying Groceries At first glance buying groceries is a simple task. One goes to the store and makes purchase; returns home and consumes the groceries. This activity involves more than a simple purchase. The government sets the tax rate the grocery is responsible for. The grocer collects that tax from the consumer at time of purchase and forwards it to the government. The government regulates the quality and standards of the product that the grocer purchases†¦show more content†¦With less taxation the government has less revenue. With fewer dollars expenditures are less, including employing practices and insurance benefits creating a cascading effect. Contracts for projects are fewer, which affects suppliers who in turn employee fewer people. Once again a downward spiral is created. Conclusion Finally whether, a business, a household, or the government an economic link exists between each component. The actions of the government affect business and households; actions of business affect households and government; actions from households affect government and business. Either positive or negative outcomes depends on the actions of any one of these economic components. References Sum, A., McLaughlin, J. (2010). The Massive Shedding of Jobs in America. Challenge, 53(6),Show MoreRelatedEconomic Factors Affecting The Economic Activity Of The Uae998 Words   |  4 Pagesmining, information, and manufacturing are less contributions to the GDP. However, the concentration in the economic activity in UAE are in sectors with limited productivity growth, such as tourism, retail trade, and construction. In addition, exports are concentrated in gold and jewelry as well as tourism and transportation services. While in Canada the concentration in the economic activity in sectors with higher productivity growth such as agriculture. Another major contrast, is that Canada hasRead MoreThe Effects Of Oil Prices On Economic Activity1525 Words   |  7 Pagesexporting countries such as Canada, Russia, Norway, Mexico and UK. The hypothesis of oil price effects will be tested by adopting the Vector Autoregression (VAR) framework, which has been widely used to examine the effects of changes in oil price on economic activity in other papers. The main findings of this paper conclude that there is a considerable relationship between oil prices and key macroeconomic indicators in the countries under analysis. The impact of oil prices varies among countries with theRead MoreInternational Trade : Economic Activity Of Nations1627 Words   |  7 PagesInternational trade is important to the overall economic activity of nations, including the growth and domestics’ production. According to the United Nations Conference on Trade and Development (UNCTAD) and WTO, international trade has grown remarkably in recent decades a s shown in figure 1 and 2. It can be seen that the growth of trade has led into the rapid economic growth in some countries. The reasons of rapid growth in world trade is due to the reduction of trade barriers at global and regionalRead MoreA General Slowdown In Economic Activity, A Downturn In1664 Words   |  7 PagesA general slowdown in economic activity, a downturn in the business cycle, a reduction in the amount of goods and services produced and sold. All of these listed here, are characteristics of a recession. 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The name of the group means Western or non-Islamic education is a sin. The group is active in the northern part of Nigeria, and their primary objective is to impose Islamic law as the only law in Nigeria. TheRead MoreExplain how Leakages and Injections Influence the Level of Economic Activity and Explain how the Government Influences Economic Activity1165 Words   |  5 Pagesinfluence on economic activity, as they basically are economic activity. Without leakages and injections there would be no circular flow, without which the economy would run as it does now. The government also plays a major role in the running of the economy as it has a great influence over what goes in and out of the circular flow by the way of taxation, imports and exports. The five-sector circular flow of income model is a theoretical way for economists to describe certain features of economic activityRead MoreThe Influence Of Two Economic Environments On Business Activities1820 Words   |  8 PagesIn this task I would be talking about the influence of two economic environments on business activities. So this could be how Sainsbury’s in the UK operated during the recession and the boom period. The UK is in the growth economic environment and this means the country was before in the recession economic environment and now it is growing. This does not mean they are a rich country compared to China. Economic Importance of stability- stability is when business people can make predictions for theRead MoreThe Relationship Between Public Capital and Economic Activity 1233 Words   |  5 Pagesassociation with productivity. Nevertheless, the ‘core’ infrastructure such as streets, highways, airports, mass transit, sewers, water systems, etc., had the majority explanatory power for productivity. The relationship between public capital and economic activity at the State level in the US was examined by Munnell (1990a, 1990b). In the initial analysis, public capital was found to have a considerable and positive impact on output even though the output elasticity was roughly one-half the size of the