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Economy Questions and Answers (Q&A)

S. Barnes

Driving down to Knowledge town

Flying on an airplane can be both enjoyable and relaxing or problematic and annoying. It depends on where you sit and who you sit next to. Most people who fly first class or business class, really have it made. They get to board the airplane first, and then they have ample legroom.

Those who fly coach or economy must sit cramped three to a row and very little room to move. However, there is a difference between riding in a coach and riding in the economy. Coach is probably a little more expensive, but you get a bit better seat that has a bit of legroom. Economy seating is the cheapest and is located mostly in the back of the plane.

2 Answers

T. Lopez

Let's see how far my knowledge stretches

There are so many differences between communism and capitalism, which must be clearly understood. Communism and capitalism differ in their approach as regards both political and economic ideology or philosophy. Communism simply means a political philosophy or ideology in which both the resources and the means of production are collectively owned by the people. In communism, classes and the state don't exist. Everybody is treated equally with the existing resources.

Capitalism, on the other hand, means a socio-economic system where the resources and the means of production belong to private individuals or organizations. In capitalism, the economy is being driven by private people, and the profit belongs to them alone. In communism, the returns or profits are shared collectively by people. In communism, the economy is being run and driven by the government. In communism, the word 'private' property does not exist as all the resources are equally owned by people.

2 Answers

This answer would be all about perspective and hence, opinions of people may vary. So let us answer this question from the perspective of a business with unlimited liability. Firstly, there are lesser number of formalities that companies with unlimited liability have to deal with.

Apart from that, there can be some advantages related to tax. However, this advantage would totally depend on the amount of advantage that a business makes. It is easy to raise financing via companies with limited liability. Moreover, they also happen to carry a lesser amount of personal risks.

1 Answer

There are many challenges facing the global economy. Certain events will put the global economy at risk. Man-made financial events such as increasing interest rates can impact the global economy for better or worse, depending on the timing and speed of the rate increases.

Other man-made events can put the global economy at risk, such as threats of nuclear war or policitical instability in a major economic player like the United States, Great Britain, or China. Natural disasters can also have an impact on the global economy. Political upheavals and wars will impact the global economy not only because a country's own economy will suffer but also because trade relations are often impacted.

1 Answer

The reason gas prices you pay at the pump fluctuate so frequently is that the price for gas is dependent on what the retailers pay for the gas. The retailers pay gas companies. Gas companies charge for gas depending on what the current price is for crude oil. This is heavily dependent on supply and demand for oil.

Politics can impact oil prices if countries needing oil and countries supplying oil are at odds with each other. Instability in a country supplying oil can also impact prices if it becomes harder to extract or export the oil from the country.

1 Answer

There are two main reasons why the government cannot just print more money to make everyone rich. The first reason is that there used to be a gold standard, meaning that for every dollar in the economy there was actual gold to back that dollar, so that if needed, cash could be traded for gold, in theory.

We do not function on a gold standard anymore but our cash still needs to represent something in the economy. The second reason is that if the government printed more money, the inflation rate would skyrocket so high that the value of the U.S. dollar would be almost worthless. This would put the U.S., and the world, into serious economic trouble.

1 Answer

A full employment U.S. economy would be nearly impossible to reach. I think we could get within a percent or two, but zero unemployment would be an unrealistic goal. In theory, if every person in the U.S. who could work was working, the economy would be stronger. The government would not have to pay unemployment benefits to anyone, welfare payouts would be low or non-existent, and businesses would be thriving because they would be fully staffed.

Currently the unemployment rate is dropping, and has been dropping for several years, as a result of an upturn in the economy after the recession in 2008. If the U.S. continues to promote policies that encourage people to work, we will continue to see unemployment numbers decrease.

1 Answer

An aging and slow growing population can have very negative effects on a country's economy. Japan is a great example of this type of effect. As the population ages, elderly citizens require more care, which is expensive. With a slow growing population that means there are fewer people to take care of an aging population.

This can make it harder for some able-bodied people to work if they are needed at home to take care of an aging parent or grandparent. This also negatively impacts the economy. Countries that pay for elder care from government programs will see the costs of these programs increase while contributions to the program from younger people's paychecks decrease.

1 Answer

There are several reasons for the economic upturn in the United States since 2016. One reason is that the economy has been in an upswing as it is recovering from the recession in 2008. In the 8 years since the recesssion, the economy has been recovering. This is due to careful strategic planning at the Federal Reserve and other major financial institutions.

Another reason the economy, and especially stock prices, have seen a jump since 2016 is that President Trump is widely seen as pro-business. When Trump was elected some businesses saw this as a promising sign for business-friendly policies in the future.

1 Answer

There are lots of things that could trigger a collapse of the United States economy, but there are also lots of safety nets in place to prevent that from happening. The Federal Reserve's main job is to protect the economy of the United States and they enact policies based on science and research that stabilize the economy.

The Federal Reserve may not be enough to protect the economy from a major event in the United States however. Something as major as nuclear war, significant internal political upheaval, or a major natural disaster may provide enough instability that the economy could collapse.

1 Answer

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