Business Economics Problemset

Elderly people (women and men age sixty-five or older) (Macionis, 2005), Have many obstacles to face as they grow older, many of these obstacles involve social inequality. Not only do the elderly have to learn to deal with many forms of Ageism (the stereotyping and prejudice against individuals or groups because of their age), some also have to deal with the fact that they do not have enough savings or pension benefits to be self supporting, for most people over sixty-five, the major source of income is social security (Macionis, 2005). This forces many elderly Americans back into the workforce to continue to earn money to support themselves and or spouses. Although many elderly Americans may choose

People will engage in a trade, if both parties think that the benefit will outweigh the cost so that is when the trade occurs. If both parties do not believe in that they will not benefit from the trade, then the trade will not occur. A trade does not happen unless both parties think they will win. Trading created wealth in reality, so the benefits outweigh the cost. (pg 20)

In general, countries experiencing high fertility and rapid population growth, have a “young” population structure and the important policy considerations are if there are enough schools and, sufficient jobs and housing to accommodate this population. Countries with “old” population structures face the problems of structuring and developing retirement and health systems to serve this older population and also they have a considerable reduction the number of the working force. The decline of the work force is one of the most dramatic economic tendencies of the past four decades in the United States. The individual’s decision of whether to stay in the workforce or to retire is based on the collaboration of a number of factors including the following: eligibility for Social Security benefits, availability of and benefits under an employer-financed pension plan, work

Medicare is not the only benefit seniors receive from their government. Taxes can be greatly affected by age. For instance, many elderly receive tax breaks and extensions based on their social security benefits as well as reductions and tax-cuts on certain holdings and investments. So with Roth IRAs, 401k the elderly is only taxed upon withdrawal. Discounts are available everywhere for the elderly from restaurants to cruise ships. Normally, with higher prices bring bigger discounts. Ageing workers are more skilled, knowledgeable, and more proficient than their younger counterparts. Often times it can be said that the “older people” are more intelligent, practical, intuitive, extremely flexible and very strategic in their work ethic, planning and can be considered “intelligent” in life’s well learned lessons that come with age and wisdom. Being positive and using an example in this way between aging and greater wisdom, one tends to have a greater degree of patience, greater understanding and wisdom that parallels life’s pathway. “Many elders in foreign countries are considered to be esteemed and held in high regard,” (Applebaum, Bardo, Robbins (2103). Some studies show that interests, motivation and skill does not decline with age, nor does a person’s work performance suffer due to aging. Aging workers also receive higher salaries due to their tenure. Finally, there is no data to show that older workers cost more to insure than younger

If each country specializes in areas where its advantages are greatest or disadvantages are least, the gains from trade will make each country better off than it would be if it remained self-sufficient. [3]

It has to be a mutual attitude between the countries that are in trade, both need to be equal and be willing, and history has shown time and again, relationships between countries swing from best friends to mortal enemies very quickly. He says that America would be the sole country exuding this “free trade”

Which of the following arguments states that a country should restrict trade to protect industries that provide social usefulness, such as domestic R&D?

Economic factors will play a role in baby boomers working beyond the age of 50. Due

In conclusion, the topic of free trade is difficult to debate and often controversial as it has advantages but also disadvantages. Nonetheless, the drawbacks outweigh the benefits as it one, contravenes basic moral ideologies, two, makes the rich, richer, and the poor, poorer, and three, jeopardizes our declining environment. All in all, free trade will neither support nor sustain our country to be ethical, prosperous or

Social Security Act was part of the FDR’s New Deal program. Social Security was initially a retirement program and later added survivors and disability insurance, and Medicare. (Shiller 258) Social Security is an important program in the U.S., especially for the elderly. As the elderly age, their health care expenses tend to get bigger as they age. This program is not designed to prevent poverty, it is designed to be a social insurance for the elderly. People become eligible to receive benefits only if they have worked for a certain amount of years and paid payroll taxes. Social Security has helped prevent poverty in the United States. In 2005, around 10% of older Americans were considered to be poor with Social Security, without Social Security the amount of elderly Americans in poverty would be around 49%. Beneficiaries are dependent of the social insurance as it accounts for a big portion of their total income when they are retired. From age 65 to 69, 27% of total income for beneficiaries comes from Social Security. Ages 70 to 74 38% of total income comes from Social Security benefits, ages 75 to 79 46%, and ages 80 plus 53%. Therefore, as beneficiaries become older, they begin to rely more and more Social Security benefits as a source of

The current state of the social security system, while its history comes from a well-intentioned source, has been negatively impacted by many issues in recent years. “The Social Security program 's has many benefits: retirement and disability income, Medicare and Medicaid, death and survivor benefits. INVESTOPEDA These are important benefits to have for the wellbeing of the country as a whole. However due to demographic changes resulting in fewer workers paying into the program and more recipients taking benefits out, the available benefits are becoming scarce CITE. The rules of supply and demand are showing a

Economic analysts say trading among other countries with no stipulations improve global efficiency in resource allocation (Tupy, 2005). Free Trade delivers goods and services to those who value them most and allows partners to gain from specializing in the producing those goods and services they do best; according to Tupy’s findings, Economists call that the law of comparative advantage. Tupy also states when producers create goods they are comparatively skilled at i.e. Germans producing beer and the French producing wine, those goods increase in abundance and quality. Trade allows consumers to benefit from more efficient production methods, for example, without large markets for goods and services, large production runs would not be economical. Large production runs, in turn, are instrumental to reducing product costs while lower production

Adam Smith, author of The Wealth of Nations, shows support for free trade and emphasises it as a trade policy which ought to be adopted. Krugman and Obstfeld back Smith's support by stating that the efficiency of trade is increased by free trade and accumulates the national income of countries. Free trade is a theory which suggests that each nation benefits in specialising in an economic activity from which it gains absolute advantage, enjoying absolute superiority over other nations in a specif economical activity (Peng). With free trade follows opportunity, replacing regulation and growth of economic activity. (Rugmann and Collinson).

The Ricardian Theory of comparative advantage, named for the eighteenth-century classical economist David Ricardo, holds that the general welfare of two or more countries will be higher for all; if free trade among them is permitted than if each attempts to restrict trade or trade produce only for itself. This will be true even if some countries are absolutely more efficient in the production of all goods than the others are and even if, hypothetically, each country could produce everything for itself. (Jones 289)

The principle of comparative advantage provides a simplified theory explaining why free trade is possible, even when one country has an economic disadvantage. Both the Ricardian and Heckscher-Ohlin theories rely on fixed economic assumptions of constant return and perfect competition. However, intuitively the basic principle of business is to increase returns through innovation, improving processes and technology or increasing economies of scale. Organizations understand they control pricing and are price setters, rather than price takers as suggested by perfect competition (Krugman & Obstfeld, 2003). The idea of increasing returns and imperfect competition challenge the foundations of comparative advantage.