Circular Flow Diagram Essay

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

In a free enterprise economy there are four other types of economies. One being a Market economy and the economic decisions are based on the actions of buyers and sellers. They also use what is called voluntary exchange, buyers willingly exchange for goods in the market place.

In a free-market system houses and businesses use the market to exchange currency and goods.

The one way one can comprehend the United States economy is through looking at its GDP (Gross Domestic Product). Gross Domestic Product is the statistic employed to measure the aggregate output of the nation (Mankiw, 2011). More so, GDP is described as the total monetary value of finished services and goods that are produced in the country at a specific period in time. GDP is considered one of the principal pointers that gauge the health of a nation's economy and it is calculated in inflation-adjusted terms or in real terms (King, Gans & Mankiw, 2011). GDP entails all of public and private consumption, investments, government outlays, exports minus importers of a country. It is therefore calculated through the following formula GDP=C (consumption)+G (Government spending)+I (Investment)+NX(Exports-Imports) (Mankiw, 2011).

2) The market where business sell goods and services to households and the government is called the

The economy goes in business cycles where it has recurring period of economy-wide expansion (growth) and periods of contraction (shrinking). These cycles are often measured by the increase or decrease in the gross domestic product (GDP). The economy produces not just goods and services to satisfy its members but also jobs, because more people participate in the market economy by trading their labor, and most rely on

There are many different economic systems around the world that are tailored to fit the needs of each and every country. Command Economy, Mixed Economy, Market Economy, Traditional Economy and Free Enterprise are a few. These systems help round and establish our world today and create our future.

1. the market where business sell goods and services to households and the government is called

Our financial choices impact the economy because anything we buy, we are participating in the economy. Any job that we have is participating in the economy. When we get pay checks we are making money and paying the government. We spend the money we earn and give more money to the government. But things such as not paying your bills, or behind on a payment, can affect our economy in a negative way. Everything comes back to the economy.

This could be local businesses such as whole food stores, barbershops, manufacturing and retail companies all play a major role in the economy, even us as individuals. However you also have different segments of the economy including given economies. Given economies are economies that has a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and

Economic development is indicated by a country’s GDP per capita, income distribution, literacy and education, access to healthcare, social security and pensions, and modern transportations. Economic fairness eventually leads to economic development. If a country’s wealth is equally distributed throughout the economy, everyone will have access to healthcare and education and other things. Citizens’ income will increase. Hong Kong is number 1 of the top 15 most developed countries in the world. Hong Kong is known for having the freest economy in the world, so, obviously they’re doing something

To start off, a historical context will be given with regards to the events leading up to the colonization of Hong Kong. China had been exporting vast quantities of goods, such as porcelain, silk, and tea, to nations in Europe, with Britain taking up most of the exports. However, Britain was dissatisfied with the rate of their export to China. When a country has imports coming in and relatively less exports back to the respective country, the country (Britain, in this case) with imports coming in will lose money to the exporting country (China). As a result of this, Britain attempts to negotiate open trade with China and allow for more imports into

In our society today, there are many distinct types of economies. The three leading economies are Market economies, Traditional Economies, and Command Economies. Each Economy is very diverse and unique from the next. An example of a market economy is in the US, and in a market economy there is a great deal of individual freedom and less government involvement. A market economy is based on Capitalism. A Traditional economy is a small group of people who are their own government. Not many societies today use a traditional economy. In a command economy the government controls all economic decisions. Examples of command economies are communist countries such as China and North Korea. Each type of economy has its own advantages and disadvantages as well as its differences about resources and government involvement.

Hong Kong,as one of the world's leading international financial centres,it has a major capitalist service economy characterized by low taxation and free trade. It is known of the world's most services-oriented economy, with services sectors accounting for more than 90% of GDP.

Asian economies that have progressed economically at such substantial rates that have come to rival the earning capacity and quality of living of those being first-world countries – Taiwan, Hong Kong, Singapore and South Korea.