Relation between Economics and Law

There are a variety of different business structures that comprise the market in the world today. The most common ones found in the business world today are sole proprietorships, partnerships, and corporations. From these you will also find monopolies and oligopolies. Economists assume there are a number of different buyers and sellers in the market which leads to competition which allows prices to change in response to changes in supply and demand.(1) In many industries you there are substitutes for products, so if one type of product becomes too expensive the consumer can choose an alternative product that is cheaper, or one of better quality.

Finally is the allowance of these monopolies to rise in the first place. Since there were no regulatory agencies back in the second industrial revolution, big businessmen with the idea of trimming fat in their companies could conquer any competitor by using hardball tactics of purposely

In Document 4 “A Call to Action,” by James B. Weaver, it explained to the public through the author's thoughts of that monopolies had too much power and that the monopolies destroy competition and trade. This book was written at the time of when big corporations were taking over and destroying competition. Also, the author goes into detail that they control the price of the raw material, so they can produce their products at a low price and sell it at a low price. By selling that the lowest price, the competitors can not compete are driven out of business or reduce the wages of the workers. This idea can be related to current times were big corporations, such as Walmart, are destroying competition because they lower their prices that the competitors cannot compete with.

Keynes initiated a revolution in economic thinking by challenging the beliefs that neoclassical economists held. He argued that their ideas that free markets would naturally provide full employment in the short to medium term is

In a monopolistically competitive industry, the goods sold, while not perfect substitutes, can be viewed as acceptable substitutes by most people. As a result, if Firm A raised the price of its good substantially, consumers would decrease the quantity demanded from Firm A and would move to other firms selling similar products. As a result, Firm A would sell few units at the new higher price. As the quantity a firm sells falls, so does its percentage of sales in the industry, also

The social constructs of law relate it to be something of complexity, where one’s rights and protections are imagined to be difficult to find. The law is an historic and modern aspect of the world, ensuring uniformity. It is important for the law to become not only a creator, but also a product of its environment. For society to accept the law and for its effectiveness, it must be made in ways reflect societal values.

By studying Economics at A-level, I was able to develop and widen my skills in essay writing, where I have learned to argue, analyse and evaluate. Whilst studying Economics I discovered the recession may cause crime rates to increase; reasons for this can be traced to an increase in unemployment which often leads to people being on the street rather than at work. In Business I was able to learn about legal laws affecting employment, race and sales of goods and services. I was able to explore what rules and regulations businesses must undertake in order to remain within the law. Similarly, in Finance I also learned about many types of law

Modernizing over the decades, two main theories support economists, proposals, arguments, and predictions. The first theory is the Classical model perspective and the second theory is the Keynesian model perspective. The first theory promotes a hands-off approach and the second a government intervention approach. The first theory believes that if left alone, the natural market forces would right themselves and eventually achieve the proper balance. The second theory believes that people have to live through the process of

Outlined in this paper is a definition of the role and functions of Law in business and society. Without laws within a society to regulate the behavior of its people, there would be chaos and ineffectiveness. This paper has also provided how the

In both developed and underdeveloped economies, there is a need to put regulations which ensure that profits are not abnormally earned at the expense of the innocent clients. It is therefore the mandate of the territorial authorities to put in place measures that introduce checks and balances in all trades. The respective companies or business must also follow the same suit lest they find themselves in the crossroads of law. However,

My Criminology/Criminal Justice and Africana World Studies majors as have helped me conceptualize and identify several points that helped me understand the court laws and environment. The course of Law and Everyday Life, help me identify how the law affects our rights, social and political aspects and well-being of the society. The class introduces how we as citizens of the United States must have knowledge of our basic laws and how the United States court system rationalize their statues and logic according to their concepts of belief of the constitution.

The main reason why I wanted to study Law was the importance it takes in the world. Law builds civilization, protect fundamental rights and protect ideas and inventions through patenting. Anyone can defend his or her right through the legal system. Law can bind an agreement to allow an aircraft to fly from country A to country B. Law is continuously relevant in many context including banking, construction, sports, land, media, commerical, human rights etc. And this excites me more, as it is very broad and in my perspective not going to be repetitive or dull.

Competition failure or monopoly may result from natural monopoly where it costs incurred in production becomes lower when only one firm is involved in production than several firms producing the same output. In a monopolist market under-production, higher prices become dominant contributing to market inefficiency. Winston cites cases of misuse of monopoly power can lead to market failures and sometimes may lead to acute shortage of essential commodities (130).

William O. Douglas said, “Common sense often makes good law.” Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.

And so today, it is needed to rely on socio-legal research for law reform, which serve the various purposes such as it suggests a reform in the existing law, socio-legal research, collect, search and make available the legal principle which are useful for society, it suggests a set of rules where no rules exist at all.