Our great coutry America is known as the land of the free. It's also known as the land of opportunity. People come to America from all across the world in search of job opportunities that will allow them to provide for their family. These opportunities are what make up our workforce and keep our ecomomy strong. There are ways to analyze the economy to determine what factors contribute to it's success or what could be potential hazards. Microeconomics and Macroeconomics are both studies that do just that. In both studies there is a common factor, Unemployment. Uneployment is a huge problem in America, even though there may be various causes if not controlled could lead the econmy right back into a recession.
According to New World Encyclopedia Microeconomics is a branch of economics that study how individuals, households and firms make decisons to allocate limited resources, typically in markets where goods and services are being bought and sold. These desicions affect the demand for the services which in turn effect the price,which ultimately effects the economy. A good example of Microeconomics is the tobacco industry.
The cigarettes is America's largest habit forming product on the market. In recent years tobacco products such as cigarettes have caused huge debates over health and the right to smoke in public. As of today smoking is banned in almost all public places. President Obama is also talking of doubling tax on cigarettes. Now lets consider the effects of this action from a microeconomics viewpoint. First, banning the product in public places will decrease the revunue of that organization that was being generated by the smokers.
On the other hand it will increase the revunue of the non smokers who prior to the ban would not have conducted bussiness due to having to be exposed to second hand smoke. Second the rise in cost will change the demand for the cigarettes. Those who can not afford to pay thirteen dollars for a usually...
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