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Principles Of Economics YourFirstName YourLastName University title

 

 

 Answer for part 2(First 2 paragraphs)

The article "The Intrinsic Limits of Modern Economic Theory: The Emperor has No Clothes"by lan Kirman, has vividly highlighted the economic crisis that is facing the current world market. Despite the fact that it was written as a reflection of the current economic decadence in the United States the article also is much applicable to the rest of the world. Several issues have been well addressed by the author in regardless to the demand, supply and market equilibrium. These are very different concepts but they do correlate effectively and hence they cannot be ignored at any moment due to their important. The major issue that was addressed by the author is the current market fluctuations in the United States. There exists no stable market in the United States set up which the author attributes to ignorance of the economical knowledge. The second issue that was addressed by the author was the concept of poor production. The process of production has actually been hampered in the United States due to dirty mechanisms that are being employed by the business people concerning the market demand and supply.   

The author also brings an issue as to how we can ensure that correct pricing is being adopted in the society of Americans. He claims that the market of goods and services has been overpriced by the merchants in the liberal markets. He also goes on to discuss on the monopolization of the market but those people who have absolute copyrights to carry specific businesses in the market. This is purely oppression to the citizens of innocent Americans but they have just to abide by the marketing pricing policy. Finally the implications of poor business practices in terms of demand and supply and market understandability have been well addressed by the author. He concludes with the sentiment that the market will be overrun and be manipulated should we not follow the marketing strategies that are healthy. The need for regulation must be addressed and bee adopted to avoid overflow and shortages in the market.

Part 3 (Paragraph 3-5)

The issue of indifferent in the pricing in the market is quite alarming. However the issue can be solved by adopting relevant marketing structures. Among the market structures which exist in the current market are the oligopoly, monopoly, perfect competition and monopolistic competition. Correct market structure should be adopted in the nation. For instance the perfect competition will be the greatest form to adopt since the buyers are the true determinants of the pricing policy that will be adopted by the markets.In doing so we are able to counter the effects.

Market fluctuations have also been well addressed by the author. This is a bit different to the issue of pricing instability. Marketing fluctuations will incorporate broader view of the major players in the market in terms of the firm, consumers, producers and even the government and their various interactions that are taking place in the business world. The concept of demand and supply in cooperation with the various laws of economics can be crucial towards in managing the fluctuations that are taking place in the market. Knowing the right time to produce and the right moment to buy will solve this issue greatly. The players in the market need also corporate and relate efficiently so as to avoid issues from arising in the market associated with overpricing in the market. Oppression will be done hence accessibility to essential commodities will be easier to the society.

Market instability is another form of issues that were raised in the article. Instability of the market means the market is not constant and effective in terms of supply and demand. It reaches times where there are surplus while some other times there is scarcity of commodity in the market. This has greater effect on the society and also the economy of the nation in general. However, greater understanding of the knowledge of demand and supply will help counter such form of problems in the society. The concepts of demand and supply will enable the producer to understand when to produce much into the market and when to produce less. According to smart economists, when the demand is high then we have to give sufficient in the market to ensure the needs and demands of the society are well met. However some producers practices hoarding so as to oppress the consumers for their own personal gains and profits.

Poor production in the market is yet another greater issue that can be controlled by proper production methods and practices. The market knowledge on the need of the society will play crucial role while countering its effects to the society in the long run.

Part 4

In conclusion, the article clearly addresses the issues that are affecting each and every one of us in the society. The issues of market fluctuation, instability in pricing and also poor production are very common in the present world economy. The author comments on these issues are fully valid and have no doubt but to support his arguments towards adopting any kind of changes in the marketing and demand industry.

 

 

 

 

 

 

 

 

References

  lan Kirman, "The Intrinsic Limits of Modern Economic Theory: The Emperor has No Clothes", The Economic Journal, V. 99, N. 395, Supplement: Conference Papers (1989): pp. 126–139

Alan P. Kirman, "Whom or What Does the Representative Individual Represent?" Journal of Economic Perspectives, V. 6, N. 2 (Spring 1992): pp. 117–13

Petkus, M., Perry, J. J., & Johnson, B. K. (2014). Core requirements for the economics major. The Journal of Economic Education, 45(1), 56-62.