Economics Discussion Analysis - University Assignment

This economics discussion assignment analyzes seven different economic events and concepts. The first discussion focuses on the impact of oil price hikes due to geopolitical tensions and the interplay of supply and demand. The second examines the concept of perfect competition and the role of entrepreneurs. The third explores the determinants of labor demand, including human capital and discrimination. The fourth discusses measures of inequality in the United States, using the Lorenz curve to illustrate income distribution. The fifth analyzes aggregate demand and supply in the music industry, considering the impact of pop culture and technology. The sixth explains the relationship between the Phillips curve and unemployment. The seventh discusses the impact of the Coronavirus on China's economy and the role of command economies. Each discussion references relevant articles and provides the student's insights and analysis of the economic concepts presented.

Running head: ECONOMICS 1
ECONOMIC EVENT DISCUSSION ANALYSIS
Name of the student
Institutional affiliation
Course
Date

ECONOMICS 2
Discussion 1: demand and supply
Internationally oil prices have been significantly hiked by over 20% and this due to
the anticipate attacks on major oil producing countries such as Saudi Arabia. Such a attacks
and oil prices increases had a significant impact on international markets (Thorbecke, 2019).
https://economictimes.indiatimes.com/topic/oil-price-hike
Conceptually, the higher the supply of a commodity, the lower the price on the market
and vice versa. Therefore with strikes on major oil producing countries, supply becomes low
hence higher prices as demand is higher than supply.
The event economically implies that bad geopolitical relations on oil producing
companies results into restricted oil supply which results into global oil scarcity hence the
higher price increments.
Discussion 2: perfect competition
In summary, perfect competition is not realistically perfect. A perfect market does not
have room for entrepreneurs since the real world does not have certainty about risks.
However if the real world does not have room for entrepreneurs, then who introduces new
products?
A perfect market refers to a situation in which all buyers and sellers have perfect
knowledge of the market. Therefore, no single person can influence the market trends.
However, according the pop culture article, entrepreneurs have the power to introduce new
products that are not known in the market.

ECONOMICS 3
The student agrees with the author’s perspective of a perfect market especially about
the concept of individual sellers influencing the market price. Economically, there are buyers
who will pay any price for a particular commodity irrespective of the general market price.
The link: https://mises.org/wire/why-perfect-competition-not-so-perfect
Discussion 3: determinants of labour demand
Describe the factors that have potential to influence market wage rates. Link to the
article: https://courses.lumenlearning.com/boundless-economics/chapter/labor-market-
equilibrium-and-wage-determinants/
From the article, the authors explained that wage rates are determined by several
factors among and these includes human capital. Human capital in this sense explains the
differences that arise out of skills, experience, expertise and knowledge. Human capital is
categorised into skilled, semi-skilled and unskilled capital and each category is paid
differently. The educated employees tend to be paid higher wages than the uneducated
people. Discrimination in the labour market is also another factor that influences wage
differences in the labour market. For instance, discrimination may result of gender
differences in that the men are paid more than the women. The other possible factors may
arise out of bargaining power of the workers in the market.
Discussion 4: Measures of Inequality
Johnston in 2019 carried out a study on the income inequality in United States.
Economic inequality has been rampant in US. The article discusses various effects arising
from the uneven distribution of economic resources in United States of America. It further
found out that the poor becomes poorer and the rich become richer (JOHNSTON, 2019). By
using the Lorenz curve, it is evident that when there is uneven distribution of income among

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people, unemployment and evil moral rates increase. On my own insight, it is evident that a
society with economic inequality faces many immoral activities such as delayed, or under
payments.
Discussion 5: Aggregate demand and supply, microeconomic equilibrium, short
and long run aggregate supply
The article by Cameron in 2016 assesses the present, future, and past equilibrium
demand and supply of music in the pop culture. Since music is currently faced by
pornography videos, several researchers have come out (Cameron, 2016). Therefore, such
pornographic videos are likely to reduce the marketability of music especially to the young
and elderly. This implies that supply of such kind of music won’t meet the demands of
specific group of people. Besides, the consumption of music is affected by the increasing
technology. Thus, I agree with the author that economic terms especially the demand and
supply of music in the long run will not be at equilibrium due to increased pop culture.
Discussion 6: Phillip’s curve and Unemployment
I had no knowledge on how the Phillips curve relates with the unemployment rate
economically. The author answered the question by explaining that as the rate of
unemployment is low, inflation increases faster and when the rate of unemployment rises, the
inflation rate slows down (Salazar, 2016). He continued discussing that when the natural rate
of unemployment is constant, the Philips curve is usually vertical. In other words, the rate of
unemployment meets its natural rate as soon as a supply shock occurs. He termed this
assumption as “NRH” and assume that in the long run, the Phillips curve is vertical in nature
(Salazar, 2016). The posted article is retrieved from:
https://www.tandfonline.com/doi/full/10.1080/15140326.2018.1526865

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Discussion 7: Market Systems
Various news networks such as Cable News network (CNN) and CGTV have shown the
prevailing disease in China (CNN new & CGTV, 2020). Basing on the current event of Corona
Virus in China, it is believed that due to its command economy in nature, China thinks that it
can stop the outbreak on its. Command economy system limits other economies to join the
struggle of eliminating COVD19. In my opinion, the economy should be mixed to give a
room of other partners to engage in the economy socially, economically, or politically. This
incidence has led to the decrease of economy of the china due to low levels of productivity. A
post on this news article was retrieved from: https://edition.cnn.com/2020/02/25/asia/novel-
coronavirus-covid-update-us-soldier-intl-hnk/index.html

ECONOMICS 6
References
Cameron, S. (2016).Past, present and future: music economics at the crossroads with the demand &
supply. Journal of Cultural Economics. Retrieved from:
https://link.springer.com/article/10.1007/s10824-015-9263-4
CNN new, & CGTV. (2020). Coronavirus has now spread to entire China due to her
economy negligence. Retrieved from: https://edition.cnn.com/2020/02/25/asia/novel-
coronavirus-covid-update-us-soldier-intl-hnk/index.html
JOHNSTON, M. (2019). A Brief History of Income Inequality in the United States. Retrieved from:
https://www.investopedia.com/articles/investing/110215/brief-history-income-inequality-
united-states.asp
Salazar, L. (2016).The Phillips curve and the role of monetary policy in Chile. Journal of
Applied Economics. Retrieved from:
https://www.tandfonline.com/doi/full/10.1080/15140326.2018.1526865Thorbecke, C.
(2019). Supply, Demand And Geopolitical Tensions: How Oil Prices Rise: Abc
News. Retrieved from https://abcnews.go.com/Business/supply-demand-geopolitical-
tensions-oil-prices-rise/story?id=65640000