Examining Oklahoma's Poverty: Economic Factors and Policy Impact

This report provides an economic analysis of poverty in Oklahoma, USA, examining key macroeconomic policies, trends, and the state's GDP. It begins by defining core economic concepts such as microeconomics and macroeconomics, monetary and fiscal policies, and the nature of poverty itself. The study then focuses on Oklahoma's poverty rate, which stood at 15.2% in 2019, highlighting the challenges faced by residents lacking basic necessities. The report explores the reasons behind this poverty, including the absence of job opportunities, inadequate education, and the impact of economic crises. It also touches upon the corrective measures and policies implemented by the authorities to address the situation, emphasizing the importance of sustainable and equitable solutions. Desklib offers a range of similar solved assignments and study resources for students.

Business Economics

Executive summary
Economics is the study of an economy decisions or a choice that is made for optimum
utilization of scarce resources. It is divided in two parts micro level where individual study
is considered and macro level where economy is studies as whole. An economy’s market
works on force plays of demand and supply. In this report case study of Oklahoma’s poverty
indexes are examined. The poverty trend in the economy the corrective measures
implemented by the authority to fix the situation prevailing. Discussion on various plans
and policies already implemented and their effectiveness.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Concept of Economics............................................................................................................4
Monetary policy......................................................................................................................5
Fiscal policy............................................................................................................................6
Poverty....................................................................................................................................7
Task 2...............................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Any activity that is related to earning of the money and spending of the money is called
economic activity. Economics is one of the social sciences. It explain the economic activities of a
business. Business economics are also called as Managerial Economics. It comprises of that part
of economic knowledge, logic, theories and analytical tools that are used for rational business
decision making (Manzaneque, and et.al, 2020). Poverty is set not having enough cash to satisfy
basic needs together with meals, clothing and safe haven. However, poverty is extra, tons more
than just not having sufficient money. Gross domestic product (GDP) is the entire monetary or
marketplace price of all of the completed items and services produced inside a country’s borders
within the specific time period. This report includes the critically discussion of macro economic
polices, poverty and GDP. Further in this report selected USA to identify the issue of poverty
and apply policies for the poverty reduction.
TASK 1
Concept of Economics
Economics may be explained as the use of economic analysis to make business decisions
involving the best use of an enterprises scarce resources. It can be divided into the two parts that
is Micro economics and Macro economics. Before defining the nature of business economics, it
is pertinent to understand the difference between Micro and Macro economics.
1. Micro economics- It is the study of the behaviour of various individuals and enterprises
within an economic system. It is focused on the small number of or group of unit rather
than all the units combined. It does not define what is happening in the wider economic
environment. It includes:
 Product pricing
 Location of industry
 Factor pricing
2. Macro economics- It is the study of the overall economic rather than its individual
parts. It examines the overall economic environment on which the firms, governments
and households operate and make decisions. The few areas are considered under the
macro economics (Ciampi, Cillo, and Fiano, 2020):
 External value of currency

 The overall level of savings and investment
 The economic growth rate and level of employment.
Macro economic analysis has got an important role to play. It analyses the background of
economic conditions in an economy that will immensely influence the individual firm's
performance as well as its decisions. It is applied to External or environmental issues. External
factors have significant affect upon the performance of business. There are many macro
economic factors such as social and political environment, government economic policies like
industrial policy, competition policy, fiscal policy and monetary policy. Business decisions
cannot be taken without considering these present and future environment factors. As the top
level management of the enterprise has not control over these factors, it should fine- tune its
policies to reduce their adverse effects. The discussion that requires is an try to throw light on the
properly stated economic measures undertaken via governments to flight financial instability
(Pan, and Yang, 2019).
Monetary policy
It way to apply of the monetary coverage units that can be at the disposal of the central
bank to alter the availability, cost and use of money and credit score to promote financial
increase, cost balance and any other objective of authorities economic policy. It is necessary
programme of action that is undertaken by the monetary authorities. It encompasses all moves of
the significant bank that can be aimed at immediately controlling the cash deliver and
circuitously at regulating the demand for cash. It's far the nature of demand side for aspect
macroeconomic policy and works through stimulating or discouraging funding and intake
spending on goods and offerings. It is no marvel that economic policy is appeared as an
necessary coverage device in an economic system. The monetary policies are very important
factor because they provide guidelines to decision maker. The monetary policy of a country is a
reflection of its economic policy. The purpose of these policy coincide with the overall
objectives of economic policy. Financial coverage techniques include revising interest fees and
converting bank reserve requirements (Lim, and Suh, 2019). It can be classified as either
expansionary or contractionary. It can be used by the federal reserve. Economic policy is the
manage of the quantity of cash to be had in an financial system and the channels through which
new cash is supplied. Financial facts together with gross home product (GDP), the fee of
inflation, and enterprise and quarter-specific increase charges affect monetary policy approach.

A imperative bank may revise the interest rates it expenses to loan cash to the country's banks.
As prices upward push or fall, financial institutions adjust prices for his or her clients consisting
of corporations or home buyers. There are two types of monetary policy such as contractionary
and Expansionary. A contractionary coverage will increase rate of interest and bounds the
amazing cash supply to sluggish growth and reduce inflation, in which the costs of products and
services in an economy upward push and reduce the buying power of money. Due to recession
an expansionary policy increases economic activity. There are many objectives of monetary
policies such as inflation, unemployment and exchange rates (Vallanti and Gianfreda, 2021).
Fiscal policy
Financial policy refers to the use of authorities spending and tax policies to steer financial
situations, especially macroeconomic conditions. At some stage in a recession, the government
may additionally lower tax charges or boom spending to inspire demand and spur financial
activity. The goal of these policy, like those of other economic policies of the government are
derived from the aspirations and objectives of the society. There are many objectives such as
achievement of full employment, maintenance of price stability and equitable distribution of
income and wealth. Government may directly as well as indirectly influence the way resources
are used in an economy. The fundamental equation of national income accounting that measures
the output of an economy, or gross domestic product (Fleming, 2020).
GDP = C+I+G+NX
The value of the GDP is the final price of goods and services produced in an economy. The right
side of the equation shows the consumption, income, government and net export. All types of
expenses are income- generating. The important tool of the fiscal policy is government
expenditure. It includes-
 Current expenses to meet the day to day running of the government.
 Fixed assets expenditures that are in the form of investments made by the authority in
capital equipment’s.
 Transfer payments that is government spending that does not contribute to GDP because
revenue is transferred from person to another person.
If government policy changes then it does not necessary, the action taken by the government.
Most of the economies changing the level of taxation and level of government spending. Any

government programme that automatically tends to decrease fluctuations in GDP is called an
automatic stabilizer.
The function of government varies from one country to another country. Few nations have a
political machine in which the position of the government is minimal, plenty of liberty is given
to the unfastened markets, and private residents. On the other hand, there are nations with
political systems with heavy have an effect on and intervention from the government and a very
restrained private sector. However, broadly speaking, no matter the USA a government has the
duty to create and implement legislature, regulations to abide in the society, searching after the
state's defence, keeping relations with different countries, coping with public services, and the
finally, the focus of this file, that is public welfare and economic system. Enforcing those
regulations can leave an effect in the quick run, however ultimately, it does now not impact the
real output (GDP), best the overall fee degrees (Justo, Congregado and Román, 2021). That is
because of constant resources in the financial system. Within the brief run, if call for for for
goods exceeds production because of a rightward shift of the advert curve, it is viable for the
financial system to meet this demand. If the call for exceeds the LRAS, then rate degrees will
growth and thus wages will also increase.
Poverty
Poverty is seeming to be downtrodden and a low economical phase of a country. Poverty
lead to hunger and malnutrition. Many countries like Somalia and other are facing poverty at a
huge pace. Poverty is not easy to eradicate and make country a vulnerable place to live in.
Countries facing this problem are on the door of extinction. Poverty is directly related to health
index of people living in that nation. Countries facing poverty has no signs of growth and
development. So, nations must try their best to be far from this dark side. Poverty leads to
sickness and degradation (Tisdell, and Ahmad, 2018).
Task 2
Oklahoma is country in USA which have a poverty rate of 15.2% in the year 2019, and about
15.2% in the year 2018. A country’s poverty line basically describes the population present in
the country which not be able to live a proper life due to absence of enough amount of money,
food, shelter and other basic necessities (Davidai,2022). There is some percentage presence of
poverty in every country whether developed, underdeveloped or developing. The government of
the country have to work and make policies to address the need of this section of the society in

order to bring a sustainable and equity in the country. Poverty line is the benchmark used to
identify the economic disadvantage and to signify the population that aids government help.
Oklahoma ranks 39th among the poverty line index in the world. This is to be notified that
Oklahoma’s poverty line is increasing by every year since a decade. It has been observed that
poverty is higher in children as compared to adults living in the country. More of the white
people in the country experience poverty, poverty is higher in rural and small town than in metro
areas.
Poverty in Oklahoma can be summarized as below
U.S. value of about 12.2%, this percentage depicts the household living below the federal
poverty line, this data is being collected from U.S. Census Bureau, American Community
Survey, 2019. Poverty is related with the weak health outcomes. It is effected by economic crisis
and poor health related aspects. Poverty line depicts the citizens who are not supplied with bare
necessities, lacks, educations and health care facilities (Desmond, 2022).
There are various reasons for the presence of poverty in an economy some of which are:
Absence of good jobs and opportunities, poverty is directly linked towards finance and monetary
presence. If a person is unable to get a job earn enough to feed his family and fulfil his basic
needs, it contributes to poverty. Privation of good education, a strong education and knowledge
can take a person forward lack of it can totally bring imbalance in his life and also illiteracy is
not good for the economy itself. According to the statement given UNESCO over 170 million
people could be free of extreme poverty if they had basic reading skill. Warfare and conflicts
inside the economy effects the economy negatively, business and other aspects of the country
which disturbs the economy in many ways. This activity act as constraints and bottlenecks for
the society which stop the growth and development of economy and takes it backward in terms
of advancement. When countries law and order is not fair people are judged according to the
colour, caste and area they belong, citizens are kept from their rights and opportunity can
contribute to poverty. Income uneven distribution, non-availability of financial aids to the one
who need all these plays brings down the economy status. There are areas in the country where
people do not have basic necessities of water, drainage, electricity and food and so on such
reasons makes it impossible to get out of the poverty line. Economy where inflation rate is too
high and everything is costlier, makes it difficult for the average person afford necessities

(Halkos and Gkampoura, 2021) Healthcare facility is also an un-ignorable aspect of a country
statutes, medical facility plays a vital role in development and growth process.
In the recent past Covid-19 hit the whole world pathetically, even countries with excellent
healthcare facility could not beat the consequences. All these reason collectively contributes to
poverty in a country, only in a hypothetical situation a country be totally free of poverty.
There are certain ways which can be used to minimize the effect of poverty on the economy.
Increase the number of policies and benefits for the people living in the country who are below
the federal line. Since the pandemic many changes have implemented in order to provide citizen
with stability related ton finance and health (Wan, G., Hu, X. and Liu, W., 2021). Creation of job
opportunity for the youth as well as senior age group so that people are financially independent.
Finance independence is very much needed when an economy is trying to pull out itself from
poverty. Job creation and more job security in government as well as private sector can be a
straight forward solution to the problem of poverty. the next step towards diminishing poverty is
improving the health care sector, by addressing the citizen’s health issues poverty can be
strongly decreased, providing medical facility increases the country’s living standard by giving a
better condition to live. Education also is the most effective tool that can be used and
implemented in the economy to remove the poverty from roots of the economy. Education is sole
source that can address each of the needs of country and contribute the developing process of the
economy. Education should be taken seriously and citizens should be made to get the minimum
education. Mere ability to read and write can bring a whole lot of change in the economy. The
goal should be set so that economic strategy favour those (Khullar and Chokshi, 2018). There is
presence of social factor that bring down the economy in many ways such as racism, difference
due to caste, income level difference, red-tapism, bureaucracy some social evil factor that do not
let the country grow and free of the defects. This are to be taken seriously by the authorities so
that they do not act as hurdles in growth process. Small level business and start-ups are to be
given special support that bring changes from the micro level of the economy. The government
official or those who are in charge should be aware of the condition in the rural area and remote
area who often are kept from the schemes and plans provided. Collective development can only
take place when there are efforts from al the possible sides.

The negative effect of poverty is that it includes the reduced health, education, law and order,
living standards, food and safety needs of the citizen (Sutter, Bruton and Chen, 2019)
. Poverty majorly affects the whole country but the severe affects are on females than men,
people living in rural area then in urbans. Non-Hispanic black and Hispanic individual, who have
a prevalence more than two times than Asian and non- Hispanic white individual. Structure of
racism is deeply rooted in the society. In order to overcome the adverse effect of poverty various
federal, state and local government program are implemented to minimize the people living in
poverty. This issue is majorly addressed in the economy as it affects the country very severely.
Some of the initiative taken by the government includes:
policy initiatives that appendages income such as social security for seniors, supplemental
security income and earned income tax credit for the one who earn a limited income Medicare
and Medicaid that improves access by minimizing expenses to health care
 . In order to address the food and nutrition aids plans such as the supplemental nutrient
aid Program (SNAP) and the Special Supplemental
 Nutrition Program for Women, Infants, and Children (WIC).
 For affordable housing policies such as rental vouchers, subsidized housing and utility
assistance programs.
The goal of Oklahoma is to reach different level of economic stability by raising the living
standard of the population by reducing the number of people living in poverty(Zhou and Liu,
2022).
CONCLUSION
The above report concluded it the economics plays an important role in the world wide. There
are two type of policy such as macro and micro policies. An economy exists of two facts, that is
people wants are unlimited and the resources are scarce. Microeconomics determines how the
consumers make decisions as to how to effectively allocate their resources and macroeconomics
study the overall output and employment.

REFERENCES
Books and Journals
Ciampi, F., Cillo, V. and Fiano, F., 2020. Combining Kohonen maps and prior payment behavior
for small enterprise default prediction. Small Business Economics, 54(4), pp.1007-1039.
Davidai, S., 2022. How do people make sense of wealth and poverty?. Current opinion in
psychology, 43, pp.42-47.
Desmond, M., 2022. Unaffordable America: Poverty, housing, and eviction: American Journal of
Sociology. In The Affordable Housing Reader (pp. 389-395). Routledge.
Fleming, M.J., 2020. Treasury Market Liquidity and the Federal Reserve during the COVID-19
Pandemic (No. 20200529a). Federal Reserve Bank of New York.
Halkos, G.E. and Gkampoura, E.C., 2021. Evaluating the effect of economic crisis on energy
poverty in Europe. Renewable and Sustainable Energy Reviews, 144, p.110981.
Justo, R., Congregado, E. and Román, C., 2021. Becoming self-employed from inactivity: an in-
depth analysis of satisfaction. Small Business Economics, 56(1), pp.145-187.
Khullar, D. and Chokshi, D.A., 2018. Health, income, & poverty: Where we are & what could
help. Health Affairs, 10.
Lim, Y. and Suh, C.S., 2019. Where is my partner? The role of gender in the formation of
entrepreneurial businesses. Small Business Economics, 52(1), pp.131-151.
Manzaneque, and et.al, 2020. How negative aspiration performance gaps affect innovation
efficiency. Small Business Economics, 54(1). pp.209-233.
Pan, F. and Yang, B., 2019. Financial development and the geographies of startup cities:
evidence from China. Small Business Economics, 52(3). pp.743-758.
Sutter, C., Bruton, G.D. and Chen, J., 2019. Entrepreneurship as a solution to extreme poverty: A
review and future research directions. Journal of business venturing, 34(1). pp.197-214.
Tisdell, C. and Ahmad, S., 2018. Microfinance: economics and ethics. International Journal of
Ethics and Systems.
Vallanti, G. and Gianfreda, G., 2021. Informality, regulation and productivity: do small firms
escape EPL through shadow employment?. Small Business Economics, 57(3). pp.1383-
1412.
Wan, G., Hu, X. and Liu, W., 2021. China's poverty reduction miracle and relative poverty:
Focusing on the roles of growth and inequality. China Economic Review, 68, p.101643.
Zhou, Y. and Liu, Y., 2022. The geography of poverty: Review and research prospects. Journal
of Rural Studies, 93,.pp.408-416.