1.How Does Economy Change With the Change of Seasons?

Season has a big impact on our economy at all levels — local, state and national. In
our local economy, season influences various business decisions, such as when to
plant or harvest, when to pour concrete or shingle a roof in construction projects, or in
predicting peak demand for electricity or gas for home heating.

Season impacts can be complicated and affect various sectors of the economy in
different ways. For example in this time of rainy season, like this past typoon
“Ulysses” the community or place like Cagayan, Isabela, Rizal and Marikina are
greatly affected especially some part of baranggay that are flooded they will be more
needing of foods, shelter and clothes that will they can use after the said typoon
almost destroy all their have and just left mud. However, some parts of our country
that affected by Typoon whereas their agriculture are really affected.Season also
affects the economy by impacting both supply and demand for the products and
services of a particular industry. For example the Typoon Ulysses who greatly
affected also us Novo Ecijano’s and almost all of post of Celcor are damage our
demand in electricity are went high that maybe some part of the province or city offer
free charge and pay charge for some place.

2.The Structures Of Microeconomic Markets.

A variety of market structures will characterize an economy. Such market structures

essentially refer to the degree of competition in a market.There are other determinants of
market structures such as the nature of the goods and products, the number of sellers,
number of consumers, the nature of the product or service, economies of scale etc. We
will discuss the four basic types of market structures in any economy.

1] Perfect Competiton

In a perfect competition market structure, there are a large number of buyers and sellers.
All the sellers of the market are small sellers in competition with each other. There is no
one big seller with any significant influence on the market. So all the firms in such a
market are price takers.

 The products on the market are homogeneous, i.e. they are completely identical
 All firms only have the motive of profit maximization
 There is free entry and exit from the market, i.e. there are no barriers
 And there is no concept of consumer preference

2] Monopolistic Competition

This is a more realistic scenario that actually occurs in the real world. In monopolistic
competition, there are still a large number of buyers as well as sellers. But they all do not
sell homogeneous products. The products are similar but all sellers sell slightly
differentiated products.
3] Oligopoly

In an oligopoly, there are only a few firms in the market. While there is no clarity about
the number of firms, 3-5 dominant firms are considered the norm. So in the case of an
oligopoly, the buyers are far greater than the sellers.

The firms in this case either compete with another to collaborate together, They use their
market influence to set the prices and in turn maximize their profits. So the consumers
become the price takers. In an oligopoly, there are various barriers to entry in the market,
and new firms find it difficult to establish themselves.

4] Monopoly

In a monopoly type of market structure, there is only one seller, so a single firm will
control the entire market. It can set any price it wishes since it has all the market power.
Consumers do not have any alternative and must pay the price set by the seller.

Monopolies are extremely undesirable. Here the consumer loose all their power and
market forces become irrelevant. However, a pure monopoly is very rare in reality.

 3.Effects Of Immigration On The Economy.

Immigration increases the supply of labor, firms increase investment to offset any
reduction in capital per worker, thereby keeping average wages from falling over the
long term. Moreover, immigrants are often imperfect substitutes for native-born
workers in U.S. labor markets. That means they do not compete for the same jobs and
put minimal downward pressure on natives’ wages. This might explain why
competition from new immigrants has mostly affected earlier immigrants, who
experienced significant reductions in wages from the surge in immigration. In
contrast, studies find that immigration has actually raised average wages of native-
born workers during the last few decades.In addition, the presence of immigrants
often creates opportunities for less-skilled native workers to become more specialized
in their work, thereby increasing their productivity.

In addition, the presence of immigrants often creates opportunities for less-skilled

native workers to become more specialized in their work, thereby increasing their
productivity.

4. The Consumer Demand Theory.

The branch of economics devoted to the study of consumer behavior, especially as it applies to
decisions related to purchasing goods and services through markets. Consumer demand theory is
largely centered on the study and analysis of the utility generated from the satisfaction of wants and
needs. The key principle of consumer demand theory is the law of diminishing marginal utility, which
offers an explanation for the law of demand and the negative slope of the demand curve.
Consumer demand theory provides insight into an understanding market demand and forms a
cornerstone of modern microeconomics. In particular, this theory analyzes consumer behavior,
especially market purchases, based on the satisfaction of wants and needs (that is, utility) generated
from the consumption of a good.

5. Currency Fluctuations Effects On The Economy.

Currency fluctuations arise from the floating exchange rate system, which is followed by most
major economies. The exchange rate of currencies against others depends on various factors such
as relative supply and demand for currencies, economic growth of countries, inflation outlook,
capital flows, and so on.

One of the most prominent impacts of currency fluctuations can be seen in international trade.
Generally, a weaker currency stimulates exports and makes imports expensive, thus decreasing the
country’s trade deficit depending on the sector. On the other hand, a strong currency can reduce
exports and make imports cheaper, effectively widening the trade deficit. While it is generally
assumed that a strong currency is a good thing for a nation’s economy; in reality, it might not be
so. An unjustifiable strong currency can cause a drag on the economy over the long term, as entire
industries are rendered uncompetitive and thousands of jobs are lost. As GDP is directly linked to
exports, a weaker currency may actually help the country’s economy, contrary to popular belief.
On the other hand, a depreciating currency can result in inflation as the cost of importing goods
increases. Currency fluctuations also have a direct impact on the monetary policy of a country, as
exchange rates play a vital role in deciding exchange rates set by a country’s central bank.
Constant currency fluctuations can also affect the market adversely, causing it to become volatile,
and affecting both local and foreign trade.

6. Explain the differences between long term and short-term economic growth.
Define the features of a long term growth. What is the impact of long-term
economic growth on business?  

Short term growth is, as the name suggests, growth in the output of a country in terms
of GDP over a given (short, usually a year) period of time. It is measured by the
annual percentage change in GDP.

Long term growth however is when the country's productive potential is increased, the
potential of the country's GDP is increased. Due to an expansion in eitherthe quality
or quantity of factor inputs, the country is now able to produce more.

The increment in the total output production of an economy and the increase in
aggregate demand and supply over a short period of time is known as short term
economic growth. On the other hand when there is a boost in potentiality of
production in an economy than it is said to be long term economic growth.

The impact of long term positive economic growth are manifold. There will be an
increase in population but the need for goods and services for the growing population
will also rise. This will lead to more jobs and employment opportunities, employment
rate will increase. Economic indicators will show positive and the opposite scenario
will arise when the long term economic growth will be negative. With positve
economy growth the businesses will also perform well.
7. Find out Pros and Cons of the current money system in the U.S.

The dollar is considered strong when it rises in value against other currencies in
the foreign exchange market. A strengthening U.S. dollar means it can buy
more of a foreign currency than before. For example, a strong dollar benefits
Americans traveling overseas but puts foreign tourists visiting the U.S. at a
disadvantage.

Advantages of a Strong Dollar

Traveling Abroad Is Cheaper
Americans holding U.S. dollars can see those dollars go further abroad, affording
them a greater degree of buying power overseas. Because local prices in foreign
countries are not influenced greatly by changes in the U.S. economy, a strong dollar
can buy more goods when converted to the local currency.

Expatriates, or U.S. citizens living and working overseas, will also see their cost of
living decrease if they still own dollars or receive dollars as income. 

Imports Are Cheaper

Goods produced abroad and imported to the United States will be cheaper if the
manufacturer's currency falls in value compared to the dollar. Luxury cars from
Europe, such as Audi, Mercedes, BMW, Porsche, and Ferrari, would all fall in dollar
price. If a European luxury car costs €70,000 with an exchange rate of 1.35 dollars per
euro, it will cost $94,500. The same car selling for the same amount of euros would
now cost $78,400 if the exchange rate falls to 1.12 dollars per euro.

As the dollar continues to strengthen, the price of imports will continue to fall. 

Multinationals That Do Business in the U.S. Benefit

Foreign companies that do a lot of business in the U.S. and their investors will benefit.
Multinational corporations that have a large number of sales in the U.S., and thus earn
income in dollars, will see gains in the dollar translate to gains on their balance sheets.
Investors in these companies should be rewarded, as well. 

Status as World Reserve Currency Is Bolstered

The status of the dollar as a world reserve currency is bolstered with a strong dollar.
While some countries, including Russia, Iran, and China, have questioned the status
of the U.S. dollar as the de facto world reserve currency, a strong dollar helps keep its
demand as a reserve high. 

Disadvantages of a Strong Dollar

Tourism to the U.S. Is More Expensive
Visitors from abroad will find the prices of goods and services in America more
expensive with a stronger dollar. Business travelers and foreigners living in the US
but holding on to foreign-denominated bank accounts, or who are paid incomes in
their home currency, will be hurt and their cost of living increased.

Exporters Suffer
Just as imports become cheaper at home, domestically produced goods become
relatively more expensive abroad. An American-made car that costs $30,000 would
cost €22,222 in Europe, with an exchange rate of 1.35 dollars per euro; however, it
increases to €26,786 when the dollar strengthens to 1.12 per euro. Some have argued
that expensive exports can cost American jobs.

US Companies Conducting Business Abroad Are Hurt

Companies based in the United States that conduct a large portion of their business
around the globe will suffer as the income they earn from foreign sales will decrease
in value on their balance sheets. Investors in such companies are also likely to see a
negative impact.

McDonald's Corp. (MCD) and Philip Morris International Inc. (PM) are well-known
examples of US companies with a large percentage of sales occurring overseas. While
some of these companies use derivatives to hedge their currency exposures, not all do,
and those that do hedge may only do so in part. 

Emerging Market Economies Are Negatively Impacted

Foreign governments that require US dollar reserves will end up paying relatively
more to obtain those dollars. This is especially important in emerging market
economies.

8. What is the most effective development-oriented instruments of socio-

economic policy conducted according to the concept of Keynesian economics?

the improvement of pro-development instruments of socio-economic policy is

particularly important in a situation of a downturn in the economy.

Currently, this issue is particularly important in connection with the forecasted decline
in the rate of economic growth in 2019.

In the context of the above issues, the following question is valid:

What pro-development instruments of socio-economic policy carried out according to

the concept of Keynesian economics are currently the most effective in the area
of economic growth as measured by, for example, the Gross Domestic Product index

9. Define at least three areas where monetary policy differs from fiscal policy.
When would you use each?

Monetary Policy
Central banks typically have used monetary policy to either stimulate
an economyor to check its growth. By incentivizing individuals and businesses
to borrow and spend, the monetary policy aims to spur economic activity.
Conversely, by restricting spending and incentivizing savings, monetary policy
can act as a brake on inflation and other issues associated with an overheated
economy.
Fiscal Policy
Generally speaking, the aim of most government fiscal policies is to target the
total level of spending, the total composition of spending, or both in an
economy. The two most widely used means of affecting fiscal policy are
changes in government spending policies or in government tax policies.

If a government believes there is not enough business activity in an economy, it

can increase the amount of money it spends, often referred to
as stimulusspending. If there are not enough tax receipts to pay for the
spending increases, governments borrow money by issuing debt securities such
as government bonds and, in the process, accumulate debt. This is referred to
as deficit spending.

10.Describe the effects of the Fed’s interest-rate changes on the liquidity of

banks and borrowing.

The Federal Reserve, also known as the "Fed," frequently has used three
different policy tools to influence the economy: open market operations,
changing reserve requirements for banks and setting the discount rate. Open
market operations are carried out on a daily basis when the Fed buys and sells
U.S. government bonds to either inject money into the economy or pull money
out of circulation.2 By setting the reserve ratio, or the percentage of deposits
that banks are required to keep in reserve, the Fed directly influences the
amount of money created when banks make loans. The Fed also can target
changes in the discount rate (the interest rate it charges on loans it makes to
financial institutions), which is intended to impact short-term interest rates
across the entire economy.