StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Short answers about Introduction to Political Economy - Essay Example

Cite this document
Summary
Those earning high income are subjected to higher tax rates than those earning lower income. This is advantageous as it helps reduce the gap between high-income earners and low-income…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Short answers about Introduction to Political Economy
Read Text Preview

Extract of sample "Short answers about Introduction to Political Economy"

Arguments for and against progressive income taxes Progressive income tax system applies to income of differentpeople at different rates. Those earning high income are subjected to higher tax rates than those earning lower income. This is advantageous as it helps reduce the gap between high-income earners and low-income earners. This system is also fairer than a tax system where everyone pays equal tax rates. Therefore, if one earns more, they are able to give more to the government, and vice versa.

However, this system is disadvantageous, as in some way, it punishes hard work. The more one works hard, the more they are taxed, and this discourages hard work. This system also seems unfair, as it imposes different tax rates on people in the same society. The successful high-income earners in society might feel prejudiced. 2. Causes of monopoliesMonopoly is mainly caused by the presence of many barriers in the market, which prevent other business players from gaining entrance into the market.

Additionally, when there is no other substitute for specific products in the market, monopoly is likely to occur. In some countries, the government may also give powers to specific companies to monopolize the market legally. Finally, the ownership of patents and copyright protection results in monopoly power for some businesses.3. Incentives for companies to compete with each other or collude with each otherIn order to increase competition, governments should provide incentives such as subsidies to companies.

In addition, small companies should be exempted from meeting the standards of the bigger companies, as these lack the facilities and financial resources to meet the high standards. Breaking down bids and making them smaller is advantageous to smaller firms, as these are comfortable with smaller contracts. If these among others are observed, more new companies will be attracted into the market. 4. How regulations affect market outcomes, and why these effects may be desirable or undesirableRegulation of markets is important for consumers.

This involves laid down standards by the regulatory body to ensure an acceptable business practice in the supply of goods and services. This helps in price control, and controlling natural monopolies, especially in the electricity supply industries and the telecommunications sector. This benefits individual companies too, as regulation encourages fair competition in companies, while protecting the consumers.5. Differences between capture theory and public-interest theoryThe idea of capture was developed by George Stigler and argues that, if industries capture their regulatory agencies, they can benefit from regulation.

They can do this by making the regulatory agencies depend on their technology and political influence. On the other hand, public-interest theory applies in market failures, when markets fail to regulate themselves, forcing the government to step in because of 6. The 10 planks of the Communist ManifestoKarl Marx developed these as steps necessary to destroy a free enterprise society, and to replace it with government power that is omnipotent, in order to allow for a communist socialist state.

These were meant to test whether a state is communist or not. If they are all in effect, it means the country is practicing communism unknowingly or knowingly. These deny individuals in the state their freedom, thus portraying communism as disastrous to a country and its people.7. A summary of key ideological positions in economic thought from mercantilism to the present. Know the general time-line and some of the key players.There are different past thinkers in economics, who helped advance the economic ideology and thought.

Aristotle, a Greek writer questioned the aspect of wealth acquisition during his time. Thomas Aquinas during the medieval time, argued about product prices. In the 17th Century, Adam Smith is considered the father of modern economics, as per the arguments he made in his book, Treaties, the Wealth of Nations. David Ricardo among other classical economists built on Adam’s thought, to come up with a more rigid argument. Karl Marx on the other hand, addressed the capitalistic system in society.

From 1870s, neoclassical economists addressed their arguments in economics basing on mathematical and scientific concepts. In the early 20th century, John Keynes advanced his argument, popularly known as the Keynesian policies, which faltered in the 1970s. This paved way for the new classical school, including Robert Lucas and Prescott Edward. The 21st century economists such as Amartya Sen have challenged contemporary economic policies, among other economic issues affecting society today (Medema and Samuels 15-20).

Works CitedMedema, Steven and Samuels, Warren. The History of Economic Thought. New York: Routledge, 2012.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Short answers about Introduction to Political Economy Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1614352-short-answers-about-introduction-to-political-economy
(Short Answers about Introduction to Political Economy Essay)
https://studentshare.org/miscellaneous/1614352-short-answers-about-introduction-to-political-economy.
“Short Answers about Introduction to Political Economy Essay”, n.d. https://studentshare.org/miscellaneous/1614352-short-answers-about-introduction-to-political-economy.
  • Cited: 0 times

CHECK THESE SAMPLES OF Short answers about Introduction to Political Economy

Globalization in Transition

The complex market institutions cannot develop in a theoretical or laboratory setting and then transplant them to economy.... Advantage Globalization Countries need an active domestic agenda and remain ready to follow the path of economic reforms well in time, to challenge the environment of integrated world economy.... Volatile capital markets do not go well with the economy of the developing countries.... hellip; The economic and political developments that have taken place during the last fifty years and rapid increase in the migrating population have contributed to globalization....
7 Pages (1750 words) Research Paper

The Differences between Schumpeter and Keynes Economic Theorems

Disregarding that firms and individuals had any impact the economy as demand which was only affected by money velocity influenced capital formation, productivity and employment.... Institution Date due The Differences between Schumpeter and Keynes Economic Theorems introduction The invent of economic thought has had several growth and with views of economic problems, issues and solutions changing as time goes by, that is from the mercantilist view, physiocrats' view, just to mention a few to the modern economics....
4 Pages (1000 words) Essay

International Political Economy

This essay "International political economy" is about two important realities in modern international political economy namely material and ideological realities.... hellip; The material reality derives from the distribution of raw materials; technology; economic and political alliances; and the cost of labor, investment capital, and land.... Similarly considering the ideological reality, one would expect to see a multi-faceted order and its potential for improving overall production and wealth skewed in various ways to provide different sorts of short-term advantages for those who can manipulate the system to conform to specific goals....
10 Pages (2500 words) Essay

Political History of Nigeria

Simply transferring power from the military to the common people without dealing with the issues of corruption, integrating the demands of most of the rural folks, and enhancing a collapsing economy will not usher in permanent solutions.... This work called "political History of Nigeria" describes an analysis of the political and economic realities of Africa's largest oil reserve.... espite its plentiful resources, including an energetic and literate population, and the largest oil reserve in the whole of Africa, Nigeria has been in a miserable condition for a long time now because of a combination of incidences, namely, the colonial heritage, mediocre leadership, political authoritarianism, governmental ineffectiveness, mishandling of oil revenues, legitimated corruption, the exploitation of ethnicity by the political groups, protracted military administrations, an absolutist politics where the victor gets everything, and manipulation by outside forces....
8 Pages (2000 words) Coursework

Globalization in Transition

hellip; Globalization creates worldwide links and the global economy has become refreshingly broad and has led to new strategies in production, manufacturing, selling, distribution, and redistribution.... The complex market institutions cannot develop in a theoretical or laboratory setting and then transplant them to the economy.... nbsp; Apart from the political connections between the nations, it has resulted in parallel connectivity that baffles definition and scope....
7 Pages (1750 words) Research Paper

A Critical Analysis of Bharati Mukherjees Short Novel Jasmine

And his near and dear ones might have died by political attacks.... Toward the end of the story, the reader learns about Du, who is a Vietnamese refugee.... In this paper, a critical analysis of Bharati Mukherjee's short novel Jasmine is conducted with reference to the issues like feminine sexuality, religious conflict and intolerance, etc.... In short, the plot is based on a young woman named Jasmine's immigration from India (a third world country of the 1980s) to the United States (one of the two contemporary superpowers rivaling for global dominance)....
4 Pages (1000 words) Essay

Does Political Theory Have Any Importance for the Study of Politics

The "Does political Theory Have Any Importance for the Study of Politics" paper attempts to explore and examine the answer to this question by extensively looking at examples of various political theories and the way they fit in the wider picture of political happenings.... hellip; We are in a comfortable position to conclude that different political theories or philosophies provide us with different views to look at the question of “how to run the political system?...
6 Pages (1500 words) Term Paper

International Sports Questions

With businesses bidding for contracts related to the administration and carrying out of the event, a rise in productivity and employment gains would result, with consequent contributions to the regional economy.... America's decision to grant political asylum to the tennis player involved numerous agencies.... Further, due to international exposure through media attention that sports attract, sport is sometimes used as a platform for political and social protests....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us