Chapter 7 Media Article

"What is the Demand for Money?", www.economics.about.com, Jan 21st, 2006

This article basically explains the consumers response to intererst rate changes and how that factors into the economy's demand for money. The article states that, "Since money is only one of many forms of wealth, it has plenty of substitutes." The interaction between money and its substitutes explains why the demand for money changes. The article states that the the following are factors that greatly influence the demand for money. Interest Rates, consumer spending, precautionary motives, Transaction costs for stock and bonds, and international factors.

Other factors include

1. A reduction in the interest rate.
2. A rise in the demand for consumer spending.
3. A rise in uncertainty about the future and future opportunities.
4. A rise in transaction costs to buy and sell stocks and bonds.
5. A rise in inflation causes a rise in the nominal money demand but real money demand stays constant.
6. A rise in the demand for a country's goods abroad.
7. A rise in the demand for domestic investment by foreigners.
8. A rise in the belief of the future value of the currency.
9. A rise in the demand for a currency by central banks (both domestic and foreign).

The article's conclusion is that, "The demand for money is not at all constant. There are quite a few factors which influence the demand for money."

Relevance to Ch. 7 - Money is a Commodity

This articles relationship to chapter 7 is that it reinforces that fact that money is a commodity. Which means that it has a demand, a suppy, and a cost (interest) as well. Just like elastic goods, if substitutes are available, the demand for it, and it's value, will go down. This also works vice-versa.

Chapter 6 Media Article

"Work in Progress", www.economist.com, July 22nd, 2003

This article details the changes that advances in technology as caused in our economy. Aside from the obvious fact that it makes transactions and banking easier for the citizens of the world, it has also opened up alot of job opportunitie as well. These new jobs in technology in turn contributes back into the economy yet again. The creation of these jobs and their contributions directly and indirectly to the economy is the main focus of this article.

The "the arrival of computer technology had affected people and firms in visible and obvious ways". However, the creation of jobs is a "hidden" advantage to these advances in technology.

Relevance to Ch. 6 - The New Economy

The relavence is that this chapter give alot of mention to "The New Economy" but only focusing on it's contribution to convienance. However, it doesn't mention alot to how the changing technology also opens up more jobs for people. New jobs means that more people will have purchasing power which is a positive in our economy.

Chapter 3 Media Article

"New Medicare Law Trips Up the Poor", signonsandiego.com, Jan 12th, 2006

This article basically addresses the issue of how the new Law beneifts the rich but not the poor. The new law states that medicare would be divided into 10 different categories in which people will be enrolled based on their choice. Some of the categories provides better diagnostic coverage and some have better drug coverage and so on. However, the problem is that once a plan is chosen, it can't be changed so when new problems arise where you will need to purchase alot of drugs, and you happen to be on a plan with very limited drug coverage, than tough luck.

"Martha Reagan controls her heart disease and other health problems with 26 drugs that she used to get free through Medi-Cal. But her new Medicare prescription drug plan doesn't cover anywhere near that many, and she can't find a plan that will."

"Come live in my pharmacy for a week and see the people who walk out without their medicine because they don't have $3"

Both very provocitive quotes taken from the article in question.


Relevance to Ch. 3 - Government Involvement

The relavence is that this area of medicare is an example of where government intervention is immediately needed. Because of private medicare services and the new law that limits drug purchases under such medicare plans, the underprivledged are losing their lives simply because they can't afford a few pills that should have been covered by their plan in the first place. Without government involvement like here in Canada, California's medical facilities are nowhere near equal access. A law like this can only favor the rich.

Chapter 2 Media Article

"When lobster was fertiliser", economist.com, Oct 27th, 2005

This article basically focuses on the price changes that have happened to lobster in the last few centuries. Tracking lobster back, they have found out that it was once, "so cheap that it was fed to inmates in prison and children in orphanages. Farmers even fertilised their fields with it, and servants would bargain with their employers to be given it no more than twice or thrice a week." That's right. Lobster was once consider not good enough for servants and orphans.

However, as time went on, our hard-shelled friends became harder and harder to find. And because of the decrease in supply, the demand for it sky-rocketed along with the prices. So now, a meal that would have costed $4(in todays money) back than, can easily go for $40-50. And food that was once prefered to be used as fertilizer than to be eaten, is now served as delicacies with pride in the most prestigrous of restaurants.

Relevance to Ch. 2 - Supply, demand, and Elasticity

The relevance is focused on Supply and Demand. As the supply of lobster decreased, the price of it increased. While the supply of lobster decreased, other substitutes were explored such as swordfish. However, fact still remained that because of a dramatic decrease in supply, it turned a common-day food into a rare delicacy.

Chapter 1 Media Article

"George Bush and the Four Horsemen", dissidentvoice.org, Oct 11th, 2005

The article is basically telling how George W. Bush is not only ruining the country of iraq, but his own country as well. The author defines Bush as "the greatest catastrophe in the nation’s 200-year history." According to the article, the next 6 months will be chaotic for the USA if things continue to progress at the same rate. Experts are predicting that oil supplies will not meet demand in the first quarter of 2006. This is expected to cause oil prices to sky-rocket, long lines at gas stations, a downward trend in the economy, and a declining dollar. The article also stated that "Oil supplies are stretched to the limit and available resources are reaching the point of diminishing returns." which basically means that the value of resources are reaching a point where it will no longer generate sufficient income to support itself.

Relevance to Ch. 1 - resources, scarcity, and the Law of Diminishing Returns

Well, the main thing that grabbed my attention in this article is, "Oil supplies are stretched to the limit and available resources are reaching the point of diminishing returns" Not only is that statement valid in terms of scarcity, but also towards the Law of Diminishing Returns. I think my article is pretty self-explanitory as to it's relevance to those two things. As for the george w bush bashing in the article... that was just a bonus.

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