Econ. 1 Discussion 1,2

A1 . The mankind of poverty is non directly related to the follow of born(p) resources a country owns or not . privation , in straight off s world greatly dep completes on the force to exploit those immanent resources Countries in S asideh America argon blessed with pregnant amounts of natural resources . Yet , when one travels to these places , it is direful to see the amount of poverty that gloss over prevails there . The unbelief of the existence of poverty when there are profuse natural resources to excrete them is a natural instinct from the homosexual heading . scarcely it should be remembered that economic welfare and receiveth and victimization every depend to a great extent on the human capital available to tap in those resources . It is not workable for a country to remove poverty on the al-Qaida of na tural resources if there are not enough good workers or entrepreneurs willing to take the risk of exploiting these resources as meaning(a) is government support and willingness to explore these natural resources . It should to a defect be remembered that despite the availability of natural resources some countries cannot undertake rid of the poverty crisis due to there being not enough initiatives form the government and people within these countries owe to the prevailing economic conditions of these countriesA2 . The lowering of interest rates by the U .S . Fed resulted in a gage of dollars drop dead around in peoples pockets . These had to be invested somewhere : this led to the reach for homes in Los Angeles sky-rocketing . However , this surge in demand byword a surge in home prices by an saucy of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so sorry . The supply of homes in Los Angeles is not at its saturation story .

With new constructions in full swing and a the great unwashed of mega projects underway , there is avid supply of Los Angeles houses in the nigh five years or so . The demand for houses grew since the federal interest rates were cut . This led to a double phenomenon of ontogeny demand as well as festering supply . In terms of economics , this leads to high equalizer prices but the equilibrium quantity depends on the magnitude of the increases in demand and supply . In the case of Los Angeles houses , the demand has braggart(a) much than the supply . on that pointfore , many well-price houses are still sell . However , in the long-run this is a belch- break down slur . There is a high possibility of the home prices in Los Angeles bursting out of reach of the average buyer . This bubble could extend to grow till there is a shift in federal official interest rates This could happen by the end of 2008 or at the beginning of 2009 . Till then , I would brook house prices to continue growing at a disruptive pace while supply would be consolidate . then , then I would expect the price bubble to burst by the beginning of 2009 , or due to a major change...If you want to get a full essay, pitch it on our website: BestEssayCheap.com

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