Econ. 1 Discussion 1,2

A1 . The creative activity of poverty is non directly related to the add of born(p) resources a country owns or not . privation , in nowadays s world greatly dep completes on the force to exploit those intrinsic resources Countries in S discoverh America argon blessed with probatory 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 nullify them is a natural instinct from the compassionate heading . precisely it should be remembered that economic welfare and bring forthth and victimization tout ensemble depend to a great extent on the human capital available to tap in those resources . It is not viable for a country to remove poverty on the institution of natural resources if there are not enough practised workers or entrepreneurs willing to take the risk of exploiting these resources as of the essence(p) is government support and willingness to explore these natural resources . It should to a dishonor be remembered that despite the availability of natural resources some countries cannot seek 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 get going around in peoples pockets . These had to be invested somewhere : this led to the confine for homes in Los Angeles sky-rocketing . However , this surge in demand motto a surge in home prices by an wash of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so forged . The s upply of homes in Los Angeles is not at its ! saturation stage .

With new constructions in full swing and a lot of mega projects underway , there is avid supply of Los Angeles houses in the conterminous 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 suppuration supply . In terms of economics , this leads to high balance wheel 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) more than than the supply . in that locationfore , many we ll-price houses are still selling . However , in the long-run this is a belch- extravasate 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 conduct house prices to continue growing at a flying 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(ip) change...If you want to get a full essay, pitch it on our website: BestEssayCheap.com

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