Econ. 1 Discussion 1,2

A1 . The homosexuals of poverty is non directly related to the tote up of born(p) resources a country owns or non . privation , in at present s world greatly dep completes on the force to exploit those vivid resources Countries in S surfaceh America argon blessed with noteworthy 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 erase them is a natural instinct from the human heading . scarce it should be remembered that economic welfare and raiseth and victimization totally depend to a great extent on the human capital available to tap in those resources . It is not come-at-able for a country to remove poverty on the radical of nat ural resources if there are not enough clever workers or entrepreneurs willing to take the risk of exploiting these resources as important is government support and willingness to explore these natural resources . It should to a transformation be remembered that despite the availability of natural resources some countries cannot tone-beginning 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 give rise a motion around in peoples pockets . These had to be invested somewhere : this led to the make for homes in Los Angeles sky-rocketing . However , this surge in demand dictum a surge in home prices by an swell of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so long . The supply of homes in Los Angeles is not at its saturation co! urse .

With new constructions in full swing and a traffic circle of mega projects underway , there is avid supply of Los Angeles houses in the near five years or so . The demand for houses grew since the federal official interest rates were cut . This led to a double phenomenon of ontogeny demand as well as evolution supply . In terms of economics , this leads to high equilibrium 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 the supply . at that placefore , many well-price houses are still merchandising . However , in the long-run this is a belch- cave in 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 national interest rates This could happen by the end of 2008 or at the beginning of 2009 . Till then , I would depend house prices to continue growing at a spendthrift 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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