Econ. 1 Discussion 1,2

A1 . The world of poverty is non directly related to the list of born(p) resources a country owns or non . privation , in immediately s world greatly dep completes on the force to exploit those indispensable resources Countries in S emergeh America argon blessed with hearty 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 exterminate them is a natural instinct from the human heading . solely it should be remembered that economic welfare and getth and victimization any depend to a great extent on the human capital available to tap in those resources . It is not possible for a country to remove poverty on the basis of natural resourc es if there are not enough consummate workers or entrepreneurs willing to take the risk of exploiting these resources as serious is government support and willingness to explore these natural resources . It should to a reproach be remembered that despite the availability of natural resources some countries cannot try on 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 propel around in peoples pockets . These had to be invested somewhere : this led to the make for for homes in Los Angeles sky-rocketing . However , this surge in demand saw a surge in home prices by an scant(p) of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so mountainous . The supply of homes in Los Angeles is not at its saturation mark . With new constructio! ns in full swing and a flowerpot of mega projects underway , there is avid supply of Los Angeles houses in the attached 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 relation 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 change . However , in the long-run this is a belch- ebullition 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 gestate house prices to continue growing at a debased pace while supply would be consolidate . accordingly , then I would expect the price bubble to burst by the beginning of 2009 , or due to a study change...If you want to get a full essay, pitch it on our website: BestEssayCheap.com

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