General Information about Economic Growth and Environmental Protection

Economy is the careful management of resources to avoid unnecessary expenditure or waste. It is also the complex of human activities concerned with the production, distribution, and consumption of goods and services. A nation's economy can be highly unpredictable and is often a function of a variety of factors. In a strong economy, unemployment is low and consumers enjoy increased spending power. In a struggling economy, more people are out of work and consumer confidence lessens. As confidence decreases, less money goes back into the economy, causing businesses to become less profitable and jobs to disappear. There are five major factors that affect the economy and all of these aspects of a national economy are studied by either macro- or microeconomics and have significant importance for the growth of national economies. Supply and Demand

Supply and demand impacts a nation's Gross Domestic Product (GDP), which is the combined dollar value of all goods and services produced by a country in a given year. The higher the demand for goods and services, the greater the need for workers to produce them, leading to economic growth. Interest Rates

Fluctuation in interest rates can have an impact on consumer purchasing. According to the Federal Reserve Bank of San Francisco, when interest rates are high, consumers may be less inclined to borrow money to buy a new home or car. People who have adjustable-rate home mortgages can face financial hardship or even lose their homes when interest rates spike. Retirees who live largely off investment income may need to lower their standard of living when interest rates decline. Inflation

Higher inflation is typically accompanied by higher prices, so consumers may be less willing to buy non-essential or luxury items. If wages don't rise at the same rate of inflation, people actually lose money. When inflation rises, the value of the dollar decreases so consumer buying power drops accordingly. Unemployment

The rate of unemployment can have a major effect on the economy. The more people who are out of work the less money that is circulated into the economy through the purchase of goods and services. Even the threat of unemployment has an impact, as workers who fear losing their jobs are less inclined to spend or invest their money. Foreign Exchange Rate

A nation's foreign exchange rate is the value of its currency in the international market. In the United States, when the value of the dollar is high in relation to other countries' currencies, the more goods and services they are able to import. In contrast, a higher value of the dollar means that other nations may be less inclined to import products from the United States. Factors such as a rising trade surplus can increase the demands for a country's currency by foreigners, thus strengthening the currency. A great fact that we should consider is that there are unlimited wants in economy but there are only limited resources to produce the goods and services to satisfy those wants. This creates scarcity which is the main economic problem of a certain country. In other words, the fundamental economic problem in any society is to provide a set of rules for allocating resources and/or consumption among individuals who can't satisfy their wants, given limited resources. In every nation, no matter what the form of government, what the type of economic system, who controls the government, or how rich or poor the country is, three basic economic questions must be answered. They are: What and how much will be produced? Literally, billions of different outputs could be produced with society's scarce resources. Some mechanism must exist that differentiates between products to be produced and others that remain as either unused inventions or as individuals' unfulfilled desires. How will it be produced? There are many ways to produce a desired item. It may be possible to use more labor and less capital, or vice versa. It may be possible to use more unskilled labor to substitute for fewer units of skilled labor. Choices must be made about the particular input mix, the way the inputs should be organized, how they are brought together, and where the production is to take place.

For whom will it be produced? Once a commodity is produced, some mechanism must exist that distributes finished products to the ultimate consumers of the product. The mechanism of distribution for these commodities differs by economic system.

Sources: http://www.buzzle.com/articles/economic-problems-of-the-philippines.html http://www.ehow.com/list_6059553_five-economic-factors.html http://www.enotes.com/business-finance-encyclopedia/economic-systems

Key factors of Economic Growth and Environmental Protection According to Steiner, economic policies must be broadened to recognize that the nature is the foundation for all life on Earth, and that environmental protection is a condition, and a prerequisite for long-term economic growth. Economic growth is an important factor in reducing poverty and generating the resources necessary for human development and environmental protection. The major objective of economics to handle the scarcity of resources, properly managing resources result in economic growth. A good way to think of economic growth is the potential for an economy to produce more goods and services. There are many factors that can contribute to this growth, and there are three major factors that have more impact than others. More Resources

One of the chief catalysts of a growing economy is an increase in the available resources. Throughout history, wars were fought over territory, because kingdoms that had more land could grow more food, which meant that they could support a larger economy and population. While it isn't as common for war to be declared over resources, there is still a great deal of competition in order to get them and use them. Superior Resources

Another factor that can contribute to economic growth is an increase in the quality of available resources. A simpler example is that good, black, rich soil that produces higher quality crops is worth more than soil that will produce crops that are fit for human consumption but not as fertile.

Technology

An increase in technology also encourages economic growth. Oftentimes, it's advanced technology that allows a society to get more or better quality resources. For instance, without the technological advances of the past few decades we wouldn't have access to wind energy, tidal energy, solar energy or the variety of bio fuels that we do now. Because of technology that allows us to both captures more resources and makes better use of the resources that we have, there is a great potential for economic growth. In summary, economic growth and environmental protection have seemed like players on rival teams. There have been a lot of wicked challenges and too many own goals. We need to make these two sides of the development coin team players, players on the same side. We then have a chance to achieve the fundamental shift of values and reach a new understanding of what really makes the world go round. Until recently the goods and services provided by nature have been paid only lip service by traditional economic accounting. Thus the land, the air, the biodiversity and the worlds waters have been frequently treated as free and limitless. Economic issues that touch on the environment are all too often pushed out of environmental principles. Meanwhile, environmental issues are generally left standing on the touch line and rarely asked to play a real role in the great economic game. Everyone, not just those in the developing but also those in the developed world stand to lose out if this continues. The challenges are so immense that, only by working together in mutual self interest, can we realize internationally agreed goals and deliver a stable, just and healthy planet for this and future generations.

Sources: http://www.wri.org/publication/content/8372 http://socyberty.com/economics/impact-of-economic-growth-on-environmentalprotection/ http://findarticles.com/p/articles/mi_hb3266/is_n1_v34/ai_n28628958/ http://environment.about.com/b/2006/06/20/environmental-protection-is-essential-tolong-term-economic-growth-new-unep-chief-says.htm

http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=480&ArticleID=5 299&l=en http://www.ehow.com/list_6021497_factors-contributing-economic-growth.html http://www.soopertutorials.com/business/economics/2005-key-factors-economicgrowth.html

Economic Growth Factors The major objective of economics to handle the scarcity of resources, properly managing resources result in economic growth. Following are some of the major factors of economic growth: - Predominance of free markets. - High rate of saving and investment - Low Trade Barriers - Honest Government - Strong property Rights - Investment in education - Security in the country

Sources: http://www.soopertutorials.com/business/economics/2005-key-factors-economicgrowth.html

The World Economy Great Financial Crisis? What Great Financial Crisis?

The World Economy in 2010 was worth $74.007 trillion in GDP terms, using the Purchasing Price Parity (PPP) method of valuation. This is expected to grow to $78.092 trillion in 2011. The overall global economy averaged a 3.2 per cent growth rate between 2000 and 2007, suffering a slight dip in 2001 - 2002 thanks to the Dot Com Crash, but continuing to grow throughout that period. In fact 2004 - 2007 were boom years. Economic conditions within these countries play a major role in setting the economic atmosphere of less well-to-do nations and their economies. In many aspects, developing and less developed economies depend on the developed countries for their economic wellbeing. This emerging market growth process is also leading to an

urbanized planet. For the first time in 2010, the majority of the world's population lived in cities (50.5% or 3.417 billion people), and that number is growing by over 125 million people a year. This two-speed process has led to a rapid change of the political and economic power structure that has existed since the end of World War II. Bankers have since gone back to paying themselves billions in bonuses while their debts have effectively been nationalized and transferred to government debt. Meanwhile

unemployment remains stubbornly high. National Debt marked the second phase of the Great Financial Crisis that started in 2009 with Dubai's defaults. While Dubai was saved by the oil wealth of Abu Dhabi, Europe in 2010 was a different story. All of the countries faced the same type of problem but in the different way they were affected.

Source: http://www.economywatch.com/world_economy/

National Economies Compared Economies are not measured by how much they produce, but also what they produce. Some countries are just better at making certain things than other countries. A country has a comparative advantage over another when it can make the same product at a lower cost. The opportunity cost for making those products is small in the country is small, while the opportunity cost for something else is large. Different economies also consume different products besides producing different products. Some of this is determined by prices. Remember, the supply and demand principle determines how much of any product people buy. People in any country buy things that are cheap. Prices of goods differ from nation to nation, depending on the state of supply. Also, as always, people's preferences determine what is consumed. In the modern economy, nations are interdependent on each other, everyone trading with everyone else to obtain wanted products. Imports are the products that a country buys from others while exports are products that a country sells to others. A nation's balance of trade is the difference between imports and exports. When there are more exports than imports, there is a trade surplus; when there are more imports than exports, there is a trade deficit. There are also debtor nations and creditor nations. A

country that is competitive (its products are cheap and readily available) exports more. High-income nations also import a lot, because their people have more to spend. Trade deficits often cause a decline in income while trade surplus cause an increase in income. International trade is drastically different from domestic trade. These and other forms of limitation on trade are all manifestations of protectionism. Protectionist policies come when a nation is not competitive and thus foreign competition would possibly put domestic businesses out of business. However, they generally have the result of generally inefficiency and high prices.

Source: http://library.thinkquest.org/C004323/basics3.html

Mathematical Modeling A mathematical model is a description of a system using mathematical concepts and language. The process of developing a mathematical model s termed mathematical modelling. Mathematical models are used not only in the natural sciences and

engineering disciplines, but also in the social sciences; physicists, engineers, statisticians, operations research analysts and economists use mathematical models most extensively. Mathematical models can take many forms, including but not limited to dynamical systems, statistical models, differential equations, or game theoretic models. These and other types of models can overlap, with a given model involving a variety of abstract structures. In general, mathematical models may include logical models, as far as logic is taken as a part of mathematics. In many cases, the quality of a scientific field depends on how well the mathematical models developed on the theoretical side agree with results of repeatable experiments. Lack of agreement between theoretical mathematical models and experimental measurements often leads to important advances as better theories are developed.

Mathematical modelling is the art of translating problems from an application area into tractable mathematical formulations whose theoretical and numerical analysis provides insight, answers, and guidance useful for the originating application. Mathematical modeling

is indispensable in many applications is successful in many further applications gives precision and direction for problem solution enables a thorough understanding of the system modeled prepares the way for better design or control of a system allows the efficient use of modern computing capabilities

Source: http://en.wikipedia.org/wiki/Mathematical_model

Economic Modeling Technique In economics, a model is a theoretical construct that represents

economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified framework designed to illustrate complex processes, often but not always using mathematical. Frequently, economic models use structural parameters. Structural parameters are

underlying parameters in a model or class of models. A model may have various parameters and those parameters may change to create various properties. Obviously any kind of reasoning about anything uses representations by variables and logical relationships. A model however establishes an argumentative for applying logic and mathematics that can be independently discussed and tested and that can be applied in various instances. Policies and arguments that rely on economic models have a clear basis for soundness, namely the validity of the supporting model. Economic models in current use do not pretend to be theories of everything economic; any such pretensions would immediately be thwarted by computational infeasibility and the paucity of theories for most types of economic behavior. Therefore conclusions

drawn from models will be approximate representations of economic facts. However, properly constructed models can remove extraneous information and isolate useful approximations of key relationships. In this way more can be understood about the relationships in question than by trying to understand the entire economic process. The details of model construction vary with type of model and its application, but a generic process can be identified. Generally any modelling process has two steps: generating a model, then checking the model for accuracy (sometimes called diagnostics). The diagnostic step is important because a model is only useful to the extent that it accurately mirrors the relationships that it purports to describe. Creating and diagnosing a model is frequently an iterative process in which the model is modified (and hopefully improved) with each iteration of diagnosis and respecification. Once a satisfactory model is found, it should be double checked by applying it to a different data set.

Source: http://en.wikipedia.org/wiki/Economic_model

Research Paper In Calculus

Submitted by:
Krystel Princess Valenzuela Ma. Irene Bautista Ailyn Jason Loyola Kristel Clarisse Jocson Dan Joseph Sorilla August 10, 2011 Rafael Anthony Ramirez Gio Lara Ralph Justine Cruz Alfonso Miranda

Submitted to:
Mr. Edwin Bunag