Name: Course: Tutor: Date: Abstract Inflation is the general rise in the price of any given product without the rise of its supply from the producer. This may result from either the increase in the costs of production of any given product in a certain industry which makes the massive production of the product minimal or too much money being pumped into the system thus too much money chasing limited products. The result will just be the general increase in price of the said product making it difficult to set a minimal price that can be accessed by most of the prospective customers. There are diverse types of inflation such as imported inflation and also different stages of inflation including walking or running rates of inflation. In this report I will be focusing on the theories that can be applicable in inflation cases bearing in mind that we are allocated resources that will result in the standard price of the product. However when there is a marginal production extra resources are put into use causing over allocation. This might as well have happened in the case as the disruptions would mean the normal procedure of production is interfered with. This results in the extra use of funds in the production line that may end up increasing the price of the product. The production of the gasoline could not be done in excess as explained by the theory of comparative advantage as it would bring about untimely quenching of the natural existence of the product thus creating a future gap of less or no supply of the product to the consumers in future. Work cited Gasoline Buoys U.S. Consumer Prices Underlying Inflation Tame - The New York Times. TheNew York Times - Breaking News World News & Multimedia 2017 www.nytimes.com/reuters/2017/10/13/business/13reuters-usa-economy.html. [...]
Find a current economics in action news story that was published in either one of the following sources: The Wall Street Journal or The New York Times or The Guardian between January 2017 and September 2017 that addresses an economic phenomenon and applies any one of the economic models discussed in Textbook Chapters 1, 2, 3, 4, or 5. Examples that you can analyze but are not limited to are: unequal income distribution, poverty, homelessness, unemployment, global warming, inflation, food insecurity, education, healthcare, etc. The economic models discussed are the Theory of Marginal Analysis or The Economic Perspective, Theory of Comparative Advantage and Gains from Trade using the Production Possibility Frontier and the Theory of Demand and Supply in a competitive market. Summarize the relevant economic model in your own words, explaining clearly the various key economic concepts relating to the model (for eg. with reference to the Theory of Marginal Analysis: provide an explanation in your report of the theory with reference to the relevant economic concept/(s) namely marginal benefit, marginal cost, overallocation, underallocation, allocative efficiency, inefficiency, shifts, movements, etc.) and then analyze how the economics in action news story that you have chosen applies the economic model to analyze the real life economic problem. Your report should be at least 4-5 typed double spaced pages using Times Roman Font size 12 and should include a reference to the news article using proper format. Please proof-read your report before you submit. Your economics in action news story report will be graded based on your explanation and understanding of the economic model chosen, your explanation of the relevant economic concept/(s) applied in the model, the application of the economic model to a real life economic problem, choice of an appropriate economics news story from either the Wall Street Journal or the New York Times or the Guardian, the proper use of English Grammar and spelling, reference(s) for the news story, the length of your report, the font and spacing.