The Top 10 Unsolved Questions in Economics

The Top 10 Unsolved Questions in Economics There are many problems in the economic world that have yet to be solved, and fortunately, Wikipedia  has compiled a list of the greatest ones to date - from what caused the Industrial Revolution to whether or not money supply is endogenous. Although great economists like Craig Newmark and members of the AEA have taken a stab at solving these tough issues, the true solution to these problems - that is to say the generally understood and accepted truth of the matter - has yet to come to light. To say a question is unsolved implies that the question potentially has a solution, in the same way 2x 4 8 has a solution. The difficulty is, most of the questions on this list are so vague that they cannot possibly have a solution. Nevertheless, here are the top ten unsolved economic problems. 1. What Caused the Industrial Revolution? Although there are many factors at play in causing the Industrial Revolution, the economic answer to this question has yet to be sussed out. However, no event has a single cause - the Civil War was not wholly caused by slavery and World War I was not wholly caused by the assassination of Archduke Ferdinand. This is a question without a solution, as events have numerous causes and determining which ones were more important than others naturally involves some subjectivity. While some might argue that a strong middle-class, mercantilism and the development of an empire, and an easily moveable and growing urban population who increasingly believed in materialism led to the Industrial Revolution in England, others might argue the countrys isolation from European continental problems or the nations common market led to this growth. 2. What Is the Proper Size and Scope of Government? This question again has no real objective answer, because people will always have differing views on the argument of efficiency versus equity in governance. Even if a population managed to fully understand the exact trade-off that was being made in each case, the size and scope of a government largely depend on its citizenrys dependence on its influence. New countries, like the United States in its early days, relied on a centralized government to maintain order and oversee rapid growth and expansion. Over time, it has had to decentralize some of its authority to the state and local levels in order to better represent its vastly diverse population. Still, some might argue the government should be larger and control more due to our reliance on it domestically and abroad. 3. What Truly Caused the Great Depression? Much like the first question, the cause of the Great Depression cant be pinpointed because so many factors were at play in the eventual crash of the United States economies in the late 1920s. However, unlike the Industrial Revolution, whose many factors also included advances outside of economy, the Great Depression was primarily caused by a catastrophic intersection of economic factors. Economists commonly believe five factors ultimately resulted in the Great Depression: the stock market crash in 1929, over 3,000 banks failing throughout the 1930s, reduction in purchasing (demand) in the market itself, American policy with Europe, and drought conditions in Americas farmland. 4. Can We Explain the Equity Premium Puzzle? In short, no we have not yet. This puzzle refers to the strange occurrence of returns on stocks being much higher than returns on government bonds over the past century, and economists are still baffled by what could truly be the cause. Some posit that either risk aversion may be at play here, or antithetically that large consumption variability accounted for the discrepancy in return capital. However, the notion that stocks are riskier than bonds isnt enough to account for this risk aversion as a means to alleviate arbitrage opportunities within a countrys economy. 5. How Is It Possible to Provide Causal Explanations Using Mathematical Economics? Because mathematical economics relies on purely logical constructions, some might wonder how an economist might use causal explanations in their theories, but this problem isnt quite that difficult to solve. Like physics, which can provide causal explanations like a projectile traveled 440 feet because it was launched at point x from angle y at velocity z, etc., mathematical economics can explain the correlation between events in a market that follow the logical functions of its core principles. 6. Is There an Equivalent of Black-Scholes for Futures Contract Pricing? The Black-Scholes formula estimates, with relative accuracy, the price of European-style options in a trading market. Its creation led to a newfound legitimacy of the operations of options in markets globally, including the Chicago Board Options Exchange, and is often used by participants of options markets to predict future returns. Although variations of this formula, including notably the Black formula, have been made in financial economic analyses, this still proves to be the most accurate prediction formula for markets around the world, so there is still yet to be an equivalent introduced to the options market. 7. What Is the Microeconomic Foundation of Inflation? If we treat money such as any other commodity in our economy and as such is subject to the same supply and demand forces, reason would suggest it would be just as susceptible to inflation as goods and services are. However, if you consider this question like one considers the question of which came first, the chicken or the egg, it may be best left as a rhetorical one. The basis, of course, is that we do treat our currency like a good or service, but where this originates doesnt truly have one answer. 8. Is the Money Supply Endogenous? Wikipedia follows up this question with a simple statement: Mainstream economics claims that it is; post-Keynesian economics claims that it is not. However, the issue isnt uniquely about endogeneity, which, strictly speaking, is a modeling assumption. If the question is properly constructed, I think this could be considered one of the key problems in economics. 9. How Does Price Formation Occur? In any given market, prices are formed by a variety of factors, and just like the question of the microeconomic foundation of inflation, theres no true answer to its origins, though one explanation posits that each seller in a market forms a price depending on probabilities within the market which in turn depends on the probabilities of other sellers, meaning that prices are determined by how these sellers interact with one another and their consumers. However, this idea that prices are determined by the markets overlooks several key factors including that some goods or service markets dont have a set market price as some markets are volatile while others are stable - all depending on the veracity of information available to buyers and sellers. 10. What Causes the Variation of Income Among Ethnic Groups? Much like the causes of the Great Depression and the Industrial Revolution, the exact cause of income disparity between ethnic groups cannot be pinpointed to a single source. Instead, a variety of factors ​are at play depending on where one is observing the data, though it mostly comes down to institutionalized prejudices within the job market, availability of resources to different ethnic and their relative economic groups, and employment opportunities in localities featuring varying degrees of ethnic population density.

Chicago riots Essays - Red Summer, Free Essays, Term Papers

Chicago riots Essays - Red Summer, Free Essays, Term Papers HIS-2020G The importance of little factors that can lead up to becoming huge and having great effects on actions. For blacks and whites both the riot was just a built up increase of hostility that has been going on for quite some time. One thing can be said though that the Chicago incidents seem to be the more ruthless and aggressive when compared to others. It may have been because of the blacks resiliency not to lie down and to fight back. A lot of the time it causes even more anger to mix when compared to a nonviolent approach. Nevertheless, the Chicago riots and the incidents that led up to it were huge in status. A young black man named Eugene Williams swam past an unseen line of segregation at a popular public beach on Lake Michigan, Chicago. He was stoned by several white bystanders, knocked unconscious and drowned, and his death set off one of the bloodiest riots in Chicagos history. The reason why the Chicago race riots was crazy because of the Eugene Williams situation and doing that time thirty-eight people died (23 African American and 15 white) and over five hundred were injured. You can relate this back to what going on in present time with the police brutality how they killing African American teens for no reason just because they believe they up to no good. The Eugene Williams situation really set things off thats why Chicago had that big on of riots just like when had one Baltimore with the Mike Brown brutality and Trayvon Martin in Miami, Flordia when he was shot in killed because he had jacket on very late night outside. The white man have to believe that he was up to no good which is not fair and African American should be stereotypes as that. Michael Brown, an unarmed black teenager, was shot and killed on Aug. 9, 2014, by Darren Wilson, a white police officer. I believe we can both say this both of my reasons relate to what happen Eugene Williams that primary reason of the Chicago race riots just how start it both of the riots in Miami, Flordia and Baltimore of a killing of a teens just because the white men believe they have the right to do that. The Chicago race riot was not the result of the incident alone. Several factors, including the economic, social and political differences between blacks and whites, the post-war sky and the psychology of race relations in 1919, combined to make Chicago a prime target for this event. Although the riot was a spark for several short-term solutions to the racial tensions, it did little to improve race relations in the long run. It was many years before the nation truly addressed the underlying conflicts that sparked the riot of 1919. WWI provided tons of industrial work and over 400,000 African Americans migrated from the South to Northern cities between 1916-1918 alone. The first Great Migration lasted until 1930, The Great Migration was the movement of 2 million blacks out of the Southern United States to the Northeast, Midwest and West from 1910 to 1930. African Americans migrated to escape racism and prejudice in the south, as well as to seek jobs in industrial cities and resulted in a major shift in where African Americans lived in the United States. Many blacks went north during the great migration due to the fact of believing that they would get better jobs and fair treatment in the north. The Chicago race riot caused by hatred for one another of members of different races in the same community which is crazy. The black people had suffered the brunt of the bloodshed, They had also been arrested by police at twice the rate of whites. Many blacks viewed the migration as a well inspired deliverance from the land of suffering. The south could be hostile, but the north could be careful, cold, and lonely. A group of white men threw stones at Williams, hitting him, and he drowned. When police officers arrived on the scene, they refused to arrest the white man. Which bring me back to Trayvon Martin situation when he was shot in

Security challenges within Eurasia (Caucasus and Caspian basin) Essay

Security challenges within Eurasia (Caucasus and Caspian basin) - Essay Example Research shows that the basin holds about 100 billion barrels of gas and oil and stretches about the area of Northern Europe. Considering the size of the basin and its energy potential, the area is a very important for Europe and surrounding countries which are no less interested in harvesting the oil and gas. Furthermore, the region is supposed to be important in the redevelopment of the Silk Road that historically connected Europe and Asia. In this sense, the rout to be used in the transportation of energy resources has remained a security challenge as different countries prefer the use of different routes. NATO (the North Atlantic Treaty Organization) and EAPC (Euro-Atlantic Partnership Council) countries are greatly interested in the Caspian basin and Caucasus region for the factors stated here above. On the other hand, Russia’s relationship with Central Asian as well as South Caucasus countries is perceived to be motivated toward the redrawing of former Soviet Unionâ€⠄¢s old lines3. In other words, Russia wants the countries in these regions to get into its circle of influence.

What role does social class play Essay Example | Topics and Well Written Essays - 4000 words

What role does social class play - Essay Example Looking at the work of Jane Austen in her novel ‘Pride and Prejudice’ it could be said that the novel is one of the most quintessential novels of manners and etiquettes that has effectively and provocatively described the role of social classes in society. Austen has dealt with the issues of manners, education, marriage, principles and upbringing in a society of the elite gentry of the 19th century England. Similarly, one other novel that has also discussed the subject of social class and its role in the society in a different manner is Room at the Top by John Braine. The novel was written in 1957 and has discussed how social class, desires, and the socio-economic struggles can change the entire course of human life, particularly his love and passion. The novel rotates around a story of young, ambitious man who is struggling hard to find his place in the socially escalating society during the postwar Britain (Austen, 1853; Braine, 1957). In the essay, I would like to explore whether or not the social class as presented in the aforementioned novels, has a similar role in the society. Furthermore, I would also like to study what exactly were the reasons behind the urge to get socially equal in the society. Furthermore, the essay would also discuss whether the same techniques (as discussed in the novels) are being used for the socio-economic struggle in the present day societies or not (Braine, 1957). Considering these questions as the basis of my study, I would like to incorporate the essay with various researches and studies from the past in order to gain data and information on the subject. However, I would only stick to the two main novels that I have selected for this essay for discussing social class and its role. With the help of this essay, I would like to study the fundamentals and the concepts that are associated with the subject and in arts and humanities. It  will help me to broaden my horizon, knowledge and understanding

Animal Farm-Power Corrpts Essay Example for Free

Animal Farm-Power Corrpts Essay Animal Farm is an allegorical novel about the Russian Revolution and the resulting political system of the Soviet Union. Through this story which appears to be a simple fable on the surface, we see George Orwell’s beliefs about the nature of power and its seemingly inevitable corruption of noble ideas. Educated authority figures in the book bend the principles of communism to suit their own selfish needs and desires, all the while taking advantage of the uneducated masses, and easily manipulated them through propaganda and persuasion. Through this allegory of communism turned to totalitarianism, Orwell explores the dangers of a political system where leaders have no sense of social responsibility toward their subjects. The first instance of corruption among the ruling class appears shortly after the revolution. The pigs, the new rulers of Animal Farm after the ousting of the tyrant farmer Jones, milk the cows to relieve them from of their discomfort. The animals, remembering how Jones would mix some of the milk into their mash, look forward to at least similar treatment from the pigs. However, the milk soon disappears and it is discovered later that the pigs have mixed it into their own mash without sharing it with the other animals, just as the windfall apples have been consumed exclusively by the pigs. Squealer, the political propagandist for the pigs, justifies this to the other animals by saying that the pigs need the extra brain energy, and then bolsters his argument with some fear mongering: â€Å" Do you know what would happen if w pigs failed in our duty? Jones would be back!† (32). The fact that this incident occurs so quickly after the revolution and at a time when all of the pigs are still present on the farm shows Orwell’s belief that the corruption is not only inevitable in a society where the ruling sector of the population is so much better educated than the rest, but that all of these members of the ruling class were potentially corruptible. As the story moves on Orwell shows us how power is corrupting more. Another of the major instance that occurs after the milk and apples is the ruling class moving in the farmhouse. As the commandment says no animal shall sleep in a bed. Some of the other animals were confused but as usual squealer came with his propaganda.

Art and Nature in Shakespeare’s The Winter’s Tale Essay -- Shakespeare

Art and Nature in Shakespeare’s The Winter’s Tale In Shakespeare’s â€Å"The Winter’s Tale†, we see a jealous king convinced he is search of the truth. He will expose his wife and her alleged philandering, but his determination to prove this actually changes this search from one for truth to one for myths—creations, false truths. In essence. Leontes runs into the conflict of defining art versus nature, where art is the view of the world he constructs to prove his paranoia true. Nature itself can exist without art, but the art here is the mangled perception through which Leontes will seek to define Nature. In summation, â€Å"The Winter’s Tale† investigates the conflict between art and nature—creation versus enhancement—and seeks to find out if art can exist without any consideration to nature. The idea of altering perception is a fundamental one in â€Å"The Winter’s Tale†, and art is seen as the way to make this alteration occur. While it is clear to the reader from the very beginning that Hermione is in fact innocent, Shakespeare introduces the reader to Leontes’s persistence to clearly show the beginnings of the conflict brewing. Despite Hermione’s clear innocence, Leontes has been written as a character so belligerent to ever see what is universally accepted as true in nature. The result is a conflict clear to the reader—a conflict of nature on its own merit, a question of truth, versus art, where perception is inherently flawed. Shakespeare creates a truly paranoid, conflicted character in Leontes, which works to make his objectivity, his desire to make truths out of falsities, even more apparent. Leontes speaks to the audience passionately upon his discovery, but his passion sounds so melodramatic, especially when we as readers a.. . ...years later, it becomes clear that for all the emphasis put on art, on creation, and on mass production—nature is central to our human experience. We can symbolize this natural connection with art—but the art itself always harkens back to something that elicits an emotional response from the viewer. For Leontes, a statue of his presumably deceased wife, Hermione triggers a sorrowful reaction. Art indeed embellishes life as it does with flowers, but we are always working from some perspective, some emotion, before we are merely creating art. â€Å"The Winter’s Tale† takes on the challenge of investigating whether or not art can in fact breathe outside the womb of nature, and as we witness art break down, and nature hold the characters together, it becomes resoundingly clear that art seeks to react to nature, but that it cannot work without maintaining nature at its core. Art and Nature in Shakespeare’s The Winter’s Tale Essay -- Shakespeare Art and Nature in Shakespeare’s The Winter’s Tale In Shakespeare’s â€Å"The Winter’s Tale†, we see a jealous king convinced he is search of the truth. He will expose his wife and her alleged philandering, but his determination to prove this actually changes this search from one for truth to one for myths—creations, false truths. In essence. Leontes runs into the conflict of defining art versus nature, where art is the view of the world he constructs to prove his paranoia true. Nature itself can exist without art, but the art here is the mangled perception through which Leontes will seek to define Nature. In summation, â€Å"The Winter’s Tale† investigates the conflict between art and nature—creation versus enhancement—and seeks to find out if art can exist without any consideration to nature. The idea of altering perception is a fundamental one in â€Å"The Winter’s Tale†, and art is seen as the way to make this alteration occur. While it is clear to the reader from the very beginning that Hermione is in fact innocent, Shakespeare introduces the reader to Leontes’s persistence to clearly show the beginnings of the conflict brewing. Despite Hermione’s clear innocence, Leontes has been written as a character so belligerent to ever see what is universally accepted as true in nature. The result is a conflict clear to the reader—a conflict of nature on its own merit, a question of truth, versus art, where perception is inherently flawed. Shakespeare creates a truly paranoid, conflicted character in Leontes, which works to make his objectivity, his desire to make truths out of falsities, even more apparent. Leontes speaks to the audience passionately upon his discovery, but his passion sounds so melodramatic, especially when we as readers a.. . ...years later, it becomes clear that for all the emphasis put on art, on creation, and on mass production—nature is central to our human experience. We can symbolize this natural connection with art—but the art itself always harkens back to something that elicits an emotional response from the viewer. For Leontes, a statue of his presumably deceased wife, Hermione triggers a sorrowful reaction. Art indeed embellishes life as it does with flowers, but we are always working from some perspective, some emotion, before we are merely creating art. â€Å"The Winter’s Tale† takes on the challenge of investigating whether or not art can in fact breathe outside the womb of nature, and as we witness art break down, and nature hold the characters together, it becomes resoundingly clear that art seeks to react to nature, but that it cannot work without maintaining nature at its core.

What are the differences between how a child learns and how an adult learns?

Child learning is built on the concept that children need to be fully guided on what they need to learn, how they will learn it and when it will be learned. â€Å"Pedagogy is the art and science of teaching children† (Knowles, 1984, p. 13). This type of learning promotes dependency of the learners on the teacher or instructor. The counterpart of pedagogy is â€Å"Andragogy† which is â€Å"the art and science of helping adults learn† (Knowles, 1984, p. 13). It is assumed that adults have capabilities to take responsibility for learning so that there is more independence from the teacher or instructor.Curricula for child learning are very much controlled. They are age specific so that children depend much on what the teacher will teach; and it is expected that the teacher will provide all the answers. For adult learners, teachers do not have much control of the curriculum and they are not expected to provide answers but only to guide the adults to find the answers. It is expected that adults have basic knowledge and experience so that their kind of learning is more self-directed. Children are more subject-centered while adults are more performance-centered.When children learn, they are guided by role models and substitute knowledge and experiences of others. Teachers tell them when situations are worth following and when situations are to be avoided. Adults learn by performing in their own environment and problem situations. Children’s learning is enhanced by rewards and punishments. To recognize their acquired learning and also to encourage them to learn more, they are provided with rewards like high grades; good feedback like very good, excellent and even gifts. Adults are more goal-oriented. Their readiness allows them to immediately apply their learning to achieve their goals.