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Spanish Currency in Jeopardy (via Bobby’s Blog)

I thought that this blog post had an insightful analysis on the Spanish currency exchange rate and how the exchange rate is affecting the current account of the Spanish economy. According to the blog post, Spanish are experiencing double-digit deficit in their current account. In addition, the author analyzes the Spanish dilemma over whether they should stay or defect from Euro.

Spanish Currency in Jeopardy At this time, Spain, as part of the PIGS, countries that have double digit deficits in terms of current account in GDP, is suffering greatly. According to the article by Paul Krugman, the only solution Spain has formulated in order to recover from the deficit is to abandon the euro currency. By doing so, they will be free from Germany, a country that is doing relatively well in light of the current recession. Unlike Spain, it is currently experie … Read More

via Bobby’s Blog

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Common Mistakes made in Writting Exams

There are several common mistakes that are made on the exams. Some of them are poor time management, careless reading of the question, and poor use of diagrams.

One of the common mistake that I make during exams is the careless reading of the questions. I often make this mistake thinking that I’ve got the question firm in my mind. But, it is quite common that you really don’t have the firm idea of what you are going to write on the question box. So it is needless to say that you must read the questions carefully.

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Broad Social Goals in Command and Market Economies

Today we have learned about what the primary goals of command and market economies are. We read two diaries of teenagers from different economies to compare what their economy’s goals are.

In the Student Diary A, the economy there valued economic equity, security, and stability. On the contrary, the economy in the Student Diary B valued economic freedom, growth, and efficiency.

In sum, there were 6 social goals in economics.

  1. Efficiency
  2. Equity
  3. Freedom
  4. Growth
  5. Security
  6. Stability

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We learned that neither of these economies alone can achieve all of the 6 goals. If it was a market economy, it often acheived 1, 3, and 4, but found it hard to achieve 2, 5, and 6. Similarily, planned economy often acheived 2,5, and 6, but failed to achieve 1, 3, and 4.

In summary, there are opportunity costs of choosing between market and planned economy.

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