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.

International Business Associate Working Professionals Find Free Time for School 2019

Lack of time is one of the common reasons professionals avoid returning to school. But with proper time management skills, earning an international business associate degree is entirely possible. Does the Average Adult have Time for an International Business Associate Degree? Living and working can eat up a lot of time. There are 168 hours in one week. Of that time, an average adult needs . . . 56 hours to sleep. 50 hours to work (including commute time). 21 hours to do daily chores and eat. After crunching the numbers, the average adult has 41 hours of free time leftover every week. That amounts to 5 hours and 51 minutes every day! Reclaim Free Time and Devote Some to Studying for an International Business Associate Degree Despite what the numbers say, the average adult does not typically claim 5 hours and 51 minutes of free time every day. Unfortunately, distractions and procrastination can get in the way of having enough time for an international business associate degree. Discovering where time is being wasted is the first step towards reclaiming that time. .u7dcdcd106274da337c12f937e3c4e4ba { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u7dcdcd106274da337c12f937e3c4e4ba:active, .u7dcdcd106274da337c12f937e3c4e4ba:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u7dcdcd106274da337c12f937e3c4e4ba { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u7dcdcd106274da337c12f937e3c4e4ba .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u7dcdcd106274da337c12f937e3c4e4ba .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .u7dcdcd106274da337c12f937e3c4e4ba:hover .postTitle { text-decoration: underline!important; } READ Decline in Applications for Online MBA Degrees. Myth or Fact3 simple changes can help prospective international business associate students rediscover their time: Use a Day Planner Keeping a schedule with defined tasks can help remind students of their daily priorities. Learn to Multitask Learn to make use of down-time. For example, bring study materials to dentist appointments and other typical places that involve waiting. Stay Healthy Use part of daily free time to get adequate sleep, exercise, and prepare healthy meals. Having more energy results in higher productivity in less time. Maximize Time by Enrolling in a Flexible Online International Business Associate Program Finally, choosing to enroll in an online international business associate degree can add needed flexibility to a work and study schedule. To learn more about the Associate of Arts in Business program at the Online, fill out this information request form. Related ArticlesCriminal Justice Associate Degree Online Understanding and Beating ProcrastinationOnline Nursing Degree BSN Students Share Time Management StrategiesHow to find the Perfect Part Time JobTop Internship Mistakes to AvoidHow to Maximize your InternshipHealth Care Management College Degrees .u4ad8bc2e8078a0697526d7f26c2c43ba { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u4ad8bc2e8078a0697526d7f26c2c43ba:active, .u4ad8bc2e8078a0697526d7f26c2c43ba:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u4ad8bc2e8078a0697526d7f26c2c43ba { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u4ad8bc2e8078a0697526d7f26c2c43ba .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u4ad8bc2e8078a0697526d7f26c2c43ba .postTitle { color:#000000; text-decoration: underline!important; font-size: 16px; } .u4ad8bc2e8078a0697526d7f26c2c43ba:hover .postTitle { text-decoration: underline!important; } READ Find Medical and Nursing Degree Programs

Galileo Essay - 833 Words

The scientific revolution was one of the greatest times in the 16th century and its ideals have proved to last to this very day. The great minds of the scientific revolution brought forth new concepts and vastly complex while each one is rooted in a basic fundamental. Some of these ideas and fundamentals were of the outside world, aka space, the planet and the stars, motion, and physics. One of the best minds of this time was, of course, Galileo Galilei. This great astronomer was a marvel at his work, he introduced controversial concepts that the church did not accept but those that he believed were to be true. Written by Galileo himself, this letter to the Grand Duchess professed his great discoveries and how they changed old ideas and†¦show more content†¦His discoveries made him infamous in the eyes of the Church and changed how people look at the earth with respect to the Universe. Being so proud of his remarkable discoveries he decided to Duchess Christina. â€Å"I dis covered in the heavens many things that had not been seen before our own age.† (Ch 16, Doc 4) He writes of his findings and how they were criticized and he was ridiculed for his findings. They denounce his new perception of the world, but Galileo knew that new discoveries would have â€Å"consequences† and that people would turn against him. â€Å"The novelty of these things, as well as some consequences which followed from them in contradiction to the physical notions †¦ as if I had placed these things in the sky with my own hands in order to upset nature and overturn the sciences.† Being accused of heresy and his ideas said to be dangerous deviations from the church he had to defend himself from opposition. (C/S 436) He once proclaimed â€Å"the bible teaches us how to get to heaven, not know how heaven goes† in his defense. (C/S, 438) This document shows the sort of plea that Galileo gives to the Duchess in hope of some kind of sympathy and to prove that his new concepts are not being accepted and also that he’s being accused for the wrong reasons. And he could also be trying to impress her in way, like in the first sentence he writes, â€Å"Some years ago, as Your Serene Highness well knows, I discovered inShow MoreRelatedGalileo1646 Words   |  7 PagesPueblo Community College Galileo Life after punishment Joe Davalos History 102 Western Civilization II Mr. Richard L. Rollins May 1, 2014 Joseph Davalos Mr. Richard Rollins History 102 Western Civilization II April 10, 2014 Galileo: life after punishment Galileo Galilei, born February 15, 1564 was a mathematics professor a scientist, astronomer and physisist. He attended the University of Pisa to study medicine in 1583. He was fascinated with many subjects, particularlyRead MoreGalileo1113 Words   |  5 PagesGalileo Galilei Galileo Galilei was considered the central figure of the scientific revolution of the 17th century. His role in the history of science was a critical one. He revolutionized the way in which science was conducted, and performed experiments to test his ideas, which led him to be regarded as the father of experimental science. Galileo was born on February 15th, 1564 in Pisa, and was the oldest of seven children. His father, Vincenzo Galilei was a famous composer, lutenist, and musicRead MoreThe Life of Galileo1545 Words   |  7 Pagesand in doing so, embark on a quest to find their true identity and place in life. One must realize that the common theme in all literature is the search for identity and belonging. Bertolt Brecht, author of The Life of Galileo, effectively uses the developing character Galileo Galilei to portray a strong message; a message which five hundred years after the fact has still not been completely comprehended. Through Galileos continuous battle with the Chu rch in prevailing his work, Brecht is tellingRead More Galileo Essay1583 Words   |  7 Pages Galileo nbsp;nbsp;nbsp;nbsp;nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;In the early seventeenth century, Galileo Galilei began the construction of a device that would transform the scientific world. Galileo did not invent the telescope but his improvements on it made him the most scientifically successful user of this instrument in his time. However, Galileo would not stop at scientific discovery. The father of three successfully marketed the improved instrument to the Senate of Venice andRead More Galileo Galilei Essay995 Words   |  4 PagesGalileo Galilei Galileo was born in Pisa along the Via del Cuore in 1564 to Vincenzo Galileo, a man known for his study of music, and Giuli Ammananti. When Galileo was ten he moved to Florance.1 At eleven young Galileo was sent to Vallombrosa for school. At fifteen Galileo decided to be a monk, but because of his father gave up his ambition. In the late summer of 1581 Galileo entered the University of Pisa and embarked on a course of study in medicine. Studying the Aristotelian system, whichRead MoreGalileo And The Scientific Revolution1549 Words   |  7 Pages Quick Facts Name Galileo Occupation Astronomer, Scientist Birth Date February 15, 1564 Death Date January 8, 1642 Did You Know? Galileo supported the Copernican theory, which supports a sun-centered solar system. Did You Know? Galileo was accused twice of heresy by the church for his beliefs. He remained under house arrest the remaining years of his life. Did You Know? Galileo devised his own telescope, in which he observed the moon and found Venus had phases like the moon, proving it rotatedRead MoreEssay On Galileo Galilei1495 Words   |  6 PagesGalileo Galilei was born on February 15, 1556 in Pisa Italy, Tuscany in 1564, the son of Florentine musician Vincenzio Galilei. Actually, Vincenzio was a revolutionary musician—he felt the formal church music that then dominated the scene had become sterile, and that classic Greek poetry and myths had a power the church music lacked, that perhaps could be translated into modern music. He attempted some of this, and his work began the development that culminated in Italian opera. His mother GiuliaRead MoreThe Trial Of Galileo Galilei1882 Words   |  8 Pagestimes even lent evidence to support each other as being true. However, this all changed after the trial of Galileo Galilei in 1633. Galileo was put on trial by the Catholic Church for his heliocentric theory, which the Church declared as b eing contradictory to the truth of the geocentric theory as spoken by Ptolemy and the Bible. Despite the scientific observations and evidence presented by Galileo in support of the heliocentric theory, the Church struck it down because it contradicted their own evidenceRead MoreThe Life of Galileo Galilei 609 Words   |  2 Pages Galileo Galilei is considered one of the greatest scientists of all time. He was an Italian mathematician, astronomer, and philosopher who very strongly supported Copernicanism, which is the idea that the earth orbits the sun. It was hard to advocate Copernicanism because it was a very controversial idea during that time. Galileo was a leader in the Scientific Revolution. He made discoveries in the sciences of motion, astronomy, and strength of materials. In motion, his famous scientificRead MoreThe Success and Intentions of Galileo Essay733 Words   |  3 Pagesâ€Å"Galileo has been depicted variously as a cynical opportunist, patient genius o r lucky engineer, and dies a coward or a modern Socrates.† I agree that he is a patient genius, and lucky engineer, but I do not agree that he is a cynical opportunist, coward or a modern Socrates. Galileo was a mathematician and a natural philosopher, who converted Copernicanism, which states that the earth revolved around the sun, into philosophy and the world’s true nature. By introducing new knowledge and using science

Statistical Analysis and Decision Making

Question: Discuss about the Statistical Analysis and Decision Making. Answer: Introduction Statistical analysis is plays an important role in the process of decision making. For any type of data set, we use the statistical analysis for the different variables for finding the facts regarding data. Here, we have to analyze the data regarding the two variables sunshine and sunlight for the Liverpool city in United Kingdom. We have to use the descriptive statistics for these variables for the data for the sunshine and sunlight from the year 1981. The descriptive statistics gives us general idea about the nature of data. Also, we have to use the scatter diagrams for finding the relationship between the two variables. Also we have to use testing of hypothesis for checking the different claims regarding the variables included in the data set. We have to use the Mann-Whitney test for median, two sample t test for the population means for checking the significant difference between the two medians and means. Let us see this statistical analysis in detail given as below: Objectives An objective for this study is to use of descriptive statistics and testing of hypothesis for making decisions about the variables included in the study. Also, by using the different techniques of testing of hypothesis we have to check the different claims given as below: Is there any significant difference between the two medians? Is there any significant difference between the two means? Statistical Analysis From the scatter diagram, it is observed that there is a positive relationship exists between the average monthly sunshine hours and average monthly sunlight hours. The average sunshine hours for the February month is given as 65.15 with the standard deviation of 3.54 while the average sunlight hours for the February month is given as 73.85 with the standard deviation of 4.84. From the comparison of the above two seven year moving average plots, it is observed that there is a larger variation for the sunshine data than the sunlight data. Also, the prediction line shows that there is more variation in the sunshine data than the sunlight data. The overall pattern for the sunshine and sunlight data has the same pattern of variation and this facts show that there is a relationship between the sunshine data and sunlight data. The Mann-Whitney test is used for checking the significant difference between the medians. The test is significant at 5% level of significance. This means we conclude that there is a significant difference between the medians of the hours of sunshine. Two sample t test for population means is used for checking the significant difference between the population means. For this test we get the p-value as 0.00, so the test is significant at 5% level of significance. So, we conclude that there is a significant difference between the means of the hours of sunshine. Results are always sensitive for the observations included in the data set and if any artificial errors occur in the data then this may impact on the results of the hypothesis tests used for checking the claims. Due to these observations the values for the mean, standard deviations would be change and this will results into increasing or decreasing the value of test statistics and P-value. We take the decision based on the P-value and this fact bias out results regarding the null hypothesis. So, it is important to avoid these types of errors in the data set for research studies. The chi square test for independence is used for investigating the preferences on the alternative uses of farmland for the Biofuels for transport, Photovoltaic arrays and Wind turbines. For this test we get the p-value = 0.00 approximately which is less than alpha value or level of significance 0.05, so we reject the null hypothesis that two categorical variables are independent. This means we conclude that two categorical variables are not independent. Conclusions The average sunshine hours for the February month is given as 65.15 with the standard deviation of 3.54 while the average sunlight hours for the February month is given as 73.85 with the standard deviation of 4.84. We conclude that there is a significant difference between the medians of the hours of sunshine. We conclude that there is a significant difference between the means of the hours of sunshine. The chi square test for independence for investigating the preferences on the alternative uses of farmland for the Biofuels for transport, Photovoltaic arrays and Wind turbines shows that two categorical variables are not independent. References Casella, G. and Berger, R. L. (2002). Statistical Inference. Duxbury Press. Cox, D. R. and Hinkley, D. V. (2000). Theoretical Statistics. Chapman and Hall Ltd. Degroot, M. and Schervish, M. (2002). Probability and Statistics. Addison - Wesley.