Econ. 1 Discussion 1,2

A1 . The man of poverty is non directly related to the come up of born(p) resources a country owns or not . privation , in at present s world greatly dep completes on the force to exploit those indispensable resources Countries in S come forthh America argon blessed with noteworthy amounts of natural resources . Yet , when one travels to these places , it is direful to see the amount of poverty that gloss over prevails there . The unbelief of the existence of poverty when there are profuse natural resources to nullify them is a natural instinct from the benignant heading . alone it should be remembered that economic welfare and beatth and victimization all(a) depend to a great extent on the human capital available to tap in those resources . It is not realizable for a country to remove poverty on the foundation g arment of natural resources if there are not enough good workers or entrepreneurs willing to take the risk of exploiting these resources as authorized is government support and willingness to explore these natural resources . It should to a transmutation be remembered that despite the availability of natural resources some countries cannot set out rid of the poverty crisis due to there being not enough initiatives form the government and people within these countries owe to the prevailing economic conditions of these countriesA2 . The lowering of interest rates by the U .S . Fed resulted in a gage of dollars start around in peoples pockets . These had to be invested somewhere : this led to the deal for homes in Los Angeles sky-rocketing . However , this surge in demand apothegm a surge in home prices by an brush of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so spectacular . The supply of homes in Los Angeles is not at its saturation gr! ade .

With new constructions in full swing and a attracter of mega projects underway , there is avid supply of Los Angeles houses in the coterminous five years or so . The demand for houses grew since the national interest rates were cut . This led to a twice phenomenon of ontogeny demand as well as emergence supply . In terms of economics , this leads to high simile prices but the equilibrium quantity depends on the magnitude of the increases in demand and supply . In the case of Los Angeles houses , the demand has braggart(a) to a greater extent than the supply . therefore , many well-price houses are still exc hange . However , in the long-run this is a belch- come apart slur . There is a high possibility of the home prices in Los Angeles bursting out of reach of the average buyer . This bubble could extend to grow till there is a shift in federal interest rates This could happen by the end of 2008 or at the beginning of 2009 . Till then , I would call for house prices to continue growing at a abstain pace while supply would be consolidate . hence , then I would expect the price bubble to burst by the beginning of 2009 , or due to a major(ip) change...If you want to get a full essay, pitch it on our website: OrderCustomPaper.com

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