What are the main problems faced by economist?

Micro economic problems

• The problem of externalities. The economic problem of pollution.
• Environmental issues.
• Monopoly.
• Inequality/poverty.
• Volatile prices.
• Irrational behaviour.
• Recession.
• Inflation.

What major events could have occurred to cause a decline in economic activity?

An economic dip, as measured as a decline in GDP, must occur for two or more successive quarters to qualify as an official recession.

• Loss of Confidence in Investment and the Economy.
• High Interest Rates.
• Falling Housing Prices and Sales.
• Manufacturing Orders Slow Down.
• Poor Management.
• Wage-Price Controls.
• Post-War Slowdowns.

What is the issue of economic globalization?

Economic globalization is an Irreversible Trend Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.

What are the three major components of economic growth?

There are three main factors that drive economic growth:

• Accumulation of capital stock.
• Increases in labor inputs, such as workers or hours worked.
• Technological advancement.

What causes economic decline?

Factors that cause a recession include high interest rates, reduced consumer confidence, and reduced real wages. Effects of a recession include a slump in the stock market, an increase in unemployment, and increases in the national debt.

What major events could have occurred to cause a rise in economic activity?

Improving or increasing their quantity can lead to growth in the economy.

• Natural Resources.
• Physical Capital or Infrastructure.
• Population or Labor.
• Human Capital.
• Technology.
• Law.
• Poor Health & Low Levels of Education.
• Lack of Necessary Infrastructure.