Econ. 1 Discussion 1,2

A1 . The existence of poverty is non directly related to the amount of born(p) resources a country owns or not . privation , in today s world greatly dep completes on the force to exploit those natural resources Countries in South America argon blessed with significant 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 eradicate them is a natural instinct from the human heading . But it should be remembered that economic welfare and growth and victimization all depend to a great extent on the human capital available to tap in those resources . It is not possible for a country to remove poverty on the basis of natural resources if there are not enough skilled workers or entrepreneurs willing to take the risk of exploiting these resources as important is government support and willingness to explore these natural resources . It should to a fault be remembered that despite the availability of natural resources some countries cannot attempt 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 locomote around in peoples pockets . These had to be invested somewhere : this led to the make for homes in Los Angeles sky-rocketing . However , this surge in demand truism a surge in home prices by an clean of 250 (How Low will Los Angeles Home Prices Go Buyers cannot keep up pace with the high increases in house prices for so big . The supply of homes in Los Angeles is not at its saturation tier .

With new constructions in full swing and a lot 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 federal interest rates were cut . This led to a twice phenomenon of ontogeny demand as well as growing supply . In terms of economics , this leads to high proportion 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) more than the supply . Therefore , many well-price houses are still selling . However , in the long-run this is a belch-burst 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 expect house prices to continue growing at a fast pace while supply would be consolidate . Therefore , then I would expect the price bubble to burst by the beginning of 2009 , or due to a major change...If you want to get a full essay, pitch it on our website: Ordercustompaper.com

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