Economy news - Greece don’t want to leave eurozone

I think that everybody know something about this problem. Greece have problem with money, have debts, etc. so I decided go give you some interesting news about this crises.

Greece is doing everything they are able to do to avoid bankruptcy and stay in eurozone. “Greece will stay in eurozone and never bankruptcy, because that will be destroying for whole eurozone and for more different countries outside of the eurozone. (Veniozelos - Chancellor of the Exchequer for Greece)” He also add that Greece is ready to observe all duties and that is nothing that should stop another loan in an amount of 8 milliard euro as they made new economy measures.

For Slovak Republic – my home country – it can mean that debts we as country have will grow. Czech president, Václav Klaus, by visiting Slovak Republic declared that he do not blame Greece for their situation, as he think that it is guilt of persons who accept Greece into system. “You need two partners for dancing tango.”

Demand vs. Supply with Gifen and Veblen Good

In economics, we have two different concepts. The law of demand and the law of supply. The law of demand is an economic law that states that consumers buy more of a good when its price decreases and less when its price increases (ceteris paribus), and  the law of supply is the tendency of suppliers to offer more of a good at a higher price. What is that mean? That mean for example: When you have 10€ you can buy 4 pieces of your favourite cake that cost 2.5€, but when the price decrease to 2€ you will buy  pieces because you can afford it. That is demand law. And what is supply law? Imagine that you are producer of mobiles, for example, and you want to make the highest profit as you can. Previous year was cost of mobile phones somewhere between 40€ and 100€, but for you it is not so high price so you didn´t give too much of your products to the stores. But this year the government had increase the tax for mobile phones so now they cost between 100€ and 200€, and you think about it as a good price so what you are going to do? Give more mobile phones to the stores to make more profit.

Than we have the veblen goods and the gifen goods, and these two concepts are only excepts from law of demand, but they have very simple reason for that. Gifen goods are products that we need for survive. For example bread. Even if the price of bread will increase, you will buy it, right? Because you need it. And than veblen goods are „snobbish“ products. Simple example: Ferarri. Now it is very expensive car and only few people can afford it and that is the point. If the price of Ferrari will decrease a lot and ordinary person will be able to afford it, the demand will decrease. Now it is so popular because every one wants it but only a few can afford it, but after decrease of the price the popularity will fall down.

And that were another of my new knowledge from economy

What affect the price of oil???

 Although we still have enough reserve of oil, the price was in previous weeks increasing a lot. The reasons may be almost invisible for common people. My task is to present some of them to you. The first is rebelion in Libye because befor the rebelion had Libya produce 1.6, milion galons of oil every day and now it had reduce to 85% of the original amount. The second reason is fear of loosing Saudi Arabia as it is also one of the biggest producer of oil. But the real factor is OPEC - Organization of Petroleum Exporting Countries. This organization has to decide the price of oil, and control 75% of all produced oil and specify amount of oil that producer may quarry. So at the end, I can say, as a beginner in economy, that price of oil is affected more by things, we will never get together with oil and that is a mircle of economy and reasons what is happening to price of oil.

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Introducing me.

Hi! My name is Nina and  you are reading my blog now. From 25. Aug. I am studying  IB economy and I am going to use this blog as my help or notebook or my research for economy. From this day I am going to put here everything useful and interesting about economy. I hope that this blog will help not only me but also YOU.