Economic News Investigations
The Rise of Invisible Unemployment
In this article it talks about invisible unemployment. What is invisible unemployment you might ask? Invisible unemployment is people who are part time workers looking for more hours to earn more money. These people are not counted in the official unemployment rate because they are not technically employed. They still have a job but are discouraged because they aren't getting enough hours. This would relate the the unemployment topic we studied in class. These people would fit under them U6 category because they are still employed so they are over qualified for unemployment but don't work as much as they want to.
LeBron James Creating Positive Externalities For Fox Sports Ohio
I am sure we all have heard of NBA superstar LeBron James, the king of Cleveland. In this article it talks about how Fox Sports Ohio is benefiting from LeBron's move back home to Cleveland. With LeBron back with the Cavs, during the preseason the broadcasts ratings were 4.1 or higher. Last season, while LeBron was still with Dwayne Wade back in Miami, the Cavs average broadcast ratings were 2.79. Now because of this Fox Sports Ohio can raise the price of the broadcast because the demand will be high. This relate to the positive externalities topic and the demand topic. It relates to positive externalities because if you read the definition of positive externalities it is a benefit that is enjoyed by a third party as a result of an economic transaction. So LeBron goes to Cavaliers, people tune into the broadcast, and Fox Sports Ohio makes money. It could also be demand because since LeBron is in Cleveland people will want to listen to the broadcast so they will pay the price no matter what it is.
Toyota Expects Record Profit
This article talks about the huge profit that Toyota will be making. Lately people in the US have been demanding for Toyotas two most popular vehicles the Rav4 and the Camry. Since the demand for these vehicles is going up Toyota is making more and slightly raising the price to make good profit. This relate to the profit category we have been studying in class. Because of the weaker yen when they sell the vehicle in the US the dollar is worth more Japanese yen than before. It also relate to demand. When more people in the US want a Toyota then Toyota will make a lot more cars and slightly raise the price because they know a lot of people will buy them.
As temps drop, demand increases at Chapel Hill shelter
We have all seen the homeless people on the side of the road ask to spare some change right? Sometime do you wonder where they go? Well they have homeless shelters. This article basically says as winter arrives more of the homeless people need to find a place to stay because its getting to cold to stay out on the streets. This may not really have anything to do with money but it still relates to the demand topic we discussed in class. Some examples we went over in class were the frozen example. Usually its really hot so the man sells ice because the demand is high because people are hot. But when the weather gets colder the demand decreases. Same with the homeless people, the weather gets warmer the demand for a bed at the homeless shelter decreases but when its gets colder the demand increases.
China’s Steady CPI, Falling PPI, and a Widening of the Trade Surplus
Here we are, the last article. This article basically talks about how China's CPI is staying about the same and their PPI is decreasing. This is basically saying that the Chinese Yuan should rise as the purchasing power increases. But with the CPI staying low and constant and the PPI decreasing along with the trade surplus of the Chinese the Chinese Yuan is really falling. This relates to the CPI topic we discussed in class. The consumer price index measures change in the price level of market basket of goods and services purchased by households. So in China the price of goods and services is low and the producer price index, which measure how much money people are receiving for the stuff the sell, is decreasing. So people aren't making the money they need.