Economic mobility

Examples of Economic mobility in the following topics:

• Defining and Measuring Economic Mobility

  • Economic mobility is a measurement of how capable a participant in a system can improve (or reduce) their economic status.
  • Economic mobility is a measurement of how capable a participant in a system can improve (or reduce) their economic status (generally measured in monetary income).
  • Economic mobility can be perceived via a number of approaches, but is best summarized in the following four:
  • Closely related to the concept of economic mobility is that of socioeconomic mobility, which refers to the ability to move vertically from one social or economic class to another.
  • Economists studying economic mobility have identified a number of factors that play an integral role in enabling (or blocking) participants in an economic system from achieving mobility.

• Current Topics in Income Distribution

  • As a result, inequality has been described both as irrelevant in the face of economic opportunity (or social mobility) in America, and as a cause of the decline in that opportunity.
  • Shiller, who was among three Americans who won the Nobel prize for economics in 2013, believes that rising economic inequality in the United States and other countries is "the most important problem that we are facing now today. "
  • The income growth of the average American family closely matched that of economic productivity until some time in the 1970s.
  • In 2013, the Economic Policy Institute noted that even though corporate profits are at historic highs, the wage and benefit growth of the vast majority has stagnated.

• Basic Ingredients of the U.S. Economy

  • The first ingredient of a nation's economic system is its natural resources.
  • These extensive waterways have helped shape the country's economic growth over the years and helped bind America's 50 individual states together in a single economic unit.
  • Labor mobility has likewise been important to the capacity of the American economy to adapt to changing conditions.
  • Similarly, economic opportunities in industrial, northern cities attracted black Americans from southern farms in the first half of the 20th century.
  • But natural resources and labor account for only part of an economic system.

• Cost

  • Producers who desire to earn profits must be concerned about both the revenue (the demand side of the economic problem) and the costs of production.
  • Capital has a greater mobility than labour.
  • In economics both implicit and explicit opportunity costs are considered in decision making.
  • An implied wage to an owner-operator is an implicit opportunity cost that should be included in any economic analysis.

• Moving from Short-Run to Long-Run

  • In economics, the short-run is the period when general price level, contractual wages, and expectations do not fully adjust.
  • Also, capital is not fully mobile between sectors.
  • There is also full mobility of labor and capital between sectors of the economy.

• Imports: The Economics Impacts of Buying Goods from Other Countries

  • Due to the economic importance of imports, countries enact specific laws, barriers, and policies in order to regulate international trade.
  • Protectionism is the economic policy of restraining trade between countries through tariffs on imported goods, restrictive quotas, and government regulations.
  • International trade has a significant economic, social, and political importance in many countries.
  • However, the factors of production are usually more mobile domestically than internationally (capital and labor).

• Government Intervention May Fix Inefficient Markets

  • A market can be said to be economically efficient if it has certain qualities:
  • But when society is adversely affected by economic inefficiency, such as when a monopoly firm raises prices to a point where people cannot afford a basic good, the government will sometimes intervene.
  • Externalities are an example of economic inefficiency, since those involved in the economic transaction do not bear the full costs of the transaction.

• The Role of the Financial System

  • Saving mobilization: Obtaining funds from the savers or surplus units such as household individuals, business firms, public sector units, central government, state governments, etc. is an important role played by financial markets.

• Measuring the Price Elasticity of Supply

  • There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.

• Labor Standards

  • Economists attribute some of America's economic success to the flexibility of its labor markets.
  • American workers, meanwhile, traditionally have been mobile themselves; many see job changes as a means of improving their lives.
  • On the other hand, employers also traditionally have recognized that workers are more productive if they believe their jobs offer them long-term opportunities for advancement, and workers rate job security among their most important economic objectives.