Falling+home+price+changes+Chinese+family+budget+by+Marco

//**REMEMBER: DO NOT SUMMARIZE THE ARTICLE!!!**//

=TITLE OF EXTRACT= =Falling home price changes Chinese family budget=

=SOURCE:= http://www.china.org.cn/business/2011-11/30/content_24042641.htm

=DATE EXTRACT WAS WRITTEN:= =November 30, 2011=

=DATE CURRENT EVENT WAS WRITTEN:= =February 23, 2012=

=EXPLANATION OF THE ECONOMIC THEORY RELATED TO THE ARTICLE:= The article is about the falling prices of homes in China and the positive effects of people saving money by purchasing these homes after they fall a good 80,000 RMB. The drop in home price comes after the Chinese government's cooling measures on the overheated market in place for more than one year. China' s skyrocketing home price has been blamed for social and economic problems ranging from widening the gap between rich and poor to devouring consumption power of the middle and low-income classes.

=VOCABULARY TERMS AND DEFINITIONS:= >
 * Surplus - an excess of production or supply over demand
 * Market -any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place
 * Subsidy - a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive
 * Enterprise - a business or company

=DIAGRAMS:=

=EVALUATION:= Zhang, the person interviewed in this article states that "A consumption-driven economy is what China should be going after. The world's second-largest economy has been heavily dependent on investment and export for growth in the past years." Also, from the article, it can be seen that China has a high growth rate over 10% and a growth rate of between seven to eight percent is proper for China. China does not need such a high growth of over 9 percent. Official figures show that construction has started on 10 million apartments with the state subsidy so far that year, almost doubling that of the previous year.