Outline the argument for and against smoking ban
Outline the main argument for and against creating a smoking ban in public areas. Is it good overall - justify your view Smoking is a de-merit good. This means that it is over-provided in a free market economy. The price mechanism has allocated too many resources than is socially desirable. Smoking is over consumed, as shown in the diagram below: The MSC (marginal social cost) and the MPC (marginal private cost) are not the same. They diverge. This is because society experiences a different cost from the good being consumed than the individual. The demand side is the same hence why MSB = MPB. The individual is happy when MPB = MPC, (10 a day). Therefore they consume where the red and green lines meet. Here their MPC = MSB so they are happy. Society is happy when MSB = MSC. So they want people to consume where the pink lines meets the green line. MSB = MSC (5 a day). Below 5 a day both the MSC and MPC are below MPB and MSB. So both society and the individual wants to consume the good. Above 10 a day the MSC and the MPC are above the MSB and the MPB so neither the individual or society wants more than 10 cigarettes a day. However in between 5 and 10 cigarettes a day, the MSC is above the MSB so society does not want to have that many cigarettes. The MPB is still above the MPC so the individual does want to have 6 to 10 cigarettes but society does not want them to. It can
"Discuss the Effectiveness of Supply Side Policies in Improving UK Economic Performance"
Kanak Shah Economics AS/b David Conquest "Discuss the Effectiveness of Supply Side Policies in Improving UK Economic Performance" Supply side policies are those designed to increase an economy's long-term growth and so increase aggregate supple or production. In terms of a graphical analysis, if supply side policies work, the long run AS (aggregate supply) curve would shift to the right. A number of various policies have been implemented to increase aggregate demand (AD). The first is deregulation. This involves removing laws and regulations which restrict competition. With deregulation, more firms will compete in the industry and the total supply of the good or the service will increase. A good example to look at is airline deregulation. All Europe flight routes were regulated by governments. There was not very much competition. With the introduction of deregulation, any airline company can fly on any routes that they bid for e.g. EasyJet and Buzz (all low cost airlines). This increases passenger numbers and there is more aggregate supply in the industry. There are a couple of advantages of deregulation. Less regulation means that fewer regulators need to be employed by the government or local councils. Also less regulation should encourage more competition. However, many rules affecting business were to stop exploitation: is this acceptable nowadays? Another
Is Increased globalization a good thing?
Is Increased globalization a good thing? More and more people are becoming aware of the 'shrinking' world. The golden arch of McDonalds and the infamous Coca Cola logo are inescapable in almost every country. We only have to go as far as the nearest supermarket in order to see the extent to which citizens of one country are dependent on imported goods from other parts of the world. The World Wide Web is the most graphic example. In order to assess whether increased globalisation is a good thing or not, this essay will firstly discuss the term 'globalisation'. Then it will analyse the advantages and disadvantages of globalisation in our contemporary world. Over the course of the last few decades, the term 'globalization' has slowly crept into the words of politicians, economists, journalists, entertainers alike. It is a term especially controversial to define because it is a subject which undergoes constant dispute between academics about just what it means to speak of globalization. It is commonly associated with words such as capitalism, modernisation, liberalisation and is often used as a synonym for internationalisation and universalisation. Perhaps a good starting point for the discussion is one where globalization is defined as 'the process of increasing interconnectedness between societies such that events in one part of the world more and more have effects on
Define and determine the types and trends of UK unemployment
"Define and determine the types and trends of UK unemployment" Unemployment is when individuals are jobless but are willing and able to work at the going wage rate. The official government figures only count those that are registered as being unemployed and are actively seeking work. Different Measures of Unemployment There are several different measures of unemployment: * ILO - Any person without a job, available to work, willing to work and sought work in the past four weeks * Labour Force Survey (LFS) - Available to work within the next two weeks, currently without work, but have sought work in the past four weeks * The Claimant Count - This measures the number of people who are eligible and claim the Job Seekers' Allowance, as such, this method generally records fewer unemployed (around 400,000) From these figures is it possible to calculate the Unemployment Rate: Number of unemployed/number of economically active x 100 Types of Unemployment There are many different types and causes for unemployment: * Real wage unemployment: This is thought to be the result of wages being above the market clearing level, leading to an excess supply of labour. It is thought that national minimum wages can cause wage unemployment because the employees feel that the work is not worth the minimum amount. * Demand deficient unemployment: This is usually associated during a period
Discuss the strengths and weaknesses of demand-side policies (fiscal and monetary policy)
Discuss the strengths and weaknesses of demand-side policies (fiscal and monetary policy) [18] Demand-side policies are a government's attempts to influence the level of growth of aggregate demand and hence the levels of employment, real GDP, inflation, growth and balance of payments position. A government will do this by using fiscal and monetary policies. Fiscal policies involve the use of government spending, taxation and borrowing to influence both the pattern of economic activity and also the level and growth of aggregate demand, output and employment. Monetary policies involve the use of interest rates to control the level and rate of growth of aggregate demand in the economy. Different types of demand-side policies can be used depending on the position of inflation in an economy. Reflationary demand-side policies seek to increase aggregate demand and raise the level of planned expenditure at or near the level of potential GDP. Deflationary demand-side policies decrease aggregate demand in the event of aggregate demand running ahead of aggregate supply and posing inflationary risks or leading to an unsustainable deficit on the balance of payments. An example of when reflationary demand-side policies would be used is when aggregate demand is too low, so for instance when taxes are high and interest rates are high. The policies that would be used in order to shift
Export Essay
Explain why the recent devaluation of the £ has not resulted in a significant improvement in the export performance of the UK. (25 Marks) Under normal circumstances a devaluation of the pound should make exports more price competitive and lead to greater export performance with greater quantities being sold. However this may not always be the case and might not always lead to a fall in the value of products imported. A fall in the exchange rate should lead to an improvement in the current accounts however following recent figures this is not true. Over the past few years given the 25% devaluation in sterling our export performance is not that impressive. Firstly, the demand from other countries to buy UK exports has not been too good due to the recent recession. Therefore aggregate demand (AD) decreased leading to a fall in UK exports. The UK has been running a persistent current account deficit for several years, but as the economy emerges from recession and domestic spending will return thus helping growth, import growth has still been stronger than exports. The rest of the world may also have a slow recovery in demand, especially in the European Union where household spending has not been up to scratch. Another reason it seems is that Britain's main trading partners have been stuck in low or no growth and are therefore unable to buy more goods and services. Here the
Discuss the extent to which an increase in exports will improve an economy's macroeconomic performance.
Good macroeconomic performance is normative in nature therefore hard to be validated. However for the purpose of this essay, good macroeconomic performance basically involves low unemployment, high and stable economic growth, stable and low inflation and an acceptable and positive current account of the balance of payments. An increase in exports will bring about and increase in aggregate demand in the short run. Aggregate demand is made up of consumer expenditure, government expenditure, investment and net export, export minus imports. Therefore an increase in exports will increase net export and subsequently increase aggregate demand. An increase in aggregate demand would mean an increase in economic growth, which shows good economic performance. Diagram below shows the increase n aggregate demand. Exports will also improve the county's balance of payments. Balance of payments is the net trade in goods, services, investment and transfers. An increase in exports will mean that overall balance of payments will not be in a deficit but in a surplus. An improving balance of payments will also mean that the county's industries and firms are competitive and therefore show that the firms are economically healthy and performing well. However there are problems arising from an increase in exports. In the short run, with a short run supply curve, although an increase in exports will
International Business Strategy - Case Study on Unilever
EXECUTIVE SUMMARY Every multi-national corporation has a business strategy that enables it to get ahead of its competitors. Unilever, as one of the global leaders that offers consumer goods including brand name foods, personal-care items and household products and owns an extensive global operation network in almost every country, has also developed its unique set of business strategies. Unilever is strong in making head start in emerging economies and has been making significant contributions to the economic growth in these countries. Emerging economies are developing countries that in general have less compatible infrastructure, in particular, for economic activities to take place effectively and majority of their populations are living in conditions that are below international standards. At present, over 44% of Unilever's sales come from emerging economies and further growth in consumption is expected in near future. This is in fact more than enough to take Unilever somewhere better than being the second largest in the global consumer goods market; nonetheless, as competition intensified, Unilever started losing the hang of it. Since Mr. Patrick Cescau became Unilever's sole Chief Executive in 2005, series of operation reforms were initiated. The strategic evolution under Cescau's management brought Unilever out of its dreadful situation and is regarded as one of
The aim of this essay is to discuss the relevance of John Keynes to the current macroeconomic situation in the UK.
The aim of this essay is to discuss the relevance of John Keynes to the current macroeconomic situation in the UK. Macroeconomics can be defined as "the study of whole economic systems aggregating over functioning of individual economic units" (Bannock G, 2003: 236). It considers aspects of the economy from a government perspective such as the general price levels in an economy instead of a price level in a single market. John Keynes and economists who share a similar view to his on macroeconomics strongly believe that an economy will frequently settle below full employment. In such a situation aggregate supply will most likely be price elastic and increases in aggregate demand will mainly affect output. Keynes theory suggests government intervention through demand side policies in order to boost aggregate demand and reduce unemployment. However, Keynes theory is opposed by classical economists who believe that an economy will be at full employment and as a result demand side policies implemented by the government with the intent to boost demand will likely lead to an increase in prices and cause inflation. On the contrary to Keynes's recommendation classical economist insist government should implement supply side policies aimed at shifting aggregate supply to the right (Gillespie. A, 2007: 307). The government of any economy will set policies in order to achieve set
Advantages and disadvantages of Globalisation. Need for development.
3rd Problems and Solutions - Globalisation Problem 1. Globalisation and multinationals. First the positive image. Globalisation has two meanings, 1.a good meaning of increasing free trade and capital flows to the 3rd world so they grow and develop and 2. a less pleasant aspect of unfair Globalisation - all the bad aspects in reality where the west imposes high tariffs keeping ldcs out of its rich markets and farm subsidies wrecking 3rd world farmers and the 3rd world. Positive results of globalisation Globalisation is where the world's separate economies become integrated into one as trade grows, capital moves from MDCs to LDCs and labour migrates the opposite way. This comes from the removal of barriers to integration bringing a single world market. The WTO negotiations have brought many trade barriers down, cheaper transport, the internet and telecommunications and the rise of the NICS all are leading to rapid globalisation. We all gain from increased specialization and CA. The 3rd world gains jobs, exports and allocative efficiency as they concentrate on what they are best at producing. Western capital and technology sharply increases their productivity and living standards. Cheap labour "exploitation" leads to an income, and an end to absolute poverty and then higher wages. The open economies that welcomed foreign investment, that focused on exports and created
