a) What are the problems in trying to compare the living standards between countries When comparing living standards between or within countries, many problems can occur while considering factors that are constantly changing in the countries which may determine the living standards of the country. Factors that may effect a countrys living standards for example GDP this comes from the output of different industrial sectors: the primary, secondary and the tertiary. This can be treated as aggreated supply. GDP can then be divided by the countries population to produce GDP per capita which gives an average income value, but this statistic can be very misleading and can disguse important differences e.g resulting in hidden economy. We assume that a higher GDP per capita shows that living standards are better in one country than another. But this is where the problems arise, two countries can have similar GDP's per capita, but one might have a small elite of very high-income earners, with a huge amount of people in dire poverty, while the other country may have fewer extremes and a very large proportion of middle-income families. So the Economic deprivation in large sections of the community can be hidden in the average creating a hidden economy. National income statics are used to compare the living standards of different countries. Apart from the problem of excahnge rate
What is the Classical dichotomy? Under what circumstances of disequilibrium did the Classical economist accept that the dichotomy does not hold?
Edit Sipos Supervision 1, Macro What is the Classical dichotomy? Under what circumstances of disequilibrium did the Classical economist accept that the dichotomy does not hold? Selfishness is a reprehensible human characteristic; yet it is precisely the necessary behavior yielding the greatest possible economic benefit for the entire society according to Classical economics. The dominant economic theory from the 18th to 20th century was of a free market system of continuous competitive exchange equilibrium in which prices and output regulate themselves perfectly until markets achieve the market-clearing price. The Classical system takes place in a closed economy which spontaneously moves toward full-employment equilibrium. The principle fueling such a system is that money wages are flexible, and the employment equilibrium is not affected by the "nominal" amount of money in this dichotomous system. However, there are limitations to the Classical model; mainly that it does not work in the short-run because it fails to account for market dynamism. The theory assumes automatic adjustment of markets from one equilibrium to the next and ignores periods of change, or disequilibrium. Although a static model like the Classic has its downfalls, it is in important indicator of market forces, and is once again gaining popularity as a "Neo-classical" model after its long
The Role Of Zaibatsu Zaibatsu, known as the 'money clique', played an important role in the economic modernization of the Japan. The zaibatsu were a group of certain Japanese business houses with extremely widespread interests. The top four are always listed, in order of their size, as Mitsui, Mitsubishi, Sumitomo and Yasuda. In addition, Kawasaki, Asano, Okura, Shibusawa, were also great zaibatsu. The scarcity of capital in early Meiji Japan, the government's willingness to give financial aid and extraordinary privileges to entrepreneurs who gave promise of building up the economy and the sale in the 1880s of government industries to the few in cheap prices- all these factors contributed to enable a relatively small group of business leaders to gain control over a large population of Japan's new industrial economy. The zaibatsu were a group of men with exceptional talent, flexibility, and daring to have emerged so successfully from the economic confusion of the preceding years. Their origins were diverse- Among the urban merchants, only the house of Mitsui made the transition with complete success. This it did under the leadership of Minomura Rizaaemon. He sent five members of the Mitsui family and two employees to the United States to study modern business methods. Mitsui eventually developed into the largest of the zaibatsu firms. On the other hand,, Mitsubishi was
Review of Strong Interest Inventory By Raymond Au General Information The test is to be evaluated is the Strong Interest Inventory(r) (1994). The author is Strong, Edward K., Jr.; Campbell, David P.; Harmon, Lenore W.; Hansen, Jo-Ida C.; Borgen, Fred H.; Hammer, Allen L. (The Strong, in its revision, continued in the established traditions of the Strong Vocational Interest Blank (Strong, 1927) and the Strong-Campbell Interest Inventory (Campbell &Hansen, 1981) while introducing several innovations.) It was published by Consulting Psychologists Press, Inc. in 1994. Time needed to administer is about 30 - 60 minutes. The price is different in different place and for different people. Those for students (about US$ 18) are cheaper than those for adults (about US$ 40). Also, there are different packages for different uses. For example, 10 prepaid profiles cost $75; 10 prepaid interpretive reports cot $235; Strong Applications and Technical Guide costs $72; Strong Profile preview kit costs $18.95; Interpretive report preview kit costs $23.10; 10 client booklets cost $40; 10 prepaid professional reports: $163 and Strong Professional report preview kit costs $26.5. Brief Description of the Purpose and Nature of the Test Strong Interest Inventory (SII) is an interest inventory for an individual to measure their interest and interpret one's best career path. It provides a solid,
The following problem relates firm output decisions, market supply, and market equilibrium in a perfectly competitive market (further referred as PCM), that is, a market in which consumers and producers are price-takers.
Answer Key for Additional Exercise on Costs The following problem relates firm output decisions, market supply, and market equilibrium in a perfectly competitive market (further referred as PCM), that is, a market in which consumers and producers are price-takers. Question 1. Complete the following table for a single firm in the short run. Table 1. Cost accounting table for the firm. Letters in the brackets refer to logic used (see below). Answers are given in italic font. OUTPUT (Q) [unit] TC [$] AVC [$/unit] ATC [$/unit] MC [$/unit] 0 300 - - - 400 00 (d) 400 (b) 00 (e) 2 450 (f) 75 (d) 225 (b) 50 3 510 (g) 70 70 (b) 60 (e) 4 590 72.5 (d) 47.5 (b) 80 (e) 5 700 (f) 80 (d) 40 (b) 10 6 840 (h) 90 (d) 40 40 (e) 7 020 02.85 (d) 45.71 (b) 80 (e) 8 250 (f) 18.75 (d) 56.25 (b) 230 9 540 37.78 (d) 71.11 (b) 290 (e) 0 900 (f) 60 (d) 90 (b) 360 Solution 1: First we need to recall some relationships between various measures of cost accounting in the short run1 and definitions. We will number newly introduced formulas by bold numbers in brackets and then refer to them by number, for convenience. We remember that (1). Definition for average total cost is (2) and for average variable cost - (3). If we divide both sides of equation (1) by quantity produced Q, and account for definitions (2) and (3) we get (4). Also, with
Economics Conference David Smith - Environment * Environmental warnings * Externalities * Business and the environment * Markets and the environment There is a limit to economic growth, as discussed in unit 2, this is because the world is running out of resources and there is a limit to how long they can last. But, the environment has improved a great deal from 50 years ago; then, there would have been smog clouds over London. Another big factor is, global warming. The hottest years have been in the last century. 1998,2002,2001,1997,1995,1990,1999,1991,2000 have been the warmest years in order and it is expected that 2003 will be the hottest year on record. An externality, this is 3rd party effects from consumption, it effect other people who aren't producing it, e.g. a polluting factory will effect the whole area around it, also fireworks, people get to see them for free (positive side) but people may not like the noise of them (negative side) The policy response * Prohibition of some environmentally-unfriendly productions e.g. lead paint * Prohibition on some consumption * Taxes on production * Taxes on consumption e.g. smoking, alcohol etc. Business and the environment * The climate change levy - pollution tax (more tax for people who use more energy) * The landfill tax - tax on the amount of waste deposited * But, environmental concerns/rules also differ
The housing market differs from most other market in that the current stocks available dominate over the flow or supply of new buildings produced. Therefore should any changes occur to demand then the increase in supply to bring equilibrium back would take some time. Due to this factor the prices are dedicated more so by the supply of housing that comes on to the market place. Figure 1 Above show how an increase in number of properties sold per month can lead to a reduction in the value of each property, as there is excess supply in the market. However with properties there are outside factor which can influence prices, some of this are * Development works which improve the environment in the city center and encourages people to move to specific locations. o Release of space held vacant By comparison to the rest this will often provide the least number of properties but can provide the quickest solution to short term fluctuations. o Brownfield development this can be done by a changing the use of land to suit the most profitable type of properties possibility residential. This may only provide a few more than the utilization of empty buildings, but can have a time lag when delayed by the planning controls in place by the government. o Release of green fields for development into new properties, given the location of a city centre this might not be approved by the
ECONOMICS 2 TITLE: CARTELS WORDS: 1300 Cartels are usually happen in an oligopoly market, where a few large firms dominate the market. A cartel is when two or more of these firms make a formal agreement to collude, to try and limit competition between them. This can be done in a few ways. Members may have fixed prices that they sell their goods, this may be low to increase sales and stop new entrants or high as the will dominate the market. Cartel members also agree on such factors as market share and advertising expenditure. Quotas are another way firms collude, the member firms will set quotas on the amount a firm will produce (production quota) and sell (sales quota). But how do the firms agree on each members quota? The normal method would be to divide the market between the members according to their current market share. So basically the firms involved in a cartel act as one firm (a monopoly) Why would companies want to do this? Well, to capture the benefits of a monopolist. Diagram 1 shows the benefits that arise from forming and maintaining a cartel. It shows an industry in long-run competitive equilibrium. The price is P1 and the output is Q1. Here there are no economic profits. Now, if the firms that dominate the industry where to form a cartel and reduce output to Qc (production quota), the new price become Pc (cartel price) and profits are equal to CpcAB,
USA Coursework Essay - Describe the main aspects of the economic boom in the 1920's. During the 1920's the United States of America enjoyed a boom period in it's economy, which heavily altered the lifestyles of Americans and the society that they lived in. There were several main aspects of the boom, including the development of the car industry, Hollywood and the movies, the birth of the Jazz Age, the establishment of new freedoms for women and the surge in the manufacture of consumer goods. This essay explores in detail the main aspects of the economic boom, and makes links between them; also demonstrating how economic factors lead to changes in society, and vice versa. During the twenties factors such as the mass-produced motorcar not only not only altered the ways of daily life but also resulted in an unprecedented growth in business that established the US as predominant in the world. In 1921 the gross national product was $74 billion, which by 1929 had risen to $104.4 billion. The three presidents of the 1920's, Harding (1921-23), Coolidge (1923-29) and Hoover (1929-33), were all Republican who supported business and the stock market. They introduced lower taxes allowing business owners to infest profits in their businesses, but also giving them more money to put back into the economy, e.g. to spend on consumer goods. This also led to increased demand for the cars now
Ethical investment Ethical investment can be defined as the integration of personal values with investment decisions1. The principle of shareholders wealth maximization relates, to the role of companies as agents of shareholders to maximize the returns for shareholders, in doing so there are incentives available for some companies to minimize cost (Negative), at the expense of social and ethical considerations. Others will work towards better and newer innovations (Positive), to boost the shareholders wealth in conjunction with an active and ethical role within the community. The principles of ethics can be both in conflict with and not in conflict with profit maximization depending on the viewpoints of the company. This statement can be confirmed through the analysis of issues such as, environment, human rights, workplace practices and animal welfare, through different companies focusing on distinct positive and negative issues aspects. The Body Shop International is a manufacturer and retailer of skin and hair care and cosmetic products. This company is well known for its high level of ethical standards that it sets, on various issues and it's success in maximizing shareholder's wealth: * On Environment the body shop has set as it's mission to act in a way which would protect the environment, both locally and globally. Searching for long term sustainable resources,