Free Essay

Economic Use of Resourses

In: Other Topics

Submitted By Tarunfizz
Words 738
Pages 3
The focus on this page is about the water scarcity problem due to drought in Tampa Bay region and how the Swiftmud and Tampa Bay Water could allocate the available resource to the public both economically as well as empathetically. Authors Robert L. Beekman and Brian T. Kench, have used Friedrich Hayek’s ideas to construct a rational economic order. Friedrich has stressed on few points in his book “The Use of Knowledge in Society”, on how to solve the economic problems and how to make the best possible decisions with the given information, which we will see in this paper.
The economist Friedrich Hayek has explained in his papers on how to find an economic order with a few considerations and assumptions. According to him, there is a solution to all economic problems if we possess all the relevant information, if we can start from a given system of preference and if we had the complete knowledge of available means. From his view the mathematical equations, which is used to solve the problem gives the best emphatic solution but does not solve the economic problem of the society. This is because the economic calculus never gets the data from the macro level but from a single mind. And this in return will help us on how to allocate the given resources but not how to secure the best of the resources.
One of the major points that Friedrich talks about in his paper is knowledge transfer and how the inefficiency in the transfer could hurt the economy in a long term. The “planning” is the word he prefers for the decisions to solve the problem and he debates on which level the panning should be to avoid the data misinterpretation. He thinks there is no blind answer of whether to follow a centralized or decentralized decision making because that is influenced by factors like the place, time, and size of the product. All his solutions are based on how good the knowledge on the situation is, and is it first hand information or not.
He talks about the origin of economic problems and it always arise as a consequence of change. Friedrich also talks about how inefficient managers could ruin the pricing strategy, which will directly affect the business as a whole. Also managers who are able to adapt to the changes are the ones who solves the problem, which keeps the business alive on a longer run. He highlights on how the whole system adapts to a common pricing which an individual who knows the relevant facts and knowledge of that product initially set.

The article on the Tampa Bay Times by authors Beekam and Kench gives a solution for the water scarce problem that Tampa Bay area had due to an unexpected drought in this area. The Southwest Florida Water Management District, or Swiftmud had to come up with a solution to meet the requirements of the daily usage by the public and the Swiftmud’s decision of limiting the water supply was not appreciated by the public and that’s when the economic professors came up with the tiered pricing strategy. Through this way the lower level of the society are not greatly affected as their usage is below 3,740 gallons of water and the users get to decide between higher prices or less usage. This also gave the users to consider switching to water efficient taps and showerheads in order to keep their lawns lushly.
This solution was found not to affect the wealthy users, as the price hike would just be a small increase in their monthly bills. Authors also suggested that the money from the upper-tiered water users could be used to repair the water reservoir.
The main connection between Friedrich’s theory and the author’s solution is “how to economically use the available recourses”. Beekman and Kench have suggested the tiered system, which gives the users to decide on how to utilize the available resource. Basically Friedrich’s idea was to create an emphatic solution which is economical as well and that is what the economic professors have suggested to the Swiftmud.
Personally I liked the tiered system that they used to address the problem but it would have been even more efficient if there were a tiered system with an upper slab for the high users so they don’t use up all the resources just because they could spend for it.

Similar Documents

Premium Essay

Institutions and Economic Growth

...What are the links between economic institutions and long term economic growth? The relation between institutions and economic performance is a subject which for many years attract the interests of economist. There is no a single explanation regarding this topic, some important authors as Solow, Cass or Koupmans (neoclssical gowth models) developed some traditional theories. Firts of all is important to clearfy that by economic gowth what we are understanding an increase in the income per capita; this neoclassical economists based their argument on the assumption that such differences in income per capita were correlated with factor accumulation. Is the novel prize Douglas North and more recently the MIT economist Daron Acemoglu the ones who evolve the idea that such differences in the earings per person were very related with instituions, and other aspect such as factor accumulation or innovation are not more than proximate causes. But, what are we understanding by institutions? We are going to accept the interpretation given by North (1990 p.3) “Institutions are the rules of the game in a society or, more formally, are the humanly devised constraints that shape human interaction. In consequence they structure incentives in human exchange, whether political, social, or economic.” . Nontheless we will consider as good economic institutions the ones that provide security of property rights and and facilitates access to economic resources to different sectors of society.......

Words: 2495 - Pages: 10

Premium Essay

Energy Sector

...creating pollution and causing global warming. An increasing number of petroleum geologists have warned that official estimates of available global oil reserves are dangerously exaggerated. For energy companies, proven oil and gas reserves are their primary indicator of economic health. There may be considerably less oil in the world than the oil-producing countries and energy companies claim and it would be logical to expect that oil production could peak far sooner than predicted. For economy still reliant on fossil fuels the effects would be catastrophic. All major players In the oil business insist that there will be enough oil to last well through the 21 st century. The optimistic oil-reserve estimates also fail to take into consideration one vital question what will happen if global demand for energy continues to rise? The consequences of overestimating the global oil supply would be devastating. In the best case> industry would recover by turning to less efficient and more polluting fuels. Energy sources are divided into 2 very different categories non-renewable and renewable. Non-renewable refers to all the energies that depend on using mineral or petroleum resources which you can only use once. Renewable energies depend on natural forces like sunlight which are unlimited. The...

Words: 420 - Pages: 2

Premium Essay

Principle and Theory of Mgt.

...emphasized scientifically determined changes in the management practices as th solution to improvin labor. Fredirick Winston Taylor (1856-1915)- Taylor theory that labor productivity could be improved by scientifically determined management practices. “father of scientific management” taylor philosophy is encapsulated in his statement “In the past the man has been first, In the future the system must be first”. Henry Grant- Associate of Taylor, developed the Grant Chart. A bar graph that measures planned and completed works along each stage of production by time elapsed. Lilian M. Gilbert (1878-1972) Frank B. Gilbert (1868-1924)- His “time and motion and her work in industrial psychology pioneered many of todays management and humar resourses. 2. Bureaucratic Organization - emphasized management on an impersonal, radical basis through such elements as clearly defined authority and responsibility, formla recordkeeping, and separation of management and ownership. Max Weber (1864-1920)- The German theorists concept on bureaucratic organization have contributed to the efficiencies of many of today’s corporation. 6 Weberian ideal bureaucracy: 1. Division of labor with clear definition of authority and responsibility, 2. Position organized in a hierarchy of authority, 3. Manager subject to rules and procedures that will ensure reliable predictable behavior, 4. Management seperate from the ownership of the organization, 5. Administrative acts and decision......

Words: 622 - Pages: 3

Premium Essay

Gap the Up and Coming

...Provide twelve business terms and definitins that are new to you that are used by this company. Franshisee- Aperosn who buys a franchise Profit- revenue minus expenses Mission statement- outlines the organization's fundamental purposes. Importing- buying products from other countrie Exporting- selling products to another country Contract manufacturing- foreign company produces private label goods to which a domestic company then attaches its own brand name or trademark. Integrity based ethics code- define the organizations guiding alues, create an environment taht supports ethically sound behavoir Corporate social initiaves - enhanced forms of corporate philanthropy directly related to the company's competencies. Insider trading- uses private company infomation to further insers own fortuenes or those of their family and friends. Unified system- this happes after managers have decided a course of action now they need to organize the fimr to accomplish their goals. Middle management- this includes gernal managers, division managers, and branch and plant managers. B. Discuss the organizationl structure of the business relative to these five functinal areas: Marketing - The different forms of marketig, sales, and adverting for Gap are television, radio, credit card discounts, mail, and email. Gap spends a certain amount of money on advertising everymonth, and if they do not feel as though they are getting the response they hoped for they will pull the plug on......

Words: 1651 - Pages: 7

Premium Essay

Unit 1 Business Environment

... Name: Ana Maria Viorica Vid Registration No: Signature: AV Date: 27th November 2015 Table of content Introduction 4 LO1.1 5-6 LO1.2 7-8 LO1.3 9 LO2.1 10 LO2.2 11-12 LO2.3 12 LO3.1 13 LO3.2 13-14 LO3.3 15 LO4.1 16-17 LO4.2 17-19 LO4.3 19 Conclusion 20 Reference 21 Introduction In this assignment I will do two reports that are mainly related to British Airway and I will discuss about its mission and vision and features strategies that they will implement. Also, I will talk about stakeholders and economic system, monetary policies and fiscal environment. Additionally the report will contain British airway PESTLE and SWOT analysis. Note: This assignment is a resubmission for the following LO’s: LO1.3,LO2.3, LO3.1, LO3.3 and LO4.2. LO1.1 Purpose of different type of organisation Private sector businesses are owned and run by private individuals. Examples of private business sectors: 1. Sole traders 2. Partnerships 3. Companies (private and public) 4. Franchisees Aims 1. To make...

Words: 4870 - Pages: 20

Premium Essay

Entrepreneurial Leadership Boone (2010). Steve Case (2010) spoke at Stanford University with plans and thoughts on one basic idea in terms of success, business, and any organization. It is important if you are focusing on being an entrepreneur, and it requires the leadership philosophies of people, passion, and perseverance. Former Chairman and CEO of AOL Steve Case (2010) “state these words as foundation of successful entrepreneurship”. Case’s entrepreneurial life continues with his business enterprise transformation. Its mission “is to partner with entrepreneurs in building business that gives people choices, control and convenience in important area of their life” (Case, 2010).Steve Case (2010) also has passion about our country struggling from economic depression, and knows there is only one thing to get it back on track. Case (2010) suggests “being in process and taking a risk and entrepreneurship.” There is a lot that can be done but the leadership can only do so much, it really requires the private division and the entrepreneurs. Entrepreneurship is not just creating new services to improve people lives or creating values to shareholders or employees (Case, 2010). Case (2010) kept the three P’s in mind when the AOL merge got wrong. Thomas Edison suggests, to summarize the merge in five words “vision without execution is hallucination.” That’s a...

Words: 1452 - Pages: 6

Free Essay

The Future of Biodiversity in India

... Biodiversity is the presence of genetic and species variation of living organism in particular ecosystem in a given time. Hence this is a holistic concept encompassing the genetic , species and ecosystem diversity which bear the imprint of spatial and temporal change. The term was first used by Walter G.Rosen in 1986. Biodiversity has multidimensional effect on human living ,its economy and his environment. Ecological services of biodiversity to human is in term of conservation and protection of water, purification of air, absorption of carbon dioxide ,regulation of biochemical and hydrological cycle ,protection and renewal of soil fertility and moderation of weather and climate. The tangible benefit in term of ecological economics include food , clothing , shelter ,drugs ,industrial raw material and ecotourism. In the race of achieving economical heights and feeding the ever increasing population conservation of biodiversity has taken backseat. India’s constitution explicitly guide government under Art.48A of itsDirective Principle of State Policy and its citizen under fundamental duty Art.51Ag to protect wildlife, forest and environment of country. Many...

Words: 1499 - Pages: 6

Free Essay

Soil Investigation

...arrangement of the materials underground. The field and laboratory investigations needed to get this necessary information is known as soil exploration. The study of complete soil investigations can be grouped as follows : • Objectives or purposes, • Preliminary investigations, • Methods of site exploration, • Depth and spacing of trial pits and bore holes, • Choice of a method, • Recording of data. The investigation of the geology and previous uses of any site, together with the determination of its engineering, environmental and contamination characteristics is fundamental to both safe and economic development. [pic] SOIL TESTING • Soil tests can be conducted on samples that truly represent the soil at the site. • Soil sampling, testing and test interpretation must be conducted with guidance from specially trained and experienced personnel. • Proper soil testing is proven to be a reliable basis for the design of foundations and commonly used in site investigations to indicate their potential use and limitations. • Based on the premise that the behavior of soil masses under imposed conditions can be predicted if certain soil properties can be measured. • The results of soil tests must be interpreted based on past experience, climate and the geology of the site. • Most important requirements is that design of many notable structures on difficult sites. GEONAMICS is a specialist company that can provide guidance and management of......

Words: 1681 - Pages: 7

Free Essay

Sci Final the United Nations and other not-for-profit charitable organizations. One of the most important recent milestones has been the recognition in July 2010 by the United Nations General Assembly of the human right to water and sanitation. The Assembly recognized the right of every human being to have access to sufficient water for personal and domestic uses (between 50 and 100 liters of water per person per day), which must be safe, acceptable and affordable (water costs should not exceed 3 per cent of household income), and physically accessible (the water source has to be within 1,000 meters of the home and collection time should not exceed 30 minutes) (United Nations, 2013). UN system activities specially focus on the sustainable development of fragile and finite freshwater resources, which are under increasing stress from population growth, pollution and the demands of agricultural and industrial uses (United Nations, 2013). The earth is now trying to sustain a population of almost seven billion people that all require access to a clean water supply in order to live. A World Economic Forum report in 2010 stated the demand for water is expected to increase, with an analysis suggesting there will be a forty percent global shift between forecasted demand and...

Words: 1969 - Pages: 8

Premium Essay

Impact Of Family On Academic Achievement

...INTRODUCTION Parents are consider having significant role in the upbringing and educating their wards throughout the history of human life on earth. Therefore the family is considering as an important agent of socialization. It is mainly through their efforts that children are socialized to become productive citizens. So, wherever parents use the resources and skills effectively in raising their children the whole society benefits. This brings joy and encourages development and peaceful co-existence. The children themselves feel good and bring happiness to their parents and the whole society. In view of this, the impact of family on academic achievement of students becomes an essential factor in the wheel of progress. It...

Words: 1549 - Pages: 7

Premium Essay

Environmental Sustainability

...Giving specific examples critique the notion that poor environmental sustainability retard development. Define environmental stability Sustainability-is the ability to sustain something. A means of configuring civilization and human activity so that the society , its members and its economies are able to meet their needs and express their greatest potential in the present, while preserving biodiversity and natural ecosystems, planning and acting for the ability to maintain these ideals for future generations. Herman Dary 1990 one of the early pioneers of ecological sustainability had a natural capital view point and proposed that: 1. For renewable resources, the rate of harvest should not exceed the rate of regeneration (sustainable yield); 2. [For pollution] The rates of waste generation from projects should not exceed the assimilative capacity of the environment (sustainable waste disposal); and 3.For non renewable resources the depletion of the non renewable resources should require comparable development of renewable substitutes for that resource. Therefore environmental sustainability involves making decisions and taking action that are in the interests of protecting the natural world, with particular emphasis on preserving the capability of the environment to support human life It involves the ability to meet the needs of the present generation without compromising the needs of the future generation. It includes sustainable...

Words: 3212 - Pages: 13

Premium Essay

Business Proposal

...Business Proposal For Tourism Company A&A pty ltd CZECH, Your Tour Guide Akshar Patel Alejandro Minaya Table of Contents Project Background: 2 Nature and Aim of the Project: 3 Customer Segments: 4 Customer Relationships: 5 Value propositions: 6 Key Activities: 8 Key Partners: 9 Channels: 10 Key Resources: 11 Revenue Streams: 12 Cost Structure: 13 S.W.O.T Analysis 15 References: 16 Project Background: We (Czech, your tour guide), are presenting a business proposal model for tourism industry in Czech Republic and other european countries. According to research recently conducted by the accounting firm KPMG in 2014 the Czech economy was infused with approximately 293 billion Czech korunas (approximately USD 15.5 billion). Of this, about 97.5 billion korunas went to the state's purse, accounting for approximately 6.9% of state revenue. The majority of state revenue comes from value added taxes (VAT) and accounts for about 38% of state income. 2010 witnessed an increase of tourism of 4%, with yearly state income increasing as well. The Czech tourism industry accounts for 372,586 full-time, year-round jobs, with additional part-time and seasonal work created during the summer months. The Czech government understands the importance of tourism and its financial impact on the country, and new legislation supports investment in the tourism industry. Additionally, the European Union is allocating significant capital funds with the......

Words: 2479 - Pages: 10

Premium Essay

Experience of Growth and Continuity in Smes: a Study on the Growth Aspects of the Tourism Industry in the Netherlands

...Research Chair Entrepreneurship & Risk Finance NHL University of Applied Sciences P.O. Box 1080, 8900 CB Leeuwarden, The Netherlands E-mail:; tel.: +3158 2511 495 3 Bachelore of Science Researcher at the Institute for Business and Management Studies NHL University of Applied Sciences P.O. Box 1080, 8900 CB Leeuwarden, The Netherlands E-mail:; tel.: +3158 2511 670 Received 29 October 2012; accepted 4 December 2012 Abstract A vast amount of studies stress the importance of growing enterprises for ensuring employment and economic growth in a country. Moreover, there is a wide variety of studies that identify the characteristics of high-growth firms as compared to those of low-growth firms. There exist also the studies that focus on the characteristics of successful entrepreneurs. The results of such studies provide input for governmental bodies seeking to (re)design their policies on economic growth. Scarcer, however, is research on how growth is experienced by enterprises (and entrepreneurs) themselves. This article presents the outcomes of a survey concerning a representative sample of the Dutch tourism sector in the province of Fryslân. According to this explorative study, different...

Words: 3320 - Pages: 14

Premium Essay

Scientific Management and Human Relation Approaches

...human labor. In fact, a number of management strategies can be observed with the passing of time, and two important ones that shall be mentioned here are Scientific Management - which was published by Frederick W. Taylor, and the Human Relations approach of Elton Mayo. Both theories are not hard to recognize within the modern day workplace, and these methods of working seem so commonplace and so logical to a citizen of the modern world - the 21st century - a century of innovation and sustainable development. The purpose of this essay is to analyse the extent to which Taylor’s Scientific Management and Mayo’s Human Relation approach are present in current organizational management practices. Scientific Management Scientific management uses preferences to encourage workers. This idea comes from Henry Gantt one who introduced the bonus system, which employees are motivated...

Words: 3095 - Pages: 13

Premium Essay

Youth Violence

...WATER AS OUR NATURAL RESOURSE There are more than 326 million trillion gallons of water on Earth. Less than 3 % of all this water is fresh water and of that amount, more than two-thirds is locked up in ice caps and glaciers. With so much water around it seems like there is enough to see us through for millions of years. But did you know that even water, which seems to be in abundance, might one day become scarce? Each time you throw something as garbage, think of where it will finally end up. Whether it is a plastic glass, your broken cell phone or the used up battery cells from your portable CD/MP3 player, they all contribute in some way to environmental pollution and are also hazardous to life. Not only are they biodegradable, but also disposing of them has their own risks as they release harmful toxins into the air and surrounding soil and ground water. All these cause water pollution .! What is water pollution? Water pollution is the contamination of  water bodies (e.g. lakes, rivers, oceans, aquifers and groundwater). Water pollution occurs when pollutants are discharged directly or indirectly into water bodies without adequate treatment to remove harmful compounds. Water pollution affects plants and organisms living in these bodies of water. In almost all cases the effect is damaging not only to individual species and populations, but also to the natural biological communities. Water pollution is a major global problem which requires ongoing evaluation and......

Words: 2979 - Pages: 12