...market economy will answer in performing the functions of an economic system is what to produce, how to produce, how much to produce & for whom to produce What to produce is decided by the people who are willing to spend money. Since the aim of the firm is to max profit, the firms will produce what the consumers want. In this case the consumers dictate the demand The firms will choose the method that incurs the least cost where resources are combined in the most efficient way in order to max profit How much to produce will depend on consumer wants. Producers will produce enough to meet the consumers’ demand in order to max profit For whom to produce is answered by the fact that anyone with purchasing power will be able to obtain the goods produced 3. Discuss the main features of a market economy and the problems faced in such an economic system. (20m) At least 3 features (10 marks max) At least 3 disadvantages (10 marks max) 4. Describe the main features of a planed economy and assess its benefits and problems. (20m) The most 3 features (3 marks each) The most 3 advantages (3 marks each) The most 3 disadvantages (3 marks each) 5. What justifications may be given for government...
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...below by the social marginal benefit curve being above the marginal utility / private marginal benefit curve. This is because for every additional unit of childcare consumed, there is a spillover benefit to society that is not considered by the consumer (parents sending their children to Early Childhood Care). Without government intervention and without consumers having internalised the social benefits of Early Childhood Care, this service will be under-consumed and overpriced, as can be seen on the graph below by Qm being lower than Qs, and Pm being higher than Ps. Due to this, along with the fact that the market is not operating at the socially desirable equilibrium quantity (where marginal social benefit (MSB) equals marginal social costs (MSC)), it can be said that the market has failed. As can be seen on the graph above, the socially desirable equilibrium price is taken from the MB curve at the desired quantity (quantity where MSC=MSB). This is because consumers only take into account the private benefits to themselves, so will not pay more than what is shown by the MB curve. Subsidy Another option that the government has to make consumers internalise the benefits to society, is to subsidise Early Childhood Care. This would involve the government paying Early Childhood Care producers per unit of output of childcare they supply (hours of child care to children). This effectively decreases the costs of production for early childcare providers and therefore leads to an increase...
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...Watson scarcity means availability in amounts less than sufficient to satisfy all wants or desires. The test for scarcity is price hence only goods that are not scarce command a price.Therefore economists try to explain how this economic problem is solved by different economic systems. There are three economic systems that exist in the world today that is the free market, command and mixed economy. These economic systems have different ways in which they try to answer the fundamental economic questions of “What? How? And for whom to produce for? Samelson and Nordhaus define a market economy as an elaborate mechanism for cording people, activities and business through the a system of price and markets. Production is mainly driven by the market forces of demand and supply, which determine price hence it is termed as the price mechanism. The USA is an example of what can be simply classified as a market economy. Thus by matching sellers and buyers in each market, the three fundamental questions of what? How?, for whom?. Consumers determine what goods and services will be produced by their dollar votes, which means their daily purchasing decisions. Firms in the market economy are profit motivated therefore they abandon areas where they are losing profits and lured by high profits into production of goods in high demand. The question of “How” goods and services are produced is determined by the competition among different producers. Hence the best way for firms to remain competitive...
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...yTHE IMPORTANCE OF PAY IN EMPLOYEE MOTIVATION: DISCREPANCIES BETWEEN WHAT PEOPLE SAY AND WHAT THEY DO Sara L. Rynes, Barry Gerhart, and Kathleen A. Minette A majority of human resources professionals appear to believe that employees are likely to overreport the importance of pay in employee surveys. However, research suggests the opposite is actually true. We review evidence showing the discrepancies between what people say and do with respect to pay. We then discuss why pay is likely to be such an important general motivator, as well as a variety of reasons why managers might underestimate its importance. We note that pay is not equally important in all situations or to all individuals, and identify circumstances under which pay is likely to be more (or less) important to employees. We close with recommendations for implementing research findings with respect to pay and suggestions for evaluating pay systems. © 2004 Wiley Periodicals, Inc. It is easy to overestimate the frequency with which adults actually go to the opera and underestimate the frequency with which they watch TV cartoons on Saturday mornings, based on their self-reports. (Nunnally & Bernstein, 1994, p. 383) Rynes, Colbert, and Brown (2002) presented the following statement to 959 members of the Society for Human Resource Management (SHRM): “Surveys that directly ask employees how important pay is to them are likely to overestimate pay’s true importance in actual decisions” (p. 158). If our interpretation...
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...forces into operation. For instance, in the field of spending, the consumer will prefer to buy goods from the seller who charges comparatively low price provided that the goods conform to the normal standard. In the production sector, only those things would be produced which would sell at a higher profit margin and it is clear that greater profit can only be earned from the production of those commodities which fetch high price in the market. If the rate of sugar falls and the rate of cement rises, the capitalist would prefers to invest in the cement industry. The same is the case with exchange and distribution of goods and services. In the exchange of goods price plays decisive role. The seller wants to charge the maximum and the customer wants to pay the minimum price. Eventually the balance of the two forces i.e.,demands and supply determines the price and the process of exchange is completed. Like goods, the wages of the factors of production are also determined by the forces of demandand supply. The factor whose demand is greater than the supply will receive higher wages. The factor whose supply is greater than the demand will receive a lower wage. ------------------------------------------------- Advantages of the price mechanism * The great benefit of the price mechanism is the invisible hand of price described by Adam Smith. It is able to signal the cost of purchasing a good to the...
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...------------------------------------------------- Societal marketing From Wikipedia, the free encyclopedia The societal marketing is a marketing concept that holds that a company should make marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests. The social marketing concept holds that the organization’s task is to determine the needs, wants, and interests of a target market and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. Therefore, marketers must endeavor to satisfy the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society as a whole. [1][2] It is closely linked with the principles of corporate social responsibility and of sustainable development. Contents [hide] * 1Objectives * 2History * 3Instruments * 4Examples of societal marketing * 5Societal Marketing and Social Marketing * 6Societal Marketing and Corporate Social Responsibility (CSR) * 7Branding in Societal Marketing * 8Criticism * 9References * 10See also * 11References ------------------------------------------------- Objectives[edit] Various attempts to define the objectives of societal marketing have been noted[3], such as : * "Social responsibility implies that a business decision maker... is obliged to take actions...
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...Nations”, by classical economist Adam Smith, to characterize the idea that a guiding force leads individuals seeking their own economic self-interest to act in ways that also benefit society. A vindication of Adam Smith's intuition about the existence of an "invisible hand" bringing consistency and order to the chaos of individual actions - would be remarkable in them. Much of economic theory of the textbook variety is a celebration of the free market system. This celebration has two parts. First, the operation of the price system, in the context of competitive markets, leads to balance between the demand and supply of the different goods and services traded. In other words, flexible prices result in competitive markets clearing. Second, the market-clearing equilibrium - brought about through flexible prices and competitive markets - is a "good thing" in the sense that it is also a point of economic efficiency. In other words competitive outcomes are also efficient ones. The fact that competition leads to efficiency is known as the First Fundamental Theorem of Welfare Economics. The efficient outcome will have been brought about through parsimony in the use of information; the only things that individuals, in making their supply/demand decisions, need to know are the prices of the different commodities. Furthermore, since the efficient outcome is the result of firms and consumers acting "selfishly", by looking only to their own interests, it is "incentive compatible" in the...
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...objective test answer sheet. Use a black ball-point pen. Do not use pencil. Do all rough work in this question paper, not on your objective test answer sheet. Section B (ECON1/2) Answer EITHER Context 1 OR Context 2. Use black ink or black ball-point pen. Pencil should only be used for drawing. Write the information required on the front of your answer book. The Examining Body for this paper is AQA. The Paper Reference is ECON1/2. Information The maximum mark for this paper is 75. There are 25 marks for Section A. Each question carries one mark. No deductions will be made for wrong answers. There are 50 marks for Section B. The marks for questions are shown in brackets. You will be marked on your ability to: – use good English – organise information clearly – use specialist vocabulary where appropriate. Advice You are advised to spend no more than 25 minutes on Section A and at least 50 minutes on Section B. G/T76935/Jan12/ECON1 6/6/6/6/ ECON1 2 Section A: Objective Test Answer all questions in Section A. Each question carries 1 mark. No deductions will be made for wrong answers. You are advised to spend no more than 25 minutes on Section A. For each question there are four alternative responses, A, B, C and D. When you have selected the response which you think is the best answer to a question, mark this response on your objective test answer sheet. If you wish to change your answer...
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...Unfortunately, discrimination often arises in business in regards to hiring, job placement, wage, and promotion. Affirmative Action Ideally, discrimination should be of no concern at all; everyone should have an equal opportunity to anything. In a perfect world a hiring manager would not have to think thoughts such as, “They are disabled, they are women, they are aboriginal,” and would only think, “This person will be perfect for the job because….” Unfortunately this may never completely happen. For example if a person in a wheelchair applies to be a stock person at Costco and another person who is not in a wheelchair applies for the same position the manager will be debating, “Should I hire the person who cannot walk because I want to be socially responsible? Or should I hire the person who can walk, who will probably do a better job and who I won’t have to make special accommodations for?” Another example is a man and a woman who...
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...BASIC ECONOMIC CONCEPTS LESSON 1: BASIC ECONOMIC CONCEPTS By the end of this lesson, you should be able to • • • • • give an overview of Economics deal with the Economic Problem discuss the Methodology in Economics differentiate between Microeconomic Issues and Macroeconomic Issues 1.1 WHAT IS ECONOMICS? Some opinions: “Supply and Demand - that’s all there is to economics. The rest is nonsense.” “Economics is about what everyone knows in a language that nobody understands.” “Economics explains the price of everything and the value of nothing.” “Economists are quite unique in their failure to solve a single one of the problems of their profession.” John Papworth Economist– the one profession where you can gain great eminence without ever being right.” George Meany While these views / opinions of economics / economists contain some element of truth, they hardly give a meaningful insight into the nature of the subject and the work of economists. What is Economics? Many definitions have been offered for Economics. Mostly, they focus on two inter-related approaches to the above question: 1. 2 the problems that Economics deals with; and the methods that economists use in dealing with these problems. An example of the ‘problem’ type of definition is given below: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” Lord Robbins 1929 Simply put, Economics can be defined as the social science which studies...
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...Values What are values? Values are socially and personally shared conceptions of the good, desirable, and righteous. They are stabilized beliefs about personally or socially preferred modes of conduct or end-states of existence. They determine how one ought to or ought not to behave or act. In conversations, we qualify values using words like ought, should, good, right, and fair. Values are so central to individuals’ personality and cognitive structure that they influence every facet of human behaviour - attitudes, decisions, oral judgments, evaluations, and social action. Intrinsic qualities of values determine our outer behavior. People seek these qualities in activities they engage, in objects they acquire, in principles they cultivate, in situations they live through, in professions they work, and in evaluations they make. Values are, thus, prime drivers of personal, social, and professional choices. Values are the principles & priorities which help us make decisions on a daily basis. If one truly values honesty, he will choose to be honest in interactions. If one values family strongly, he will make time in his life for family. If growth is a top value for one, he will make decisions which encourage personal development. Values are constantly changing & developing throughout our lives. In childhood, our values are usually the ones held by parents and other adults around us. As we continue to mature, other influences such as peers & the media affect our...
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...Strategic MT Study Sheets Chapter 1 A strategy consists of competitive moves and business approaches used by managers to run the company. It is their action plan to grow the business, attract and please customers, compete successfully, conduct operations and to achieve target levels of organizational performance. It needs to appeal to customers and to help the company carve out its own market position. It uses efficiency and effectiveness to guide a company using as few resources as possible. It deals with initiatives. Strategic management is setting a company’s strategy to differentiate itself within the industry and developing a competitive advantage, as well as altering it as needed. A company achieves a sustainable competitive advantage when an attractive number of buyers prefer its products/services over those of rivals and when the basis for this preference can be maintained over time. Four ways to attain that strategic advantage: low-cost provider, product differentiation, focusing on a narrow market niche/distinctive competency, develop specialties that are hard to duplicate. Three strategic questions: 1) What is the company’s present situation? Use SWOT and “where are we now?” 2) Where does the company go from here? What is its direction? 3) How will we get there? This is the strategy. Strategies evolve because of shifting market conditions, technological breakthroughs, competitors’ moves, evolving customer preferences, emerging market opportunities...
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...ENHANCING TAX REVENUES THROUGH SAME-SEX MARRIAGE INTRODUCTION Proponents of same-sex marriage have used arguments centered on equality, fairness, and microeconomic factors such as reducing taxes for couples who are married, pension inheritance, and Social Security benefits. Opponents of allowing same-sex couples to marry use religious, historical, and political arguments. There seems to be no common basis for one side to convince the other to change its collective mind. Opponents who use the argument that Judeo-Christian holy law declares homosexuality a sin and therefore encouraging sexual relations between people of the same sex by recognizing same-sex marriage is untenable. This argument, of course, requires belief that (1) the Judeo-Christian laws should be the basis for our federal laws, (2) they actually makes such a statement, and (3) that if they make such a statement that the proscription should be taken literally. If one doesn’t accept these assumptions, the argument isn’t compelling. Similarly, the argument that history is on the side opposing same-sex marriage presumes that there were no gay marriages historically and that what was appropriate in the past is also appropriate for the present. Proponents of same-sex marriage claim that the federal Constitution and other civil rights laws provide rights and protections for minorities equal to the rights and protections enjoyed by the majority, which are being denied to the homosexual minority. These...
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...SCHOOL SUPERVISION Definition of School Supervision Supervision of any school ordinarily refers to the improvement of the total teaching-learning situation and the conditions that affect them. It is a socialized functions designs to improve instruction by working with the people who are working with the students/pupils. Supervision can also be defined in terms of function and purposes for which it shall be used as a) skills in leadership, b) skills in human relation, c) skill in group process, d) skill in personnel administration and e) skill in evaluation. Scope of School Supervision The major functions logically under school supervision can be cited as: Inspection. This is actually a study of school conditions, to discover problems or defects of the students, teachers, equipment, school curriculum, objectives and methods. This could be done via actual observation, educational tests, conference, questionnaires and checklists. Research. This has something to do to remedy the weaknesses of the solution to solve problems discovered. The supervisor should conduct research to discover means, methods and procedure fundamental to the success of supervision. The solutions discovered are then passed on the teachers. Training. This is acquainting teachers with solutions discovered in research through training. Training may take the form of demonstration teaching, workshops, seminars, classroom observations, individual or group conferences, intervisitation, professional...
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...(PPC) Shows all different maximum attainable combinations of goods & services produced when all available resources are used efficiently at given state of technology Law of Increasing Opportunity Cost As more of a good is produced, more of another good has to be sacrificed in production Comparative Advantage When one can perform an activity at a lower opportunity cost than anyone else Law of Comparative Advantage Trade can benefit countries if they specialize in goods in which they have a comparative advantage 2. Demand & Supply Law of Demand Inverse relationship exists between price of good and quantity demanded of good, ceteris paribus Law of Supply Direct relationship exists between price of good and quantity supplied of good, ceteris paribus Price Elasticity of Demand (PED) Degree of responsiveness of quantity demanded of good to a change in its own price, ceteris paribus Income Elasticity of Demand (YED) Degree of responsiveness of demand to a change in income of consumers, ceteris paribus Cross Elasticity of Demand (XED) Degree of responsiveness of demand for one product to a change in price of another, ceteris paribus Price Elasticity of Supply (PES) Degree of responsiveness of quantity supplied of good to a change in its own price, ceteris paribus Consumer Surplus (CS) Excess of price buyers willing and able to pay for good over actual price paid Producer Surplus (PS) Excess of what...
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