Discuss A Streetcar Named Desire Essay

Discuss A trolley car Named Desire as a portrayal of a broken world. hart Cranes stanza, printed on the title-page of A Streetcar Named Desire, speaks of loves voice as an instant in the wind. The last patronage goes on to all(prenominal)ude to its transiency. Given that this is placed under the banner of a broken world, a walkaway that otherwise boasts the subtlety of its imagination seems to get a rather blunt prefix. Williams intention was to take for Blanche a form of heroism. Here, on the first page, he pronounces love to be a dying entity.He tells us that it cannot be a immutable force within the vessel of human decision making. In the scenes that follow, he introduces a compositors case positively wrestling with her internal nihilism, a function in contemplative turmoil roughly whether there is something more to her being-and her decisions. She promptly enters wholly hedonistic and materialistic surroundings, where her fading romanticism is contrasted with the apat hetic humanism of Stanley. There is not, as the question suggests, a deep and deliberate mistake spanning the world of A Streetcar Named Desire. Indeed, such an assertion entirely misses the point. by chance it is a semantic difference, but the world depicted in the play is an entirely functional one it is a world in which all the coherent parts play off each other, with both friction and cooperation. It is entirely incorrect to state that the lives of Stanley, Stella, Eunice, and Steve dont continue from day-by-day with regularity and a certain degree of contentedness. That is not to say that Williams presents a situation that is either positive or, more crucially, hopeful. Instead, he examines twentieth snow society as a great evolutionary mechanism a fact, an absolute, in which Blanche constitutes an anomaly.Within this mechanism, base-line motivations act as stimuli for every moment of character action-and, as a reader, there is a temptation to focus on this. However, a more consequential realisation is that these hedonistic human pursuits-sex, fiscal accumulation, power, and so on-also power the stasis of the play. Every moment of internal equilibrium is clamped in place by microcosm of personal economics and raw desire. The best illustrations of this line up through Stella. Of course, her behaviour is often contrasted in blunt and unequal hurt to Blanches melodrama.As a result of this, the passages between them exhibit a rather distorted sense of tension, whereby Stellas consistency of view-point deflates the very bout that Blanche is starting. Therefore, there is a tendency, particularly early in the play, to see Stella as a defeated character there is aura of disconnection about her, as if the world has no effect on her Blanche And you are standing(a) there smiling. Stella What do you want me to do? B Pull yourself in concert and face the facts. S What are they, in your opinion? B In my opinion? Youre married to a madman

M Hill

The Hard Choices essay had a go outline and gave a to a greater extent interesting utterly than Initiation into Adulthood Initiation into Adulthood is a very basic essay and gave the impression that is was written by a less experienced writer. I felt the paper was boring and did non keep my tending while reading apiece briefly twaddle. The nearly noniceable mistake was that the paper did a plot summary for each story and never provided a conclusion or a sic in any of the stories. The checklist says to use present filter verbs and this story utilise well-nighly past tense.The Hard Choices essay foxs an analysis of each short story and provides direct quotes from the short stories. Initiation into Adulthood did not do a imperative analysis of the short stories. There were no literary terms used in this essay and there were no kit and caboodle cited. The writer did not list the authors names in the essay to give credit for their work. This essay was boring and did not rea lly give the looker cohesive account of what the writer was trying to convey. Hard Choices on the other(a) end was a good read It was exciting it kept my attention and made me want to continue to read more. This essay followed most of the literary rules of writing, Although, I found the plot summaries for this essay to be boring as well. I really liked reading the comparative analysis ND the writers position for each of the short stories. The writer gave us their view of why they felt each character made the decisions that were made for each story from their point of view.Unlike Initiation into Adulthood the writer for Hard Choices uses present tense verbs when writing about the short stories. The writer used the necessary resources to sustenance their view of the stories which made the writer seem reliable. The conclusion for this essay was dead on and summarizes the short stories completely and was cohesive with the rest of the essay. Am not really into literature and I dont th ink I am a very good writer. Hopefully, that will change after this semester.I think something that would even off both essays easier to read would be eliminating the plot summaries. Like novels and in most movies the reader/viewer does not want to have the plot give to them in the beginning. I think both essays would be a better read if their plots were a buildup and the reader was given the opportunity to read and contract their own conclusion.

The Man of Justice: To Kill a Mockingbird

He never yelled at the two, or abused them by physical punishment. Tactics also never bragged round how he could do many things, like shoot a gun, which may have taught the children a lot. Tactics woke up one day to chat his neighbors post on fire. He tells Jam and Scout to wait by the Raddled house, because Miss Medias home is in a dangerous state. while the children watched the house burn from the Raddled, they spotted their brave dad run into the house to grab something. L saw Tactics autorying Miss Medias heavy oak rocking chair, and thought it was sensible of him to save what she most valued (Lee 93). Tactics had the fearlessness to run into a burning house to save a neighbors positron emission tomography rocking hair in the freezing cold The Old Sacrum Bunch came to the prison where tom Robinson was held (with rifles and weapons), and Tactics wouldnt accept their orders. The children were watching their father sitting in front of the jail with a light and a book, whe n many cars so came by.Tactics began speaking to the group and they asked ahoy know what we want another man said. Get excursus the door Mr.. Finch (Lee 202). Tactics courageously replied by stating mayo can deed around and go home, Walter (Lee 202). This is only one of the things Tactics has done for Tom Robinsons safety and comfort. Tactics was put in a situation where he had to shoot a dog to save his neighbors. This started when Jam and Scout were try to find some wildlife to shoot at when, they spot Tim Johnson (a dog).He was acting weird, so the children ran to their nanny, California, and told her about the situation. She later called Tactics and told him to come because of this animal. Sheriff Heck Tate and Tactics came out Of the car with a rifle. Tactics is handed the gun and shoots Jim Johnson. Tactics later states to the child dont you go near that dog you understand? Dont go near him, hes scarce as dangerous dead as alive (Lee 128). Tactics is a brave hero that has done many things to improve others joy, like when he let Mr..

Econ 120 – Principles of Micro-Economics

ECON * one hundred twenty Principles of Micro frugalals Spring 2010 I. FOUNDATIONS OF frugals A. S gondolacity, issue Possibilities, capacity and Ex remove Section I. A Learning Objectives Define or exempt a issuing of prefatorial frugal hurt and concepts. pardon, expatiate, and defend borderline digest. Explain, deck, and apply the work possibilities determine. Explain, illustrate, and apply the law of comparative master. 1. Life is political economy Q Is this statement genuine or false? Why? 2. sparing Goals and Priorities of Society, or, What does companionship want out of its economy? frugal surfaceth/rising dungeon standards Low unemployment/high employment Low inflation/st fit bells sparing equity Economic dexterity find On the individualistic decision-making level, the incentives that strike economical legal action and choices argon utility program maximization for con chalk upers, profit maximization for flummoxrs/ blind d sink ks, and fond welf atomic number 18 maximization for g overnment wholes. 3. political economy Defined a) Economic Scarcity DEF Economic scarcity hold ups when human needs and wants exceed an economys king to make full them compensaten procur qualified resources and current technology.DEF The four basic economic resources ar labor, capital (a capital severe is a crapd well that is utilize as an foreplay in the doing of some other considerablys and is not operational for current habit), land (energy, natural resources, raw materials and other gifts of nature) and entrepreneurial ability (the ability to recognize and exploit economic opport building blockies, develop and green commoditys new trustys/ function and organize economic resources). Technology refers to the ability (based upon a body of knowledge or set of skills) to transform resources into grievouss and services. 1DEF An economic life-threatening (bad) is something that strives ( mitigates) an indivi duals utility, the economic term for well-being, gaiety, satisfaction or welf atomic number 18. voices Economic thoroughlys kringle, DVDs and blank space. Economic bads garbage and pollution. CLAIM Economics is based on two axioms (self-evident truths) (i) confederacys material wants and needs ar unlimited or insati adapted (ii) economic resources and current technology ar limited. input Physical scarcity al oneness does not feat economic scarcity. Economic true(p)s atomic number 18 some(prenominal) physic onlyy and economic aloney scarce.Economic bads, such as pollution, toxic wastes and garbage, are physic ein truthy scarce plainly they are not economically scarce. CLAIM Economic scarcity implies that (i) people essential(prenominal) compete for scarce heavys and resources, (ii) intimatelys and resources moldiness be rationed by some rationing device or mechanism, (iii) choices must be made and when choices are made, other opportwholeies and picks must be sacr ificed. 2 Remark Economic scarcity is most easily hearn when a mortal has to b little up or sacrifice something (in the form of bullion or time) in order to obtain more(prenominal) than(prenominal) of something else.Price is a clear index number or signal of economic scarcity. Remark People and society in general are confronted with the following problem The Economizing Problem Attain the great or upper limit fulfillment of a somebodys or societys unlimited wants (the purpose of production) precondition limited resources and technology (the means of production). Question How does one imprint the weaken or optimal choice? DEF Economics is the landing field of economic scarcity and how individuals and society allocate their limited resources and technology to try to satisfy their unlimited needs, wants and desires i. . , economics is the study of how best to solve the Economizing Problem. b) probability follow consider To solve the Economizing Problem, the decision- maker must make choices or decisions and so must know the value or salute of alternatives. DEF The prospect bell of a choice or decision is the value of the next best alternative that is forgone or sacrificed when the choice or decision is made. What is the fortune equal of (or sacrifices compulsory by) the following? taking Econ *120 or written reporting an redundant 10 hrs/week buying coke takes of Microsoft stock or conducting wars in Iraq and Afghanistan create the oil fields in Alaskas ANWR or operate a coal fired power plants Remarks (i) Opport building blocky woo focuses on switch overoffs and so opport building blocky cost is thrifty in terms of sacrificed alternatives and not inescapably in terms of money. (ii) Opport building blocky cost is subjective and typically varies from mortal to person. (iii) The opportwholey cost of an activity usually adjoins as more of the activity is pursued. shell Suppose your employer wants to add your work hours in incr ements of 2-hour stymies of time. What is the opportunity cost of separately redundant block of time and how does the opportunity cost of from each one supererogatory block of time deviate? List alternatives. 1st 2-hr block of work, give up _____? 2nd 2-hr block of work, give up _____? tertiary 2-hr block of work, give up _____? 4th 2-hr block of work, give up _____? fifth 2-hr block of work, give up _____? or, 1st hour of perusal give up _____? or, 2nd hour of studying give up _____? r, 3rd hour of studying give up _____? or, 4th hour of studying give up _____? or, 5th hour of studying give up _____? 3 (iv) Differences in opportunity cost provide the basis for in return beneficial ex qualifying. congressman Suppose that slime, a plumber, and Wanda, an electrician, each had 5 old age of vacation time and each wanted to add a bedchamber and jakes onto their houses. exclusive screw plumb a bathroom in 1 day and wire a bedroom in 4 days Wanda discount wire a bedroom in 1 day and plumb a bathroom in 4 days.In terms of opportunity cost OCM1 wired bedroom = 4 plumbed bathrooms OCM1 plumbed bathroom = 1/4 wired bedroom. OCW1 wired bedroom = 1/4 plumbed bathroom OCW1 plumbed bathroom = 4 wired bedrooms. In five days, two soap and Wanda each could complete their house additions. How should they spend their time? Can Max and Wanda expediency from an ex limiting of some sort? Because of the differences in opportunity cost, Max should plumb both additions and Wanda should wire both additions and hencece each would beget the desired additions to their houses plus three extra days. Trading or exchanging 1 plumbed bathroom (one unit or day of plumbing) for in return for 1 wired bedroom (one unit or day of wiring) would be inversely beneficial. archetype Suppose Wilma has 20 cookies and 5 apples and Fred has 25 cookies and 10 apples. Wilma prefers apples over cookies and Fred prefers cookies over apples. Will Wilma and Fred eat the cookies and apples t hat they initially possess or forget they ex neuter/trade? Explain. 4. EconomicMethodology a) Model/Theory Building The process (i) remark economic phenomena (ii) Identify important covariants (iii) State assumptions that clarify, simplify and focus the pertinent economic issues and questions being investigated (iv) State the hypothesis or propositions (v) Evaluate the lustiness of the propositions by proving the proposition logically and by testing the propositions against reality or real-world evidence and, (vi) Accept the hypothesis/model or reject it and formuformer(a) the theory/model or pee a new theory/model. ) Marginal Analysis and Efficiency DEF Marginal means incremental or excess and refers to a blue swop in an economic shifting resulting from a unit mixture in some other economic vari equal-bodied e. g. the borderline utility of a impregn satisfactory X, the marginal cost of a equitable Y, the marginal product of labor. Remark Marginal analysis evaluates and compares the marginal well-being and the marginal cost of a decision or choice and provides the solution to the Economizing Problem. 4 DEF The marginal service, MB, of an economic variable Q is the change in the heart earn, ?TB, resulting from a unit change in Q) the marginal cost, MC, of an economic variable Q is the change the change in the join cost, ? TC, resulting from a unit change in Q) that is, MB = ? TB/? Q, and, MC = ? TC/? Q. CLAIM A rational economic decision-maker ordain attach a economic variable Q as long as the marginal reach of that change in Q exceeds the marginal cost of that change that is, if MB (( MC at the sum Q1 (or, MB MC at the amount Q2), indeedce the standard Q1 (Q2) is in cost-efficient.Example Suppose that you buy a used car for $ergocalciferol scarcely after you gain possession of the car you discover that repairs are needed to make it go and stop. The MB from driving the car is $1,000, MB = $1,000 the MC of fixing it up is $700, MC = $700. Do you spend an additional $700 to fix up and keep the car? Yes Because, the MB of having and driving the car = $1,000 $700 = the MC of having and driving the car, repair the car. The net benefit of repairing the car is $ccc 0. The $ergocalciferol spent to buy the car is a drop piling cost, a cost that has been incurred in the past and give noticenot be changed and or ecovered. Thus, a sunk cost does not enter into the decision/choice to repair the car. Example A pizza pie pie lieu next to a residence student residence on a university campus operates from 11 am to 9 pm and sells four hundred pizzas for $10 each during its business hours. After observing a biggish number of students carrying-in pizza boxes during the subsequent part of the evening, a part-time pizza worker and economics student has suggested that the true stay open later into the night. The student estimated the total benefits and total costs for different law of closure generation (hours of op eration) and created the table below.Should the pizza place stay open later? If so, how late? What should be its closing time? That is, what is the efficient or optimal closing time? 5 Closing Time 9 pm 10 pm 11 pm 12 am 1 am 2 am substance Benefit, TB $4,000 $4,500 $4,900 $5,200 $5,400 $5,500 Marginal Benefit, MB add up Cost, TC $1,000 $1,100 $1,250 $1,500 $1,900 $2,500 Marginal Cost, MC Answer For the hour finishing at 12 am, MB = $300 $250 = MC and so the pizza place should still be open at 12 am. For the hour ending at 1 am, MB = $200 $400 = MC and so it doesnt reconcile to be open until 1am.Thus, the firm should close somewhere amongst 12 am and 1 am. Formally, the efficient o r optimal closing time is somewhere surrounded by 12 am (midnight) and 1 am, at which stratum MB = MC. diagrammatically c) Microeconomics vs. Macroeconomics DEF Microeconomics is the study of (i) economic decision-making by the individual consumer, firm or governmental unit, (ii) the storage parcelling of resources and the function of impairments and output in specific foodstuff places and industries, (iii) the distribution of income in society, and, (iv) foodstuff structures. DEF Macroeconomics is the study of conomic aggregates or totals such as Gross Domestic Product (GDP), guinea pig income, national employment/unemployment, economic maturement, the expenditure level/inflation, interest rates, the money fork out, total manipulation, total investment, govt. spending, total spending, industrial capacity, and trade/ cypher deficits. Remark Microeconomics focuses on the decision-making of the individual economic agent (a person, firm, or governmental unit) and the subaltern individual parts of the economy. Macroeconomics focuses on the whole economy and the sum of its individual parts. 6 d) Positive vs.Normative Economics Positive economics is descriptive and predictive and investigates what was, what is and what will be and is value gratuitous (does not depend on ones value system or religious beliefs). Normative economics is normative and investigates what should be it evaluates the desirability of economic decisions and policies using value judgements and depends upon ones moral code or religious beliefs. e) Fallacy of Composition train What is true for a single economic agent (individual consumer or bugger offr) is not necessarily true for the economy as a whole.Examples the balanced budget amendment 15% wage add-on for one person vs. everyone. f) inclineds in Economics Remark Assumptions simplify and distill the real world into its basic member parts in order to obtain a punter judgment of the basic structure of an economy and its parts and the fundamental relationships separates the wheat from the chaff. Assumption ceteris paribus or all other things held constant or nothing else changes. g) fountain vs.Correlation DEF Correlation (or association) occurs when two variables are associate in some systematical and po werful way the variables change together but a change in one variable does NOT necessarily cause a change in the other. Causation occurs when a change in one variable causes a change in the other. Remark Economic analysis focuses on causation, not correlation. The ceteris paribus assumption simplifies the analysis and enables one to determine and on a lower floorstand the causative relationships amidst variables Remark Unintended personal personal effectuate generally complicate economic analysis.For example, installing and using seatbelts and airbags are intended to reduce traffic deaths and injuries. But, disrespect the presence of these safety devices, the number of traffic slashs and deaths and the severity of traffic accident injuries initially increased preferably. Why? The great protection offered by these devises in auto crashes actually encouraged great highway speeds and reck slight(prenominal) and big driving, all of which tend to increase the number of accident s and traffic deaths and injuries.Seatbelts and airbags do not cause more traffic deaths and injuries, but these variables are correlated or related in a systematic way. h) Teakettle and Table Problem 7 5. The Production Possibilities Frontier (Curve) Model a) Definitions and Properties of the PPF Model DEF The Production Possibilities Frontier, PPF (or Curve, PPC) shows the different crews of peachyishnesss and services that an economy whoremonger produce tending(p) the efficient use of accessible bushel resources and current technology. Example Consider the Guns Butter PPF below.If the economy is operating at draw a bead on C and producing 370 units of guns, indeed the utmost sum of money of cover that the economy butt end produce using its technology and available resources efficiently and fully is 200 units. Alternatively, if the economy is producing 400 units of butter, the maximum standard of guns it notify produce is 200 units. Remark Construct your make PPF stop you work 20 hours per week and achieve a 3. 67 (A) gpa? Alternatively, construct the PPF for the U. S. for health care and cell phones or for food and energy (should we grow clavus and sugar to eat or to make biofuels? . Remark The PPF model can be used to illustrate three basic concepts (i) the opportunity cost of a good (ii) the law of increasing opportunity cost in the case of a concave outer PPF and (iii) economic efficiency (productive efficiency, full employment and allocative efficiency). DEF Productive (technical) efficiency is achieved when given quantities of goods are produced in the least costly way, or equivalently, when employed resources produce the maximum possible output of goods and services. Full employment is achieved when all available resources are employed. Remark.Productive efficiency and full employment are achieved at output juntos that lie on the PPF. Inefficiency occurs at output combinations that lie in spite of appearance the PPF (resources or technology are either not being fully or efficiently used). unattainable output combinations lie outside the PPF. 8 DEF Allocative efficiency is achieved when the economy is producing the combination of goods most desired by society. Remark Which point on the PPF that is best depends upon societys preferences and thereby becomes a normative issue. In the PPF below, is point C break down than point D or is D better than C?Democrats and Republicans have different horizons on which combination of butter and guns is best. plead. pitiful from one efficient output allocation (point on the PPF) to another requires a transfer of resources from the production of one good to another. Consequently, when more guns are produced, less(prenominal) of butter can be produced the opportunity cost of an increase in the production of guns is the resulting falloff in the production of butter. Furthermore, the slope of the PPF at a point shows the opportunity cost of one additional unit of good X as footfalld in terms of the other good Y.That is, the slope indicates how more of good Y must be sacrificed in order to obtain one additional unit of good X. chartically ( empathise above chart) Points A, B, C, D, E and F represent three different combinations of guns and butter that the economy can produce when using all of its resources in a technologically efficient manner. When all resources and technology are used to produce butter, 500 units of butter can be produced but zero units of guns can be produced (pt. F). At whatsoever point on the PPF, the economy must sacrifice some guns to obtain more butter.Point G is inefficient because more of either or both goods can be produced in this case, the opportunity cost of either good is zero. b) Constant Opportunity Costs and the bili tight PPF Model DEF A resource is specialized if it is not completely adjustable to alternative uses or cannot easily be substituted for another resource in the production of some good. titl e of respect If resources used in the production of goods X and Y are non-specialized or dead substitutable, then the opportunity costs are constant and the PPF is linear.That is, if the opportunity cost of a good X (as measured in terms of another good Y) is constant, then the analogous sum of money of Y must be sacrificed for each additional unit of X, regardless of the sum of X produced, and so the PPF is linear (a killward one-sided straight line). Example Assume that a farmer has 80 the three estates of land (of uniform fertility) and given quantities of other economic resources (labor, capital and entrepreneurial ability) with which to produce either gamboge or soybeans. On each acre of land, the farmer can produce either 100 bu. f give or 50 bu. of soybeans. The opportunity cost of one bu. of soybeans is 2 bu. of gamboge whisky and the opportunity cost of one bu. of corn is 1/2 bu. of soybeans. The farmer changes the combination of corn and soybeans produced by changing the number of acres planted in corn or soybeans. Non-specialized Resources Linear PPF Production Possibility Schedule thinkable Output Combinations A B C D E 0 2000 4000 6000 8000 4000 3000 2000 super C 0 Corn Soybeans 9 Note At pt. A, all acres are in soybeans. At pt. B, 20 acres are in corn and 60 acres are in soybeans.At pt. C, 40 acres are in corn and 40 acres are in soybeans. At pt. D, 60 acres are in corn and 20 acres are in soybeans. At by E, all acres are in corn. Remark The opportunity cost of 4000 bu. of soybeans is 8000 bu. of corn the opportunity cost of 8000 bu. of corn is 4000 bu. of soybeans. The opportunity cost of 2000 of corn is constant of gravitation bu. of soybeans whereas the opportunity cost of 3000 bu. of soybeans is 6000 bu. of corn. Remark At any point on the PPF, the opportunity cost of one additional bu of corn is 1/2 bu. of soybeans = slope of the PPF i. . , OCcorn = ? bu. of soybeans per bu. of corn. Likewise, the opportunity cost of one ad ditional bu of soybeans is 2 bu of corn = 1/slope of the PPF i. e. , OCsoybeans = 2 bu. of corn per bu of soybeans = 1/(1/2) bu of corm per bu. of soybeans. Note that ? soybeans/? corn = slope of PPF can be written as (i) ? soybeans = slope ? ?corn, or, (ii) ? corn = ? soybeans/slope. Thus, if ? corn = 1, then ? soybeans = slope of PPF ? ?corn = ? ? 1 bu = ? bu, or, OCcorn = ? bu of soybeans. Likewise, if ? soybeans = 1 bu. , then ? corn = ? oybeans/slope = 1 bu. /(? ) = 2 bu. , or , OCsoybeans = 2 bu of corn. b) increase Opportunity Costs and the Concave-outward PPF Model The constabulary of Increasing Opportunity Cost When resources are specialized, increased production of a good X comes at increased opportunity cost. That is, as the production of a good X increases, the sum of a good Y that must be sacrificed for each additional unit of good X increases. Claim The constabulary of Increasing Opportunity Costs and specialized resources are represent by a concave outward PPF.A parkway down along a concave outward PPF implies that the opportunity cost of X is increasing. Remark to the highest degree economic resources are specialized in the production of some good and so PPFs are most often drawn bowed outward. 10 Specialized Resources Concave Outward PPF Production Possibility Schedule potential Output Combinations A B C D E redeeming(prenominal) X (butter) 0 100 200 300 400 keen Y (guns)400 400 395 370 315 200 F 500 0 Examples presumptuousness pt. B, the opportunity cost of 100 additional units of good X (butter) is 25 units of good Y (guns). At pt. C = (200X,370Y), remember the slope of the PPF at C is OCX = ? 0. 5, then the opportunity cost of one additional unit of X (butter) is 0. 5 units of good Y(guns) alternatively, the opportunity cost of one additional Y is 2X. I. e. , at pt C, OCX = ? Y and OCY = 2X. At pt. D = (300X,315Y), suppose the slope of the PPF at D is 0. 8. The opportunity cost of one additional unit of X is 0. 8 units of good Y and the OC of one additional Y is 1/0. 8 = 1. 25 units of X. Formally, recall that ? Y/? X = slope of PPF. So, at pt D, slope = ? Y/? X = 0. 8, which can be rewritten as either (i) ? Y = 0. 8 ? ?X, or, (ii) ? X = ? Y/0. 8. So, at pt. D, if ?X = 1 (good X increases by 1 unit from 300 to 301 units of X), then good Y must be change magnitude by approximately 0. 8 units. That is, given ? X = 1 unit, it follows that ? Y = slope ? ?X = 0. 8 ? ?X = 0. 8 ? 1 unit, or OCX = 0. 8 units of Y. Likewise, at pt. D, if ? Y = 1 (good Y increases by 1 unit from 315 to 316 units of Y), then good X must be decrementd by approximately ? X = 1/(0. 8) = 5/4 units. That is, given ? Y = 1 unit, it follows that ? X =? Y/0. 8 = 1 unit/0. 8 = 1 unit/(4/5) = 5/4 units = 1. 25 units, or OCy = 1. 25 units of X. Similarly, if at pt. E the slope = 1. , then OCX = 1. 5 Y = 3/2 Y and OCY = 2/3 X = 0. 67 X. 11 d) Shifts of the PPF Claim Shifts of the PPF are caused by changes in the quantities available resources L or K ? PPF shifts from PPF1 to PPF2. changes in technology TechX ? PPF shifts from PPF2 to PPF3. changes in capital good vs. current phthisis good choices Examples Remark An economic recession, a ebb in national real output for six or more months, is delineated by a movement to a point inside the PPF and not an inward shift of the PPF, because in a recession not all resources (e. g. labor and capital) are fully or efficiently employed. 6. Choices and the PPF a) Choices Claim Any society must decide (i) What, how much and when to produce. (ii) How to produce (production technology) and deal out goods (allocation mechanism). (iii) For whom to produce, how to divide the economic pie. b) An Illustration Present Choices, Future Possibilities and the PPF Model Claim A choice of fewer capital goods and more current wasting disease goods implies smaller emerging increases (outward shifts) of the PPF, less capital accumulation, slower economic growth and smaller increases in living standards.In other words Party now, redeem later. Pay now, party much more later. 12 diagrammatically deal wisely 7. Opportunity Cost, Comparative Advantage and Exchange (See Arnold, pp. 457-62). DEF A(n) nation, firm or individual has a comparative advantage (CA) in the production of a good X if it can produce good X at a lower opportunity cost than can any other nation, firm or individual. A(n) nation, firm or individual has an absolute advantage in the production of a good X if it can produce more of good X with a given amount of resources than can any other nation, firm or individual.CLAIM Every country has a CA is the production of at least one good. CLAIM If nations, firms or individuals specialize in the production of the good in which they have a comparative advantage and engage in surrender, unrestricted trade (exchange), then total production will increase and exchange/trade can result in mutual gain for every nation, firm or individual. Remark Specialization based o n comparative advantage and free trade implies that a nation can consume outside its economys PPF and that liberty breeds inefficiency. An Example of Comparative Advantage and Mutual Gain Given Wilma and Fred, calculating machines and pizza, 100 units of labor, and linear PPFs. Wilma can produce either 50 comps or 1000 pizzas ? 1 comp ? 20 pizzas ? OCWcomp = 20 pizzas and OCWpizza = 1/20 comp Fred can produce either 20 computers or 900 pizzas ? 1 comp ? 45 pizzas ? OCFcomp = 45 pizzas and OCFpizza = 1/45 comp 13 Hence, Wilma has a CA in computers because OCWcomp = 20 pizzas 45 pizzas = OCFcomp, and, Fred has a CA in pizza because OCFpizza = 1/45 comp 1/20 comp = OCWpizza. Remark.Even though Wilma has an absolute advantage in the production of both pizza and computers, Fred still has a comparative advantage in the production of one of the goods. (i) Autarky Initial no trade production and utilization Labor Allocation Wilma 50% on comps 50% on pizza Fred 50% on comps 50% on p izza Totals Production 25 comps 500 pizzas 10 comps 450 pizzas 35 comps 950 pizza Consumption 25 comps 500 pizzas 10 comps 450 pizzas 35 comps 950 pizza (ii) Mutual Gain from specialization and free trade. Fred and Wilma each specialization in the production of the good in which they progress to a comparative advantage.Labor Allocation Wilma 80% on comps 20% on pizza Fred 0% on comps 100% on pizza Totals Production 40 comps 200 pizzas 0 comps 900 pizzas 40 comps 1100 pizza 1 cover 15 comps +425 pizzas +15 comps 425 pizzas 1 Cons Allocation 25 comps 625 pizzas 15 comps 475 pizzas 2 Trade 12 comps +360 pizzas +12 comps 360 pizzas 2 Cons. Allocation 28 comps 560 pizzas 12 comps 540 pizzas Remark. Note that all-or-nothing specialization for both Wilma and Fred is not required to establish the result. This is true in general as well.Remark The mutually agreeable terms of trade, or mutually beneficial footing, for one good X as measured in terms of the other good Y is established amid st the opportunity costs of good X of each individual/country. That is, OCWcpu = 20 pizzas terms of trade (tot) 45 pizzas = OCFcpu, or, OCWpizza = 1/20 computer 1/(tot) 1/45 computers = OCFpizza. 14 In the above example, Wilma trades away 12 computers in exchange/return for 360 pizzas and so the terms of trade, tot, are 1 computer for 30 pizzas i. e. , the tot or impairment of 1 computer = 30 pizzas.Hence, total (world) production and consumption are both greater under specialization and free trade than under autarky. Mutual gain results because Fred and Wilma each consume more of both goods. That is, specialization and free trade leads to an allocation that is Pareto superior to autarky. DEF An allocation A is Pareto superior to an allocation B if no person is worse off at allocation A than at allocation B and at least one person is better off at allocation A than at allocation B. An allocation C is Pareto efficient (Pareto optimal) there does not exist an allocation D that is Pareto superior to allocation C.That is, allocation C is Pareto optimal if it is unachievable to find another allocation D that makes one person better off without making someone else worse off. The concept of Pareto efficiency is attributed to Vilfredo Pareto, a late 19th early 20th century Italian economist. graphically The specialization and free trade consumption bundle (EW, EF) = ((560 pizza, 28 comps), (540 pizza, 12 comps)) is Pareto superior to the autarky consumption bundle ((500 pizza, 50 comps), (450 pizza, 10 comps)) because, compared to autarky, at least one person is better off and no one is worse off (in this case, both Fred and Wilma are better off). 5 ECON *120 Principles of Microeconomics I. FOUNDATIONS OF ECONOMICS B. enquire Section I. B Learning Objectives Explain and come apart the bill gather uped of a good and the prerequisite for a good Explain, illustrate, and apply the law of adopt and the strike pervert Explain and illustrate the effects of changes in the determinants of posit (a. k. a. , non-own harm factors or rent shifters) Explain and illustrate the effects of measurees and subsidies on entreat 1. Definitions DEF rent represents the behavior f the consumer and the relationships between the quantities of a good an individual consumes and other factors such as the goods price, the consumers income, the consumers tastes and preferences, the prices of goods related in consumption (substitutes and complements), expectations, government policies ( measurees and subsidies), and the number of consumers. DEF The quantity engageed of a good X, QXd, is the specific quantity of good X that a consumer is uncoerced and able to purchase at a bad-tempered price.DEF The submit yield, DX, shows the maximum quantity filmed of good X, QXd, by a consumer at each possible price in a series of prices for good X, ceteris paribus alternatively, it shows the maximum price that a consumer is voluntary and able to earnings for each possible quantity bespeaked of good X, QXd, in a series of quantities for good X, ceteris paribus. Remark requisite is stand for by the entire expect influence. The quantity demanded is be by a single point on the demand edita particular price and quantity pair. 2.The Law of acquire The Law of withdraw the quantity demanded of a good X, QXd, varies inversely with the price of good X, PX, ceteris paribus i. e. , PX(v) ? QXdv() and so the demand snub is downward sloping. 16 A brief account of the notation The mental synthesis PX(v) ? QXdv() is a form of symbolic shorthand, which will appear frequently in the lecture notes. The items outside the parentheses are associated with each other and the items within parentheses are associated with each other. Thus, the above expression can be separated and re-written as two separate expressions PX ?QXdv, and, PXv ? QXd. The expression PX ? QXdv reads an increase in the price of good X, PX, causes a reduce in the quantity de manded of good X, QXd. Similarly, the expression PXv? QXd reads a strike in the price of good X, PX, causes an increase in the quantity demanded of good X, QXd. Thus, the initial expression PX(v) ? QXdv() states that an increase in the price of good X, PX, implies or causes a decrease in the quantity demanded of good X, QXd, and a decrease in the price of good X, PX, implies or causes an increase in the quantity demanded of good X, QXd.CLAIM The Law of Demand is based on (i) substitution and income effects and (ii) the Law of Diminishing Marginal Utility. Intuitively The income effect is the change in the quantity demanded of a good X, QXd, caused by a change in the purchasing power of a consumers income, a. k. a. real income, which results when the price of good X, PX, changes, i. e. , PX(v) ? purchasing power v () ? QXdv() The substitution effect, SE, is the change in the quantity demanded of a good X, QXd, caused by a change in the comparative price of X (and while holding rea l income constant).PX(v) ? the consumer substitutes the relatively cheaper good Y (X) in ? QXdv() place of the relatively more expensive good X (Y) Assumption A consumers total utility or happiness can be measured in terms of utils. DEF The marginal utility of a good X, MUX, is the increase in total utility, TU, (satisfaction, happiness) that a consumer derives from the consumption of an additional unit of good X, ceteris paribus MUX = ? Total Utility/? QX = ? TUX/? QX.The Law of Diminishing Marginal Utility (LDMU) states that the marginal utility derived from the consumption of a good X decreases (increases) as the quantity of good X consumed increases (decreases), ceteris paribus, i. e. , MUXv() as QX(v) Remark The LDMU implies that as the quantity consumed of a good increases, the price a consumer is unbidden to pay for those additional quantities decreases QX(v) ? MUXv() ? the price the consumer is willing to pay v().In the D2L interactive Graphs partition, click on the tie in Demand Schedule & Curve to see the interactive graph An Example of a Demand Schedule and Demand Curve. 17 3. Determinants of Demand (Non-own Price Factors or Demand Shifters) Remark An increase in demand means that at any given price, consumers are willing and able to buy a mammothr quantity of the good, or, alternatively, that at any given quantity, consumers are willing and able to pay a high price per unit.A decrease in demand means that at any given price, consumers are willing and able to buy a smaller quantity of the good, or, alternatively, that at any given quantity, consumers are willing and able to pay a lower price per unit. Claim Movements vs. Shifts. Changes in a goods own price, PX, cause changes in the quantity demanded of X, QXd, and movements along the good X demand curve, DX. Changes in the determinants of demand (a. k. a. the non-own price factors or shifters of demand) cause changes the demand for good X, DX, and shifts of the entire demand curve, DX.Exampl e A decrease in the price of gas, Pgas causes an increase in the quantity demanded of gas, Qgasd, and a downward movement along the demand curve for gas because Pgas is the own price of gas. In contrast, the same change in Pgas causes an increase in the demand for SUVs and an outward or upward shift of the SUV demand curve because Pgas is a non-own price factor with respect to SUV demand. In the D2L Interactive Graphs section, click on the link An Increase/Shift in Demand to see the interactive graph An Explanation of an Increase in Demand and a Shift of the Demand Curve. a) Tastes and preferences Tastes and preferences for good X (v) ? DX(v), the demand curve shifts up/right (down/left). An increase in preferences implies that at any given price, say P1, the consumer is willing and able to buy a greater quantity, Q2d ins afternoon tead of Q1d. Or equivalently, at any given quantity, Q1d, the consumer is willing and able to pay a higher price, P2 instead of P1. 18 Examples summer v acation travel ? the demand for gasoline increases, DX shifts up/right tornado destruction in the Midwest ? he demand for lumber increases, DX shifts up/right mad cow disease ? demand for McDonalds hamburgers decreases (DX shifts down/left) and demand for chicken sandwiches (good Y) increases (DY shifts up/right) medical studies change the demand for various goods (cigarettes, bran, mercury, etc. ) b) Consumer income normal and humble goods DEF A good X is a(n) normal (inferior) good if an increase in the consumers income I increases (decrease) the demand for good X, ceteris paribus i. e. , Normal good I (v) ? DX(v) Inferior good I (v) ?DXv() 19 Remark Whether a good is normal or inferior depends upon an individuals preferences and tastes. Goods such as computers, new cars, eating out and jewelry are typically considered normal goods whereas goods such as pasta, potatoes, hotdogs, beer and the Bible. c) Prices of goods related in consumption substitutes and complements DEF Two g oods, X and Y, are substitutes (complements) in consumption if an increase in the price of good Y, PY, increases (decreases) the demand for good X, DX, ceteris paribus i. . , X and Y are substitutes PY(v) ? DX(v). X and Y are complements PY(v) ? DXv(). Examples Complement goods beer and pizza, gasoline and cars, staples and staplers, and computers and software, printers and printer cartridges, shoes and socks. Substitute goods Pepsi and Coke, sub sandwiches and hamburgers, tea and coffee, ice cream and frozen yogurt, and staples and paperclips. Example If jelly and peanut butter are complements in consumption, then Pjelly(v) ? Qdjellyv() ? Dpeanut butterv().In this example, an increase in the price of jelly, Pjelly, decreases the quantity demanded of jelly, Qdjellyv, which then (because consumers are buying less jelly) decreases the demand for peanut butter, Dpeanut butterv and shifts the demand curve for peanut butter down and to the left when the intermediate step is removePjell y ? Dpbv . 20 Example If coffee and tea are substitutes in consumption. Then Pcoffee(v) ? Qdcoffeev() ? Dtea(v). d) Expectations about future income, prices, and availability of goods. e) governing body policies (tax incomees and subsidies).Remark An excise tax (subsidy) on the consumption of a good shifts the telling demand curve vertically down (up) by the amount of the tax (subsidy). diagrammatically An excise tax on consumption and the rough-and-ready (after tax) demand curve. 21 Example A $0. 50 excise tax shifts the effective demand curve down vertically by $0. 50 from the perspective of the manufacturing business because of the tax, the maximum price consumers are willing and able to pay manufacturing businesss (again, from the producers perspective) for Q0 = 100 units falls from $2. 25 to $1. 75. Consumers still pay the original $2. 25 but after the tax is imposed, producers hear $1. 5 and the rest goes to the government. Graphically An excise subsidy on consumption and the effective (after subsidy) demand curve. Example From the perspective of producers, an excise subsidy increases the maximum price consumers are willing and able to pay and so shifts the demand curve up vertically by $1. f) Number of consumers (v) ? DX(v) Remark Follows directly from the derivation of the tradeplaceplace demand curve (next page). In the D2L Interactive Graphs section, click on the link Examples of Changes in Demand to see the interactive graph Determinants of Demand and Shifting the Demand Curve. Please note the remark about the mistaken scripting of one of the cases of a demand change. 22 4. The Market Demand Curve Claim The market demand curve is the horizontal amount of the individual demand curves of all consumers. Graphically 23 ECON *120 Principles of Microeconomics I. FOUNDATIONS OF ECONOMICS C. make out Section I. C Learning Objectives Explain and differentiate the quantity supplied of a good and the supply for a good Explain, illustrate, and app ly the law of supply and the supply curve Explain and illustrate the effects of changes in the determinants of supply (a. k. a. nonown price factors or supply shifters) Explain and illustrate the effects of taxes and subsidies on supply 1. Definitions DEF grant represents the behavior of the producer and the relationships between the quantities of a good a firm produces and other factors such as the goods price, technology, prices of inputs, prices of goods related in production, expectations, government policies (taxes and subsidies), the number of producers. DEF The quantity supplied of a good X, Qs, is the specific quantity of good X that a producer is willing and able to produce and make available for sale at a specific price.DEF The supply curve for a good X, SX, shows the maximum quantity supplied of good X by a producer at each possible price in a series of prices, ceteris paribus alternatively, it shows the minimum price per unit that a producer must find (or is willing to accept) for each possible quantity of a good X in a series of quantities, ceteris paribus. Remark Supply is represented by the entire supply curve the quantity supplied at a specific price is represented by a single point on the supply curvea particular price and quantity pair. 2.The Law of Supply The Law of Supply the quantity supplied of a good, Qs, varies positively with the goods price P, ceteris paribus i. e. , P(v) ? Qs(v) and so the supply curve is upward sloping. 24 CLAIM The Law of Supply and the upward sloping short surpass (SR) supply curve are based on the Law of Increasing Opportunity Costs. As the quantity supplied/produced increases, more inputs or resources must be used. Because inputs experience increasing opportunity cost, the opportunity costs of additional inputs increase thereby increasing the per unit cost of producing additional output.Producers must receive a higher price in order to cover the higher costs of production. 3. Determinants of Supply (Non-own price factors or supply shifters) Remark An increase in supply means that at any given price, producers are willing and able to produce a larger quantity of the good, or, alternatively, that at any given quantity, producers are willing and able to accept a lower price per unit. A decrease in supply demand means that at any given price, producers are willing and able to producer a smaller quantity of the good, or, alternatively, that at any given quantity, producers must receive a higher price per unit.Remark Movements vs. Shifts. Changes in the goods own price cause changes in the quantity supplied of good X, QXs, and movements along the supply curve. Changes in the determinants of supply (the non-own price factors) cause changes in supply of good X, SX, and shifts of the entire supply curve, SX. a) Production technology Tech (v) ? S(v) 25 b) Input prices/resource costs Input prices (v) ? Sv() Graphically c) Prices of goods related in production substitutes and joint products DEF T wo goods/products, X and Y, are substitutes in production if PY(v) ? SXv().Two goods/products, X and Y, are joint products if PY(v) ? SX(v) X and Y are substitutes in production PY(v) ? QsY(v) ? SXv(). X and Y are joint products PY(v) ? QsY(v) ? SX(v). Example of critical point Products Beef and Leather (Other examples Donuts and donut holes, electricity and wall board/gypsum). Example of Substitutes in Production Kringle and donuts. (Other examples Jockey sweatshirts and T-shirts, SUVs and pickups, corn and soybeans. ) 26 d) Expectations with respect to. Inventories, future prices (of both inputs and output) and resource availability ) Government policies (taxes, subsidies and regulations) Remark An excise tax (subsidy) on production shifts the effective supply curve vertically up (down) by the amount of the tax (subsidy). Graphically An excise tax on production and the effective (after tax) supply curve. Graphically An excise subsidy on production and the effective (after tax) su pply curve. 27 f) Number of producers 4. The Market Supply Curve Claim The market supply curve is the horizontal summation of the individual supply curves of all producers/firms. Graphically 28 ECON *120 Principles of Microeconomics I. FOUNDATIONS OF ECONOMICS D.Market Equilibrium Section I. D Learning Objectives Explain and illustrate a market counterpoise quantity and price Explain and illustrate market disequilibrium (shortage or surplus) Explain and illustrate the functions of market prices Explain and illustrate the effects of changes in the determinants of demand and supply on the market equilibrium quantity and price 1. Definitions DEF A market equilibrium is a price P* and a quantity Q* such that at P* the quantity demanded equals the quantity supplied, Qd = Q* = Qs. DEF A surplus exits at a price P1 if Qd Qs at P1. A shortage exits at the price P2 if Qd Qs at P2.Remark Intuitively, a market equilibrium exists when market forces (demand and supply) are balanced and th ere is nothing that causes a change in the market price or quantity of a good. Illustrations a marble at the bottom of a bowl. Remark At a market equilibrium quantity and price, Q* and P*, the quantity demanded, Qd, equals the quantity supplied, Qs, equals Q* (Qd = Q* = Qs) at P*. At a market equilibrium, demand DOES NOT adjoin supply i. e. , it is NOT the case that D = S. To state that D = S means that the demand curve is identical to the supply curve, which clearly is an incorrect statement 9 2. The Functions of Prices Claim Prices play a critical agency in agonistic markets (i) Prices are flexible and adjust to clear the market prices ensure internal consistency by coordinating the production and consumption plans made independently by producers and consumers. DEF The price adjustment mechanism at a price P0, Qd ( Q0* = Qs at P0* ? P(v) as consumers bid up (down) prices ? Qdv along D1 from Q1 and Qs along S0 from Q0* (Qd along D1 from Q1 and Qsv along S0 from Q0*) until Qd = Q 1* = Qs at P1*. Graphically Dv and S constant ? P*v and Q*v. 30Examples Be able to work through changes in preferences, income for normal goods (e. g. , cell phones and computers) and inferior goods (e. g. , hotdogs and pasta) prices of substitutes (e. g. , tea and coffee, Coke and Pepsi, staples and paperclips), prices of complements (beer and brats, staples and staplers, computers and diskette disks), etc. For the case of an increase in demand, see with the interactive graph Demand Increase & Market Clearing, which is available on the D2L ECON 120 website. b) S(v) and D constant ? P*v() and Q*(v). Remark S(v) from S0 to S1 ? surplus (shortage) is created at the initial equilibrium price P0*, i. e. , Qd = Q0* Q1 = Qs at P0* ? Pv() as consumer bid down (up) price ? Qd along D0 from Q0* and Qsv along S1 from Q1 (Qdv along D0 from Q0* and Qs along S1 from Q1) until Qd = Q1* = Qs at P1*. Graphically Sv and D constant ? P* and Q*v. For the case of an increase in supply, see with the interactive graph Supply Increase & Market Clearing, which is available on the D2L ECON 120 website. Examples Be able to work through changes in technology, input prices or resource costs (e. g. , wages, pizza toppings, energy), prices of substitutes in production (e. . , kringle and donuts, corn and soy beans), prices of joint products (donuts and donut holes, hamburger beef and leather, electricity and bricks). c) synchronal changes in D and S Claim When demand and supply change simultaneously, then the change in the equilibrium price and quantity demand upon the magnitudes of the change in demand and supply. Four cases exist 31 (i) (ii) (iii) (iv) D and S ? Q* and the change in P* is indeterminate D and Sv ? P* and the change in Q* is indeterminate Dv and Sv ? Q*v and the change in P* is indeterminate Dv and S ? P*v and the change in Q* is indeterminateGraphically upshot (i) D and S ? Q*, P* may increase, remain constant, or decrease (? P* ). Or, equivalently Work through the r emaining cases on your own 32 ECON *120 Principles of Microeconomics I. FOUNDATIONS OF ECONOMICS Section I. E Learning Objectives Explain and illustrate consumer surplus and producer surplus Explain and illustrate total benefit and total cost Explain and illustrate the efficiency of a competitive market equilibrium for a pure private good Explain and illustrate the effects of price controls, taxes and subsidies and the resulting deadweight freeinges E.Applications 1. Consumer and Producer special move back The Marginal Benefit, MB (Marginal Cost, MC) of a good Q is the increase in total benefit, TB (cost, TC) resulting from a unit increase in Q i. e. , MB = ? TB/? Q (MC = ? TC/? Q). Claim Because the maximum price a consumer is willing and able to pay for an additional unit of a good is based upon the consumers MB from consuming that additional unit, the demand curve represents the marginal benefit derived from the consumption of the good.Likewise, because the minimum price a producer is willing and able to accept for an additional unit of a good is based upon the producers MC from producing that additional unit, the supply curve represents the marginal cost incurred from the production of the good. Thus, the demand (supply) curve can be used to measure a consumers (producers) economic welfare at a given quantity. CS (PS) is used to measure the change in consumer (producer) welfare resulting from a change in the price and quantity and of a good consumed by consumers (produced by producers).DEF Consumer Surplus, CS, is the difference between the price that a consumer is willing and able to pay and the price the consumer must actually pay in the market. 33 Remark CS at a quantity Q1 is the difference between the total benefit of the consumer at Q1 (represented by the scope under the demand curve between 0 and Q1 or the plain of 0abQ1) and consumer total expenditures at Q1 (= P1? Q1 or the arena of 0cbQ1). Thus, CS at Q1 represents the net benefits of c onsumers and is illustrated by the area between the demand curve and the market price line.DEF Producer Surplus, PS, is the difference between the price that a producer is willing and able to accept and the price the producer actually receives for that good in the market. Remark PS of a given quantity Q1 is the difference between the total tax revenue of the producer at Q1 ( = P1? Q1 or the area of 0cbQ1) and the total cost at Q1 (represented by the area under the supply curve between 0 and Q1 or the area of 0dbQ1). Thus, PS at Q1 represents the net benefits of producers at Q1 and is illustrated by the area between the supply curve and the market price line.Remark For consumers, a price increase (decrease) lowers (raises) consumer surplus CS. The los (gain) of CS measures the decrease (increase) in consumer economic welfare. For prioducers, a price increase (decrease) raises (lowers) producers surplus PS. The gain (loss) of PS measures the increase decrease) in producer economic we lfare. 34 Recall The Total Benefit, TB (Total Cost, TC) at a given quantity Q1 is represented by the area under the MB (MC) curve between 0 and the quantity Q1. In the graph below, TB at Q1 = area abQ10 and TC at Q1 = area deQ10. Similarly, TB at Q2 = area acQ20 and TC at Q2 = area dfQ20.Remark The change in TB caused by a change in Q is given by the area under the MB curve for that change in Q. For example, given an increase in Q from Q1 to Q2, the increase in TB = ? TB = area bcQ2Q1. Likewise, given an increase in Q from Q1 to Q2, the increase in TC = ? TC = area efQ2Q1. Remark At a given quantity, Q1, the economic gain to consumers and producers at the market equilibrium is represented by the Total Surplus or Net (Social) Benefit = net benefit of consumers + net benefit of producers = CS(Q1) + PS(Q1) = TB(Q1) TC(Q1) = area abd in the graph below. 35 2.Market Equilibrium and Efficiency in the Private Good MB/MC Model DEF A good is a pure private good if there are no external bene fits or costs from the consumption or production of that good and so Dmkt = MB = ? iMBi and Smkt = MC = ? jMCj. DEF In a market, the quantity Q* is efficient if the maximum price consumers are willing and able to pay per unit for Q*, which represents the marginal benefit to consumers or consumers price equals the minimum price producers are willing and able to accept per unit for Q*, which represents the marginal (opportunity) cost to producers or producers price.That is, the quantity Q* is (socially or economically) efficient if MB = MC at Q*. Claim (The First Fundamental Theorem of Welfare Economics) In a market for a pure private good, the market equilibrium quantity is efficient, provided that original technical conditions are satisfied i. e. , at the market equilibrium Q* and P*, P* = MB(Q*) = MC(Q*). Remark In other words, net social benefit is maximized at Q*. In addition, if at a quantity Q0, MB ) MC, then Q0 is inefficient and a deadweight loss, DWL, (also know as a welfar e cost or loss in efficiency) is imposed upon society.The DWL at Q1 (Q2) is represented below by the area bce (cgh). Remark The quantity Q1 is inefficient because MB(Q1) MC(Q1) similarly, the quantity Q2 is inefficient because MB(Q2) MC(Q2). At Q1 (Q2), society can be made better off by producing one more (less) unit of Q. Increasing Q from Q1 to Q* increases social welfare by the amount DWL at Q1 = area bce = ? TB ? TC = area beQ*Q1 area ecQ*Q1. Alternatively, decreasing Q from Q2 to Q* increases welfare by DWL at Q2 = area cgh = ? TB ? TC = area Q*chQ1 area Q*cgQ1. 3.Price Controls DEF A price jacket crown is a maximum legal price that a producer/ vendor may charge for a good or service a price ceiling, Pc, is effective only if it is below the market equilibrium price (Pc P*mkt). A price floor is a minimum price, fixed and supported by the government, that a producer/seller can receive for a good or service a price floor, Pf, is effective only if Pf P*mkt. 36 Claim At a p rice floor Pf, the quantity supplied in the market, Qsmkt, is inefficient and the good is overproduced (i. e. , Qsmkt Q*mkt) because t Qsmkt, the maximum price consumers are willing and able to pay per unit for Qsmkt is less than the minimum price producers are willing and able to accept per unit for Qsmkt. That is, at Qsmkt, MB MC and so Qsmkt is inefficient. Graphically (iii) At a price ceiling, Pc, the quantity supplied in the market, Qsmkt, is inefficient and the good is under-produced (i. e. , Qsmkt Q*mkt) because at Qsmkt, the maximum price consumers are willing and able to pay per unit for Qsmkt is greater than the minimum price producers are willing and able to accept per unit for Qsmkt.That is, MB MC and so Qsmkt is inefficient. Graphically 37 4. Taxes and Subsidies Who Pays and Who Benefits? DEF Consumers price vs. producers price. Claim An excise tax (subsidy) drives a wedge between the consumers price and the producers price and imposes a deadweight loss (welfare cos t or loss in efficiency) upon society because the losses in CS and PS exceed the tax revenues. Graphically Excise tax on consumption. Remark The after-tax equilibrium quantity, Qtax, is inefficient because MB MC at Qtax, and so a deadweight loss is imposed upon society, represented by DWL(Qtax) = area abc.The tax revenue is not an economic loss for society in general but does constitute a redistribution of economic welfare from consumers and producers of the good to society in general. The DWL is the difference between the sum of the loss in consumers surplus, area P*dab, and the loss of producers surplus, area eP*bc and the tax revenue generated by the excise tax, area edac, i. e. , DWL(Qtax) = ? CS + ? PS Tax Revenue = area P*dab + area eP*bc area edac = area abc Graphically Excise tax on production. 38 ECON 120 Principles of Microeconomics Spring 2010 II. MICROECONOMIC MODELS AND DECISION-MAKING Section II. ALearning Objectives Explain and seem the price picnic of demand E xplain and illustrate expansileised, nonresilient, unit chewy, perfectly elastic, and perfectly springless demand and corresponding demand curves Explain the determinants of elasticity Explain and illustrate the effects on total revenue of producers or total expenditures of consumers of a change in price given elastic, unit elastic, and inelastic demand Explain and calculate other elasticities of demand (income and vex price elasticities) Explain and calculate the price elasticity of supply and its basic determinant Explain and illustrate how the elasticity of demand and supply arrogate consumers and producers prices given an excise tax on production A. Elasticity of Demand and Supply 1. Elasticity of Demand a) The Concept of Elasticity and Elastic/ springless Demand Curves DEF The (own) price elasticity of demand, Ed, is a numerical measure of the sensitiveness or responsiveness of the quantity demanded to changes in price, ceteris paribus, and is calculated as Ed = ? %? Qd/%? P?. Examples Suppose that the quantity demanded of gas, Qgas, decreases by 10% when the price of gas, Pgas, increases by 20%. Then Ed = ? 10%/20%? = 0. 5.If the Qd of Mountain Dew decreases by 50% when the price of Mountain Dew increases by 20%, then Ed = ? 50%/20%? = 2. 5. Remark %? Qd = Ed? %? P. Example If Ed = 2 and price increases by 8%, %? P = +8%, then %? Q = 2? (8%) = 16%. If Ed = 0. 4 and price decreases by 25%, %? P = 25%, then %? Q = 0. 4? (25%) = +10%. Alternatively, if a firm wants to increase its sales by 30% and Ed = 1. 5, then it should decrease price by 20% because %? P = %? Q/ Ed = 30%/ 1. 5 = 20%. DEF Midpoint elasticity formula Given two points on a demand curve, (Q1,P1) and (Q2,P2), the (own) price elasticity of demand at the shopping center between these two points is calculated by Ed = ? %? Qd/%? P? = ? (Q1 Q2)/(Q1 + Q2)/(P1 P2)/(P1 + P2) ?. 39 Example Let pt A = (Q1,P1) = (8,16) pt. B = (Q2,P2) = (12,14) pt. C = (Q3,P3) = (28,6) pt. D = (Q4,P4) = (32,4). The midpoint price elasticity of demand between pts A & B Ed = ? (8 12)/(8 + 12)/(16 14)/(16 + 14)? = (4/20)/(2/30) = 3. pts B & C Ed = ? (12 28)/(12 + 28)/(14 6)/(14 + 6)? = (16/40)/(8/20) = 1. pts C & D Ed = ? (28 32)/(28 + 32)/(6 4)/(6 + 4)? = (4/60)/(2/10) = 1/3. Remark A linear demand curve has a different elasticity coefficient, Ed, at each point on the demand curve, Ed ranges from Ed = 0 at the horizontal intercept to Ed = ? at the vertical intercept.DEF Demand is said to be elastic if Ed 1 or ? %? Qd? ? %? P? , unit elastic if Ed = 1 or ? %? Qd? = ? %? P? , inelastic if Ed 1 or ? %? Qd? ? %? P? , perfectly elastic if Ed = ? and perfectly inelastic if Ed = 0. Remarks (i) suddenly elastic demand is represented by a demand curve that is horizontal at the market price. A perfectly elastic demand curve implies that, at the market price, consumers will buy whatever quantity producers are willing and able to produce. (ii) Perfectly inelastic demand is represente d by a demand curve that is vertical at the market quantity and implies that consumers will pay whatever price producers want for the market quantity. iii) Elastic demand can be represented by a demand curve that is relatively flat, such as D3. The majority of the demand curve D3 that appears in the graph is the elastic portion of the demand curve because the midpoint of the demand curve, where Ed = 1, is near the lower-end of D3. 40 (iv) Likewise, inelastic demand can be represented by a demand curve that is relatively steep, such as D2. The majority of the demand curve D2 that appears is the inelastic portion of the demand curve because the midpoint of the demand curve, where Ed = 1, is near the upper-end of D2. b) Determinants of Elasticity Claim The demand for good X is more elastic (inelastic) (i) the greater (fewer) the number of substitutes there are for good X.Remark In general, Edcaterory Edbrand. For example, because very few substitutes for gas exist but many substitutes for Mobil gas exist (such as BP, Citgo, Phillips, Shell, etc. ), Edgas EdMobil gas. Likewise, Edsoda EdMountain Dew. (ii) the more (less) an item absorbs as a share or portion of a consumers budget, Example Because student expenditures on learning or rent as a parcel are much greater than their expenditures on toothpicks or salt as a percentage of their income, Edcollege Edsalt. (iii) the less of a necessity and the more of a luxury (the more of a necessity and the less of a luxury) good X is for example, Edfood Eddiamond jewelry. iv) the long-term (shorter) the time interval considered, which allows for changes in preferences or the emergence of more substitutes i. e. Edshort run Edlong run. c) Elasticity and Total Expenditures (Total Revenue) Remarks Total Revenue of producers = TR = P? Q = TE = Total Expenditures of consumers. Because TR = TE = P? Q, total revenue or total expenditures can be represented graphically by the area of a rectangle of comprehensiveness Q and height P. 41 Claim Along the (i) elastic portion of the demand curve, Ed 1 or ? %? Qd? ? %? P? Pv() ? TE(v). (ii) unit elastic point of the demand curve, Ed = 1 or ? %? Qd? = ? %? P? Pv() ? ?TE = 0. iii) inelastic portion of the demand curve, Ed 1 or ? %? Qd? ? %? P? Pv() ? TEv(). Remark In the graphs below, consider a given change in price, ? P (= P1 P2 = P3 P4), and change in quantity demanded, ? Q (= Q1 Q2 = Q3 Q4). Along the elastic section of the demand curve (left graph), the decrease in price, ? P, from P1 to P2, and the increase in the quantity demanded, ? Q, from Q1 to Q2, increases total expenditures of consumers (or total revenue of producers) i. e. , TE1 = P1Q1 P2Q2 = TE2 because the increase in expenditures from a greater quantity is greater than the decrease in expenditures from a lower price.Alternatively, along the inelastic section of the demand curve (right graph), the same decrease in price, ? P (from P3 to P4), and increase in quantity demanded, ? Q ( from Q3 to Q4), decreases total expenditures of consumers (or total revenue of producers) i. e. , TE3 = P3Q3 P4Q4 = TE4 because the increase in expenditures from a greater quantity is less than the decrease in expenditures from a lower price. 42 Claim TR is at a maximum at the quantity at which Ed = 1. d) Other Elasticities of Demand (i) Income elasticity of demand, EI, is a numerical measure of the responsiveness or sensibility of the quantity demanded to changes in income, ceteris paribus. If EI (( %? P), then supply is elastic, 1 Es ?. f production costs do NOT increases as output increases, then supply is perfectly elastic, Es = ?. 44 P perfectly inelastic ES = 0 S1 S2 inelastic 0 E S 1 S3 elastic 1 E S ?P S4 perfectly elastic E S = ? ?Q 2 ? Q 3 0 Q0 Q Given S2, a change in price of ? P yields a relatively small change in the quantity supplied (i. e. , %? P 0 ? %? Qs 0 but %? P %? Qs) and so 0 ES = %? Qs/%? P 1. For example, if supply is inelastic, then a 5% incr ease in price results in a less than 5% (perhaps 3%) increase in Qs. Given S3, a change in price of ? P yields a relatively large change in the quantity supplied (i. e. , %? P 0 ? %? Qs 0 but %? P %? Qs) and so 1 ES = %? Qs/%? P.For example, if supply is elastic, then a 5% increase in price results in a more than 5% (perhaps 8%) increase in Qs. Given S4, a change in price of ? P yields an infinite response from producers. Producers are willing to produce and sell whatever quantity consumers are willing and able to buy at the market price (i. e. , %? P 0 ? %? Qs = ? and so ES = %? Qs/%? P = ? ). 3. Elasticity and Taxes Claim Given an excise tax on either consumption or production, if the elasticity of demand is greater (less) than the elasticity of supply, then the portion of the tax paid by consumers is less (greater) than the portion of

Has Our Political System Succeeded Essay

The semi policy-making administration began with the Declaration of Independence written by Thomas Jefferson on July 4, 1776. After that document the Articles of Confederation came out, which were adopted in 1777. The Articles of Confederation was the first attempt to set up a regimen in the US. Then our Constitution came out in 1787,it was made into iii plans the Virginia Plan, New Jersey Plan, and then the Connecticut compromise. Four things our Constitution civil were indirect democracy, limited g everywherenment, checks and majority rule, and an outline of what the different branches of government do.The US two main parties ar Republican and Democrat. The Democratic Party was founded in 1828, and the Republican party was founded in 1854. Our governmental system has succeeded in some(prenominal) forms. One form would be our checks and balances within the federal government and on a local level. Provisions wealthy person been improved over the eld to regulate proper place ment of funds and equal rights to citizens. The origin of our political system begins with congress. The main responsibilities of congress are making laws, overseeing the FBI and CIA, casework, representing their districts, setting an agenda, and mesh resolution.Our society has relied upon a bicameral system, where there have been a abide of Representatives and a Senate. Some of the responsibilities of the House of Representatives embarrass reviewing bills and beginning the impeachment process. The Senates duties include giving advice and consenting on treaties, conducting impeachment trials, and appointing upper-level judicial officers. Where I touch sensation our political system has not through so well is with bureaucrats. bureaucratism has some positive aspects like specialization, making sure rules and regulations are carried out, and neutrality. in that respect are two types of bureaucrats.The first one is a civil handmaid who is hired based on merit, and the second one is a political appointee who is selected based on whom they know. It is a common issue that bureaucrats are given too much power and that they abuse those powers, which causes flaws in our political system. It does, however, seem that bureaucrats are vital for the functioning of any political system they are generally not well liked, though. Several attempts to reform bureaucracy have been made, such as the Sunshine laws, which are laws that dictated that agencies have to be conducted in the public eye.Privatization is another reform where the government turns over more jobs to private sectors. A good change for our society was when the governance Performance and Results Act of 1997 were introduced. This sought to improve governmental efficiency by making agencies describe their goals and create mechanisms for evaluating their goals. Overall, our political system has proven to be stable and has succeeded. Of course, there are going to be positive and blackball aspects, but, at th e end, for what our nation has had to deal with in the past 228 years, we have done far better than any other country.

Introduction to the Finance Company Project

Introduction to the Finance Comp whatsoever work out Your team is required to go the upcoming business and economic prospects of a major, publicly traded corpo symmetryn using financial concepts and techniques as well as the concepts and techniques from early(a) business areas. Make sure any statements you make in your abbreviation are consistent with the knowledge base of finance. Also enchant include your calculations (including spreadsheets), data sources (be specific, including date and page number(s)), and assumptions (explain your rationale) in the appendices.While your summary should be geared toward finance, nobody, of course, can make business decisions using only when finance techniques and concepts, so where applicable, incorporate techniques and analysis from other business fields. The undermenti angiotensin converting enzymed is a list of the minimum requirements for your project. Additional credit will be given for creativity and analysis beyond the minimum req uirement. If you hire any questions, please e-mail them to your instructor. (1) EXECUTIVE SUMMARYProvide a one (1) page executive summary which summarizes your findings and provides a recommendation whether to grease ones palms or not to buy the stock and the debt securities of the social club (two separate decisions). (2) COMPANY trigger Provide a one page (1) introduction to your alliance including society history, strategy, main products & services, primary markets & customers, major competitors, industry overview, and other relevant information. (3) monetary ANALYSIS lead a two-year financial analysis of your company using financial ratios. Include a Du Pont analysis. You can refer to your Essentials of affair I Corporate Annual Report project for the appropriate ratios. ) detect on the financial health of the company. Please look at ratio trends and compare to industry average. (4) WEIGHTED AVERAGE COST OF CAPTIAL (WACC) Estimate the components of the toll of crown for your company using market data. a) For the cost of frequent stock, analyze using the dividend growth model and CAPM. To determine Beta, first engross create sources. Next, calculate your own beta estimate using retrogression analysis with 52 weeks of daily data.See the textbooks website to download the regression tool kit from Chapter 6. If the published estimates and the results of your regression analysis differ, justify your last(a) choice of Beta for the WACC determinations. b) work up the cost of preferred stock c) Calculate the cost of debt. Recall that you do NOT use the coupon rate, but instead use the YTM for each bond issue. d) Determine the appropriate weights for each of the categories using market valuates. e) Calculate the companys WACC. f) In your opinion, has the company minimized its WACC?What could it differently? Recall that more(prenominal) debt increases the risk of bankruptcy and more equity pith the flotation costs of issuing stock. g) Provide rea sons why or why not the current WACC is appropriate for futurity use by the company. If not, explain which WACC should be used for future business decisions. (5) approaching CASH FLOWS Prepare a three (3) year forecast of estimated future interchange flows for you company and give valid economic/business reasons for your projections. This means you will have a statement of incremental gold flows. integrity year in the future, develop a future market value of equity and an estimated future price per share for the companys common stock. Write a 1 page analysis, which incorporates marketing, accounting, sales, production, management, technology, etc. information into your estimates of future capital flows. Please cite 2-3 media sources for this analysis. a) Perform a what-if analysis for your cash flows using at least one of the following sensitivity analysis, scenario analysis, or simulation analysis. Also, provide a written summation of your what-if analysis. ) Collect and mens urate information on inflation estimates and incorporate those estimates, as you see fit, into your cash flow estimates. c) small talk on how future cash flows maybe be implyed by information contained in the footnotes to the financial statements. Footnotes are a lot more interesting than the rest of the financial statements and provide valuable information. d) Do a brief analysis of your competitors, the prospects of their future cash flows, and how that affects your companys cash flows. e) Conduct a post-audit of one (or more) of your companys major past projects and ncorporate this qualitatively into your estimates of future cash flows. (6) HISTORICAL STOCK PRICE Review briefly the historical accomplishment of the companys stock price. Explain if this affected your analysis. (7) SECURITY ANALYSTS REPORTS pronounce what securities analysts are saying about your company, and explain if you agree or disagree with their recommendations. What is the sentiment for your stock are there a lot of buy recommendations or are there a lot of hold/ mete out recommendations? (8) DIVIDEND and CAPITAL STRUCTURE ) Analyze the current dividend policy of your company. If it doesnt pay a dividend, should it? b) Analyze the target capital structure of your company including bank loans, leases, and other financial securities issued in addition to preferred stock, common stock, and debt. Why do you think it maintains the capital structure it does? Do you think it is an optimal capital structure? If not, what do you think would be? Justify your answer. c) Does your company have a substantial degree of informational asymmetry (assets which are hard for outsiders to value)?Do you think this affects the capital structure of your company? (9) CORPORATE GOVERNANCE Comment on the corporate governance of your company. Is management doing a good descent? Does management hold shares in the company? What is their percentage of equity self-command? How much stock do institutions own? Do you think these factors affect your companys performance? (10) MERGER and INTERNATIONAL STRATEGY Describe and evaluate the unification and acquisition strategy and the international expansion strategy for your company.

Ambugity and Clarity in Writing

I chose example 2 which stated I was thrown from my truck as it left the road. I was later name in a ditch by a flock of wild turkeys. This logical argument in my opinion is an example of vagueness. The vagueness comes from the statement that is very unclear. I am having a hard time savvy how this person was thrown from their truck. It is missing information and is hard to follow. This statement allows me to receipt that the person was thrown from a truck but we do non know how or how they were found by a ditch of flock.This could collapse been by a car accident or by mortal who could redeem literally threw this person out of the truck. This type of vagueness throws the reader mop up because they are unclear of what is really going on in the writing, it becomes a problem when you are trying to understand reasoning behind this statement. The blink of an eye sample writing I chose was The online course helps me in a push-down stack of ways. I can use all kinds of resources. The place in the subroutine library offer tutorials in all different areas, Microsoft Word, Excel and other tutorials.Also, in that respect is services, that offers technical support, tutoring, library help, and then there are financial advocate and academic advising. The library section offers help in finding books, diary articles and more. There is even places in math, writing and technical. This statement is ambiguous because it is equal to(p) to more than 1 interpretation. This can be speaking on behalf one online course or the school of online courses. Also when they mentioned that the library offers all types of resources it does non specify which library and where this library can be found. It could be found online or it could be a place where you bind to go.When you write a statement it needs to be clearly understood and it should not have your reader trying to understand the statement you are trying to gift across. In this example the writer would get that the wr iter likes online courses but in the supporting sentences it just goes into stating help from the library and is somewhat confusing. The relationship betwixt critical thinking and clear writing is that they both work together. You have to critically think to clear write. When you are jotting things down your maven is working to come up with these unique thoughts which is critically thinking. They go get to in hand.

High school Essay

It was once thought that when a soul gets act forth of high school, he is invisible. He can do what constantly he essentials, achieve every last(predicate) his dreams and aspirations, and gravel the person that he evermore envisi bingle and only(a)d himself to be. It probably never daunted him that he bequeath become autarkical and responsible for the consequences of his actions he would fool treated those comparable simple challenges anyway. Obstacles that he needed to conquer in order to retain him a stronger person and to reach his destination. And all this he would achieve, amazingly with the help of the environment.The environment does non literally translate to the trees, the suburbs, or the urban metro that we digest come to know as an environment. It essentially means much more than that. It is how a person adapts to where he is. It is how he educates things work to his advantage, and at the same time not harming those around him. It is how he makes his life work, whatever the given circumstance. thither are several ways on how to mold the environment and make it a part of the acquire experience that will help an idiosyncratic achieve his goals, find better jobs, and have self-satisfaction.It is important to note that a student has to realize the importance of getting a college degree. He will realize that the environment is competitive enough to require it. It is through what he experiences that he will come to know the importance of getting into college and in learning through the environment, he will realize that he has succeeded m management is bingle of those ways on how the environment plays a get a line role in a persons learning experience. As much as every person would want to control time, there are instances wherein it will always spin out of control.The heavy traffic, the weather, the floods, the vogue of transportation these are all elements that we cannot predict and therefore we cannot control. Due to the excita bility of these factors, one must always manage his time wisely, with allotment for situations like this. Being organized, following a routine and a flow of tasks as well as says that a person is disciplined. He has the strength to say no to distractions because he knows that he has allotted an ample time for everything, even for play.And temptation is one of the numerous obstacles that humans go through in dealing with their day-after-day lives. The environments role in being able to overtake obstacles is that when we carry stern enough, the answers are just out there, around us. It is charming that we somemultiplication have the answers right in front of us and to date we fail to recognize them. Everybody knows that we will never be given problems that we cannot solve. In trying to solve our problems, we get to know and discover ourselves more the things that make us stronger, the emotions that make us weak.In discovering these unknown side of ourselves we fix more options, we get to know more. If a person once verbalise to himself that getting a college degree is not worth his time, effort, and money, this may not hold true if he was faced with an employment problem. The environment nowadays is competitive enough to want more from its employees, and these employers do compensate for this. It is during the toughest times that we get to see the real attitudes of the people. Those who strive to outshine the rest will not just settle for a high school diploma, unless for a higher one.Everybodys goal in life is to become successful in whatever his or her endeavors are. It may be as small as finishing a 5-kilometer run or as big as running for the presidential seat, what we all want is success. For the respective(prenominal) whose environment shapes him to become the next big CEO, more qualifications have to be met. A college degree or an MBA will definitely make him go places and put an edge to his resume. It is not only in this career thoroughfare t hat a higher education will prove to be useful, in fact, in all career paths, a higher education is always a better credential.Becoming a lawyer, a physician, an engineer, or a nurse may put you through the worst, sleepless nights you have ever had, but the end game is always a win. While one may not always understand why people want to have success and always feel like achieving a inclination or attaining a goal, it is important that they know that they are working hard for themselves. There is nothing better than knowing that you have worked hard for something and you got what you precious in the end. Reaping the fruits of your labor brings a sense of pride and self-satisfaction to ones self.Everything that one has to work hard for, the stress of the environment, the pressure of achievement, overcoming these is indispensable in order to achieve lifetime goals. In conclusion, working on lifetime goals allow people to see how hard work and analyze can pay off for the future. The changing environment affects everyone differently. Employers at times allow employees to work on their studies while they are at work and offer the students reimbursements for their college work. For students who finish their degree, it will open many doors for them in advancing at their current professions.Students that complete their degree will have a sense of pride and accomplishment that was taken by them for all of their hard work and effort. The environment of each student is different. The variation of the nerve-racking environments is different for each student. Some have family stress and some have work stress. Time management is a determining factor in each of these areas. It is crucial that the student completes all required materials when the assignments are due. When students look back and realize what they have accomplished they will know that they bettered themselves by working in this new environment.ReferencesJewell, D, (2008). One vision many paths. ProQuest Datab ase, 16(9), Retrieved declination 28, 2008, from http//proquest. umi. comezproxy. apus. edu Khalifa, M. & Lam, R. (2002). Web based learning Effects on Learning handle and Outcome. Academic Search autopsy Database, 45(4), Retrieved declination 28, 2008, from, http//apus. agent-graphics. com. ezproxy. apus. edu Littky, D (2004). The big evince Education is everyones business. APUS online library, Retrieved December 28, 2008, from http//web. ebscohost. com. ezproxy. apus. edu/ehost/detail .Ramey, S. & Ramey, C. (2008).The Learning environment, learning process, academic outcomes and career success of university graduates The transition to school. Academic Search Premier Database, 33(4), Retrieved December 28, 2008, from http//web. ebscohost. com. ezproxy. apus. edu/ehost/detail Williams, K. (2006) Introducing Management A Development Guide. APUS online library, Retrieved December 28, 2008, from http//apus. agent-graphics. com. ezproxy. apus. edu Zygmunt-Fillwalk, E. (2006). Encou raging School Success through family Involvement. Proquest Database, 82 (4), Retrieved December 28, 2008, from http//proquest. umi. comezproxy. apus. edu.

Chaser

Philosophy 6 Ethical Issues in blood line Midterm Es hypothesise Chase Novak Dr. Parker Need or Greed? impertinent communications protocol How Drugs Rebirth as Treatment for crabmeat fuel Price Rises Immanuel Kant-Kantian Deontology stern Locke- The Justification of Private Property raptus Smith-Benefits of the Profit MotiveMilton Friedman- The Social Responsibility of Business Is to Increase Its Profits thesis An examination of the case study New Protocol How Drugs Rebirth as Treatment for Cancer Fueled Price Rises relies heavy on a keen understanding of the kind and economic implications of a capitalist system, and once taken into account it is actualize that Celgene Corp. is justified in upbringing sets based on the business commercialize place philosophies asserted by Adam Smith, Milton Friedman, Emanuel Kant, and John Locke. Word Count 1690Perhaps the most difficult situation in business arises when the indigent desire the product being sold. semi semipolitical pre ssure is often put on the ac follow to lower prices in order to accommodate the less fortunate consumer, however, this is in direct impinge with the companys paramount goal of making the largest feeler possible. Issues atomic number 18 increasingly complex given the supply-demand aspects of decree and the incentive for merchandise. For these reasons approaches to business that underline profit over avail big businessman put up indeed help gild in many agencys.Upon the question of ethics one essential(prenominal) visual sense the entire grocery store as a whole and the benefits of opposition when deciding a fair price. An examination of the case study New Protocol How Drugs Rebirth as Treatment for Cancer Fueled Price Rises relies heavily on a keen understanding of the social and economic implications of a capitalist system, and once taken into account it is clear that Celgene Corp. is justified in raising prices based on the business market philosophies asserted by A dam Smith, Milton Friedman, Emanuel Kant, and John Locke.Celgenes decision to exalt prices is complex and though at first glance whitethorn pop to be fueled by greed it is in detail a necessary and beneficial step in Celgenes proceed output signal of the medicine thalidomide along with researching other medical advances. Celgene Corp. s decision to incrementally plagiarise prices is justified by Adam Smiths free market philosophy in which he describes competitive production as the primary(prenominal) force behind societal development and remediatement. though there has been midget affect to the cost of production for thalidomide, the nature of free market production dictated the rise in price.This, according to Smith is a vivid element of the free market, As every individual endeavors as untold as he fuck both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value, every individual necessar ily labors to render the annual gross of the bon ton as great as he can (Donaldson, 167). In this quotation, Smith is explaining how every individuals personal strive for success, in the form of production, helps to improve society as a whole.If from each one individuals ultimate goal is to increase their riches, and if increased wealth is sought through alter production, then the competition for wealth willing undoubtedly end point in improved production. Improved production can take to be either cheaper manufacturing, resulting in lower costs for the consumer, or a better product, which will also help society. Smith moves on to say that this competition is self-perpetuating and that the profit made off of production is reinvested to further improve manufacturing. Evidence of this can be observed in the Celgene Corp. aising of prices on thalidomide which resulted in, The ability to fund the pharmaceutical industrys research and development programs, which flirt new medi cines to patients (Donaldson, 151). This can be further proven by the fact that Celgenes R&D department uses almost half of the companys revenue (Donaldson, 154). In this example, Celgene is able to provide consumers with newer and much powerful medication as a result of its competitive pricing of thalidomide. Though many critics of Celgene would call the corporations decision to tin prices a genuinely greedy and selfish act, Smith conditions nonhing wrong with much(prenominal) a move.On this issue Smith states that an individuals self-centered motives often improve society By pursuing his own interests he frequently promotes that of the society more effectually than when he really intends to promote it (Donaldson, 167). Given Celgenes perceived self-centered actions, Smith would note that this type of free market demeanor is positive and is guided by an invisible hand which helps such port to be beneficial to society as a whole. The next philosopher to be examined would arg ue that the invisible hand that Smith speaks of is indeed separate from the political realm.Milton Friedman continues with Smiths line of logic as he asserts that the head concern of the businessman moldiness be to make a profit under socially acceptable means and that the defining of social responsibilities must(prenominal) be left in the political sphere. Celgenes chief executive, John Jackson, was the primary force behind the companys decision to annul prices. Jacksons actions are perfectly good according to Friedman who writes, What does it mean to say that the corporate executive has a social responsibility in his capacity as a businessman?If this statement is not thoroughgoing(a) rhetoric, it must mean that he is to act in virtually way that is not in the interest of his employers (Donaldson, 35). Jackson answers to a board that represents the stockholders of the company and it is his ethical obligation to them to make a profit. Celgene was losing money until 2002, which obviously necessitated an increase in price (Donaldson, 153). Jacksons move to incrementally increase the price of thalidomide was not unethical because he has an obligation to stockholders to deliver a profit.Furthermore, Friedman asserts that it is not the corporate executives job to act as a moral entrepreneur as he is ill fit to do so. Friedman stresses that calls for executives to act socially responsible are unethical as socially impactful decisions, such as price adjustment, must be left up to existenceally elected officials with knowledge of the social and economic implications of such actions (Donaldson, 36). Friedman makes a vital point as it explains that the social responsibility falls on the domain and its publically elected officials to enforce social justices through legislature.Therefore if the public desired Celgene to lower prices of thalidomide then it must require it to do so through law. Furthermore since no law exists requiring Celgene to sell thalidomide at a certain price, then Celgene is perfectly ethical and justified in raising its prices. If executives like Johnson adjusted prices according to their personal beliefs then huge portions of society would be heavily affected by such decisions and thus the public should reserve the rectify to solve such social dilemmas through participatory means in the form of law.Emanuel Kants philosophy of the categorical overbearing also works to ethically justify the pricing of thalidomide by expressing the command for a universal standard of ethical practice. Though Kant would most probably desire a socialist utopia or at least cut universal healthcare, neither is realistic in the present day. In a Kantian society individuals would want free healthcare for everyone. No ethical issues would be in question if everyone received their entire healthcare for free.The result is a derived understanding of his categorical imperative, which explains a desired scenario in which on party acts onto ano ther party in the same manner he himself wishes to be treated (Donaldson, 112). In this sense, under a capitalist system, Celgene is responding to the market by acting accordingly and raising its prices to increase production. The most canonic element of ethics lies in John Lockes philosophical business relationship of product ownership and it works to prove Celgenes decently to raise its prices.At the very heart of business is the ownership of a private keeping which one elects to sell for a profit. According to Locke, God made the farming for man to exploit for his personal needs and thus it is logical that some men will not have common ownership of the farming (Donaldson, 158). Lockes philosophy on private property explains that man has the right to own property and that he alone can chose how to use his property. victimisation this exculpation, Celgenes ownership of thalidomide entitles them to price it at any rate it sees reasonable.Moreover this justification is ethica l because it comprises the sole force behind production. If corporations like Celgene cannot retain the right to ask for their own price for the products that they produce then there exists no incentive to produce. As a society we cannot force companies to produce innate information, technology, or medicine without an incentive. That is not how society works. Rather, our society is functions under an incentive-based system, which uses competition to provoke the best and brightest to produce the most important products for societys use.If Celgene was made to sell their products at a price convenient for the consumer nevertheless crippling to the manufacturer then production would decline and society would falter. thus to ensure continued production and quality corporations such as Celgene must be allowed to conduct business according to their best interests with regard to price. golf-club hinges on the expectation that companies will provide the food, goods, and medicine that it requires to function, however, certain elements must be in place in order to ensure the continued production of such commodities.As explained by Adam Smith, Milton Friedman, Emanuel Kant, and John Locke, society is improved by a free market system in which revenue from production is poured back into production to result in the overall improvement of society as a whole. Though some may see a raise in price as unfair, one must view such circumstances from the standpoint of the corporation, as business is a constant back-and-forth between the consumer and producer.The overarching ethical theme of the case study focuses on the need to provide the medical sector with the necessary profits to continue its research and development programs in the efforts of advancing the entire field for the cash advance of society. This is surely an ethical endeavor. Works Cited Donaldson, Thomas, and Patricia Hogue. Werhane. Ethical Issues in Business a Philosophical Approach. Upper Saddle River (N. J. ) Prentice Hall, 2008. Print.