Saturday, November 16, 2019
Market Failure With Graphical Analysis Economics Essay
Market Failure With Graphical Analysis Economics Essay As Roral Coase indicated, the question to be decided is: Is the value of fish lost greater or less than the product which contamination of the stream makes possible. Thus, it is understand that concept of social efficiency is difficult to achieve because of unexpected costs. Government intervention to the economy can be justified when market fails to achieve social efficiency (Webster, 2003). Social efficiency occurs when marginal social cost (MSC) is equal to marginal social benefit (MSB) (Sloman and Garratt, 2011). The market demand curve reflects MSB from an economic activity and supply curve reflects MSC of it (Begg, 2009). Instead, markets do not always attain an efficient output because of under-production and over-production of some goods and services. Inefficient level of production causes deadweight lost which represents a decrease in total surplus and this is market failure (Parkins, 2012). Under these conditions, Pareto efficiency cannot exist. According to Verhoef (1997, p. 3) Pareto efficiency is, a feasible situation, usually in terms of the allocation of goods and production factors, for which exists no other feasible situation that is weakly preferred by all agents. So, he concludes that markets mostly fail to achieve Pareto efficiency. In the literature, the major causes of market failure are (Parkins, 2012; Sloman and Garratt; 2010; Bregg, 2009; Blink and Dorton, 2007; McAleese, 2004, Morey, 2012): Externalities Public goods Merit and De-merit goods Market power Factor Immobility Imperfect information The major causes of market failure with graphical analysis are discussed as follows. Externalities: Externalities are economic side effects and can be either positive or negative (Grant, 2003). Externalities are costs/benefits that are imposed on people who are not directly involved in economic activities (Henderson, 2005). Positive externalities (external benefits) have beneficial effects while negative externalities (external costs) have harmful effects on third parties (Grant, 2003). Externalities cause market failure since decision makers generally consider only marginal private cost (MPC) and marginal private benefit (MPB) (Grant, 2003). There are four main types of externalities (Sloman and Garratt, 2010): -Negative externalities of production -Positive externalities of production -Negative externalities of consumption -Positive externalities of consumption Production and consumption externalities cause differences between private and social costs of production and also private and social benefits of consumption (Margetts, 2012). Social cost equals to sum of private costs and external costs while social benefits equals to sum of private benefits and external benefits (Sloman and Garratt, 2010; Parkins, 2012). Negative externalities of production: Negative externalities of production occur when the production process imposes external costs on third-parties (Grant, 2003). It exists when MSC of production exceeds MPC of the firm. For example, the production of cars can cause air, noise and visual pollution. Pollution can be harmful for people who are living around the factory. In Figure 1, MSC of production is above MPC. If a factory is interested in profit maximisation, it produces at Q. It is not producing at Q1, where MSC is equal to MSB, so it is market failure. There is an over-production (Q-Q1) that means misallocation of societys resources (Blink and Dorton, 2007). Moreover, the overproduction (Q-Q1) causes welfare loss as well. Positive Externalities of Production: Positive externalities of production occur when the production or provision of some goods or services creates external benefits for third parties (Blink and Dorton, 2007). In this case, MSC of production is less than MPC. For example, if a car factory provides training to its employees, this raises costs of the factory but increases the productivity of workforce. If these employees leave that firm and start working in another firm, this creates benefits for new employers since they do not have to spend money on the training of their new employees. It is figured out in the following graph. In the figure 2, MPC is above MSC. So the car factory produces at Q which is less than the social optimum output level at Q1. Between Q1 and Q, there is a potential welfare gain which is shown by the highlighted area. If the output level increases from Q to Q1, welfare would be gained. In this example, there is underproduction or provision of beneficial output that means misallocation of societys resources and it causes market failure (Blink and Dorton, 2007). Negative externality of consumption: Negative externality of consumption occurs when the consumption of some goods and services impose external costs on third parties (Grant, 2003). It exists when MPB is greater than MSB. For example, the consumption of cigarettes has harmful effects on others who are not smoking, called passive smokers. This may cause cancer. In figure 3, MPB is above MSB. This means that consumers are trying to maximise their private benefits without considering the externalities they create. There is over consumption of cigarettes, so it causes welfare loss to the society. This causes market failure. The welfare loss occurs when MSC is not equal to MSB (Grant, 2003). Positive externalities of consumption: Positive externalities of consumption occur when the consumption of some goods and services impose external benefits on third parties (Grant, 2003). It exists when MPB is less than MSB. For example, consumption of health care provides benefits for the whole society. If a person is healthy he wont transmit diseases to others and healthy people will perform better. In figure 4, MSB is above MPB. The consumption of health services is at Q1 with price P1. On the other hand, the socially optimum output level is at Q2 where MSC is equal to MSB. If consumption of health care services increase, welfare would be gained. Public goods: The two distinct characteristics of public goods are; non-rival and non-excludable (Tataw, 2011; Griffiths and Wall, 2007; McAleese, 2004; Borooah, 2003; Parkin, 2012). Thus, public goods can only be provided by the government and some private firms that are subsidised by the government (Sloman and Garratt, 2010). Lighting and pavement can be given as an example of non-rival goods (Dewar, 2010). Consumption of non-rival goods by one person does not prevent others using/consuming those goods (Grant, 2003). Lighthouses and national defence are examples of non-excludable goods (Johnson-Lans, 2004). Once they are made available for someone, they become available for everyone (Folland et al., 2007; Henderson, 2005). This will give rise to free rider problem. Free riders are the people who receive the benefits from goods and services without paying for them. So public goods are like externality (Begg, 2009). Based on the above conditions, Tataw (2011, p. ?) concludes that, market failures arise because only a small quantity of public goods will be provided inefficiently in private markets. Merit Goods: Merit goods create positive externalities when they are consumed (Margretts, 2012). This means that MSB exceeds MPB. This is presented in figure 5. The benefits of merit goods are not fully esteemed by typical consumers (Tataw, 2011). This causes under consumption and under provision of merit goods. In figure 5, consumption of merit goods are at Q, that is below the socially optimum output level, so this means misallocation of societys resources and cause market failure. De-merit goods: Contrary to merit goods, consumption of de-merit goods have harmful effects on third parties and create negative externalities (Grant, 2003). Cigarettes and alcohol are examples of de-merit goods (Blink and Dorton, 2007). Consumption of alcohol may make the drinkers feel good but they can create disturbance in public places. This is indicated below. In figure 6, MPB exceeds MSB. The consumption of alcohol is at Q1 which is above the socially optimum output level, so there is over consumption. This creates welfare loss. Market Power: In an imperfectly competitive market, firms are not able to produce at socially optimum output level (Sloman and Garratt, 2010) and it causes market failure. For example, in a monopolistic market, there is a single producer who can achieve profit maximisation in a short-run (Margetts, 2012). In this situation, producers produce where MC=MR, and this is reflected in figure 7. In figure 7, monopolistic producer produces at Q1 which is profit maximisation level and it also represents privately optimum output level. Also, Q1 is below the socially optimum output level which is at Q2. In this scenario, benefits obtained by producers are much more than what consumers receive. This is represented by the deadweight loss and highlighted within the figure. Factor Immobility: Two main types of factor immobility are; geographical immobility and occupational immobility (Blink and Dorton, 2007). Immobility of resources, such as labour and capital, might result in misallocation of resources, an increase in unemployment level and productively inefficiency in the market (Grant, 2003). This is reflected in igure 8 with a PPFs curve. In figure 8, points on the curve represent the productive efficient levels. The point E represents the productively inefficient point (Grant, 2003). Imperfect Information: Buyers and sellers may have inefficient choices if they are not fully informed about costs and benefits of consumption or production of goods and services (Grant, 2003; McAlleese, 2004). Imperfect information makes it difficult for economic decision makers for equate marginal benefit and marginal cost, so this causes market failure (Blink and Dorton, 2007). For example, the contribution of the merit goods to consumers is much more than what they think (Grant, 2003). This is partly because of imperfect information (Riley, 2012). In figure 9, there is under consumption of merit goods. This prevents social efficiency and causes market failure. As a conclusion, todays environmental problems and monopolistic markets encourage government interventions and a need for a central authority to coordinate the market mechanism inevitable, after almost eighty years that was first introduced by Keynesian economics school of taught.
Wednesday, November 13, 2019
Bruce Almighty Essay -- essays research papers
Kimberly Mena                                        2/15/05 Mr. Shea                                        Bruce Almighty Bruce Almighty      Watching Bruce Almighty, starring Jim Carrey, we were shown several scenes. In these scenes examples of hopelessness, individualism, enlightened self- interest, compassion, hope, love, free will, relationships, sin, and images of God were seen throughout them.      In scene 2: This is my Luck; an example of compassion is when Grace is getting ready to give blood to those who are in dire need. Bruce responds that he isn’t giving blood because he hates needles and because they stock up on the blood, an example of self-interest. When Grace says good bye to him, the only thing Bruce can say is that he is going to need a miracle to get to work at time. Once again, Grace is displaying compassion and love towards Bruce but Bruce is too worried about himself and work to even acknowledge Grace’s actions, showing abandonment in a relationship with Grace. On Bruce’s way to work, there is a severe accident and an ambulance is seen carrying someone but Bruce’s remark is â€Å"Come on, not during Sweeps Week†, showing severe individualism. After the meeting, Bruce approaches his boss and asks about the anchor position, the boss denies knowing any information but Bruce insists. He believes Evan is going t o get the position so he says that he should be more like Evan because Evan is an ‘ass-hole’. Bruce proves that he can be just like Evan by flipping over the boss’s bologna sandwich but Bruce instantly picks it up because he wants the boss to think highly of him, this action of helping someone in order to benefit you, is enlightened self-interest. After picking up the sandwich, the boss gives Bruce a live show and instead of saying thank you, Bruce’s reply is â€Å"I won’t forget you†¦ when I go national!†     More examples can be seen when Grace is at her job, caring an... ...es to call Grace again, not knowing that she is on her way, and Susan comes into the room. She engages in some small talk and then kisses Bruce, Bruce looks over Susan’s shoulder and sees Grace, she storms away and Bruce chases after her. Grace sarcastically says that everyone else wants to have children with the man that they have loved for 6 years but not her, she just wants a lot of stuff and maybe that would make her happy, and then drives away, this is a display of Grace removing herself from a relationship with Bruce. Bruce dejectedly walks inside and sets off the sprinklers so everyone leaves. When it is just him and God, Bruce asks how He makes so many people love Him without fooling around with free will, instead of answering the question, God indirectly asks him the same question and says that hope fixes relationships.      These are just some of the numerous examples of hopelessness, individualism, enlightened self- interest, compassion, hope, love, free will, relationships, sin, and images of God that are seen consistently throughout the movie. Although a comedy, Bruce Almighty is a movie with a plot of God’s omnipotence painted in bold colors.
Monday, November 11, 2019
Simon in the Lord of the Flies
Simon is a member of the choir, but is the only one who seems weak. Simon is introduced in the novel when he faints; this is a show of his weakness. He is a lot like piggy, but not as bullied. Ralph thinks he is ‘queer' and ‘funny' because he is realistic. Simon is the first boy to notice the candle bud flowers when they are out walking. Simon always sees the spiritual side of the island. The only place you see candles nowadays is in churches. Jack slashes at the candle buds with his knife keeping up his reputation as the anarchist. The creepers on the island are long vines. The small children see these creepers as â€Å"beasties†. When the little child comes forward during a meeting, he describes a ‘snake-thing', then changes his mind to a ‘beastie'. The boy makes out the ‘beastie to be evil'. The beastie the boy has seen is not a physical monster it is a monster inside the boy's head. The most terrifying thing is darkness and the unknown. The unknown makes the human imagination go wild and ask all the questions it can, â€Å"What's out there?†â€Å"Is it a huge big snake†â€Å"Is it coming to get me in the night?†The snake-like thing the ‘little-un' describes is symbolic of the serpent in the story of Adam and Eve. In Genesis, in the Bible, the serpent is portrayed as the devil and acts against god's wishes; it offers Eve the fruit from the tree of knowledge, unknowing of the consequences, Eve accepts the fruit. She offers the fruit to her husband, Adam. They both eat the fruit and become aware of their state of undress. When God came walking in the garden he found that Adam and Eve had hidden their genitalia under fig leaves. God banished Adam and Eve from Eden. The serpent, the devil, had won. Simon is the one who is helping to construct the huts on the beach. He believes the shelters will guard from the ‘beastie'. This is for the benefit of the rest of the group, not selfish like Jack and his crazed hunt for pigs. Simon is a bit of a loner; he has his own cove in the jungle, which he keeps secret from everyone else. This place has ‘more sunlight' than the rest of the jungle and is decorated with floral bouquets. The jungle suddenly turns into a picturesque haven from the outside anger of the island. But Simon is not escaping the outside force he is merely running from himself, the Simon that exists with the other boys. When he is inside his special sanctuary he fells protected. There is the appearance of the candle bud flowers again, and coupled with the safety and sanctuary of the cove it almost turns into a church. When the tight canopy of creepers envelops Simon, the light in the cove increases. The passage describes of how the evil in this part of the jungle disappears, ‘Darkness poured out'. Simon is the light in the darkness of the island; he is the only voice of religion amongst the chaos of evil. Golding is showing Simon to be a spiritual guide in the book. When he is walking through the jungle towards his cavern, he comes across some small children, â€Å"little-uns†. They are trying to reach some fruit located just beyond their grasp in a tree. Simon obligingly picks the ‘choicest' fruit from the foliage and passes it back down to the ‘endless outstretched hands'. This scene can be likened to an event in the bible, which is where Jesus Christ feeds five thousand people with a few loaves of bread and some fish. Simon is the saviour for these children; they had been trying for hours to reach the juiciest fruit from the tree and Simon has got it for them with very little ease. Simon's description by Golding shows he has a mop of hair, which is black in colour. This is like that of Jesus Christ, again rekindling the association with a spiritual nature. Like Piggy Simon is clear-sighted, he knows what is best, but unlike Piggy he advises on the religious meanings of the island. He is the first boy in the party to notice the transformation that has occurred on the island. He sees that, the island they once took for an Eden, has under gone a metamorphosis into a place of evil. When Jack talks of how the ‘little-uns' scream in their sleep, terrified of the ‘beastie' Simon is the first to acknowledge â€Å"As if the beastie was real†and â€Å"As if it wasn't a good island.†Simon is still blaming the evil experience on an outside force, he, like the entire group still fail to see the evil is within or â€Å"The darkness within†. Jack also senses the evil on the island, he likens it to a physical presence when he goes hunting, â€Å"†¦you can feel as if you're not hunting, but-being hunted: as if something's behind you†¦Ã¢â‚¬ The boys on the island have difficulty finishing their sentences; this is because they are scared and embarrassed of their situation. The boys themselves find it difficult to understand the emotions they are feeling and whether these emotions should be listened to. The situation is like that of the Jews in Egypt from the Old Testament in the Bible. When the evil Egyptian slave masters ruled them, they were not enjoying themselves but they had some kind of law and order. When Moses freed them, they were happy at the wonders of freedom, but soon were reduced to a rabble of immoral ‘wrong-doers'. The boys have been ruled by grown-ups all their lives and when they find themselves on the Island, they are ecstatic, but when things get difficult and new feelings arise, bad things happen. Luckily for the Jews Moses was there to save them, he went to God and received the Ten Commandments that brought law and order back to his people. Maybe something similar will happen in this novel. Simon may save the boys, or he may be symbolising Moses and some other, yet unknown force, is God.
Friday, November 8, 2019
Maya Angelou
Maya Angelou Maya Angelou is an African American poet who was in St. Louis Missouri, on April 4, 1928. In her lifetime, she has written many aspiring poems about love, genders, and freedom. Recently, I came across one that drew me in from the opening line. The name of the poem is "I Know Why the Caged Bird Sings." In the beginning, Maya writes about a free bird, and how lucky it is to feel the wind against its back, and fly in the orange rays of the sun. That is the happy part. She then switches almost instantly to a more melancholy tone. It is described that a caged bird does not have the luxury of soaring freely. Instead, it is trapped behind its "bars of rage." All body parts are clipped together to make him locked up, except for the throat. All that's left for it to do is sing.United States
Wednesday, November 6, 2019
Music and the Renaissance Period essays
Music and the Renaissance Period essays The word "renaissance" means "rebirth" in French. It is an ideal selection of word choice used to describe the period in [European] history dated 1450-1600. This era was preceded by the economic, social and cultural stagnation of the Middle Ages. It was during the Renaissance period that artistic, social, scientific and political thought turned from one of religious orientation to that of a secular one. Momentous circumstances such as the invention of gunpowder and the development of the compass contributed greatly to the spread of the spirit of adventure and change. The proliferating economy allowed for the merchant class to be patrons to music and thereby increases the opportunities for playing for the musicians. The greatest Renaissance contribution, however, was due to the introduction of the printing press. This single event allowed for a musical explosion and a flourishing for musicians of this time! This era created a variety of musical styles for sacred and secular music; a cappella is a type of vocal music without instrumental accompaniment. The method used to engage this style in polyphony is known as continuous imitation. The majority of church music was written this way because instruments were not allowed these sacred houses. Secular music contained an expressive method known as word painting. This is best described as music that reflects the meaning of the word (e.g. up and down in the written piece would be sounded in the high and low sounds). Cantus firmus, or fixed melody, combined with polyphonic writing offered the composers many possibilities to create elaborate vocal music. Thus numerous motets, polyphonic works with four or five voice parts singing one religious text, became popular in the sacred arena. The composers of the early Renaissance included Guillaume Dufay, Johannes Ockeghem, Jacob Obrecht, and Josquin des Prez. All of them produced numerous glorious masses, motets, and hymns. Josquin des Prez comp...
Monday, November 4, 2019
Case study Example | Topics and Well Written Essays - 500 words - 118
Case Study Example The movement of a company to a place with lower taxation regulations allows it to capitalize on the legislations present and attain as much investment and revenue from its activities. This provides it with a better way of looking at things and provides new opportunities that will boost its future investments (Lamb, 2012). Political motivation could also be a boost as it works on strengthening commitment to that country and providing more strength to its corporation. It will build good repute with the new economic aspects present to provide better commitment. It also positions the company as a global player and provides different investors with investment opportunities (Bischoff-Turner, 2008). The most important goal is to provide new avenues that will boost a country’s position in terms of employment opportunities. Relocations will see a loss of revenue, loss of jobs and more doubts about the country’s potential to sustain economic growth and development (Bischoff-Turner, 2008). High-quality service provisions may lack in the new area, and that could influence the company negatively as it seeks to attract new clients and provide them with quality services. It is always important to look into the impact this will have on its service provision (Lamb, 2012). The movement of a HQ from one country or city to the next will depend on the benefits noted in that particular area. The problem with this is the inability to generate the required amount to sustain the business in the new area and lack of stringent measures to pursue a competitive edge in the new area (Lamb, 2012). If these were sorted out, it would be good to move. The company will also move if the intended gains are both in terms of revenue and investor visibility. If the gains are more to the company and shareholder investments, the movement will be ideal, and the HQ will be relocated (Bischoff-Turner, 2008). Setting the right
Saturday, November 2, 2019
American experience in Vietnam Essay Example | Topics and Well Written Essays - 1250 words
American experience in Vietnam - Essay Example But as it is with politicians they give their citizens what they want to hear. This is what Kennedy was doing to convince his listeners and lure those who were not in his support. The vice president by then, though it took them long to notice and admit admitted that they had been ignorant of all that had happened in Vietnam. All those taking part in war had their own reasons for fighting, but did not include lands, resources nor dominations but freedom was the justice they were seeking in their quest neither did their want to lose their colonies in the southern east Asia. Greed and selfishness is a much greater drive for to those with interest to grab what they want. Being involved in a soviet union war meant that they were not in only in a battle of superiority, but were competing for ideas. Winthrop’s John myth citing the idea of a new America that was godlier would vanquish their numerically stronger enemies. They had dismissed the thought of having a stronger warrior squad that would outdo those of their enemies citing it as ancient. The Vietnam presidents by now relied more on virtue but not power in order to carry the day by winning the war. (Westheider 2008) 2 Industrialization got a boost from the farmers from the eighteenth century. This fueled the power of Americans in terms of their organization, and no other a power could outdo them. This proved that they were militarily invisible and after what took place in Hiroshima it was more evident that they were morally superior but the most powerful country in history. In their mind, they knew nobody could beat them in war even if nations joined to fight against them. This is where they went wrong and so writes Miller Arthur, that he believed in America and believed they had technology till the mid 1960’s when he thought they would never accept defeat as they had technologically advanced. The thought of American’s military being conquered in the battlefield with the advanced technology, grown industrialization and technology ability made them think they would never have been insufficient for war and its purposes. With the Soviet Union exploding a bomb as the Americans were not expectant off. Their aim was entirely to come up with means to fight as they avoided nuclear technology. Its premise was that soviets and their team were to indulge in small wars and without provoking or unlocking nuclear energy. In 1945 as they marked the end of the World War 2, Vietnam was left with vivid memories of subordination caused by Japanese and French authority replacing de facto. The moral lessons were western colonialism wasn’t omnipotent, and no name would replace imperialism as it was all the same from all round and equally dangerous.( Sevy 1989) American both political and leaders in businesses had an agreement that they needed to breathe both life and energy from the world system, and the only country 3that had the capacity to see them done was America. The key role w ould be played by political entrance to enact the law through the help of police men. There was a need for coordination of world affairs in the whole worlds system. Britain withdrew in the 19th century. This made Americans eager on taking on the lead as they believed they were able. Their main task was to restore expansiveness in their economy in their quest to increase their productivity as it was devastated by war. However, the imbalance within the system of the world was the major issue. Despite Americans capitalism being so strong, it didn’t quite matter as that of others countries was too weak. (Dougan,1988) But why all this, there were no raw materials in Vietnam to exploit neither were there strategic interests, it’
Subscribe to:
Posts (Atom)