Strategies to Solve Economic Issues

Strategies to Solve Economic Issues INTRODUCTION Microeconomics is a branch of economics that studies the behaviour of individual households and firms in making decisions on the allocation of limited resources and studies individual prices. It also analyses demand and supply of labour and analyses demand and supply of goods. Economics is a science that studies human behaviour as a relationship between ends and scarce means which have alternative uses. It also the study of how men use limited resources in order to satisfy their unlimited wants and how human beings make choices to use scarce resources to satisfy QUESTION 1 1. Three basic economics problem and how the how the different economic systems solve the economic problems. There are three basic economics problem. The first one is ‘what’ which mean what to do produce due to limited resources that have and what should the economy produce in order to satisfy consumer wants. For example, a company want to produce laptop or hand phone which both have their own function or use to consumer or user which refer that maximises consumer satisfaction then the economy is allocatively efficient. Second one is ‘how will’ which mean the quantities to produce due the demand from consumer or user and due to the population with resources that available because it one of an economy achieves productive efficiency if it produces goods using the least resources possible. For example, many consumer or user want buy hand phone than laptop, so the company should produce hand phone more due the demand from consumer or user. Lastly, ‘to whom’ which mean to distribution, depend on the distribution of income and depend on who want to pay or should the economy produce goods targeted towards those who have high incomes or those who have low incomes and what sort of demographic group should the goods in the economy that are produced be targeted toward. For example, consumer or users that are willing and be able to pay or buy the produce that they want. So, with if all three problems are addressed at any one time then the economy has achieved static efficiency. If the economy achieves static efficiency over a period of time then it is dynamically efficient. All these problems are focused around the problem of unlimited wants and limited resources which resources are the factors of production such as labour, capital, technology and land which are used to produce the products that satisfy the wants. There are also how the different economic systems solve the economic problems. Different societies have performed these economic functions, and sought to achieve technical and allocatively efficiency, in different ways. These ways can be classified as different economic systems. The first new economic system was Capitalism or the market system. However, early capitalism left many people in poverty, while competitive markets decayed into monopolies. In response, social reformers developed alternative economic systems. Fascism and Socialism attempted to fix capitalism with a dose of government participation. Communism simply sought to overthrow capitalism. It was a struggle between the invisible hand of free markets and the visible hand of the command (planned) economy. 2. Scarcity, choice and opportunity cost Scarcity refers to resources that are not enough meet all wants which it want always exceed limited resources to satisfy society. In other words, human beings have unlimited wants which there is never such a time that a human being is satisfied and not in need of anything. It also refer to the fundamental economic problem, and all economic activities revolve around trying to solve this problem and the other sides, a good which is usable but in abundant supply may not qualify to be called an economic good. For example, air and water are just ‘goods’ in the sense that they are readily available and cannot be deemed to be scarce. Then, another concept in economics is that know as choice. Choice comes about as a result of scarcity, and in a way, choice is informed by these circumstances. Since human wants are unlimited and resources limited, it emerges that one cannot be able to practically meet all their wants at any one time and because of this, it becomes inevitable for someone to choose between the many unlimited wants which one o satisfy at any given moment. Since you make a choice of doing something, or fulfilling a certain want, it turns out that at any one time, there is a certain want that you have to ignore, or forego, in order to fulfil another want. For example, you were deciding to grow carrot or potatoes which one of them will become the option to be foregone. After that, the option that has been foregone is usually called an opportunity cost. Opportunity cost refers to second best alternative that has to forgone for another choice which give more satisfaction. For example, if you decide to grow carrots, your opportunity cost is the alternative crop that might have been grown instead potatoes. 3. Four assumption in draw a production possibility curve (PPC) PPC is A graphical representation  of the alternative combinations  of the  amounts  of two  goods  or  services  that an  economy can  produce  by transferring  resources  from one good or  service  to the other which can helps in determining what  quantity  of a nonessential good or a service an economy can afford to produce without jeopardizing the  required  production  of an  essential good  or service. It also can be called as transformation curve. There are four assumption in draw a PPC : Produced only two goods only Fixed amount of resources Full employment Constant technology Example curve of PPC There are also factors that can influence the PPC curve to shift. The first one is changes in the resources or factor of production. The influences are divided to two shift which refers to, shifting to the right which means increasing in PPC and shifting to the left which means decreasing in PPC. For example is shown at below. Chicken Fish Assume: i. PPC1 and PPC2: Discovery of new resources in Chicken and Fish. ii. PPC3: Decreasing in resources. The second one is changes in the level of technology. For example is shown at below. Chicken PPC2 PPC1 Fish Assume: i. PPC1 and PPC2: Technology advancement in Fish only. The third one is changes in economic condition which economic growth or economic recession. The influences are divided to two shifts which refer to, shifting to the right which means increasing in PPC and shifting to the left which means decreasing in PPC. For example is shown at below. Chicken Fish Assume: i. PPC1 and PPC2: Economic growth in the country ii. PPC3: Economic recession in the country. Lastly, changes in the number of population. The influences are also divided to two shifts which refer to, shifting to the right which means increasing in PPC and shifting to the left which means decreasing in PPC. For example is shown at below. Chicken Fish Assume: i. PPC1 and PPC2: Increasing in the country population. ii. PPC3: Decreasing in the country population. 4.Three type of profit with diagrams and short run monopoly Monopoly is a type of market in which there is a seller and large number of buyers. It also refers to selling products that have no close substitution and have a high entry and exit barrier. There are example for this monopoly in Malaysia such as TNB and JBA. There also characteristics for monopoly. The first one is one seller and large number of buyer which monopoly exist when there is only firm exist which selling a product which has no close substitute. Next is no close substitution which monopoly firm would sell a product which has no close substitute. Then, restriction of entry of new firms which in monopoly market, there are strict barriers to the entry of new firm. Lastly, advertising in monopoly market depends on the types of product sold.

Chapter 11 Problems

I. Payback period computation; even cash flows Compute the payback period for each of the following two separate investments (round the payback period to two decimals): 1. A new operating system for an existing machine is expected to cost $260,000 and have a useful life of five years. The system yields an incremental after-tax income of $75,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. Payback period=Cost of investment/ Annual net cash flow =$260,000/ $125,000 =2. 08 years Annual depreciation= $260,000 -$10,000 / 5 = $50,000 Annual after tax income $75,000 Depreciation 50,000 Annual net cash flow$125,000 2. A machine costs $190,000, has a $10,000 salvage value, is expected to last nine years, and will generate an after-tax income of $30,000 per year after straight-line depreciation. Payback period=Cost of investment/ Annual net cash flow =$190,000/ $50,000 =3. 8 years Annual depreciation= $190,000 -$10,000 / 9 = $2 0,000 Annual after tax income $30,000 + Depreciation 20,000 Annual net cash flow$50,000 II. Payback period computation; uneven cash flows Wenro Company is considering the purchase of an asset for $90,000. It is expected to produce the following net cash flows.The cash flows occur evenly throughout each year. Compute the payback period for this investment. Part of year= Amount paid back in year 4/ Net cash flows in year 4 = $10,000 / $60,000 = 0. 167 Payback period=3 + 0. 167 = 3. 1367 years = 3yrs 2 mos. III. Accounting Rate of Return A machine costs $500,000 and is expected to yield an after-tax net income of $15,000 each year. Management predicts this machine has a 10-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Compute this machine’s accounting rate of return. Average investment=$500,000 + $100,000 / 2 $300,000 Accounting rate of return=$15,000 / $300,000 = 5% IV. Computing Net Present Value K2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $240,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 96,000 units of the equipment’s product each year. The expected annual income related to this equipment follows. K2B concludes that the investment must earn at least an 8% return. Compute the net present value of this investment. Round the net present value to the nearest dollar. ) Net cash flows from net income 1. Payback period=$240,000 / $44,500 = 5. 39 years 2. Accounting rate of return=$24,500 / $120,000 = 20. 42% V. Net Present Value Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management requires a 10% rate of return on its investments. Alternative 1: Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another five years and then sold for its salvage value. 1.Determine the net present value of alternative 1. Keep the old machine and have it overhauled Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yield substantial operating cost savings with more products being produced and sold. 2. Determine the net present value of alternative 2. Sell the old machine and buy a new one 3. Which alternative do you recommend that management select? Explain. Interstate should keep the old machine and overhaul it. The cost savings and additional revenue generated on the new machine are not enough to overcome the high initial cost of the new machine.

High School Life

Robert Revilla Mr. Osman English 35 #31127 March 17, 2013 The Past and Present of Teenagers Ask any teenager today and they will tell you that they are nothing like their parents, that their parents just don’t understand them. This may be true and this may be false, it just depends on how you look at it. Teenagers of the Rebel Without a Cause, meaning the parents of today’s teens, did face a lot of the same problems and issues that we now face. Yet I am left thinking did the past teens face all the same problems at the same time as we do and were some of their â€Å"problems† not as much of a problem as it is to us.Teens from the past and present are faced with problems such as school, relationships, and friends. There were many teenage problems back then in â€Å"Rebel Without a Cause† and today’s teenagers. Most of these problems that Jim Stark and the other teens faced were similar, but my own belief is that these same problems were not as big of problem back when they were growing up. Let’s take school and homework for example, oh sure your parents had it too but I just don’t believe that there was as much pressure upon them to get good grades. Also, get into a good college as there is for us.And of course with the knowledge that college is right around the corner most teens also need to work. They need to save money for college, or a car, or to make the girl/boy of their dreams happy by taking them out on dates once in a while. Plus, all this pressure and work can build up for a teen and to most of us it seems like we never have a chance to just relax and hang out with friends anymore. It relates to the movie because some of the teens do not care about homework or going to school. The reason is that was back then it was easy to get a job by only having a high school diploma with no college education.But, now in our teen lives it is hard to get a job with a high school diploma. Another thing that is different from the past from the present is the fashion that students wear. In the past, boys wear plain regular clothes and the cool guys always wear black jackets or blazers. It is similar like what a gang member usually wears right now. Except the gangs have their baggy pants or shorts and show their boxers in black or white. It is weird how those kind of guys like to show-off their boxers or underwear. For the girls in the past, they all mostly put on dresses. Now girls mostly wear skirts or short shorts.Plus, girls always try to put on the sexiest clothes to wear because to get all the attention and be popular. Like in the movie, Jim Stark wears different clothes from his classmates. The reason is that he moved to a lot of different high schools because he never made any friends and doesn’t fit in with the other teens. Also, in every high school he went to the teens called Jim, â€Å"Chicken†. Why he is called that because the teenagers see him acting like a chicken, when Jim does not want to get into trouble. I think back then music for teens like, â€Å"Rebel Without a Cause†, probably listened to rock and roll.But now teens prefer rapping and hip hop music. It’s interesting how music has changed so much in the past because teens loved to get crazy on rock and roll. I wonder how teens will react if music never came to rock and roll. Probably teens will make their own music or have to try out their parent’s music, which were more hip hop and dance music. Now teens today have a mix of genres they like to listen. Most teens in the present relate their music to their emotions. The reason is because they must have some problems in their lives and music helps teens release stress.Plus, I am sure that it happens to the teens in the past except not big problems compare to our teen years. I bet Jim Stark and his classmates love to listen to rock and roll. Even though it does not show in the movie that they played rock and roll, but back then there was a lot of rock and roll. The teens in the early years prefer rock and roll because it was something they can be themselves with their friends. Sometimes parents cannot stand their teen’s music and tells them to turn it off or take it away from them. It is weird how in the movie, it shows parents like Jim’s parents how they do not care about his school issues.For instance, when Jim’s classmates call him chicken, he tells them to stop and be angry to his parents. Then Jim’s parents decide to move somewhere else again, which happen several times. Jim does not want that because he thinks it is going to happen all over again. So, basically Jim’s parents do not really help him and his life that much. But comparing to today’s teens, Jim’s parents and other parents show more concern for each of their son/daughter’s education to make them successful in life. I can see that every year new parents learn from their past seei ng their mom and dad on how they take care of their son or daughter.Then later on the new parents learn from their parent’s mistakes and become a better parent. There are things that are similar between our time and the movie, â€Å"Rebel Without a Cause†. One is that teens hate doing homework and waking up early for school. Teens in the past and present struggle with their emotions like in relationships or family issues. Jim shows his emotions to his parents in the movie. He tells them how he feels every time when he transfers to a new school and he is not good at making any relationships or friends.The main reason is everyone calls him chicken because he is different from his classmates and they think he is afraid of them. I just want to say that I am not saying that teenagers of the past did not have their own problems, but of course they did, every single teen alive faces problems that they think is hard and that their whole world is crumbling down around them well at least once in a while. But now that they have grown up and turned into the parents of today’s teenagers I feel that they put more pressure upon their own teenage child in order for them to achieve more than they were able to.A common expression is, â€Å"My parents are so strict, overprotective, or too involved in my life, because they don’t want me making the same mistakes they did when they were my age but they need to trust me and just leave me alone. † And that expression can sometimes is kind of true. But all in all I feel that our parents do understand what we, as teenagers, are going through because they did face the same problems that we face today, but maybe with just a little less pressure.

Essay on Brave New World - 696 Words

Brave New World George Santayana once said, â€Å"Ideal society is a drama enacted exclusively in the imagination.† In life, there is no such thing as a â€Å"complete utopia†, although that is what many people try to achieve. Aldous Huxley’s Brave New World is an attempt at a utopian society. In this brave new world, mothers and fathers and family are non-existent. Besides being non-existent, when words of that sort are mentioned, ears are covered and faces of disgust are made. In a report to the Controller, Bernard wrote,†Ã¢â‚¬ ¦This is partly due, no doubt to the fact that he heard them talked about by the woman Linda, his m-----â€Å"(106). Words of the sort cannot even be written. Art, history, and the ability to have emotions are shunned.†¦show more content†¦It may seem to be a utopia, but in essence, brave new world is far from it. Well-being is not and can not be, genetically pre-programmed, but that is what the soma is for. When one of the inhabitants experiences unpleasant thoughts or emotions, which supposedly do not exist anyway, they receive soma: â€Å"One cubic centimeter cures ten gloomy sentiments( ).† Although the people here are allegedly emotionless, it is shown that they are far from it. Bernard is overcome by feelings of non-conformity. He feels that people should be monogamous, he has emotions, he believes in love. Bernard loves Lenina. This is a concept, though, which is too abstract for these inhabitants to fully understand. Bernard realizes that he is not the only one that feels this way when the Director speaks of an occurrence over twenty-five years ago, which is alone, bad manners in this â€Å"utopia.† The fact that he still dreams of this occurrence shows that he was more emotion than what is â€Å"good for you† in this system. When Bernard brings Linda and her son, John to the Director, he responds with disgust. After this, Linda’s face twists â€Å"grotesquely into the grimace of extreme grief ( )†, an emotion that is unknown to these sheltered people. It is impossible to live in a perfect society, because nothing can be forever perfect, and what is perfect for one, theShow MoreRelated Brave New World Essay962 Words   |  4 PagesBrave New World Aldous Huxley’s Brave New World is a fictitious story about a future utopian society where people are mass-produced in laboratories. People have no emotions in this world where drugs and promiscuous sex are greatly encouraged. People are given labels according to their pre-natal intelligence assignment. These different classes all have specific roles within society and nobody is unhappy with their place. The Brave New World he was a fictitious story that sets upRead MoreBrave New World Government1086 Words   |  5 Pagesconflicting in their particular perspectives. 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