Microeconomic Theory Essay Example for Free

Microeconomic Theory Essay 1. Explain why society faces a trade-off between consumption goods and capital goods. Society is faced with trade off between consumption goods and capital goods in that resources are scarce, and therefore it has to make choices based on the opportunity costs of benefiting from consumption at present or having a greater level of consumption tomorrow through investment in capital goods. 2. Distinguish between absolute and comparative advantage. Absolute advantage refers to that trade, which is not reciprocally favorable as opposed to a Comparative trade, where trade is reciprocally favorable. 3. Explain the Law of Demand. The law of demand states that as the price of a service or good increases, consumer demand for the service or good will decrease and vice versa, provided all other factors remain constant. 4. Explain the Law of Supply The law of supply states that as the price of a service or good increases, the quantity of services or goods tendered by suppliers increases and vice versa, provided all the factors remain constant. 5. Explain the effects of price ceilings. It is a kind of government measure, where it fixes a limit on the price to be charged on a product. Effective price ceiling must be different from the free market price. A price ceiling positioned below the free market price will put suppliers in a state where they can no longer charge what they had been charging, for that particular product. This will force some suppliers to move out of the market, hence reduction in the quantity produced. On the other side quantity demanded will increase for the same product because consumers are able to buy at a lower price. Since quantity demanded exceeds quantity produced, a shortage will occur and it will result to non-price competition 6. Explain the effects of price floors. It is a kind of government measure where it imposes a limit on the lowest price that can be charged on a product and for it to be effective it must be set higher than the equilibrium price. When the price floor is position above the market equilibrium price, consumers observe that they now have to pay a higher price for that particular product. Suppliers, on the other part are ensured higher price than what they were charging before. This has the effect of increasing production, hence excess supply of the product in the market. Thus to maintain price floor over a longer period, the government will be forced to take action to reduce the excess supply 7. Distinguish between private goods and public goods and explain the nature of the free-rider problem. Private goods are the kind of goods whose profits, are indivisibly spread over the whole community, even if the individuals do not desire to purchase it. While private goods refers to the ones that are divisible and can be provided separately to various individuals, without external costs or benefits to others. Positive externalities that are not remunerated normally result from the production of public goods. When private organizations are not getting all the profits of a public good that they have produced, there will be no sufficient incentives to produce it voluntarily. Hence, consumers will take advantage of public goods without sufficiently contributing to their production. Distinguish between average tax rates and marginal tax rates. Average tax rate refers to the total amount of taxes paid divide by income. It shows the sum of tax paid per dollar earned while marginal tax rate refers to the income tax rate paid on the last dollar of income earned 9. Distinguish between average tax rates and marginal tax rates. Average tax rate refers to the total amount of taxes paid divide by income. It shows the sum of tax paid per dollar earned while marginal tax rate refers to the income tax rate paid on the last dollar of income earned 10. Explain the structure of the US income tax system. The structure of US tax system is very complex one that entails payment to at least four various levels of government and many ways of taxation. US taxation comprises local government possibly consisting of one or more of township, municipal, county and district governments. It may also embrace regional entities like school and utility and transit districts as well as incorporating federal government and state 11. Describe how prices indexes are calculated and define the key types of price indexes Price indexes refers to a standardized average or a weighted average of prices for a given category of services and goods in a given place, over a given intermission of time Types of price indexes include consumer price index, producer price index and GDP deflator 12. Distinguish between nominal and real interest rates. Nominal interest is the rate of interest prior to adjustment for inflation in contrast to real interest rate and it encompasses all three risk factors plus the time value of money in contrast to real interest rate, which includes only systematic and regulatory risks. Generally, real interest rate is equal to nominal interest rate minus inflation and currency adjustment. 13. Describe the circular flow of income and output. The circular flow of income and output shows joint flow of income between consumers and producers. The mutually supporting entities of consumers and producers, referred to as households and firms respectively offer each other with factors to facilitate the easy flow of income. Firms supply consumers with services and goods in exchange for consumer spending and factors of production from the household. 14. Define gross domestic product (GDP). Gross domestic product is the total market value of all the final services and goods produced within a country over a given period. 15. Define economic growth. Economic growth refers to the sturdy process by which the productive capacity of the economy is increased over time to produce growing levels of national income and output 16. Discuss the fundamental factors that contribute to a nation’s economic development. Policies of national development need to be formulate in conformity with national needs, development priorities and conditions and should focus on the lessons erudite from decades of development. International cooperation in the formulation and implementation of macroecomic policies need to be reinforcing with an analysis to enhancing greater lucidity and consistency of domestic policies and in so doing reinforcing their effectiveness. 17. Describe the effect of economic growth on the long-run aggregate supply curve. Economic growth will cause the aggregate supply curve to shift. Positive economic growth will lead to increase in productive resources that will make it possible to produce more final services and goods, thus the natural level of real GDP increases. Positive economic growth will make the LAS curve to shift to the right and vice versa 18. Discuss the meaning of the long-run equilibrium for the economy as a whole. Long run equilibrium refers to where the aggregate demand and long run aggregate supply curves intersect. Output is fixed and the price level is variable in the long- run. Thus increases in aggregate demand leads to higher prices and vice versa 19. Discuss the central assumptions of the classical model. The central assumptions of classical model are that it assumes that economic agents’ posses’ perfect information and the markets are characterized by perfectly flexible wages and prices. The result of these assumptions if functional on the short run with fixed capital stock is that output is dogged by independent supply factors 20. Describe the short-run determination of equilibrium real GDP and the price level in the classical model. The aggregate supply-aggregate demand is the fundamental macroeconomic tool for studying output variations and the resolve of the price level and inflation rate. The intersection of the aggregate demand and supply curves determines the economy’s equilibrium price level and equilibrium real domestic output 21. Distinguish between saving and savings and explain how saving and consumption are related. Saving refers to that process of constantly putting aside a sum of money while savings is that income received by a consumer not used in the output of firms through spending. Savings and consumption can be related in the equation where income is equal to the sum of savings and expenditure (consumption) 22. Identify the primary determinants of planned investment. The primary determinants of a planned investment include the expected return from investments, the taxation of returns, the cost of capital in relation to interest rate and the ease of use of savings to meet investments 23. Discuss ways in which indirect crowding out and direct expenditures offsets can reduce the effectiveness of fiscal policy actions. Inflation has an indirect outcome on international competitiveness. As prices increase, products tend to be more expensive relative to foreign products. This will result to reduced demand for exports as compared to imports. Net export being a parameter of aggregate demand will contracts GDP and partly offsets the expansionary fiscal policy. Expansionary fiscal policy makes interest rates to increase because the government must borrow to finance the increased deficit. The government raises revenues through taxes or borrowing. Hence, as the interest increases, private investment decreases. In the short run, it will decrease private investment demand, a parameter of aggregate demand and this will effectively lower GDP. Describe how certain aspects of fiscal policy function as automatic stabilizers for the economy. Automatic stabilizers are programs that automatically increase fiscal policy during recessions and contract it during booms. Unemployment insurance is an exemplar of automatic stabilizer in that the government spends more money for the period of recessions when unemployment rate is high. Equally, taxes are roughly proportional to profits and wages; hence, the size of taxes collected is higher during boom than recession. 25. Explain how federal government budget deficits occur. Federal government deficit occurs when it pays out more money than it can receive 26. Define the public debt and understand alternative measures of the public debt. Public debt refers to the credit or money owed by any echelon of government; federal government, central government and municipal government or local government. The debt is seen as an absolute number and can therefore measured as a percentage of the GDP. Alternatively, it can be measured by the amount owed in any given year. 27. Define the fundamental functions of money. Money can be described in terms of its core functions that are; it act as a medium of exchange, store of value and as a unit of account. 28. Identify key properties that any good that functions as money must possess. Properties of money is that it should be able to serve as (1) means of exchange (2) a enumerative (3)a source of liquidity and (4) store of value 29. Describe how the Federal Reserve assesses reserve requirements on banks and other depository institutions. The reserve requirement is a bank rule that puts the minimum reserves each bank must hold to customer notes and deposits. The reserves are meant to assure withdrawal demands. Federal Reserve approval is essential to begin any foreign banking institution in the US. Foreign banks need acquire regulatory approval from the OCC or the state banking supervisor when establishing new branches and agencies. Banks that are federally licensed must deposit cash or suitable securities at approved depository to convince the capital equivalency requirements specified by the IBA 30. Explain why the money supply changes when someone deposits in a depository institution a check drawn on the Federal Reserve System. The Federal Reserve buys and sells government securities. These, increases or decreases banks capabilities of making loans. This equally decreases or increases interest rates. If Federal Reserve sells a bond, an institution or individual buys the bond with a debit on their account and transfers the funds to the Federal Reserve. The Federal Reserve removes an equivalent amount from the bank reserve of the customer. The bank will then take away the equivalent amount from the customer’s account who bought the bond. This will decrease money supply and increase interest rates. The trend changes when the Federal Reserve decides to buy a bond 31. Identify the key factors that influence the quantity of money that people desire to hold. Motives for holding money, which can be expressed as factors that influence people to hold money, are transaction motives, precautionary motives and speculative motives 32. Describe how the Federal Reserves Tools of monetary policy influence market interest rates. The Federal Reserve buys and sells government securities. These increases or decreases banks capabilities of making loans. This equally decreases or increases interest rates. If Federal Reserve sells a bond, an institution or individual buys the bond with a debit on their account and transfers the funds to the Federal Reserve. The Federal Reserve then removes an equivalent amount from the bank reserve of the customer. The bank will then take away the equivalent amount from the customer’s account who bought the bond. This will decrease money supply and increase interest rates. The trend changes when the Federal Reserve decides to buy a bond 33. Explain why the actual unemployment might depart from the natural rate of unemployment. The departure of the natural and actual rates of unemployment is a sign of the business cycle. The stages when actual unemployment exceeds the natural unemployment are times of recession or early stages of economic recovery. The stages when actual rate is below the natural are times of a booming economy 34. Describe why there may be an inverse relationship between the inflation rate and the unemployment rate, reflected by the Phillips curve. The inverse relationship in the Philips curve can be explained well when you consider that with high unemployment laborers would accept lower wages and this would reduce firms’ cost. High wages bring about high inflation and the lower the rate of unemployment, the higher the rate of inflation and vice versa. 35. Explain why population growth can have uncertain effect on economic growth. There is no clear-cut explanation of the effect of population growth on economic growth. It can be argued that high population growth creates pressures on limited natural resources, decreases public and private capital formation and redirects counts to maintaining relative to increasing the stock of capital per worker. It can also have affirmative effects like economies of scale and specialization. Describe how government inefficiencies have contributed to the creation of relatively large quantities of dead capital in the worlds developing nations. Government poor policies make capital investment impossible. The government tends to involve in the production of consumption goods that are less important. The rate at which the economy can absorb extra human capital is low and therefore it leaves the available resource idle. The government is also not receptive to new technology whish is important in the formation of capital. Discuss the worldwide importance of international trade. International trade is very crucial for the development of a country in that it expands the choices that could otherwise been limited to what can be produced locally. Thus, countries can access goods and services cheaply from abroad. Labor can also be obtained cheaply in some countries. Cheap labor reduces production costs and this will have effect to low prices to the final product. Therefore, countries can import final product at a much lower price compared to when produced locally where labor is very expensive. Explain why nations can gain from specializing in production and engaging in international trade. A country specializing in the production of goods which it has comparative advantage will profit and it will trade for goods which it does not have comparative advantage. Therefore, free trade will make a country to use its resources efficiently. Efficient use of resources will increase the amount of goods available for production and consumption. Hence, the benefits of trade will be the outcome of specialization 39. Distinguish between the balance of trade and the balance of payments. The balance refers to discrepancy between a county’s exports and imports and it is the major part of a country’s balance of payments, which is an accounting report of the economic transactions that have taken place stuck between the inhabitants of one country and the inhabitants of other country over a particular period. 40. Identify the key accounts within the balance of payments. Key accounts within the balance of payments are current account, capital account and financial account. References Ariel, R. Lecture Notes in Microeconomic Theory: The Economic Agent. New York: Princeton University Press, 2006

Poetry Throughout the Ages :: essays research papers

This anthology is a published collection of poetry throughout the five major periods including- the Pre Elizabethan period, Elizabethan Period, Metaphysical Period, Romantic Period and the Victorian Period. The Pre Elizabethan Period was first in Old English and then in Middle English. Old English was used after the fall of the Roman Empire in the 5th and 6th centuries. The invaders from Germany who settled in England were called the Angles, the Saxon, and the Jutes. The names of these tribes come from the term Anglo Saxon. The most famous poetry from this period is Beowulf. Beowulf was written around 1000AD and be called a saga. At the time poems were performed and sung to audiences than were written or read out. This poem is about strange people and creatures with special powers. It tells a story of a hero and his adventures, noblemen and kings. The Elizabethan Period began when Queen Elizabeth I became Queen of England. She had the throne for 45-years, which ended with her death in 1603. The Queen's tastes in fashion were high classed. Her love of music, drama, and poetry gave motivation and financial support to the England's greatest writers. When his father died when he was 18, and being the youngest son this left him penniless. He turned to the law and at 23 he was already in the House of Commons. Bacon saw himself as the inventor of a method which would encourage a light in nature. The Metaphysical period began after James I took the throne. This period found many new developments in science including- optics, astronomy, sailing and navigation. Notable scientists like Newton and Galileo finding most of these scientific discoveries. Poets from this time used their knowledge of science to explain things they experience. One of the major poets is John Donne. He was born in London to a wealthy family. He was against the Catholic Church but allied with James I and his son Charles I with the Anglicans. He entered the priesthood life later and from then his poetry became more religious in nature. The Metaphysical period refers to things that are abstract like God, hatred, love, death. Poets from this time tried to explain the unexplainable by using scientific metaphors known as conceits. Donne is interesting because his poetry was first to do with love and then became about God as he got older. Romantic poetry used simple language which described their everyday aspects of life and nature.

Functions, Values, and Roles of the Nurse Practitioner Essay

I have read and understand the plagiarism policy as outlined in the syllabus and the sections in the catalog relating to Indiana Wesleyans Honest/Cheating policy. By affixing this statement to the title page of my paper, I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating or plagiarism did take place in the writing of this paper, I understand the possible consequences of the act/s, which could include expulsion from Indiana Wesleyan University. Function, Values, and Roles of the Nurse Practitioner When contemplating the roles and values of the nurse practitioner it is necessary for the student to first exam the career path and scope of the nurse practitioner. Nurse practitioners are registered nurses who have advanced education and training in a health care setting. They are practitioners with advanced degrees such as a Master of Science in nursing and are licensed as registered nurses who have practiced as a registered nurse for a minimum of at least two years. Most nurse practitioners early in their course work will identify a specialty area of nursing that they have an interest in doing research in. Determination of this specific area is usually influenced by what area of nursing the student has experience working in as a registered nurse. Other times, it is influenced by the illness of someone close to them or a family member. Cardiac health and transplantation is an area that this student wishes to pursue as a specialty area. My interest has been piqued by personal experience in this area with a family member. This student believes that this specialty area values the health and well-being of all mankind and that research is rewarded as a basis for providing new and upcoming trends in this specialty area. Through early detection and treatment of cardiac related illness, healthcare providers in this area strive to prevent diseases such as congestive heart failure from progressing to advanced stages requiring even further cardiac intervention. It is the belief of this student that to become a competent urse practitioner one must value wellness, enjoy the human race, and have the true desire to care for others. Race, socioeconomic status, and educational level of the client are not priorities when determining plans of care for patients. The nurse practitioner must remain non bias in her personal beliefs and put the needs of the patient first at all times. This ensures nonbiased holistic complete care is provided which is valued by all nurse practitioners and sought by all health care consumers. . Due to recent changes in government programs such as Medicare and Medicaid coupled with the sky rocketing cost of health care many Americans are being forced to change the way they access health care. As the face of health care moves away from the traditional hospital setting to other sites within the community, the role and function of the nurse practitioner has moved to the forefront of the health care system. Nurse practitioners practice in a variety of settings that include community health centers, primary care clinics, hospital departments, physician offices, and walk in clinics. Accessibility to care is one criterion that has created popularity among the role of nurse practitioners. One area of interest among nurse practitioners that has become popular is the concept of family care specialization. Family care nurse practitioners value providing care to the entire family and are often viewed as the physicians of long ago. The care given by these practitioners is family based care, and not limited to one criterion such as age or gender, thus reminding people of how physicians practiced many years ago. Family nurse practitioners are licensed in the same way as other nurse practitioners but usually have a broader clientele base and work mainly in primary care clinics and not in specialty areas. Another quality the nurse practitioner must value is the ability to recognize the limits of their knowledge and expertise within their scope of practice. This recognition allows for collaboration with another health care provider to take place and ensures holistic problem focused healthcare is made available to all patients. When discussing society’s perception of the nurse practitioner, it is this student’s belief that there is an overall general acceptance in the role of the nurse practitioner. Nurse practitioners have been made to earn the respect of their profession. During the early development of this career, nurse practitioners were originally viewed by some members of society as want to be physicians. This perception has changed within the last ten years and has mainly been influenced by the decrease in the number of general practice physicians. The increase in the number of baby boomers has also created the need for more medical providers thus helping to create further awareness and acceptance among the role of a nurse practitioner. Furthermore, recognition of nurse practitioners by third party insurances, in covering care provided by nurse practitioners, has also encouraged the use and popularity of nurse practitioners. When asked about society’s perception of the nurse practitioner, it is this student’s belief that there is an overall general acceptance of the role of the nurse practitioner. However, acceptance of this role in the medical field has not always been the norm. Nurse practitioners have been made to earn the respect of their profession and were originally viewed by some members of society as substitute doctors. It is this student’s belief this perception has changed within the last ten years due to the decrease in the number of available general practice physicians. The increase in the number of baby boomers requiring more medical attention has also created the need for more health care professionals thus promoting the role of the nurse practitioner. In conclusion, it is this student’s belief that nurse practitioners are competent medical professionals who value disease prevention, wellness, and patient education. All nurse practitioners strive to provide thorough patient care regardless of the area of specialty they practice and will remain strong advocates for change and stability in America’s health care system. Nurse practitioners have the ability to change the landscape of modern medicine and will continue to meet these challenges presented before them to ensure the continued growth and development of the practice of the nurse practitioner.

The Moral Struggle Faced By Everyman - 1610 Words

Everyman, a morality play written during the Middle Ages, focuses on moral issues and questions about love, revenge, friendship, and death. The main character in the play, Everyman, is forced to face the consequences of all of his acts on Her, good and bad, under the scrutiny of Death, who has been sent there by God, in order to judge him. The moral struggle faced by Everyman is that which is the central task that Christianity assumes is universal in every person. Death itself is a major character in the tale, and his appearance sends Everyman into a sort of tailspin in which he initially responds with despair but eventually comes to accept that ultimately, he will be able to reach redemption. The play tries to address the meaning of life through death (Mateer.) The role of Death in Everyman is to guide the protagonist along a path that helps him to view realistically what is valuable and true, and reject what is false. Although the play, Everyman, is a short one--approximately 900 l ines--it has survived since the end of the 15th century, and is thought to be a translation from a Flemish play that was first printed in 1495 (Jokinen, 2010.) The story follows the progression of the protagonist, Everyman, from hopelessness and terror at the thought of dying towards the path of acceptance: that it is only by pursuing the journey that Death initiates will he be able to reach any type of salvation. Along the way, Death acts as an instructor and a messenger, guiding him towardsShow MoreRelatedEveryman As A Medieval Morality Play1684 Words   |  7 PagesEveryman is a example of a medieval morality play.1 The play is a work portraying how God in heaven sends death to call forth every creature to present itself before him to answer for every action in this world. It shows the audience and readers what goes on in life and ending of it all through death. From the very beginning, the play classically shows that it deals with human experiences with the focus on morals. Eve ryman is a Christian play written to promote Christianity as a religion. At theRead MoreThe Play Illustrated By Adu Gyamfi Schmidt1608 Words   |  7 PagesThe play illustrated by Adu-Gyamfi Schmidt (2011), â€Å"Everyman† written by an anonymous writer late in the fifteenth-century (p. 265-287), interconnects religious allegories with worldly moral lessons on several main reasons that good deeds and works are required and needed, but they do not save humanity from spiritual death. The play conveys a story about Everyman’s (representing human individuals) natural life journey to death. The morality of the play helps the audience appreciate the historyRead More Conflicting Value Systems in Everyman, Dr Faustus and Hamlet1910 Words   |  8 PagesConflicting Value Systems in Everyman, Dr Faustus and Hamlet  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      Conflicting value systems are always around, especially where death is involved. So in the tragedies of Everyman, Doctor Faustus and Hamlet there are many conflicts to face. These include personal moral conflicts with individual characters of the plays and also opposing values between the different characters in the play.   Conflicting value systems may even stretch to how the audience interprets the play and the beliefsRead MoreEveryman and Death: Understanding the Perception and Treatment1864 Words   |  8 PagesEveryman and Death: Understanding the Perception and Treatment Jonathan Thomas Liberty University Thesis Statement: In this paper, this writer will evaluate the perception and the treatment of death in Everyman. Outline I. Introduction II. Purpose of Morality Plays III. Main Body: Discussion of Plays Characters a. God b. Death c. Everyman d. Fellowship e. Kindred amp; Cousin f. Goods g. Good Deeds hRead MoreA Consideration of the Way Shakespeare Presents and Develops the Theme of Blindness in King Lear1563 Words   |  7 Pagesthat can be fooled by others’ flattery, or are easily manipulated or deceived, or simply have a lack of wisdom. As well as the horrific physical blinding of Gloucester, blindness is used as a metaphor for characters’ lack of insight, moral blindness, and a lack of perception into other’s needs and interests. Shakespeare illustrates the importance of seeing yourself and the world around you clearly. Shakespeare shows how seeing clearly is linked to an understanding of Read More Starting a Football Team Essay1749 Words   |  7 Pagesthe real world they are more like Bamber Gascoinge (sorry Bamber, you might be a really good player). Moral can drop when faced with organised teams and a good hiding. Dont give up - things do improve. As your team become more organised and disciplined you tend to overcome these obstacles. And dont set yourself unrealistic targets. Its quite usual for new teams to struggle for form, even if the players have had some experience. Some Leagues allow you to choose which DivisionRead MoreEssay Impact of Society of Charlotte Brontes Jane Eyre2754 Words   |  12 Pages since the fate meted to characters could reflect opinions of their behaviour. Social, personal and religious integrity often depended upon the (generally male) choice between female sensuality and morality. Before meeting Jane, Rochester has faced this dilemma and failed. He admits of Bertha Mason I was not sure of the existence of one virtue in her nature: I had marked neither modesty, nor benevolence, nor candour, nor refinement in her mind or manners but he married her because [his] sensesRead More Nathaniel Hawthornes Young Goodman Brown Essay1847 Words   |  8 PagesWe can assume that it is because deep down, possibly through a surfacing of his unconscious, he knows that he is not commencing a harmless journey. Brown is an everyman. Thus, his journey is one many people have traveled in the past and will travel in the future. Hawthorne is suggesting that everyone at some point experiences the struggle between good and evil within themselves. As members of today’s society, we are immersed in the evil ways of man at an early age. All we must do is watch the eveningRead MoreSymbolism and Allegory in Hawthornes Young Goodman Brown Essay2297 Words   |  10 Pagestriumphed; if he has made the effort at the expense of his capability for human trust, he has met spiritual defeat (Ellis 2738). Another fine point in Elliss analysis is the fact that this story can also be interpreted as one, which assesses the moral prospects of the guilty and the psychological effect of guilt. Ellis makes sure to mention that most Christians are baffled by dilemmas such as the opposition between divine foreordination, with Gods divine mercy, and proffered grace. This was noRead MoreAn Analysis Of Forrest Gump2 176 Words   |  9 Pagesof the key events of the 50s through the early 80s can be viewed, because as he is lacking any ideology or analytical powers, Gump is the immutable innocent moving in a state of grace through a nation in the process of losing its innocence, an Everyman who acts instinctively in an age defined by political divisiveness. Gump confronts and moves past numerous ugly moments and themes in American history precisely because his intellectual limitations allow him to ironically highlight the hypocrisies