By having this introduced, it increases the private cost of consumption or production. This may then reduce the demand and the output for the particular product which causes these negative externalities. Another reason that taxation is effective is because it can encourage producers to produce less and get better value products through the use of recycling and composting. This also affects the supply curve, shifting it to the left which also increases the price of the factors of production to create those products. For example, there could be landfill tax which encourages people to dump less as it imposes an indirect tax.
Broadly speaking, they are projects whose cash flows changes sign more than once—e.g., from negative to positive to negative again. 3 2 If the cash flow of a project changes sign more than once—e.g., if one or two outlays are followed by some inflows and then by another outflow—then this rule does not apply. Indeed, the project may then have more than one IRR. You have to take ECON 318 to learn how to cope with this mess. Let the geeks among you note that the NPV equation for an N-year project is really an N-degree polynomial of the form NPV = X0 + X1 + X2 + .
Summarize the case in five sentences Because there are many porcelain makers in Jingdezhen, the quality of products are low,the styles are limited, and the productivity are low. Most porcelain makers set minimal profit margin goals to pursue volume pricing strategies in the mass market, that cause their works could be mediocre quality and customers could shift to other suppliers. JCAC want to differentiated itself from its rivals by quality and artistic style of its products, and produce high-end product. What are the problems (and the origins of these problems) facing the porcelain/ceramics industry in Jingdezhen? Most of the porcelain makers in Jingdezhen unable to offer uniquely designed products and differentiate themselves from their competitors.
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
There is almost always waste associated with industry and production. The negative social effects of this waste are not deducted from GDP. “Ironically, when money is spent to clean up pollution and reduce congestion, those expenses are added to GDP” (McConnell & Brue 2005). Conclusion Some data suggests, “positive fiscal impulses are expansionary, particularly where they do not create fiscal credible issues and are expected to be sustained” (Reserve Bank of New Zealand). A government tax and spend plan is its fiscal policy.
Here Fiske is claiming that there are two economies, the financial economy which revolves around the commodity and is only really concerned with the exchange value of the product, and the cultural economy, where the audience actively take an interest in finding meanings and pleasure within the product. Once in the culture economy, the product is at the mercy of the audience, the producers no longer have any control. It is the use the audience then make of these products within the cultural economy which determines popular culture. The first studies of mass culture and the effect of it came from the Culture and Civilisation tradition. Matthew Arnold suggested that popular culture among the new working classes would lead disruption.
This view point is widely accepted in current macroeconomic literature. The third is the concept of the speed of adjustment, of a variable over time, depending on which variables are more quicker and which are more slower, for example Keynes believed that quantity adjustment is faster than price. The forth perspective is that the short run and long run are connected to each other and are not independent; believing that the long run is in fact made up out of the short run, thus the short run has an impact on the long run. Consequently there are very contrasting interpretations on the differences between the short run and long run this essay will discuss these issues in reference to the neutrality of money. The Classical Dichotomy was a term introduced by Patinkin in the 50s to describe what classical economists believed the standard model of the economy was.
Various individuals are unaware of where their garbage is taken, but in reality if they were to witness where it is processed, it would open up their eyes to be more considerate about their consumption rate. In the essay Rodgers states, “If people saw what happened to their waste, lived with the stench, witnessed the scale of destruction, they might start asking difficult questions.” Many individuals do not understand that the more they consume the more trash there is going to be presented. The logic of today’s society is all about consuming, which in return causes people to be blinded by the concept of how consumption goes hand in hand with waste, thus causing affects to the earth and the environment. The way trash companies dispose of the waste that
These new techniques may have allowed for ample production of goods and prices of goods to drop, ultimately increasing consumerism; inevitably though, it had a destructive effect on the old-fashioned methods of production. These “outdated” techniques consisted of small scale, traditional local
Once spotted, corrections can be made. The real problem is with imperfect multicollinearity. Multicollinearity is not a condition that either exists or does not exist in economic functions, but rather a phenomenon inherent in most relationships due to the nature of economic magnitudes. It can arise because there is a tendency for economic variables to move together over time. Also, there is an increasing tendency to use lagged variables of some explanatory variables e.g.