Problem Set 4 Essays - Economy, Gross Domestic Product, Unemployment

Problem Set 4 Essays - Economy, Gross Domestic Product, Unemployment Problem Set 4 1. Explain the concept of moral hazard in 3-4 sentences. It is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. These situations are caused due to information asymmetry ( When both parties have incomplete information about each oth er ), and are ubiquitous. They a re caused due to hidden actions. For example : Taking big bets in a marketplace with your firm's capital because you have limited exposure to the downside but lots of exposure to the upside . 2. Explain the concept of adverse selection in 3-4 sentences. Adverse selection refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality. In the case of insurance, adverse selection is the tendency of those in dangerous jobs or high-risk lifestyles to get life insurance . To fight adverse selection, insurance companies try to reduce exposure to large claims by limiting coverage or raising premiums. To overcome adverse selection, the following could be done : Signaling - adopting ways to ascertain the quality of the product such as issuing warranti es, third party verification. Screening -make efforts to learn more abou t the product or service . 3. What are the pros and cons of using GDP as a measure of a nation's well-being? Pros: GDP provides a better analysis or measure of economy activity through its growth rate and changes in an economy than any other existing measure. It summarizes a whole range of economic information in and determines the comparative strengths and weaknesses of various sectors. GDP serve as accurate barometer of the business climate, where it provides the government and business useful information to adjust in different kinds of contingency problems like recession and depression. GDP serve as a simple proxy for social and economic welfare. Cons: G DP does not include non-market activities. These activities are based on production and consumption that occur outside the market economy that does not have a price attached like unpaid house workers, volunteer work, barter and the illegal drug trade. It does not include domestic household products or black market. It does not consider how the wealth of a nation is distributed equally. For example , GDP provides an estimate of each person share of the market economy but, in reality some people share of the economy is greater than others. This level of unequal distribution of incomes and consumption and the incidence of poverty cannot be determined by tracking the GDP. Some GDP measured expenditures do not contribute to Economic Welfare. It does not account for any welfare loss or any negative events that results from an event such as a natural disaster environmental cleanup or reconstruction effort contributes to welfare and the GDP. It does not accurately reflect the wellbeing and the living standards of people. The performance of few top companies can skew the GDP figure (It is a mean). E.g. : While India is the 5 th largest economy in terms of GDP, a significant number of people still earn less than $2 a day and lead a difficult life. 4. Please listen to the following Planet Money podcast (titled "How Recalculating GDP Can Help App Designers In Nigeria", broadcast on 5/31/2013): http://wlrn.org/post/how-recalculating-gdp-can-help-app-designers-nigeria and answer the following questions: a. What are the arguments for restating Nigeria's GDP? The current Nigeria's GDP was calculated based on data collected in 1990. T here were significant developments o ver the last 2 decades . Many new industries such as telecommunications have sprung up. T he current GDP model did not capture the contributions from such fast-growing industries . So, they decided to upgrade by rebasing to a new year. This move would greatly help the country to borrow money at a low cost and invest in those sectors that further boost the economy. Further, this would also make Nigeria a target destination for investments. b. What are the arguments against restating Nigeria's GDP? If the GDP of Nigeria is restated, hence updated based on a new base year, Nigeria would become the largest econom y in the

ACT Exam Time Management Handing in the Test Early

SAT / ACT Exam Time Management Handing in the Test Early SAT / ACT Prep Online Guides and Tips I recently received a question from one of my students that I believe highlights a very common mistake: "I find that on some sections I finish early and close the section ahead of time – does this mean I'm doing well on those sections?" Here, I'll break down why this sometimes happens, and what it means for you. Isn't Getting Done First a Great Thing? Many students are used to high school exams where the genius in the class finishes ahead of time and hands in the test early. These students then get the idea that handing in the test early is a sign of genius, and strive for the same on the ACT / SAT. But it turns out that closing a section early is almost always a huge mistake on the ACT / SAT due to time management. Read on to find out why. Why Finishing Early is a Huge Mistake The SAT / ACT are time-pressure tests. This means the creators of the tests on purpose give you much less time than you need to feel no time pressure on the tests. Few, if any, students are smart enough to really finish early. I personally received perfect scores on the SAT and know dozens of classmates who got perfect ACT / SAT scores, some of who are genius mathematicians, and none of these people ever finished early. Time is gold on the test, and you canalwaysconvert time to a higher expected score on these tests (I'll show you how). If you accept this, then it's obvious you shouldn't be handing in the test early: are you getting a perfect score in that section you're handing in early? If not, why aren't you using the techniques below to convert that extra time to a higher score? How to Convert Time To Score Okay, you're handing in your math section early, yet you're far from getting a 800. How do you convert that extra time into a higher score? Strategy #1: Have pacing checkpoints. Finishing early should never take you by surprise. You should be glancing at your watch every 5 minutes, and seeing whether you're "too ahead" or "too behind" in your section. Finishing early means you're "too ahead" – you'll realize this halfway through the section. In this case, slow down on the problems. Employ strategies that trade off time for points: read each question twice, write more neatly, think more about each question, double check your answer. This class of strategies "burns" your free time and harnesses it into extra points! Strategy #2: Double check each problem. Okay, say you employed the strategy above, and still have a few minutes left at the end. What do you do? Go back and check your problems. I don't mean glancing at them and mechanically saying to yourself "okay, yeah, that was right," but actually redoing the problem a different way. A very helpful trick is to actually mark "questionable problems" with a star while you're doing the test the first time around. Questionable problems are those you aren't sure about but don't want to waste time on the first time through. When you have time the second time around, go to the starred problems first. Oh, and what do you do if you finish a second check? Hand it in early? Nope, check it a third time. Take it from me – there are countless times I've found one serious mistake on a second or third check-through. That's 20-40 points right there, on a single section! To conclude, never hand in your test early. Manage your time during the first run-through so you never have too much time in the end. If you still end with too much time, check it over again! If you liked this article, you might enjoy: Why you need to prepare for the SAT / ACT How to get a perfect ACT / SAT score Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

Role of Outsourcing in Housekeeping Department Essay

Role of Outsourcing in Housekeeping Department - Essay Example Housekeeping activities that are increasing being outsourced these days involve gym, gardening, swimming pool, linen, laundry, carpet cleaning, curtain cleaning, window cleaning, marble polishing etc (Kim and Mi Kim). These activities are also discussed in the study text books. What actually is the surprising trend that is being followed in large chain of hotels is the outsourcing of more areas which includes floor cleaning, faà §ade cleaning, terrace cleaning and its maintenance, horticulture, pest control and entire compound including all offices. There are few reasons of outsourcing of housekeeping department that have been identified in an interview with Mr. Zubair Baweja, managing director, Hotel Regent Plaza Karachi, where he explained that the foremost reason in outsourcing area is to put more attention towards the main activities of the hotel business. Those areas in which management is not directly involved with the guests are outsourced to specialized firms which bring in more efficiency and effectiveness in housekeeping activities. The other reasons which caused the management of hotel to go for outsourcing is to eliminate the employee power in the hotel. The effect of unionization and other labour bodies are discouraged by the tool of outsourcing some areas of business. Moreover, the management avoids some high fixed costs which contain selection, recruitment, training and development and turnover costs which could have been incurred, had some departments not been outsourced.

Quality Management Essay Example | Topics and Well Written Essays - 500 words

Quality Management - Essay Example (ISO, 2008) Total Quality Management is one approach which can be used to improve an enhance product quality. Dr. Edwards Demming came up with the idea of total quality management, and this idea was first adopted and implemented by the Japanese. Total Quality Management is continuously improving products and processes by focusing on quality at each stage of production. It tries to get it right the first time and not have any defects. There is an emphasis on ensuring that the customer is always satisfied as total quality management has a consumer comes first orientation and in this context the customer can be other people/departments in the same business that the task is being completed for, not just the final customer. (Stark, 1998) Enhancing efficiency eventually adds to quality products in terms of lower costs either in the form of less wastage or higher output per input. The business should keep a constant check of efficiency levels with the help of either factor productivity or labor productivity ratios.

SMS Advertising :: Business, Marketing

In past few years, SMS has a remarkable increasing involvement in marketing practice, it has been used with other traditional media, such as print advertising, television commercial or other broadcasting, to strengthen the efficiency of the campaign (Zhang and Mao, 2008). It was claimed that SMS itself enables to enlarge the campaign’s reach and effectiveness because of ability of interactive to create viral effect. Wohlfahrt (2002) explained that when receivers receive message, they then forward to further other people in their contact list, and it has been proven by Kroeber-Riel and Weinberg (2003) that those messages delivered by familiar senders were seen in more trustworthy than those sent from advertisers directly. In marketer’s perspective, messaging help increasing the rate of interaction from the receivers, because advertising with financial offers or promotion, will be sent to the consumers when they are actually shopping (Zoller et al, 2001). Plus, SMS itself allow the sender and receive interact immediately, so that mobile advertising will yield a direct and rapid response from the consumers (Boonmark, 2006). Moreover, mobile phones are ubiquity and convenience because they are very personal, and always kept within 1 meter of user’s body during the day time (Sirivastava 2004 and Haghirian et al., 2008). Therefore, SMS advertising allow marketer to reach consumers virtually any time and anywhere via their mobile devices (Boonmark, 2006). It helps marketer become closer to the consumer as mobile phone is communication which is a part of consumer’s daily lives (Forrester report, 2001). So that, information sent to mobile devices also tends to capture high attention from receivers because information is read completely and immediately after receipt. (Barwise and Strong 2002). SMS is also low cost medium compared to other type of direct marketing (e.g. telephone marketing, email marketing, direct mail) (Dickinder et al., 2004). SMS can capture tens of thousands consumer with a low budget compared (Leppanieni and Karjaluoto, 2005) There is variety of way which SMS has been used as a medium. Because SMS provide diversity of response capabilities such as message based responses, call based response, and mobile web landing page response (See Appendix D, MMA, 2009b), SMS is exercised to request for phone’s users engagement (Dickinder et al., 2004). To illustrate, SMS will be sent with the hyperlink allowing phone users to click to make a call (or click) to buy, to download, to vote, to contest or to win a prize. Boonmark’s studies (2006) found that messages were sent out with different kind of appeal, such as rewards, loves, and emotional appeal.

Pacific Northwest Settling Establishments Essay

Contact at trading posts had originally introduced the Native Americans to Christianity. The British Protestants and French-Canadian trappers who were mostly of Catholic faith did this. The trappers were impressed by Native religion and didn’t see any problem between Christianity and Native religion. Fur companies usually encouraged their men to get Native American wives and marry into the tribes to make trade relationships stronger. The Whitman established their mission with the Cayuse at Waiilatpu near Walla Walla. Spalding was assigned to convert the Nez Perce people and founded a mission at Lapwai, Idaho. This was one of the most successful missions. In 1838, two Catholic priests, Fathers Blanchet and Modesta Demers arrived at Fort Walla Walla to imagine the possibilities of beginning a Catholic mission in the area. According to historians the Roman Catholic missionaries were much more successful with the Native Americans. The Native Americans were convinced of the Missionaries tactics and customs from a few different ways. One of the ways that was used was that they didn’t promote immigration into the area. Their customs in church were interesting to the Native Americans and helped to encourage practicing their beliefs as well as the fact that mission sites were extensive. To help convert they didn’t emphasize changing the Native Americans’ culture, but instead promoted theirs to make the Natives want to change. Instead of requiring Native Americans to live on or close to the Missions, they traveled alongside with them. In some ways the Missionaries used reverse physiology to convince the Native Americans that their practices were better. The significance of having the missionaries approach and try to chance the Native Americans was very significant. If it weren’t significant, the Native Americans that were opposing Christianity wouldn’t have acted so forcefully, and so many conflicts would not have arose. To all Native Americans, the significance was of great impact whether thought to be positive or negative. It was also of great significance to the coarse of history. If the Missionary Era never occurred, things might be a lot different as far as religion goes for the 21st century.

The Great Divergence Essay - 2479 Words

Europe is given special consideration thus far in this class. What made Europe or European civilization unique in the perspective of some authors? It went from ‘marginal’ status to powerful region in a few hundred years. What did this process look like? Be sure to address this at the various levels (ideological, behavioral, institutional, material etc.). Are there reasons for this dominance that are more important than others? Looking back at the world in the past few hundred years, it would have been difficult to imagine that one day, majority of Western Europe would come to dominate the world in global economy (Landes, European Exceptionalism: A Different Path, 1998). Frank (2001) described the process of which the western society†¦show more content†¦In such environment, policies of scientific and social inactivity could stand because of tradition or culture. On the other hand, Europe was geographically set in reduced, closer, but with larger number of groups, surrounded and separated by small rivers and mountains, thus, governments that repressed economic and scientific development soon amended their errors or were out-done rapidly (Pomeranz, 2000). The early western world benefitted from revenues from trading European products to the Eastern countries (Pomeranz, 2000). High earnings obtained from trading with eastern countries and sales of slave established seven percent profit per annum, which is a â€Å"relatively high rate of return considering the high rate of depreciation on pre-industrial capital stocks, which limited the amount of savings and capital accumulation†, stated Pomeranz (2000). Many theories suggest that the Great Divergence occurred as a result of trade development from Europe to Asia, which later on became the main factor of the New World. As, Pomeranz (2000) stated, â€Å"the greatest significant advantage for Europe was the vast amount of fertile, uncultivated land in the North America which could be used to grow large quantities of farm products required to sustain European economic growth and allowed labour and land to be freed up in Europe for industrialization.† A great example of this i s how England saved approximately 23-25 million acres of agricultural space by importing goods suchShow MoreRelatedWhy did the Great Divergence Occur1384 Words   |  6 PagesThe Great Divergence is term used to portray the gradual shift of dominance that Europe gained by establishing itself as the most powerful world civilization by the 19th century. While a case could be made that the Great Divergence occurred because of the pre-eminence of Europe and Britain, as well as their supposed superiority in invention and innovation above anywhere else in the world, this argument is flawed. 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