HND经济学1oc3
Economic Issues: An Introduction
F7J8 34
Outcome 3
Candidate Name:
Grade and Class:
Content
1.0 Introduction -------------------------------------------------------------------1
2.0 Market Failure ----------------------------------------------------------------1
3.0 Welfare policy ----------------------------------------------------------------3
4.0 Conclusion --------------------------------------------------------------------4
5.0 Reference ----------------------------------------------------------------------5
1.0 Introduction
This outcome introduce the role of the government in managing the economy of the United Kingdom.And how to identify market failure and their specific forms of expression.Besides,how the government could attempt to correct these market failure and know the policy measures of the government.
2.0 Market Failure
Market Failure is a situation in which the allocation of goods and services is not efficient.
2.1 The performance of Market Failure
There are four forms of expression in Market Failure
i.To provide public goods
Theses are commodities, which would not be provided by the private sector because they would find that many people, even if they benefited from them. And they had right to refuse to pay.So there are very few people who provide public goods, because on the one hand it is technically impossible, on the other hand the cost of public goods is greater than the benefits.And the public goods are the products that the whole society must consume, so the lack of public goods and social members and economic development will be contradictory.So this situation will lead to market failure.
ii.The existence of imperfect markets
In the free market,little or no competition,for example,where a monopoly exists.This occurs when there is a single supplier,or a fewer very dominant suppliers,in a market.This is the imperfect markets.In this case there is a monopoly.The emergence of market monopoly means that monopoly companies are free to price commodities and impose repressive measures on some new competitors.In this way, there is no competition between companies, technology cannot be improved, and the industry cannot develop.In this way, prices and supply and demand cannot be regulated by the
market.
iii.The existence of externalities
An externality is an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account.There are negative externalities and positive externalities.Positive externality is that the activities of an individual economic behavior benefit others or the society, and the beneficiaries do not need to pay the cost. Negative externality is that the activities of an individual economic behavior damage others or the society, while the people who cause external uneconomy do not bear the cost.In free market,where one
person’s/firms actions leads to costs falling on other groups without there being any compensation paid thus an external/social cost has been generated.For example,the random discharge of waste water from factories is harmful to the water quality of rivers and even endangers people's health.
iv.To provide merit goods
Merit goods are better for a person than then person who may consume the good realizes.For example,health services and education are merit goods.For merit goods,consumers sometimes do not perceive quite how good a particular kind of good if for them:either they do not have the right information or lack relevant information.A merit good is a good that is better for a person than the person who may consume the good realizes.The result is that ,a merit good would be
under-consumed and under-produced in the free market economy.
2.2 The Government Policy
To overcome market failure,the government make some policies and use some instruments.The government utilize three main economic policy instruments.These are respectively Fiscal policy,Monetary policy and Supply-side policies.And the government also made some instruments.
(1)Government Expenditure
As for public and merit goods,a way of influencing the economy and achieving the economic objectives is through the use of government spending.
For example,current spending,ongoing spending on goods and services.It pays the salaries and wages of staff and covers the say
(2)Taxation
Taxation represent one of the simplest means of collecting revenue open to the Government.And taxation is an effective way to solve the negative externalities.
For example,the pollutant discharged by the factory in production is a negative externality.The government can issue emission standards to factories. If the factory's pollution emission exceeds the standard, the government can increase the tax to punish it
(3)Legislation
In order to deal with the monopoly phenomenon in the market, the British government has promulgated the relevant anti-monopoly law.
For example,the UK government mainly relies on the competition act of 1988 and the enterprise act of 2002. The former has set up the competition commission, which is an anti-monopoly and unfair competition institution, which takes reasonable and feasible plans to maintain the normal operation of the market based on the interests of consumers. The latter upgraded the office of fair trading under the office of fair trading to an independent body corporate with independent legal personality and power.
3.0 Welfare policy--Pension
Welfare policy is creating a socially inclusive society that welcomes contributions from all minority groups.The British government has established pension for those who have retired from work due to old age and are unable to work after the second
world war.
3.1 The instrument of Pension policy
(1)Legislation
After world war ii, Britain, based on beveridge's report, adopted the national insurance act (1946), the state aid act (1948) and other laws to cover all aspects of citizens' life with social security, and established the "cradle-to-grave" welfare state system model.
(2)Taxation
The individual pension plan is a pension plan designed and provided for individual choice by insurance institutions and other financial institutions. The system of individual accumulation is implemented completely, and the government gives a tax return of up to 7.8%.
(3)Government spending
In order to solve the source of pension insurance, the British government will pay the basic pension insurance with fiscal revenue every year.In fiscal year 2011/2012, the total expenditure on basic pension was 58.095 billion pounds, accounting for 80% of the total expenditure on pension, and the total expenditure on auxiliary pension was 16.125 billion pounds, accounting for 20% of the total expenditure on pension.
3.2 Reasoned evaluation
Private pensions are the biggest source of domestic funding in Britain's capital markets.At the end of 2008, insurance companies and pension funds were listed as the top two domestic investors in the UK stock market respectively, with the shareholding value accounting for 13.4% and 12.8% of the total market value respectively.In 2009, for example, out of the total assets of 1.9 trillion pounds of private pension in the UK, the scale of personal pension managed by insurance companies reached 0.87 trillion
pounds.If pension funds in the insurance investment are taken into account, private pension will become the largest domestic fund provider in the UK capital market.
In recent years, due to the increasingly serious aging of the population and the increasing financial burden of the government, the British pension system is facing great pressure and challenges.In 2010, for the first time in recent years, the UK's national basic pension fund failed to make ends meet.According to the relevant financial report, the expenditure reached 80.5 billion pounds in that year, while the income was 75.9 billion pounds, and the annual fund balance was also reduced accordingly.With the aggravation of aging, under the current policy, it is difficult to improve the situation that the national basic pension income does not cover the expenditure in the short term.
4.0 Conclusion
This article reported the performance of market failure had a bad influence on market economy.To solve these problems,the government made the adaptive policy and use some economic instruments.And the article also introduce the welfare of endowment insurance and its advantage and disadvantage.
5.0 Reference
SQA (2013) / Economic Issues:An introduction (three edition) / Beijing / China Modern Economic Publishing House / 2018,12,31 / Page: 186
SQA (2013) / Economic Issues:An introduction (three edition) / Beijing / China Modern Economic Publishing House / 2018,12,31 / Page: 190
SQA (2013) / Economic Issues:An introduction (three edition) / Beijing / China Modern Economic Publishing House / 2018,12,31 / Page: 199
https://https://www.360docs.net/doc/3e5167858.html,/money/article/7QACMETO00253B0H.html#adaptation=pc https://www.360docs.net/doc/3e5167858.html,/c/2017-09-18/1220508.shtml
HND-Economics-The-World-Economy世界经济学报告
Economics 2: The World Economy
Content Introduction----------------------------------------------------------------3 Section 1: International Trade Three gains from trading internationally---------------------------------------3 Free Trade--------------------------------------------------------------------------3 Absolute and Comparative Advantage-----------------------------------------3 Protectionism----------------------------------------------------------------------4 Barriers to trade-------------------------------------------------------------------4 WTO and EU----------------------------------------------------------------------5 Section 2: International Finance Balance of Payments and General trends in UK Trade----------------------6
HND经济学导论
An investigative report on Welfare Policy in the U.K. Market Outcome 3 Candidate Name: WANGGAI Grade and Class: 11 Financial services class 6
Catalog ●Introduce ●Section 1 ●Section 2 ●Research
Introduce：This report is market failure and government's role and the social welfare policy survey report, report the information from the website as well as books, in a report last may elucidate. 1、Market failure：Market malfunction is due to intrinsic functional defects and external conditions caused by the defect of market mechanism in the allocation of resources in certain areas of operation. Because the market monopoly and price distortion or for the public goods character because of the asymmetric information and the external reasons, causes the resources disposition of invalid or small effect, which can realize resource to configure zero opportunity cost of resource allocation state. Usually used for invalid rate of special major, or non market mechanism is more efficient and the ability to create wealth is better when the private choice. On the other hand, the market failure is usually used to describe the market forces can not meet the status of public interest. Market failure establishes the basis for government intervention. The roles of government in attempting to correct these failures: merit goods, public goods, externalities and imperfect competition。Specific policy measures used by the government of the UK, such as competition, health care, transport etc. The market mechanism may fail to provide the optimal mix of output. The optimal mix of output is the most desirable combination of output attainable with existing resources, technology and social values. Government intervention in economic activities, but complementary, grant of. The government in market economy economic role, is to remedy market flaw or insufficient needs a decision. The role of government can be divided into regulation of human character, commonweal character, control characters, the arbitrator roles and role of night watchman. 2、Public goods：The market mechanism works efficiently only if the benefits of consuming the good or service are available only to individuals who purchase it.
HND_经济学导论_outcome2_标答
Outcome 2 1. 书178，179二个图 Households buy commodities from firms, using the income individuals receive for their labour and capital supplied to firms The firms use the income received from the sale of commodities to pay for the labour and to invest in new premises,plant and equipment. 2. Injections： Investments：Loan from banks, building societies, insurance companies etc. Money saved by household can be re-injected back into the inner flow as investment by business sector (firms) after they borrow the money out of financial institutions. Government Spending：Roads, hospitals, https://www.360docs.net/doc/3e5167858.html,ing the fund largely collected through taxation, the government can be the biggest buyer spending money on the products and services provided by firms If government wishes to expend the flow of income in circulation, it may choose to increase the amount of its spending and probably adopt a tax-cutting. Exports：These are goods and services that are sold abroad. The payment for them will return to the firms in this country. For example, if someone buys textiles of China, then the proceeds of the sale belong to our country. This increases the circular flow and creates more economic activity in the economy for our country. Withdraws： Savings：Amount of income that consumers choose not to spend but retain for the future uses (normally deposit in financial institutions, e.g. banks and building society). Ability or desire to save out of income is measured by …marginal propensity to save (MPS)?. Level of income is the biggest factor affects level of savings, i.e. the higher the income is, the greater savings (withdrawal) out of circular. Taxation：Through forms as personal income tax, V AT, corporate income tax, the disposable money circulated in the economy is drawn out by the government as its revenue. This can be in the form of direct tax on our income or indirect tax on purchases, for example V AT. Imports：Part of the consumption of both households and firms are on foreign products or products contain imported components. So that portion of expenditure will eventually go into foreigners? pockets therefore reduce the total income circulated
HND 大二经济学
The micro economic about Sony 詻筱敉 Summary: As a manager of a company, he should consider the economic of scale. It relation to many problems, like the range of cost in the long run, how to get the profit maximization, how to choose the market structure and the characters of the market and so on. This report will relation to these problems. Also it will talk about the alternatives to profit maximization. Key words: cost, profit, price and output, the structure of market Sony is a famous company in the world. The play station 2 represents a huge gamble that will pay off only if it sells in vast quantities. Sony is conscious that if the product sells in limited quantities, that its costs will be about $ 100 per unit, however , if they sell about 50 million worldwide, that its costs will drop to about $ 10 per unit. Long run is defined as that period of time when all the factors of production can be varied. If for example, a firm had been restricted because of space and now finds it can expand or move to a bigger production unit it could also perhaps purchase more equipment, employ more labor. All the factors of production can be varied a firm should be able to expand the scale of its operations to continue obtaining falling costs as output level increases. These activities should allow reductions in costs, coming about because of size and know as economies of scale. The purpose of a company is to get more profit. Sony hope that their new machine will be a focal point for devices such as TVs, audio systems, digital cameras and will connect customers to the internet. Profits can also be termed ‘Normal’or ‘Supernormal’. Profit is the reward to entrepreneurs and the incentive that encourages them to take risks. It has two functions, one hand is that for an entrepreneur profit is an incentive to undertake a risk in the belief that a gain can be made. On the other hand, profit is also a reward. It must be earned, as we have seen, generally in an imperfect competitive situation. Many business fail and for many different reasons. To some extent we have already touched on this premise in suggesting that profit maximization is not always the main goal of a firm. This relate to alternatives to profit maximization. I will give two theory-Satisficing Behaviour Theory and Sales Revenue Maximization Theory. Satisficing Behaviour theory This particular theory was expounded by H A Simon and his colleague A Cyert. It is based on the fact that achieving specific targets with regard to sale, profit and market share will result in ‘satisficed behaviour’ by those who own and those who run firms. They know that it may be possible to do better but in the long run to press for further profit may result in unintended damage. Sales Revenue Maximization theory Propounded by Professor W J Boumal based on the following: 1. Managers get better perks and salaries from sales than profit. 2. Market share is considered a better sign of progress of a firm. 3. Because of the above, heavy adverting will take place to maximise sales.
HND经济学2
Q1: 1. 原因In article unemployment is structural unemployment. Liverpool was originally a port city, dominated by heavy industry. The industry will shift to the tertiary industry,because of the development of tourism, the unemployment rate in 1996 rose by 22%.And in the supermarket Linda passed the Diploma in hotel management that explain the concern of the hotel industry is also increasing. Structural unemployment is changes in industry demand result of long-term unemployed, people's incomes and consumption levels will have a certain impact. The hazards of unemployment for different age groups are not the same. New industry needs to work experience, pre-employment training, and learning ability of young people is barrier-free. While the elderly will not be able to learn new skills for re-employment, so the structure unemployment for the old age is larger impact. The original industry recession because impact of international competitiveness; such as the American impact of heavy industry, Japan impact of the automotive industry. 2. The New Deal is a programmer of active labor market policies. The purpose is to reduce unemployment by providing training. The New Deal has include: New Deal for Young People, New Deal 25+, New Deal for Lone Parents, New Deal for the Disabled, New Deal 50+, New Deal for Partners and New Deal for Musicians. New deal for unemployed young people is In order to provide policy support for young people 18-24 years of age out of unemployment, promotion of employment. Participate in the project more Dole six months is mandatory. Specifically divided into three stages. A. Gateway stage: this stage no more than four months, every participant can get job-seekers allowance. This training is provided by an external organization such as CSV, YMCA Training. B. Options stage: After the gateway stage, also unemployed young people can choose training. 1) Employment option, The subsidy is ￡60 per week, and lasts 6 months; a ￡750 training allowance. 2) Full time education and training, this is basic vocational skills and human resources to strengthen.time up to 12 months. the people can get NVQ and subsidies. 3) V oluntary sector option, to gain work experience and skills.it maintain at least 13 months, participants can get outside in addition to grants of ￡ 400 to support. 4) Environment task force option, there is work experience, career awareness and the common development of the ecological environment. This is a continuous six months, and will get two weeks officially recognized vocational training oriented courses. C. Follow-through: this is personalized tracking courses. This phase lasted for four months, if you have not found work after 26 weeks to re-enter the New Deal. New Deal 50+ is for the crowd is over 50 years of age but not yet reached retirement age, middle-aged unemployed. This policy is not mandatory, participants must be at least 50 years . The government will send a personal adviser employment assistance to help participants : (1) An established employment plans. (2) to help them find employment for job preparation.(3) Improve their skills, seek training opportunities.(4) seek any voluntary activities. (5) in the plan adjusted to meet market demand. 3. From a personal point of view, unemployment will lose a lot; salaries, and self-esteem, partners and friends. family members are consciously cut spending. Long-term unemployment will cause a decline in the level of consumption.
HND经济学答案
Economics 2: The World Economy Outcome1, 2 and 3 Candidate Name: Xu Lun SCN: 095352561 Due Date: January 4th 2011 Tutor Name: Zhang Ju
Outcome 1
This report is aiming to use tables and figures to present Premier a clear picture of what the real world economy is and help him to make a major choice of weather or not join the European Union. I am a member of government, I will use my knowledge and skills to help Mr Premier have a better understanding of the world economy rules and I hope which can help a little. First of all, when countries trade goods and services without wishing, or being able, to impose any barrier to the trade, which is called Free Trade. The reasons why we do Free Trade business are a lot, but to obtain more financial resources is believed more important. And their goal of Free Trade is never changed-to reduce non-tariff barriers. For instance: in 2009, there’s an agreement about Free Trade was signed between South Korea and East Asia Union. It can helps a lot on both sides economy development. Free Trade is the main reason why we should join European Union, and which has also been called International Trade, originally focus on goods and services could be exchanged freely between two countries without any barriers. Before compare or explain, there needs two assumptions. First one is no barriers of any kind would be imposed upon entry of the goods to any market. Second is the selling price would be the “economists price”which we can understand as price is uncertainty. Recently, there are some popular topics has been discussed a lot. Like Free Trade always talked with Trade Protection, Non-tariff banners and Tariff banners. What’s more, Free Trade also can bring us a lot of benefits. Increase the world-wide output is one the key benefits. Also, it can increase the foreign currency reservation. Everything has two sides, Free Trade brings the culture erosion too. On the International Trade, there are two kinds of policy: liberalization and protectionism. Let’s take a look at their history, in 1815, the British Corn Laws took effect, which can ensuring self-sufficiency, then in 1846 it was abolished. There was a time of Free Trade until 1914, especially in the exchange between UK and it colony.
hnd经济学1微观经济学outcome1
Table of Contents Introduction (1) Oligopoly (1) ●Entry barriers (1) ●Non-price competition (1) Explanation for Diagram in Oligopoly (2) Pure Competitive Market (3) ●Lower prices (3) ●Low barriers to entry (3) Explanation for Diagram in Pure Competitive Market (3) Roles of Profit in Market Economy (4) ●Demand for factor resources (4) ●Market Entry (5) The other two alternatives to profit maximization (5) ●Satisficing behaviour (5) ●Sales revenue maximization (5) Influences on a Firm in the Short Run (6) References (7)
1.0Introduction Marco and Micro economic knowledge we had learned in this period is mainly to discuss about some major market structures in the entire market now. And they are oligopoly, monopoly and pure competitive market and so on. In this case, the Virgin Mobile had entered in mobile phone market in the UK, which is an oligopoly market. In this market, Orange, V odafone, BT Cellnet and One2One are the oligopolists. 2.0Oligopoly When a market or industry is dominated by a small number of sellers, we usually believe an oligopoly appears. And there are two main features of oligopoly: ●Entry barriers: It’s a great block for the new company to be a long-run part of an oligopoly market. Usually, many smaller firms operate on the periphery on such s market, which means these companies cannot reach the supernormal profits or affect much to market prices and output. Take Virgin Mobile (VM) as an example: Before VM engaged in the mobile phone market in the UK, there were some industrial giants conquered the market- Orange, V odafone, BT Cellnet and One2One, which account for a large market share. Although VM is making profit, the money it earned is far less than any one of these oligopolist. ●Non-price competition:As a few company be dominant to an industrial, pricing can be no longer an effective competitiveness for those oligopolistic firms. Compared with pricing, after-sales service, extension of new market and advertising seem to be more emphasized by them. In this case, the VM is better to promote the competitiveness in such ways -- improving the after-sales quality, expanding into new markets , building their own brand and so on.
hnd经济学2世界经济学
Economics2: The World Economy F86E 35 Candidate Name: REN LU Grade and Class: 2013 BA1
Introduction (3) 1. Free trade (4) 2. Absolute advantages and comparative advantages (4) 3. The benefits of free trade (5) 4. The purpose of carrying out trade protectionism (7) 5．One Mechanism of the World Trade Organization (8) 6. One measure of European Union promotes economic integration (9) 7. Balance of payments (10) 8. The general trends in UK trade over the last 30 year (13) 9. The balance of payments affected by exchange rates (14) 10. Advantages and disadvantages of fixed rate and floating rate (16) 11. Effects of fixed rate and floating rate on individuals and company (18) 12. The characteristics of the newly industrialized countries and the developing countries (19) 13. The issues of the newly industrialized countries and the developing countries (20) 14. The influences Multi-National Corporations bring to newly industrialized countries. (21) Conclusion (23) Reference (24)
HND_经济学导论第二次作业
Assessment task 2 Assessment task instructions The UK economy is made up of millions of people and billions of economic activities. Within these activities, goods and services are created and exchanged. It can be complicated at times but a simple model explaining in general terms how an economy is organised and how those involved interact is a good start. Question 1 Draw a diagram showing the participants of the Circular Flow of Income and explain how it operates. The simple model is sufficient for a beginning, but an economy is more complex and involves external influences, which can raise or lower economic activity. Question 2 Identify three injections and three withdrawals from the Circular Flow of Income; give examples of each, and how they affect levels of economic activity. 从收入的循环流动中确定三个注射，三个提款，给各自举个例子，他们是如何影响经济活动水平。 Question 3 Choose any two of the following questions: (a) Explain at least three difficulties encountered in measuring the National Income of a country. (b) Explain (using at least three reasons) why it is difficult to compare the growth rates of the countries in the table above. (c) Explain how the multiplier effect could substantially raise the level of National Income. (d) Explain the difference between real and nominal growth using the table above.