Interest and Topic

CHAPTER 9Basic Macroeconomic Relationships TopicQuestion numbers:Consumption function/APC/MPC 1-39Saving function/APS/MPS 40-53Shifts in consumption and saving functions 54-69Graphs/tables: mixed consumption and saving 70-106Investment demand 107-145Multiplier effect 146-181Consider This 182-183Last Word 184-185True-False 186-200Multiple Choice Questions Consumption function/APC/MPCType: A Topic: 1 E: 152 MA: 152 .The most important determinant of consumer spending is:A)the level of household debt.B)the stock of wealth.C)consumer expectations.D)the level of income.Answer: DType: D Topic: 1 E: 152 MA: 1522. The most important determinant of consumption and saving is the:A)level of bank credit.B) level of income.C) interest rate.D) price level.Answer: BType: A Topic: 1 E: 156 MA: 1563. If Smith's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to:A)save is three-fifths.C)consume is three-fifths. B)consume is one-half.D)consume is one-sixth.Answer: CType: A Topic: 1 E: 156 MA: 1564. With an MPS of . 4, the MPC will be:A)1. 0 minus . 4.B) . 4 minus 1. 0.C) the reciprocal of the MPS.D) . 4.Answer: AType: D Topic: 1 E: 156 MA: 1565. The MPC can be defined as that fraction of a:A)change in income that is not spent.C)given total income that is not consumed.B)change in income that is spent.D)given total income that is consumed.Answer: BType: A Topic: 1 E: 154 MA: 1546. The 45-degree line on a graph relating consumption and income shows:A)all points where the MPC is constant.B)all points at which saving and income are equal.C)all the points at which consumption and income are equal.D)the amounts households will plan to save at each possible level of income.Answer: CType: A Topic: 1 E: 154 MA: 1547. As disposable income goes up the:A)APC falls.C)volume of consumption declines absolutely.B)APS falls.D)volume of investment diminishes.Answer: AType: D Topic: 1 E: 153 MA: 1538. The cons umption schedule shows:A)that the MPC increases in proportion to GDP.B)that households consume more when interest rates are low.C)that consumption depends primarily on the level of business investment.D)the amounts households plan or intend to consume at various possible levels of aggregate income.Answer: DType: D Topic: 1 E: 153 MA: 1539. The consumption schedule relates:A)consumption to the level of disposable income.C)disposable income to domestic income.B)saving to the level of disposable income.D)consumption to saving.Answer: AType: A Topic: 1 E: 153 MA: 15310. A decline in disposable income:A)increases consumption by moving upward along a specific consumption schedule.B)decreases consumption because it shifts the consumption schedule downward.C)decreases consumption by moving downward along a specific consumption schedule.D)increases consumption because it shifts the consumption schedule upward.Answer: CType: D Topic: 1 E: 154 MA: 15411. The APC is calculated as:A)change in co nsumption / change in incomeC)change in income / change in consumptionB)consumption / incomeD)income / consumptionAnswer: BType: A Topic: 1 E: 153 MA: 15312. The consumption schedule shows:A)a direct relationship between aggregate consumption and accumulated wealth.B)a direct relationship between aggregate consumption and aggregate income.C)an inverse relationship between aggregate consumption and accumulated financial wealth.D)an inverse relationship between aggregate consumption and aggregate income.Answer: BType: D Topic: 1 E: 153 MA: 15313. The APC can be defined as the fraction of a:A)change in income that is not spent.B)change in income that is spent.C)specific level of total income that is not consumed.D)specific level of total income that is consumed.Answer: DType: G Topic: 1 E: 154-155 MA: 154-15514. The consumption schedule in the above diagram indicates that:A)consumers will maximize their satisfaction where the consumption schedule and 45 ° line intersect.B)up to a poi nt consumption exceeds income, but then falls below income.C)the MPC falls as income increases.D)households consume as much as they earn.Answer: BType: A Topic: 1 E: 154 MA: 15415. The consumption schedule is drawn on the assumption that as income increases consumption will:A)be unaffected.B)increase absolutely, but remain constant as a percentage of income.C)increase absolutely, but decline as a percentage of income.D)increase both absolutely and as a percentage of income.Answer: CType: A Topic: 1 E: 154 MA: 15416. Which of the following is correct?A)APC + APS = 1.B) APC + MPS = 1.C) APS + MPC = 1.D) APS + MPS = 1.Answer: AType: A Topic: 1 E: 154-156 MA: 16117. The consumption schedule is such that:A)both the APC and the MPC increase as income rises.B)the APC is constant and the MPC declines as income rises.C)the MPC is constant and the APC declines as income rises.D)the MPC and APC must be equal at all levels of income.Answer: CType: A Topic: 1 E: 154 MA: 15418. For all levels of income to the left of the intersection of the 45-degree line and the consumption schedule, the APC is:A)greater than 100 percent.B) less than the APS.C) equal to the MPC.D) equal to 100 percent.Answer: AType: A Topic: 1 E: 156 MA: 15619. The consumption and saving schedules reveal that the:A)MPC is greater than zero, but less than one.B)MPC and APC are equal at the point where the consumption schedule intersects the 45-degree line.C)APS is positive at all income levels.D)MPC is equal to or greater than one at all income levels.Answer: AType: A Topic: 1 E: 156 MA: 15620. The size of the MPC is assumed to be:A)less than zero.B) greater than one.C) greater than zero, but less than one.D) two or more.Answer: CType: A Topic: 1 E: 153-154 MA: 153-15421. As disposable income increases, consumption:A)and saving both increase.C)decreases and saving increases.B)and saving both decrease.D)increases and saving decreases.Answer: AType: D Topic: 1 E: 154 MA: 15422. The average propensity to consu me indicates the:A)amount by which income exceeds consumption.B)relationship between a change in saving and the consequent change in consumption.C)percentage of total income that will be consumed.D)percentage of a change in income that will be consumed.Answer: CType: A Topic: 1 E: 153 MA: 15323. The relationship between consumption and disposable income is such that:A)an inverse and stable relationship exists between consumption and income.B)a direct, but very volatile, relationship exists between consumption and income.C)a direct and relatively stable relationship exists between consumption and income.D)the two are always equal.Answer: CType: A Topic: 1 E: 156 MA: 15624. If the MPC is . 8 and disposable income is $200, thenA)consumption and saving cannot be determined from the information given.B)saving will be $20.C)personal consumption expenditures will be $80.D)saving will be $40.Answer: AType: A Topic: 1 E: 156 MA: 15625. The MPC for an economy is:A)the slope of the consumption schedule or line.B)the slope of the savings schedule or line.C)1 divided by the slope of the consumption schedule or line.D)1 divided by the slope of the savings schedule or line.Answer: AType: F Topic: 1 E: 158 MA: 15826. In contrast to investment, consumption is:A)relatively stable.B) relatively unstable.C) measurable.D) unmeasurable.Answer: AUse the following to answer questions 27-28: Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + . 9Y , where C is consumption and Y is disposable income.Type: E Topic: 1 E: 156 MA: 15627. Refer to the above data. The MPC is:A). 45.B) . 20.C) . 50.D) . 90.Answer: DType: E Topic: 1 E: 156 MA: 15628. Refer to the above data. At an $800 level of disposable income, the level of saving is:A)$180.B) $740.C) $60.D) $18.Answer: CType: A Topic: 1 E: 156 MA: 15629. Which one of the following will cause a movement down along an economy's consumption schedule?A)an increase in stock pricesC)an incre ase in consumer indebtednessB)a decrease in stock pricesD)a decrease in disposable incomeAnswer: DType: G Topic: 1 E: 156 MA: 15630. The above diagram shows consumption schedules for economies A and B. We can say that the:A)MPC is greater in B than in A.B)APC at any given income level is greater in B than in A.C)MPS is smaller in B than in A.D)MPC is greater in A than in B.Answer: DType: A Topic: 1 E: 154 MA: 15431. At the point where the consumption schedule intersects the 45-degree line:A)the MPC is 1. 00.C)saving is equal to consumption.B)the APC is 1. 0.D)the economy is in equilibrium.Answer: BType: C Topic: 1 E: 156 MA: 15632. Holly's break-even level of income is $10,000 and her MPC is 0. 75. If her actual disposable income is $16,000, her level of:A)consumption spending will be $14,500.C)consumption spending will be $13,000.B)consumption spending will be $15,500.D)saving will be $2,500.Answer: AType: A Topic: 1 E: 156 MA: 15633. If Ben's MPC is . 80, this means that he will:A )spend eight-tenths of any increase in his disposable income.B)spend eight-tenths of any level of disposable income.C)break even when his disposable income is $8,000.D)save two-tenths of any level of disposable income.Answer: AType: A Topic: 1 E: 154 MA: 15434. Suppose a family's consumption exceeds its disposable income. This means that its:A)MPC is greater than 1.B) MPS is negative.C) APC is greater than 1.D) APS is positive.Answer: CType: E Topic: 1 E: 154 MA: 15435. (Advanced analysis) If the equation for the consumption schedule is C = 20 + 0. 8Y , where C is consumption and Y is disposable income, then the average propensity to consume is 1 when disposable income is:A)$80.B) $100.C) $120.D) $160.Answer: BType: E Topic: 1 E: 156 MA: 15636. (Advanced analysis) The equation C = 35 + . 75Y , where C is consumption and Y is disposable income, shows that:A)households will consume three-fourths of whatever level of disposable income they receive.B)households will consume $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.C)there is an inverse relationship between disposable income and consumption.D)households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.Answer: BType: E Topic: 1 E: 156 MA: 15637. Advanced analysis) If the equation C = 20 + . 6Y , where C is consumption and Y is disposable income, were graphed:A)the vertical intercept would be +. 6 and the slope would be +20.B)it would reveal an inverse relationship between consumption and disposable income.C)the vertical intercept would be negative, but consumption would increase as disposable income rises.D)the vertical intercept would be +20 and the slope would be +. 6.Answer: DType: A Topic: 1 E: 154 MA: 15438. One can determine the amount of any level of total income that is consumed by:A)multiplying total income by the slope of the consumption schedule.B) multiplying total income by the APC.C)subtracting the MPS from total income.D)multiplying total income by the MPC.Answer: BType: C Topic: 1 E: 154, 156 MA: 154, 15639. Which of the following is correct?A)MPC + MPS = APC + APSC)APC + MPC = APS + MPSB)APC + MPS = APS + MPCD)APC – APS = MPC – MPSAnswer: A Saving function/APS/MPSType: A Topic: 2 E: 154 MA: 15440. The consumption and saving schedules reveal that:A)consumption rises, but saving declines, as disposable income rises.B)saving varies inversely with the profitability of investment.C)saving varies directly with the level of disposable income.D)saving is inversely related to the rate of interest.Answer: CType: D Topic: 2 E: 154 MA: 15441. Dissaving means:A)the same thing as disinvesting.B)that households are spending more than their current incomes.C)that saving and investment are equal.D)that disposable income is less than zero.Answer: BType: D Topic: 2 E: 154 MA: 15442. Dissaving occurs where:A)income exceeds con sumption.C)consumption exceeds income.B)saving exceeds consumption.D)saving exceeds income.Answer: CType: A Topic: 2 E: 156 MA: 15643. Which of the following relations is not correct?A)1 – MPC = MPSB) APS + APC = 1C) MPS = MPC + 1D) MPC + MPS = 1Answer: CType: A Topic: 2 E: 154 MA: 15444. The saving schedule is drawn on the assumption that as income increases:A)saving will decline absolutely and as a percentage of income.B)saving will increase absolutely, but remain constant as a percentage of income.C)saving will increase absolutely, but decline as a percentage of income.D)saving will increase absolutely and as a percentage of income.Answer: DType: A Topic: 2 E: 154 MA: 15445. At the point where the consumption schedule intersects the 45-degree line:A)the MPC equals 1.B) the APC is zero.C) saving equals income.D) saving is zero.Answer: DType: A Topic: 2 E: 154 MA: 15446. The saving schedule is such that as aggregate income increases by a certain amount saving:A)increases by the same amount as the increase in income.B)does not change.C)increases, but by a smaller amount.D)increases by an even larger amount.Answer: CType: A Topic: 2 E: 156 MA: 15647. If the consumption schedule is linear, then the:A)saving schedule will also be linear.C)MPC will decline as income rises.B)MPS will decline as income rises.D)APC will be constant at all levels of income.Answer: AType: A Topic: 2 E: 153 MA: 15348. Given the consumption schedule, it is possible to graph the relevant saving schedule by:A)subtracting the MPC from 1 at each level of income.B)subtracting investment from consumption at each level of GDP.C)plotting the horizontal differences between the consumption schedule and the 45-degree line.D)plotting the vertical differences between the consumption schedule and the 45-degree line.Answer: DType: A Topic: 2 E: 154 MA: 15449. As aggregate income decreases, the APC:A)and APS will both increase.C)will increase, but the APS will decrease.B)will decrease, but the AP S will increase.D)and APS will both decrease.Answer: CType: A Topic: 2 E: 156 MA: 15650. If the marginal propensity to consume is . 9, then the marginal propensity to save must be:A)1.B) . 1.C) 1. 1.D) . 9.Answer: BType: A Topic: 2 E: 156 MA: 15651. The greater is the marginal propensity to consume, the:A)smaller is the marginal propensity to save.C)lower is the average propensity to consume.B)higher is the interest rate.D)lower is the price level.Answer: AType: A Topic: 2 E: 156 MA: 15652. If the saving schedule is a straight line, the:A)MPS must be constant.C)APC must be constant.B)APS must be constant.D)MPC must be rising.Answer: AType: A Topic: 2 E: 154 MA: 15453. Which one of the following will cause a movement up along an economy's saving schedule?A)an increase in household debt outstandingC)an increase in stock pricesB)an increase in disposable incomeD)an increase in interest ratesAnswer: B Shifts in consumption and saving functionsType: D Topic: 3 E: 156-157 MA: 156-15754. I n the late 1990s the U. S. stock market boomed, causing U. S. consumption to rise. Economists refer to this outcome as the:A)Keynes effect.B) interest-rate effect.C) wealth effect.D) multiplier effect.Answer: CType: A Topic: 3 E: 157 MA: 15755. The wealth effect is shown graphically as a:A)shift of the consumption schedule.B)movement along an existing consumption schedule.C)shift of the investment schedule.D)movement along an existing investment schedule.Answer: AUse the following to answer questions 56-59:Type: G Topic: 3 E: 157 MA: 15756. Refer to the above graph. A movement from b to a along C1 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)decrease in income tax rates.D)increase in saving.Answer: AType: G Topic: 3 E: 157 MA: 15757. Refer to the above graph. A shift of the consumption schedule from C1 to C2 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)increase in income tax rates.D)increase in s aving.Answer: BType: G Topic: 3 E: 157 MA: 15758. Refer to the above graph. A movement from a to b along C1 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)increase in income tax rates.D)increase in real GDP.Answer: DType: G Topic: 3 E: 157 MA: 15759. Refer to the above graph. A shift of the consumption schedule from C2 to C1 might be caused by a:A)increase in real GDP.B)reverse wealth effect, caused by a decrease in stock market prices.C)decrease in income tax rates.D)decrease in saving.Answer: BType: C Topic: 3 E: 157 MA: 15760. An upward shift of the saving schedule suggests:A)nothing with respect to changes in the APC and APS.B)that the APC and APS have both decreased at each GDP level.C)that the APC and APS have both increased at each GDP level.D)that the APC has decreased and the APS has increased at each GDP level.Answer: DType: A Topic: 3 E: 157 MA: 15761. Which of the following will not tend to shift the consumption schedule upward?A )a currently small stock of durable goods in the possession of consumersB)the expectation of a future decline in the consumer price indexC)a currently low level of household debt.D)the expectation of future shortages of essential consumer goods.Answer: BType: A Topic: 3 E: 157 MA: 15762. If the consumption schedule shifts upward and the shift was not caused by a tax change, the saving schedule:A)will not shift.C)will shift downward.B)may shift either upward or downward.D)will also shift upward.Answer: CType: A Topic: 3 E: 156 MA: 15663. Which of the following will not cause the consumption schedule to shift?A)a sharp increase in the amount of wealth held by householdsB)a change in consumer incomesC)the expectation of a recessionD)a growing expectation that consumer durables will be in short supplyAnswer: BType: A Topic: 3 E: 157 MA: 15764. An increase in personal taxes will shift:A)both the consumption and saving schedules downward.B)both the consumption and saving schedules upward. C)the consumption schedule upward and the saving schedule downward.D)the consumption schedule downward and the saving schedule upward.Answer: AType: A Topic: 3 E: 157 MA: 15765. If for some reason households become increasingly thrifty, we could show this by:A)a downshift of the saving schedule.C)an upshift of the saving schedule.B)an upshift of the consumption schedule.D)an increase in the equilibrium GDP.Answer: CType: G Topic: 3 E: 156 MA: 15666. Suppose the economy's saving schedule shifts from S1 to S 2 as shown in the above diagram. We can say that its:A)MPC has increased.B)MPS has increased.C)APS has increased at all levels of disposable income.D)APS has decreased at all levels of disposable income.Answer: BType: C Topic: 3 E: 154 MA: 15467. If a consumption schedule shifts upward, this necessarily means that the:A)MPC has increased.B)MPS has decreased.C)APC is now higher at each level of disposable income.D)APC is now lower at each level of disposable income.Answer: CType: A Topic: 3 E: 158 MA: 15868. Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of:A)an increase in disposable income.C)an increase in personal taxes.B)an increase in household wealth.D)the expectation of a recession.Answer: CType: G Topic: 3 E: 154 MA: 15469. Suppose an economy's consumption schedule shifts from C1 to C2 as shown in the above diagram. We can say that its:A)MPC has increased but its APC at each income level is unchanged.B)APC at each income level is increased but its MPC is unchanged.C)MPC and APC at each income level have both increased.D)MPC and APC at each income level have both decreased.Answer: CGraphs/tables: mixed consumption and saving Use the following to answer questions 70-72:Type: T Topic: 4 E: 156 MA: 15670. Refer to the above data. The marginal propensity to consume is:A). 25.B) . 75.C) . 20.D) . 80.Answer: DType: T Topic: 4 E: 154 MA: 15471. Refer to the above data. At the $200 level of disposab le income:A)the marginal propensity to save is 2? percent.C)the average propensity to save is . 20.B)dissaving is $5.D)the average propensity to consume is . 80.Answer: BType: T Topic: 4 E: 156 MA: 15672. Refer to the above data. If disposable income was $325, we would expect consumption to be:A)$315.B) $305.C) $20.D) $290.Answer: BUse the following to answer questions 73-78:Type: G Topic: 4 E: 154 MA: 15473. Refer to the above diagram. The average propensity to consume is 1 at point:A)F.B) A.C) D.D) B.Answer: BType: G Topic: 4 E: 156 MA: 15674. Refer to the above diagram. The marginal propensity to consume is equal to:A)AE/0E.B) CF/CD.C) CB/AB.D) CD/CF.Answer: CType: G Topic: 4 E: 154-155 MA: 154-15575. Refer to the above diagram. At income level F the volume of saving is:A)BD.B) AB.C) CF-BF.D) CD.Answer: DType: G Topic: 4 E: 154 MA: 15476. Refer to the above diagram. Consumption will be equal to income at:A)an income of E.B) an income of F.C) point C.D) point D.Answer: AType: G To pic: 4 E: 154-155 MA: 154-15577. Refer to the above diagram. The economy is dissaving:A)in the amount CD.C)at income level H.B)at all income levels greater than E.D)at income level E.Answer: CType: G Topic: 4 E: 156 MA: 15678. Refer to the above diagram. The marginal propensity to save is:A)CD/EF.B) CB/CF.C) CB/AF.D) EF/CB.Answer: AUse the following to answer questions 79-80:Type: A Topic: 4 E: 153 MA: 15379. The above figure suggests that:A)consumption would be $60 billion even if income were zero.B)saving is zero at the $120 billion income level.C)as income increases, consumption decreases as a percentage of income.D)as income increases, consumption decreases absolutely.Answer: CType: A Topic: 4 E: 154-155 MA: 154-15580. Refer to the above figure. If the relevant saving schedule were constructed:A)saving would be minus $20 billion at the zero level of income.B)aggregate saving would be $60 at the $60 billion level of income.C)its slope would be 1/2.D)it would slope downward and to the rightAnswer: AUse the following to answer questions 81-83:Answer the next question(s) on the basis of the following data for a hypothetical economy.Type: T Topic: 4 E: 156 MA: 15681. Refer to the above data. The marginal propensity to consume is:A). 80.B) . 75.C) . 20.D) . 25.Answer: AType: T Topic: 4 E: 154 MA: 15482. Refer to the above data. At the $100 level of income, the average propensity to save is:A). 10.B) . 20.C) . 25.D) . 90.Answer: AType: T Topic: 4 E: 156 MA: 15683. Refer to the above data. If plotted on a graph, the slope of the saving schedule would be:A). 80.B) . 10.C) . 20.D) . 15.Answer: CUse the following to answer questions 84-88:Type: G Topic: 4 E: 156 MA: 15684. Refer to the above diagram. The marginal propensity to save is equal to:A)CD/0D.B) 0B/0A.C) 0D/0D.D) CD/BD.Answer: DType: G Topic: 4 E: 154 MA: 15485. Refer to the above diagram. At disposable income level D, the average propensity to save is equal to:A)CD/BD.B) CD/D.C) D/CD.D) A/B.Answer: BType: G Topic: 4 E: 154-155 MA: 154-15586. Refer to the above diagram. At disposable income level D, consumption is:A)equal to CD.B) equal to D minus CD.C) equal to CD/D.D) equal to CD plus BD.Answer: BType: G Topic: 4 E: 154-155 MA: 154-15587. Refer to the above diagram. Consumption equals disposable income when:A)disposable income is B.B) disposable income is D.C) CD equals A.D) B equals CD.Answer: AType: A Topic: 4 E: 156-157 MA: 156-15788. The saving schedule shown in the above diagram would shift downward if, all else equal:A)the average propensity to save increased at each income level.B)the marginal propensity to save rose at each income level.C)consumer wealth rose rapidly because of a significant increase in stock market prices.D)the real interest rate fell.Answer: CUse the following to answer questions 89-96:Answer the next question(s) on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.Type: T Topic: 4 E: 156 MA: 15689. Refer to the above data. The marginal propensity to consume in economy (1) is:A). 5.B) . 3.C) . 8.D) . 7.Answer: DType: T Topic: 4 E: 156 MA: 15690. Refer to the above data. The marginal propensity to consume:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be calculated from the data given.Answer: CType: T Topic: 4 E: 156 MA: 15691. Refer to the above data. The marginal propensity to save:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be determined from the data given.Answer: AType: T Topic: 4 E: 154 MA: 15492. Refer to the above data. At an income level of $40 billion, the average propensity to consume:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be determined from the data given.Answer: BType: T Topic: 4 E: 154 MA: 15493. Refer to the above data. At an income level of $400 billion, the aver age propensity to save in economy (2) is:A). 9125.B) . 0725.C) . 0875.D) . 9305.Answer: CType: T Topic: 4 E: 156 MA: 15694. (Advanced analysis) Refer to the above data. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is _____ and the slope is _____.A)minus $2; . 9.B) $2; . 18.C) $100; . 5.D) $2; . 9.Answer: DType: T Topic: 4 E: 158 MA: 15895. Refer to the above data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:A)marginal propensity to consume will remain unchanged in each of the three countries.B)marginal propensity to consume will decline in each of the three countries.C)average propensity to save will fall at each level of DI in each of the three countries.D)marginal propensity to save will rise in each of the three countries.Answer: AType: T Topic: 4 E: 157 MA: 15796. Refer to the above data. A $2 billion increase in consumption at each level of DI could be caused by:A)a decrease in consumer wealth.C)an increase in taxation.B)new expectations of higher future income.D)an increase in saving.Answer: BUse the following to answer questions 97-100:Type: G Topic: 4 E: 154 MA: 15497. Refer to the above diagram. The break-even level of disposable income:A)is zero.B) is minus $10.C) is $100.D) cannot be determined from the information given.Answer: CType: G Topic: 4 E: 156 MA: 15698. Refer to the above diagram. The marginal propensity to consume is:A). 2.B) . 8.C) . 4.D) . 3.Answer: BType: G Topic: 4 E: 156 MA: 15699. (Advanced analysis) The equation for the above saving schedule is:A)Yd = -20 + . 8S.B) Yd = 20 + . 2S.C) S = -20 + . 2Yd.D) S = 20 + . 8Yd.Answer: CType: G Topic: 4 E: 154-155 MA: 154-155100. Refer to the above diagram. The average propensity to consume:A)is greater than 1 at all levels of disposable income above $100.B)is greater than 1 at all levels of disposable income below $100.C)is equal to the average propensity to save.D) cannot be determined from the information given.Answer: BUse the following to answer questions 101-104:Type: G Topic: 4 E: 154 MA: 154101. Refer to the above diagram. The break-even level of income is:A)zero.B) $150.C) $60.D) $120.Answer: BType: G Topic: 4 E: 154 MA: 154102. Refer to the above diagram. The average propensity to consume is:A)greater than 1 at all levels of income above $150.B)greater than 1 at all levels of income below $150.C)zero.D). 6.Answer: BType: G Topic: 4 E: 156 MA: 156103. Refer to the above diagram. The marginal propensity to consume is:A). 4.B) . 6.C) . 5.D) . 8.Answer: BType: G Topic: 4 E: 156 MA: 156104. (Advanced analysis) Refer to the above diagram. The equation for the consumption schedule is:A)C = . 6Y .B) Y = 60 + . C.C) C = 60 + . 6Y .D) C = 60 + . 4Y .Answer: CUse the following to answer questions 105-106: (Advanced analysis) Answer the next question(s) on the basis of the following data:Type: T Topic: 4 E: 156 MA: 156105. Which of the following e quations correctly represents the above data?A)Yd = 40 + . 6CB) C = 60 + . 4YdC) C = 40 + . 6YdD) C = . 6YdAnswer: CType: T Topic: 4 E: 156 MA: 156106. Which of the following equations represents the saving schedule implicit in the above data?A)S = C – YdB) S = 40 + . 4YdC) S = 40 + . 6YdD) S = -40 + . YdAnswer: DInvestment demandType: F Topic: 5 E: 160 MA: 160 Status: New107. The investment demand curve portrays an inverse (negative) relationship between:A)investment and real GDP.C)the nominal interest rate and investment.B)the real interest rate and investment.D)the price level and investment.Answer: BType: F Topic: 5 E: 160 MA: 160 Status: New108. The investment demand slopes downward and to the right because lower real interest rates:A)expand consumer borrowing, making investments more profitable.B)boost expected rates of returns on investment.C)enable more investment projects to be undertaken profitably.D)create tax incentives to invest.Answer: CType: ATopic: 5 E: 159 MA : 159 Status: New109. Other things equal, a decrease in the real interest rate will:A)shift the investment demand curve to the right.B)shift the investment demand curve to the left.C)move the economy upward along its existing investment demand curve.D)move the economy downward along its existing investment demand curve.Answer: DType: A Topic: 5 E: 159 MA: 159110. Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000. The expected rate of return on this tool is:A)80 percent.B) 8 percent.C) 2 percent.D) 20 percent.Answer: DType: A Topic: 5 E: 159 MA: 159111. Assume a machine which has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of return on this machine is:A)7. 5 percent.B) 10 percent.C) 15 percent.D) 20 percent.Answer: CType: A Topic: 5 E: 159 MA: 159112. If the firm in the previous question finds it can borrow funds at an interest rate of 10 percent the firm should:A)not purchase the machine because the expected rate of return exceeds the interest rate.B)not purchase the machine because the interest rate exceeds the expected rate of return.C)purchase the machine because the expected rate of return exceeds the interest rate.D)purchase the machine because the interest rate exceeds the expected rate of return.Answer: CType: D Topic: 5 E: 159-160 MA: 159-160113. The relationship between the real interest rate and investment is shown by the:A)investment demand schedule.C)saving schedule.B)consumption of fixed capital schedule.D)aggregate supply curve.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160114. Given the expected rate of return on all possible investment opportunities in the economy:A)an increase in the real rate of interest will reduce the level of investment.B)a decrease in the real rate of interest will reduce the level of investment.C)a change in the real interest rate will have no impact on the level of investment.D)an increase in the real interest rate will increase the level of investment.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160115. A decline in the real interest rate will:A)increase the amount of investment spending.C)shift the investment demand curve to the right.B)shift the investment schedule downward.D)shift the investment demand curve to the left.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160116. The immediate determinants of investment spending are the:A)expected rate of return on capital goods and the real interest rate.B)level of saving and the real interest rate.C)marginal propensity to consume and the real interest rate.D)interest rate and the expected price level.Answer: AType: A Topic: 5 E: 160 MA: 160117. The investment demand curve suggests:A)that changes in the real interest rate will not affec t the amount invested.B)there is an inverse relationship between the real rate of interest and the level of investment spending.C)that an increase in business taxes will tend to stimulate investment spending.D)there is a direct relationship between the real rate of interest and the level of investment spending.Answer: BType: T Topic: 5 E: 160 MA: 160118. Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. The investment-demand curve for this economy is:Answer: BType: T Topic: 5 E: 160 MA: 160119. In view of your answer to the previous question, if the real interest rate is 15 percent in this economy, the aggregate amount of investment will be:A)$25.B) $20.C) $15.D) $10.Answer: DType: C Topic: 5 E: 162 MA: 162120. If business taxes ar e reduced and the real interest rate increases:A)consumption and saving will necessarily increase.B)the level of investment spending might either increase or decrease.C)the level of investment spending will necessarily increase.D)the level of investment spending will necessarily decrease.Answer: BType: A Topic: 5 E: 162 MA: 162121. Other things equal, a 10 percent decrease in corporate income taxes will:A)decrease the market price of real capital goods.B)have no effect on the location of the investment-demand curve.C)shift the investment-demand curve to the right.D)shift the investment-demand curve to the left.Answer: CType: A Topic: 5 E: 162 MA: 162122. The investment demand curve will shift to the right as the result of:A)the availability of excess production capacity.B)an increase in business taxes.C)businesses becoming more optimistic about future business conditions.D)an increase in the real interest rate.Answer: CType: A Topic: 5 E: 159-160 MA: 159-160123. Other things equal, the real interest rate and the level of investment are:A)related only when saving equals planned investment.B)unrelated.C)inversely related.D)directly related.Answer: CUse the following to answer questions 124-125:Answer the next question(s) on the basis of the following table:Type: T Topic: 5 E: 160 MA: 160124. The above table reflects a(n):A)interest rate schedule.C)investment demand schedule.B)demand-for-money schedule.D)profit schedule.Answer: CType: T Topic: 5 E: 160 MA: 160125. The above schedule indicates that if the real interest rate is 8 percent, then:A)we cannot tell what volume of investment will be profitable.B)$30 billion will be both saved and invested.C)$30 billion of investment will be undertaken.D)$60 billion of investment will be undertaken.Answer: CType: C Topic: 5 E: 162 MA: 162126. Other things equal, if the real interest rate falls and business taxes rise:A)investment will rise until it is equal to saving.B)we will be uncertain as to the resulting change in in vestment.C)we can be certain that investment will rise.D)we can be certain that investment will fall.Answer: BType: A Topic: 5 E: 162 MA: 162127. The investment demand curve will shift to the right as a result of:A)an increase in the excess production capacity available in industry.B)an increase in business taxes.C)technological progress.D)an increase in the acquisition and maintenance cost of capital goods.Answer: CType: A Topic: 5 E: 162 MA: 162128. The investment demand curve will shift to the left as a result of:A)an increase in the excess production capacity available in industry.B)a decrease in business taxes.C)increased business optimism with respect to future economic conditions.D)a decrease in labor costs.Answer: AType: A Topic: 5 E: 159 MA: 159129. If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:A)r falls.B) i is greater than r.C) r is greater than i.D) i rises.Answ er: CType: A Topic: 5 E: 162 MA: 162130. A rightward shift of the investment demand curve might be caused by:A)an increase in the price level.B)a decline in the real interest rate.C)an increase in the expected rate of return on investment.D)an increase in business taxes.Answer: CType: A Topic: 5 E: 159 MA: 159131. The real interest rate is:A)the percentage increase in money that the lender receives on a loan.B)the percentage increase in purchasing power that the lender receives on a loan.C)also called the after-tax interest rate.D)usually higher than the nominal interest rate.Answer: BType: A Topic: 5 E: 160 MA: 160132. When we draw an investment demand curve we hold constant all of the following except:A)the expected rate of return on the investment.C)the interest rate.B)business taxes.D)the present stock of capital goods.Answer: CType: A Topic: 5 E: 159 MA: 159133. If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is:A)18 percen t.B) 24 percent.C) 12 percent.D) 6 percent.Answer: CType: A Topic: 5 E: 159-160 MA: 159-160134. If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is:A)2 percent.B) zero percent.C) 10 percent.D) 22 percent.Answer: DType: A Topic: 5 E: 160 MA: 160135. A high rate of inflation is likely to cause a:A)high nominal interest rate.C)low rate of growth of nominal GDP.B)low nominal interest rate.D)decrease in nominal wages.Answer: AType: A Topic: 5 E: 160 MA: 160136. If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:A)more investment will be forthcoming when i exceeds r.B)less investment will be forthcoming when r rises.C)r will fall as more investment is undertaken.D)r will exceed i at all possible levels of investment.Answer: CType: A Topic: 5 E: 159 MA: 159137. If the real interest rate in the economy is i and the expected rate of return on additional inv estment is r, then other things equal:A)investment will take place until i and r are equal.B)investment will take place until r exceeds i by the greatest amount.C)r will rise as more investment is undertaken.D)i will fall as more investment is undertaken.Answer: AType: G Topic: 5 E: 160 MA: 160138. Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent; another $15 with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Which of the lines on the above diagram represents these data?A)AB) BC) CD) DAnswer: BUse the following to answer questions 139-141:Answer the next question(s) on the basis of the following information for a private c losed economy. Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent; another $15 with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range.Type: G Topic: 5 E: 159 MA: 159139. Refer to the above information. If the real interest rate is 15 percent, what amount of investment will be undertaken?A)$15B) $30C) $45D) $60Answer: BType: G Topic: 5 E: 159 MA: 159140. Refer to the above information. If the real interest rate is 5 percent, what amount of investment will be undertaken?A)$15B) $30C) $45D) $60Answer: DType: G Topic: 5 E: 160 MA: 160141. Refer to the above information. The expected rate of return curve:A)shows a direct relationship between the i nterest rate and investment.B)is also the investment demand curve.C)is indeterminant.D)implies a direct (positive) relationship between the interest rate and the level of GDP.Answer: BUse the following to answer questions 142-144:Type: G Topic: 5 E: 162 MA: 162 Status: New142. Which of the following would shift the investment demand curve from ID1 to ID2?A)a lower interest rateC)a higher interest rateB)lower expected rates of return on investmentD)higher expected rates of return on investmentAnswer: DType: G Topic: 5 E: 162 MA: 162 Status: New143. Which of the following would shift the investment demand curve from ID1 to ID3?A)a lower interest rateC)a higher interest rateB)lower expected rates of return on investmentD)higher expected rates of return on investmentAnswer: BType: G Topic: 5 E: 160 MA: 160 Status: New144. Which of the following would increase investment, while leaving an existing investment demand curve, say, ID2, in place?A)a lower interest rateC)lower expected returns on investmentB)a higher interest rateD)higher expected returns on investmentAnswer: AType: F Topic: 5 E: 162-163 MA: 162-163 Status: New145. In annual percentage terms, investment spending in the United States is:A)less variable than real GDP.C)less variable than the price level.B)less variable than consumption spending.D)more variable than real GDP.Answer: DMultiplier effectType: A Topic: 6 E: 164 MA: 164146. The multiplier effect means that:A)consumption is typically several times as large as saving.B)a change in consumption can cause a larger increase in investment.C)an increase in investment can cause GDP to change by a larger amount.D)a decline in the MPC can cause GDP to rise by several times that amount.Answer: CType: E Topic: 6 E: 166 MA: 166147. The multiplier is:A)1/MPC.B) 1/(1 + MPC).C) 1/MPS.D) 1/(1 – MPS).Answer: CType: A Topic: 6 E: 164 MA: 164148. The multiplier is useful in determining the:A)full-employment unemployment rate.B)level of business inventories.C) rate of inflation.D)change in GDP resulting from a change in spending.Answer: DType: D Topic: 6 E: 164 MA: 164149. The multiplier is defined as:A)1 – MPS.C)change in GDP/initial change in spending.B)change in GDP ? initial change in spending.D)change in GDP – initial change in spending.Answer: CUse the following to answer questions 150-151:Type: G Topic: 6 E: 156 MA: 156150. The above figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the highest marginal propensity to consume?A)1B) 2C) 3D) 4Answer: DType: G Topic: 6 E: 166 MA: 166151. The above figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the largest multiplier?A)1B) 2C) 3D) 4Answer: DType: E Topic: 6 E: 166 MA: 166 152. If 100 percent of any change in income is spent, the multiplier will be:A)equal to the MPC.B) 1.C) zero.D) infinitely large.Answer: DType: E Topic: 6 E: 166 MA: 166153. The multiplier can be calculated as:A)1/(MPS + MPC)B) MPC/MPSC) 1 /(1 – MPC)D) 1 – MPC = MPSAnswer: CType: D Topic: 6 E: 166 MA: 166154. The multiplier:A)occurs only in response to a change in the level of investment spending.B)can be found by taking the reciprocal of the MPS.C)occurs only when intended investment increases as GDP increases.D)is measured by the slope of the saving schedule.Answer: BType: A Topic: 6 E: 166 MA: 166155. The size of the multiplier is equal to the:A)slope of the consumption schedule.B)reciprocal of the slope of the consumption schedule.C)slope of the saving schedule.D)reciprocal of the slope of the saving schedule.Answer: DType: C Topic: 6 E: 166 MA: 166156. If the MPS is only half as large as the MPC, the multiplier is:A)2.B) 3.C) 4.D) 5.Answer: BType: A Topic: 6 E: 166 MA: 166157. If the MPC is . 70 and gross investment increases by $3 billion, the equilibrium GDP will:A)increase by $10 billion.C)decrease by $4. 29 billion.B)increase by $2. 10 billion.D)increase by $4. 29 billion.Answer: AType: A Topic: 6 E: 166 MA: 166158. The numerical value of the multiplier will be smaller the:A)larger the average propensity to consume.C)larger the slope of the consumption schedule.B)larger the slope of the saving schedule.D)smaller the slope of the saving schedule.Answer: BType: A Topic: 6 E: 165 MA: 165159. The practical significance of the multiplier is that it:A)equates the real interest rate and the expected rate of return on investment.B)magnifies initial changes in spending into larger changes in GDP.C)keeps inflation within tolerable limits.D)helps to stabilize the economy.Answer: BType: F Topic: 6 E: 166 MA: 166160. The multiplier:A)varies directly with the slope of the investment demand schedule.B)is unrelated to the slope of the saving schedule.C)will be greater, the smaller is the slope of the saving schedule.D)will be greater, the steeper is the slope of the saving schedule.Answer: CType: A Topic: 6 E: 166 MA: 166161. The increase in income that results from an increase in investm ent spending would be greater the:A)smaller the MPS.B) smaller the APC.C) larger the MPS.D) smaller the MPC.Answer: AType: A Topic: 6 E: 164 MA: 164162. The multiplier effect:A)reduces the MPC.B)magnifies changes in spending into larger changes in output and income.C)promotes stability of the general price level.D)lessens upswings and downswings in business activity.Answer: BType: E Topic: 6 E: 166 MA: 166163. If the MPC is . 6, the multiplier will be:A)4. 0.B) 6. 0.C) 2. 5.D) 1. 67.Answer: CType: C Topic: 6 E: 166 MA: 166164. Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by:A)$3 billion.B) $2/3 billion.C) $6 billion.D) $2 billion.Answer: CType: E Topic: 6 E: 166 MA: 166165. The multiplier is:A)1/APS.B) 1/APC.C) 1/MPC.D) 1/MPS.Answer: DType: A Topic: 6 E: 164 MA: 164 Status: New166. The multiplier applies to:A)investment but not to net exports or government spending.B)investment, net exports, and government spending.C)increases in spending but not to decreases in spending.D)spending by the private sector but not by the public sector.Answer: BType: A Topic: 6 E: 164 MA: 164167. The multiplier effect indicates that:A)a decline in the interest rate will cause a proportionately larger increase in investment.B)a change in spending will change aggregate income by a larger amount.C)a change in spending will increase aggregate income by the same amount.D)an increase in total income will generate a larger change in aggregate expenditures.Answer: BUse the following to answer questions 168-173:Answer the next question(s) on the basis of the following table that illustrates the multiplier process. Type: T Topic: 6 E: 156 MA: 156168. Refer to the above table. The marginal propensity to consume is:A). 5.B) . 75.C) . 8.D) . 9.Answer: CType: T Topic: 6 E: 156 MA: 156169. Refer to the above table. The marginal propensity to save is:A). 5.B) . 25.C) . 2.D) . 1.Answer: CType: T Topic: 6 E: 156 MA: 156170. Refer to the above table. The change in income in round two will be:A)$4.B) $16.C) $20.D) $24.Answer: BType: T Topic: 6 E: 164 MA: 164171. Refer to the above table. The total change in income resulting from the initial change in investment will be:A)$100.B) $20.C) $80.D) $200.Answer: A Type: T Topic: 6 E: 165 MA: 165172. Refer to the above table. The total change in consumption resulting from the initial change in investment will be:A)$100.B) $96.C) $180.D) $80.Answer: DType: T Topic: 6 E: 166 MA: 166173. Refer to the above table. The multiplier in this economy is:A)2.B) 4.C) 5.D) 10.Answer: CType: C Topic: 6 E: 164 MA: 164174. If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the multiplier in the economy is:A)4.B) 5.C) 3. 33.D) 2. 5.Answer: BType: C Topic: 6 E: 164 MA: 164175. If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round, the multiplier in the economy is:A)2.B) 3. 33.C) 5.D) 10.Answer: AType: C Topic: 6 E: 165 MA: 165176. If a $100 billion decrease in investment spending causes income to decline by $100 billion in the first round of the multiplier process and by $75 billion in the second round, income will eventually decline by:A)$200 billion.B) $300 billion.C) $400 billion.D) $500 billion.Answer: CType: C Topic: 6 E: 165 MA: 165177. If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:A)$2500 billion.B) $3000 billion.C) $4000 billion.D) $5000 billion.Answer: DType: C Topic: 6 E: 166 MA: 166178. If the marginal propensity to save is 0. 2 in an economy, a $20 billion rise in investment spending will increase:A)GDP by $120 billion.C)saving by $25 billion.B)GDP by $20 billion.D)consumption by $80 billion. Answer: DType: A Topic: 6 E: 166 MA: 166179. A $1 billion increase in investment will cause a:A)(1/MPS) billion increase in GDP.C)(1 – MPC) billion increase in GDP.B)(MPS) billion increase in GDP.D)(MPC – MPS) billion increase in GDP.Answer: AType: F Topic: 6 E: 166-167 MA: 166-167180. The Council of Economic Advisers has estimated that the actual multiplier for the U. S. economy is approximately:A)4.B) 3. 5.C) 3.D) 2.Answer: DType: F Topic: 6 E: 166-167 MA: 166-167 Status: New181. The actual multiplier effect in the U. S. economy is less than the multiplier effect in the text examples because:A)the real-world MPS is larger than the MPS in the examples.B)in addition to saving, households use some of any increase in income to buy imported goods and to pay higher taxes.C)the gap between the nominal interest rate and the real interest rate widens as the economy expands or contracts.D)the MPC in the United States is greater than 1.Answer: BConsider This QuestionsType: F E: 159 MA: 159 Status: New182. (Consider This) U. S. consumption increased between March 2000 and July 2002 even though stock values declined by $3. 7 trillion. One of the reasons was that:A)lower interest rates allowed many households to reduce their monthly loan payments and increase their consumption spending.B)deflation occurred, which increased purchasing power.C)economic growth accelerated relative to the prior two years.D)the unemployment rate dramatically declined.Answer: AType: F E: 159 MA: 159 Status: New183. (Consider This) Part of the wealth effect of a $3. 7 trillion decline in stock values between March 2000 and July 2002 was offset by rising:A)tax rates.B) interest rates.C) house values.D) expectations of future income.Answer: CLast Word QuestionsType: A E: 167 MA: 167184. (Last Word) Art Buchwald's article â€Å"Squaring the Economic Circle† is a humorous description of:A)a negative GDP gap.C)the marginal propensity to save.B)a positive GDP gap.D)the multiplier. Answer: DType: A E: 167 MA: 167185. Last Word) Art Buchwald's article â€Å"Squaring the Economic Circle† humorously describes how:A)a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision.B)a price increase on a single product eventually leads to rapid inflation.C)an increase in imports eventually leads to a greater increase in exports.D)a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.Answer: ATrue/False QuestionsType: A E: 154 MA: 154186. If DI is $275 billion and the APC is 0. 8, we can conclude that saving is $55 billion.Answer: TrueType: A E: 156 MA: 156187. If the MPC is constant at various levels of income, then the APC must also be constant at all of those income levels.Answer: FalseType: A E: 154 MA: 154188. The average propensity to consume is defined as income divided by consumption.Answer: FalseType: D E: 156 MA: 156189. 1 – MPC = MPS.Answer: TrueType: A E: 159 MA: 159190. A decline in the real interest rate will shift the investment demand curve to the right.Answer: FalseType: A E: 156 MA: 156191. If the Brown family's marginal propensity to consume is 0. 70, then it will necessarily consume seven-tenths of its total income.Answer: FalseType: A E: 156 MA: 156192. 1 + MPS = MPC.Answer: FalseType: A E: 156 MA: 156193. The slope of the consumption schedule is measured by the MPC.Answer: TrueType: A E: 159 MA: 159194. A specific investment will be undertaken if the expected rate of return, r, exceeds the interest rate, i.Answer: TrueType: A E: 163-164 MA: 163-164195. Investment is highly stable; it rarely changes.Answer: FalseType: A E: 156 MA: 156196. The greater the MPC, the greater the multiplier.Answer: TrueType: A E: 166 MA: 166197. If the MPS is 1, the multiplier will be 1.Answer: TrueType: A E: 166 MA: 166198. The multiplier is equal to the reciprocal of the MPC.Answ er: FalseType: F E: 164 MA: 164 Status: New199. The multiplier shows the relationship between changes in a component of spending, say, investment, and the consequent changes in real income and output.Answer: TrueType: F E: 167 MA: 167 Status: New200. The estimate for the value of the real-world multiplier is 2.Answer: True

Bmw Management

OPERATIONS MANAGEMENT Table of Contents 1. Introduction3 2. Discussion4 3. BMW area of improvement6 4. BMW Solutions7 5. Recommendations9 6. Conclusion11 References13 1. Introduction Operations management is a process where system direction and control of the processes transforms inputs into finished goods and services. It is also the way organization do produce goods and their services. It’s a process of transforming and oversetting set of resources that is inputs in to services and goods which is output. Operations Functions of B. M. W comprises of a significant number of employees and their physical assets in various organizations (Mondy & Premeaux, 1992). Its also determins the equipments which are used and some information should go in an operation system and also how this equipments can be able to market the place. Managers they are the one who are supposed to be responsible on their activities such as quality management and control in their business. The Importance of operation have increased in recent years. Managers they do play a big role in satisfying their customer’s needs and making their business to be firm and strong. Inputs recourses might be raw materials or information or customers. Some examples of inputs in the B. M. W Company which include:-customers – this is a process where you are involved in processing your ticket and baggage. Raw Materials this is where some plastics product they are melted and they do form a mold. Information; a divisor do gather some information to clients and assist in developing in financial plans. Output it’s a product or services required by customers and its broadest sense of the word. Overview functions they involves a lot of different disciplines. Productions do have service which operations have (U. S Departments of Education Institute of Education Sciences, 2009). Discussion Operation management is the way products and goods and services are concerned with organizing the process of getting thing which are been done. The operation is also used for transforming process and converting a set of resources into services and goods. Operations management’s functions of the B. M. W involve different disciplines, production and services. Operation management functions do have a central role in most firms. The functions which are defined to select this determine which product or services will be produced and by which process (Mondy & Premeaux, 1992). Designing in the B. M. W sector involve creation method, whereby the operation involves actual process and meeting of schedules and also do certify production and standards. Operations functions here manager is supposed to be responsible for the success of the products units. This person need knowledge which is base in technology of products which are been processed . In customers participation it leads to storage ,transporting and stocking, and at the same time customer supplies with some of the products. Using customers as labor, enables them to do self service and this require customers to physically and mentally able to help themselves (Mondy & Premeaux, 1992). Retaining an existing customer at the B. M. W Company is much cheaper costs of winning new customers. The designing of a poorly product or service can fail to market needs and expectations. It’s more important to make products are well delivered and processed and closely linked. The designer must work together with the product so that he or she can make it to me more successful introduction of a new product or services. Products they are experience through materials, equipments and people, People they do know what can be done so as to solve problems (Chase & Jacobs et al, 2001). The right quality it’s not best but it’s determined by the cost of the products and the technical characteristics and the requirements. Manufacturers should procedure the best products in the right numbers and if they are produced in excess of the demands the capital will lower the inventory but if the quality is in short of demand its leads to shortage of products. The advantages of operation management in job shop production, the operator will become more skilled and its will compete other jobs and its will give the other business the opportunities. The Opportunities of B. M. W exists to create methods and innovates some ideas. Batch productions it’s defined by American Production and Inventory Control Society. The characterizes includes, whenever there is shorter productions to run the business, when machines and plant are flexible, when the manufacturer lead time and the cost at lower as compared to job order productions. The Advantages of Batch production are when there is better utilization of plants; the cot per item is lower as compared to job orders production (Mondy & Premeaux, 1992). Objectives of the operation management of the B. M. W Company should ensure its products are being produced at more clear and attractive services of right quality and quantity at the right time and at right manufacturing costs. The products are supposed to be of right quality and the right quantity. The quality is established based upon the customers and their needs Mondy & Premeaux (1992), the manager defines objectives for the operations of the organization and its polices, The operation manager provide the role and the flow of information within the operations . They determine activities which are required so as to achieve the goals and assign them responsibility for carrying them out. Operation manager must exercise to control by measuring outputs and comparing their plans in managements. Managers they are the one who are supposed to be concerned with how efforts to plan, organize and to control the behavior of human (Ames, 1995). Manager plan, organize and control the conversation process within the organization. Operation management is concern with achieving of both satisfactory customers and services, the B. M. W company should be tacked with these two objectives in mind, and many of the problems will favor the operations manager this is because of the conflicts hence operations manager must attempt to the balanced their basics objectives (Mondy & Premeaux, 1992). BMW AREA OF IMPROVEMENT (SUPPLY CHAIN AND CUSTOMER RELATIONS) The services operations at the B. M. W Company are not immune to some problems associated in making services of operations to meet its objectives (Mondy & Premeaux, 1992, pg 3). The designing of the something do limits for existing equipments, capacity and facilities, the product upgrades with the new features do have some significant effects on the operations. With the fixed of the process is highly repeatable and the process can be easily be monitored and varied. The importance of the aspect of the designed concentrates on utilizing and efficiency in addressing the demands valuables and the customer participations. King the customer out do the processes whether it’s possible and adopt the industrial process which is designed the processes which are not involving the customers. Mondy & Premeaux (1992), the production/operations management this is the process in which combines and transforms various resources which are being used in productions. It’s the part of organization which it’s been concerned with the transformation or the range of some inputs into the required field. Operations management strategies at the B. M. W Company is to improve the efficiency and effective of transportation through low cost and management to improve and to program (Megginsion, 1992, pg8). To associates with problems and their limits of current process techniques. Management is a process whereby an essential business functions take place and manager is some who is responsible for people and project together. The two topics includes the general manager’s job this is where manager take his or her ole in leading and managing an enterprise and to be responsible on the company the other one role to determine the long run of all enterprises. The most important role of a manager is to rule the business this is where business need different ways of thinking and way of acting in the business (U. S Departments of Education Institute of Education Sciences, 2009). What makes a manager to organize and also manage his or her he should be competent and he is organized in his dutie s. There are travel demands, these are transporting system management and intelligent transporting systems which improves strategies that do improve mobility. Management quality can certify and help Manufacture Company and put systems and control to ensure few and more profitable business (Megginsion, 1992, pg12). The company that do approach the certification at the end it’s the one whose succeed; effective quality management system its standard of quality (Megginsion, 1992). The standards involve overtime which reelects aspects of the industry. When businesses gets standards quality that when it becomes certified and these show the customers that it’s well practiced and the product they are of high qualities (Mondy & Premeaux, 1992). BMW Solutions Business which certifies doesn’t always go on by certification practices which are need to increase their quality. The short-term thinking leads a business in some problem . One particular do challenge the quality management. The old standby quality approach they are six sigma and they change your organization culture to drive strategy and business transformation. This deserves much intensity to all other initiatives that can operate in big companies. The strategic six sigma principles and practices which can help companies they include. This is formulating and new existing business strategies. They also deal with changing and they increase complex of customer requirements, they also facilitate merge and acquisitions. The growing of number of companies beginning to realize the implications caused by six sigma’s; especially engine to accelerate corporate strategies and organizations (U. S Departments of Education Institute of Education Sciences, 2009). The BMW ought to entail below solutions to cub their problems: †¢ To help the company’s top leadership team by implement six sigma and developing a committed team of leader to support. †¢ Thinking and practicing into some strategies and planning. Establishing connections with customer and their large market place where the companies do operates. †¢ Ensures leaders view the companies not as a set of isolated functions or independent. †¢ To develops measures and demands which are tangible results from people in their works. †¢ To be committed in fulltime to the business, aspects of grogram to ensure that work is progressing toward achieving goals and objectives. †¢ Megginsion (1992), the BMW company should avoid to introduce new work processing and product without have relied with your customers through design and development processes. Recommendations By choosing some issues good manager should know that he can able to bring some talents within his organization and he do choose those which have the greatest and which are long term and those one which can make his talents to be more productive. Under ordinary time he will have three or four major objectives during any single period of time. Megginsion (1992). Management is one role that is fast of growing the security market while continuing security to enable to increase attention to identify issues. All managers they perform some same basics functions to make sure the business runs well. Manager is supposed to strive hard to reach al objectives in an organization. As a manager it’s good to make use of your time and the functions of managements are to control in devising way to ensure all plans are being achieved well. As a manager you are responsible to ensure thing of yourself they are running well and they are all correct and measure are being taken (Chase, 2004). Person whose proficiency has applied the competency repeatedly and successfully in their performances of his or her jobs but has much to the advance (Megginsion, 1992). Aspects and behaivior which is associated with the B. M. W Company and operation managements. Person with high level can have knowledge and experience with competency and can apply well on job with any assistance. In this stage one is expert and has experience many careers in his or her own work. To share list of keys people organizes and resources so as to help solving Problems College to have trained or mentor you on how to effectively schedule this skill will lead to the best learned from job which is trained. In informal interview, the manager is involved in with scheduling and attending of meetings with him if it’s possible. To have relations with your customers in your business you can be able to understand their needs and their concerns. Making you available its will direct you to contact with your clients. To rotate your job and assignments of various employees so that you many know how your employee interacts with their customers. As a manager you should be asking assignment in workforce planning. It’s good to spend time observing your work operation so that you may know processes and problems that needs to be solved. As a manager it’s good to have a meeting with your employees so that you can be able to solve tasks with schedules. To make work to be organized and activities to run smoothly and efficiency manager is supposed to be responsible (Chase & Jacobs et al, 2001). Whenever manager of the B. M. W Company move to many places, he develop a network for some information in many different departments. He do keeps the sources and keep them open no matter how high they will be. Skillful manager usually leave members of his organization so that they can judge them and decide which level to inform him. Managers are supposed to respond immediately with a reasonable in various problems and how to overcome them. Another skill is to save time and energy for various issues. For keeping someone informed. About a wide range operation and decisions which are been made in different steps in a company (Chase & Jacobs et al, 2001). The importance of operation management in the B. M. W Company has highly increased the function to enable to increase and improve productivity while providing a broader high quality of the products. The benefits of establishing the standards includes decision making. It’s also requiring thinking outside the organization and use of new technologies and also resolving of the provided mechanisms. A customer is an individual or a group and he can be the process in the organization, this is by providing of some law materials. In Operation management expectations includes cost, time and delivery, the enviroment, level of services, and the quality of the product or services (Mondy & Premeaux, 1992). In designing of the products can fail to meet the market expectations in the market. Organization functions they entails addition to setting of the department structures. To compare productions and the services in an operations most services have elements which are based operations integrated with service delivery. The situations which are faced by a service operation manager may be less significant and less encountered by the production and manufacturing manager. The depth of planing and preparation which enable products to be consumed, Customers they see only the delivery of the products and services they are given and some customers may not mind the time that they will take to wait. Some customers will not wait and wait for the responds. The difficulties in stocking a service they include the capacity wasted if not in use. The isolation of the customers is less for services than for goods and when personal services if offered the customers they are more involved. Customers immediate are more less such that the systems are more sensitive and more personal to control (Mondy & Premeaux, 1992). Conclusion If the managers do operations of business or organization smoothly and in right order, he will get the benefits in the organization. But if they do not cooperate with his organization well, it will have fewer benefits. In my view point, it will have conclusion on how I can believe my experiences of the operations managements and it’s could be one of my benefits. Also for the B. M. W business to run well it’s should have some inputs and outputs and to make an organization to be successful it’s supposed to have objectives of operations managements of how is speed when doing your work and cost of your varieties and goods (Mondy & Premeaux, 1992). The quality of your goods matters a lot in your organization and your goods it’s good to have better qualities so as to attract more of your customers in your organizations. For a manager is required he or she to be focused in his daily duties and also he should be capable to make the organization to be organized and it’s been operating well (Ames, 1995). In a company foundation it is also more important that is when business have a good start its can enable it to learn well. Manager is responsible to make sure every department its learning well and everybody is well located in his or her own departments. The operations function of B. M. W is responsible in producing the services of goods and managing the supply that would provide the incoming resources. Manager is required to innovate and ensure successful of new products in the market (Ames, 1995). It is the responsibility of the management concerning Operations management strategies at the B. M. W Company to improve the efficiency and effective of transportation through low cost and management to improve its productivity and to program its services world wide. Lastly, the B. M. W Company should try and incorporate the use of internet and e-commerce to market its products to the customers (Chase, 2004). References Ames M. Wilson. (1995). An historical perspective on Operations Management, Production and Inventory Management Journal Chase F. (2004). Operations managements for competitive advantage: Inventory management Journal Chase, F. & Jacobs, N et al. (2001). Operations Management for Competitive Advantage: New York, HarperCollins Megginsion, L. (1992). Management 4th Edition Concepts and Applications: New York, HarperCollins Mondy, R Wayne & Premeaux,Shane R. (1992). Management Concepts, Practices and Skills Seveth Edition. Englewood Cliffs: Prentice Hall U. S Departments of Education Institute of Education Sciences. 2009). Clarifications of Instructional programs (CIP). US, California University Clark, G. and Johnston, R. (2005) BMW, Service Operations Management: Improving Service Delivery, Harlow: Pearson Education. Ohno, T. (1995) Toyota Production System: Beyond Large-scale Production, New York: Productivity Press. Slack, N. , Chambers, S. and Johnston, R. (2004) BMW, Operations Management (4th Edition), Har low: Pearson Education. Chase, R. , Jacobs, R. and Aquilano, N. (2005) Operations Management for Competitive Advantage (11th Edition) New York: McGraw-Hill. Ackerman, K. B. 1997, Practical Handbook of Warehousing, 4th Ed. , Chapman & Hall. (ISBN 0412125110). Ballou, R. H. , 1998, Business Logistics Management: Planning, Organizing, and Controlling the Supply Chain, 4th Ed. , Prentice Hall, (ISBN 0137956592). Blanchard, B. S. , 1998, BMW, Logistics Engineering and Management, 5th Ed. , Prentice Hall, (ISBN 0139053166). Bowersox, D. J. and D. J. Closs, 1996, Logistical Management: The Integrated Supply Chain Process, McGraw Hill, (ISBN 0070068836). Christopher, M. and H. Peck, 1997, Marketing Logistics, Butterworth-Heinemann, (ISBN 0750622091). Council of Logistics Management (CLM), 1998 Bibliography of Logistics Training Aids, prepared by R. L. Cook (Central Michigan University), CLM, 2805 Butterfield Rd. , Suite 200, Oak Brook, IL 60523. Copacino, W. C. , 1997, BMW, Supply Chain Management: The Basics and Beyond, The St. Lucie Press/Apics Series on Resource Management. Coyle, J. J. and E. J. Bardi, 1998, Transportation, South-Western Pub. , (ISBN 0538881801). Coyle, J. J. , E. J. Bardi, and C. J. Langley, 1996, The Management of Business Logistics, 6th Ed. , West/Wadsworth, (ISBN 0314065075). Coyle, J. J. , E. J. Bardi, and R. A. 1994,Novack, Transportation, 4th Ed. ,West/Wadsworth (ISBN 0314028536). Glaskowsky, N. A. , D. R. Hudson, and R. M. Ivie, 1992, Business Logistics, 3rd Ed. , Wadsworth Pub, (ISBN 0534510353). Handfield, R. B. and E. Z. Nichols, 1998, Introduction to Supply Chain Management, Prentice Hall, (ISBN 0136216161). Kasilingam, 1999, R. G. , Logistics and Transportation: Design and Planning, Kluwer Academic Pub. , (ISBN 0412802902). Lambert, D. M. , J. R. Stock, L. M. Ellram, and J. Stockdale, 1997, Fundamentals of Logistics Management, McGraw Hill, (ISBN 0256141177). Langford, J. W. , 1994, Logistics: Principles and Applications, McGraw Hill, (ISBN 007036415X). Leenders, M. R. , Purchasing and Materials Management, 10th Ed. , McGraw Hill, 1992 (ISBN 0256103348). Nerseian, R. L. and G. B. Swartz, 1996, Computer Simulation in Logistics, Quorum Books, (ISBN 0899309852). Orsburn, D. K. , 1991, BMW, Spares Management Handbook, Tab Books, (ISBN 0830676260). Patton, J. D. , 1986, Logistics Technology and Management: The New Approach- A Comprehensive Handbook for Commerce, Industry, Government, Solomon Press, (ISBN 0934623023). Pooler, V. H. and D. Pooler, 1997, Purchasing and Supply Management: Creating the Vision, Chapman & Hall, (ISBN 0412106019). Robeson, J. F. (Preface) and W. C. Copacino (Editor), 1994, The Logistics Handbook, Free Press, (ISBN 0029265959). Kidd, P. T. and W. Karwowski (Editors), 1995, Advances in Agile Manufacturing: Integrating Technology, Organization and People, IOS Press, (ISBN 9051991762). McMahon, C. and J. Browne, 1998, CADCAM: , Principles, Practice and Manufacturing Management, 2nd Ed. , Addison-Wesley, (ISBN 0201178192). Ross, P. J. 1995, Taguchi Techniques for Quality Engineering: Loss Function, Orthogonal Experiments, Parameter and Tolerance Design, 2nd Ed. , McGraw Hill, (ISBN 0070539588). Tompkins, J. A. , Y. A. Bozer, E. Frazelle, J. Tanchoco, and J. White, 1996, Facilities Planning, 2nd Ed. , John Wiley & Sons, (ISBN 0471002526). Eppen, G. D. , 1998, Introductory Management Science, Prentice Hall, (ISBN 0536012024). Evans, J. R. , 1996, Production/Operations Managemen t: Quality, Performance, and Value, 5th Ed. , West/Wadsworth, (ISBN 0314062475). Hillier, F. S. and G. J. Lieberman, 1995, Introduction to Operations Research, 6th Ed. McGraw Hill, (ISBN 0078414474). Krajewski, L. J. and L. P. Ritzman, Operations Management: Strategy and Analysis, 5th Ed. , Addison-Wesley, 1998 (ISBN 0201331187). Taha, H. A. , 1996, BMW, Operations Research: An Introduction, 6th Ed. , Prentice Hall, (ISBN 0132729156). Canada, J. R. , W. G. Sullivan, and J. A. White, 1996, Capital Investment Analysis for Engineering and Management, 2nd Ed. , Prentice Hall, (ISBN 0133110362). Fabrycky, W. J. and B. S. Blanchard, 1991, Life-Cycle Cost and Economic Analysis, Prentice Hall, (ISBN 0135383234). Fabrycky, W. J. , G. J. Thuesen, and D. Verma, 1997, Economic Decision Analysis, Prentice Hall, (ISBN 0133702499). Grant, E. L. , W. G. Ireson, and R. S. Leavenworth, 1990, Principles of Engineering Economy, 8th Ed. , John Wiley & Sons, (ISBN 047163526X). Ostwald, P. F. , 1992, BMW, Engineering Cost Estimating, 3rd Ed. , Prentice Hall, (ISBN 0132766272). Stewart, R. D. , 1991, Cost Estimating, 2nd Ed. , John Wiley & Sons, (ISBN 0471857076). Thuesen G. J. and W. J. Fabrycky, 1993, BMW, Engineering Economy, 8th Ed. , Prentice Hall, (ISBN 0132799286).

Network Security & Applications Research Proposal

Network Security & Applications - Research Proposal Example Thus, this is very important to train the basic computer users and information systems manager in mind, teaching the ideas required to read through the hype in the marketplace and recognize threats associated with the computer security and how to cope with them (Network Security, 2010; Curtin, 1997). In addition, the network security is turning out to be more and more significant in view of the fact that people spend more and more time connected. In this scenario, compromise on network security is frequently much easier than compromise on physical or local security, and is much more frequent. However, there are numerous good tools available to help improve network security, as well as majority of them are shipping with Windows features (The Linux Documentation Project, 2010). The new web based or web-supported tools offer a range of effective software features and services to the consumers, workers and business associates. These services could be easily managed and handled. Additiona lly, the new information technology offers access to a major business resource such as the web server, which gives the capability to access various other useful information resources, for instance database servers (ITSecurity).

Human Rights Law Essay Example | Topics and Well Written Essays - 5000 words

Human Rights Law - Essay Example This paper has attempted to analyze the case of unfair discrimination against the Sub-Saharan African countries in the area of international trade and how this can be considered as an example of a violation of the â€Å"Human Right against Discrimination†. (Blackhurst, Lyakurwa, Oyeide, p.491-510) Critical Appraisal of the Literature Review The authors Blackhurst, Lyakurwa and Oyeide have utilized a number of authentic sources to gather information on their subject of research. Out of the resource materials, some sources provided general information about underdeveloped African countries belonging to the region of sub-Sahara. However, other sources presented more specific information about the trading activities of these countries and how they still have to encounter unfair discrimination in the arena of international trade. Research Design In their research paper, authors Blackhurst, Lyakurwa and Oyeide have attempted to investigate the â€Å"Options for Improving Africaâ₠¬â„¢s Participation in the WTO†. The authors have considered the data which exhibit the current trends of globalization,that is prevalent among countries across the world. ... he authors have concluded that the African countries belonging to the Sub-Saharan region are increasingly being left behind in the international efforts of globalization. The concept of globalization envisages a singular global economy, where the different countries would be allowed to engage in commercial exchanges with each other following fair terms of trade. However, the African nations are falling behind in this respect. The developed countries are unjustly discriminating against them, in the arena of international trade, thus preventing them from participating freely in commercial exchanges. Conclusion The unfair discrimination against the Sub-Saharan African countries is actually an example of the violation of one of the fundamental civil liberties: The Right against Discrimination. If the international community wants to achieve complete globalization of trading practices, then international trade has to be based on the fundamental principles of human rights. In that case, th ere would be no unfair discrimination against the participation of any nation or any groups of nations. Till that time, the authors advise the global community to think of methods of improving the participation of the African countries in international trade under the regime of the WTO Agreements. Preliminary Bibliography 1. Alston P., Goodman G., and Steiner H.J. (2007) International Human Rights in Context: Law, Politics and Morals, UK, Oxford University Press 2. Blackhurst,R, Lyakurwa,B, Oyeide, A.,Options for Improving Africa’s Participation in the WTO’, The World Economy,Volume 23, Issue 4, pages 491–510, available at http://onlinelibrary.wiley.com/doi/10.1111/1467-9701.00286/abstract 3. Campbell T. (2005), Rights: A Critical Introduction, USA, Canada, Routledge 4. Charter of the

Discussion unit 3 Social Problems Research Paper

Discussion unit 3 Social Problems - Research Paper Example Matt, drug addict, faced some serious problems during the survival period until the addiction took his life (personal communication, 2012). Drugs have negative impact on attitude and personality of addict. What makes it worse is the overdose of medicine used which results in other disease. Family members play a very important either to help the addict or to bring him down. Parents, siblings, partner and children all are equally destroyed as a family unit. Society is least considered and yet bears most of the consequences (Byrne,2005). Education or job, financial issues or economical issues, over dosage of medication or illegal drugs usage, each and everything plays a role in effecting the society as a whole. The criminal rate goes up and down with the addiction rate. With crimes comes the Law and Order. Is it enough to put a law on the using of drugs or alcohol? If it was enough then the sufferings would not be increasing on such large scale. Measures should be taken by the law beyond the drugs and welfare of addicts. There should be law that should involve the effected family members and other social destructions caused due to addiction. Human service professionals should be entrusted with greater responsibilities so that they can directly have positive impacts in bringing back the addicts to their normal lives. Byrne,A.(2005).Addict in the Family: How to Cope With the Long Haul. Retrieved from

Difficulties faced by residents of 'red light' districts in the UK Essay

Difficulties faced by residents of 'red light' districts in the UK - Essay Example Based on the statistics provided by the Metropolitan Police in London there are around nine boroughs in which prostitution on the streets occurs which actually causes problems to the local residents. In addition to this the Metropolitan Police Service did expose that there are almost certainly 800 saunas, massage parlors and escort representations in London in which almost 5,000+ women work and provide sex services.2 These women have actually been forced or victimized into prostitution.3 Actually street prostitution and connected drug activity can induce real agony for local residents. Of late politicians and police commandants are made more responsible to residents by the local CDRPs (Crime and Disorder Reduction Partnerships). Prostitution has now turned out to be a foremost trouble in the UK as individuals at a very young age involve themselves in the profession. This profession not only affects the individual involved but their family, children and the local residents are also af fected. Legalizing this profession would not be advantageous since the individuals who are involved will find it very hard to come out of the profession. Apart from this legalizing would also make it a tolerable alternative of occupation. The result is that the dark side of this occupation that is – abuse, coercion, lack of choice – is cloaked under a layer of decency, a facade which those profiting from high benefits persistently uphold. Nearly 81% of women who work in brothels in the UK have come from overseas4; and most of them must have been trafficked. Present UK statute law has nothing to say about off-street prostitution. The present law submissively and unconcernedly approves this view of the trade. Provided that the law does not censure the misuse of prostitution there will always be a requirement for women to prostitute and when this demand is not met by the women who have previously been cajoled into prostituting themselves, coercion or forcing others into t his trade by the powerful will not stop. UN Special Reporter for Human Trafficking Sigma Huda pointed out in a latest report: â€Å"It is not necessary for demand itself to lead to trafficking; rather, it is sufficient that the exploitation fostered by the demand leads to trafficking†¦ The demand side of trafficking is not, therefore, properly understood as the demand for a trafficking victim’s prostitution, labour or services. Rather, demand must be understood expansively, as any act that fosters any form of exploitation that, in turn, leads to trafficking.†5 What is a brothel? Prostitution cannot be termed as illegal at a brothel provided the sex worker does not manage or even run the brothel. When a woman uses her house alone for prostitution, is not a brothel. This was established in (Gorman v Standen6, Palace Clarke v Standen7). On the other hand, where rooms or flats in a single building are leased independently to different individuals who provide sexual se rvices; it may be dealt as a brothel but only if they are in actual fact working jointly. In Donovan v Gavin8 it was demonstrated that the leasing of single rooms in a house under freestanding occupancies and to different prostitutes does not inevitably rule out the house, or portions of it, from being a house of prostitution. Communities & Street Prostitution Street prostitution changes

Ecological Services Coursework Example | Topics and Well Written Essays - 500 words

Ecological Services - Coursework Example Access to green vegetation to both rural and urban inhabitants and availability of inherent medicinal resources is one of the benefits of naturally occurring resources. The concept also entails natural processes such as pollination of crops and climatic regulation. Ecological system concept includes enhancement of stable and vibrant economy in the form of raw materials for industrial processes, provision of recreational facilities such as tourism. Finally, the concept entails benefits associated with educational and cultural paybacks, wellness and motivation from interrelating with nature. In summary, the concept of ecological systems can be summed up into major functionalities such as regulation, provision, and cultural aspects in the process of adding value to individuals. The processes mentioned entail the most basic functions of the ecosystem in entirety. From the â€Å"Ecological Services of Rivers,† the most important services include the formation of the bacterial bodies and human bodies. From the lecture notes, it is stated, â€Å"Humans are comprised of nearly 60 percent water by aggregate measure, and we depend on water, not only for our endurance, but for our benefit.† The implication of this is that humans cannot survive without water. Water gives life to humans because it aids even in the formation of the body cells of humans. According to the lecture notes, it is intimated â€Å"All life forms, from unicellular bacteria to multi-cellular plants and animals, contain water.† Humans are the multi-cellular being and are dependent on water for the basic formation of cells and composition of the body. Another vital service is the provision of food to the living organisms including humans. Food can only be available when pollination takes place in plants. The plants also purify the environment, therefore, providing a favorable environment for undertaking of economic

Embryonic cells Essay Example | Topics and Well Written Essays - 1000 words - 1

Embryonic cells - Essay Example stem cells was discovered, and it was thought that we just might be on the threshold of an age of miracles (Cobb,2013).â€Å"Physiological studies have shown that pluripotent stem cells or embryonic stem cells have the ability to differentiate into any kind of cell. When an egg is fertilized and it reaches the blastocyst stage i.e. 4-5 days post fertilization, the embryonic cells are formed. During normal growth these cells would differentiate into different specialized and help the baby grow in the womb.   Ã¢â‚¬Å"Stem cells are self-renewing, unspecialised cells that can give rise to multiple types all of specialized cells of the body† (Grier,2006) Stem cell technology involves the usage of this concept and derivation of stem cells from embryos such that the cells can be used for various therapeutic purposes and medical treatments. The procedure involves isolation of the embryonic cells from the blastocyst, artificial cell culturing using broth medium which allows cell growth to give rise to an embryonic cell line and finally stimulation of differentiation of these cells to form desired and specific cells and tissues as required. The myth is embryos are killed while harvestation of embryonic stems cells. Couples opting for IVF often have 2-3 extra embryos which they do not use and initially these embryos would end up as biomedical wastes. However, now these embryos are used for research purposes for extraction of embryonic cells which may be maintained as culture sunder laboratory conditions. Yes, it does mean that the embryo will be destroys but one needs to understand that the embryo is not a baby and is only a cluster of a few cells. It lacks organs or even lacks the human form.†Induced pluripotent embryo cells are not human organism† (Huarte & Suarez,2011) and hence ethical questions must not be raised. It rather looks like a ball than a human. Even if it was not harvested, the embryo would have to be thrown away anyways. Many have the opinion and in order

Entrepreneurship and Venture Creation Essay Example | Topics and Well Written Essays - 4000 words - 1

Entrepreneurship and Venture Creation - Essay Example They seek to provide high quality goods at low costs through innovation. This factor together with wealth creation led to economic growth. Entrepreneurs seek to invest money in small and medium market enterprises. This leads the niche market to flourish and strengthen the economy. This is why a society only receives consideration of prosperity as to the degree to which it encourages and rewards entrepreneurship (Stel 2005 pg 18). In many liberal economies, entrepreneurship pursuit receives high priority as opposed to its consequences. However, careful evaluation reveals that this behavior creates a credit crunch that leads to financial turmoil. The economic and social impacts of entrepreneurial activity with no regulation lead to short-term benefits (Acz, 2010 PG 78). Yet, in the end national markets, economies, individual and firms suffer severely resulting into huge value destruction. This essay seeks to analyze the theory of entrepreneurship and its relation to the UK economy coming from recession. It will discuss different types of entrepreneurial activities. It indicates how each activity affects economic performance. Entrepreneurship before the recession was unregulated. This led to issues arising in the capitalist economies leading due to short-term profits and speculation bubbles. The entrepreneurs experienced adverse effects of economic factors beyond their control. These include limitation of amount of credit available, decrease in demand and reductions in confidence levels. This resulted in business closures, loss of employment and economic stagnation. The capitalist economy present at the time though highly adaptive and robust held a crisis between its relationships to the society (Stel, 2005 pg 124). The freedom it gave to an enterprise to engage in wealth creation and maximization was in contrast to the society expectation of responsibility. The old entrepreneurial theory receives its basis from the capitalist theory of growth.

Biology Essay Example | Topics and Well Written Essays - 1250 words

Biology - Essay Example Darwin observed that, in the preservation of favored individual and races, there is constantly recurrent struggle for existence. Consequently, more individuals are born than there is the warranty for survival. This determines the individuals going to die and those going to survive. This also determines the species to increase in number and species that would decrease in number and eventually become extinct. Also in face of competition, those individual species that are strong or have an advantage are more likely to have the subsequent offspring’s. Darwin theory of natural selection can be said to be confusing. The arguments based on this theory are actually confusing and sometimes misleading. Firstly, there is confusion on whether living forms have, or have no evolutionary origin. Secondly, Darwin suggestion that natural selection is the main factor of evolution may not be true. These two themes as found in Darwin book are confusing and above all misleading when discussed toge ther. Before Darwin work, most people believed in theory of creation. Darwin work on science changed this and is incompatible with creation theory. This led to most people to view scientist as atheist (Mille and Loon 130-142). Exam 3 (Q #2) Aristotle indeed is one of the ancient scientists. Aristotle work demonstrated scientific ideas, which proved worth at the time. However, not a modern biologist Aristotle fits in the description of a great biologist. This is obvious as he tries to explain various biological phenomenon using scientific ideas of the time. Aristotle work had many biological facts and he followed methods before jumping into conclusion. Aristotle stressed on importance of methods in scientific knowledge. Aristotle effort can be deduced from grouping of both plant and animal kingdom. Von Linne work still had the basis of Aristotle work. Therefore, Von Linne was also a true scientist based on description of living things. Species and genera are an important concept and a basis of biology. Linne ensured there was proper identification of plant and animal based in classification of both into genera and species. Binomial nomenclature used until today was Von Linne effort and therefore deserves full credit in science. Taxonomy is an important branch in biology and simplification of taxonomy by Von Linne was important to classification and identification of plant and animals. Lamarck contribution to evolution was also great. His work revolved around the theory of inheritance. LaMark idea on continuity of species was crucial to biological development. Species diversity was also part of Lamarck ideas as to development of species. Lamarck work though with discrepancies was a benefit to the naturalist on one important problem in the whole range of biological thought. These people would still be scientist today, the only limitations they had was lack of material and equipment that exist today. Exam 3 (Q #3) The sole purpose of science is to explain and desc ribe all what surrounds us. The aim of science is to unearth the mystery of the world and tries to give meaning to worldly things and occurrences. Science does not believe in ambiguity and claims there is a reason for something existence. Science does not believe in ignorance of nature and the natural world. Science give meaning to trend of the world and foretell what is likely to happen or take place in future. Science is also a source of hope to the world and helps in

Nursing-Sensitive Indicators Essay Example for Free

Nursing-Sensitive Indicators Essay According to the American Nurses Association, nursing-sensitive indicators â€Å"reflect the structure, process and outcomes of nursing care.† (Nursing Sensitive Indicators, 2015) Understanding the indicators is an important piece of nursing, not only to assist the patient, but the patients loved ones as well, to ensure quality patient care. In this particular case, had the nurse understood the reasoning and data behind the Pressure Ulcer Rate and Restraint indicators, and communicated the necessity to report any pertinent findings the CNA may discover in the nurse’s absence, the CNA would not have dismissed the reddened area over the patient’s lower spine and would have immediately informed the nurse of the finding. Upon returning the patient to bed, the CNA would have also known not to place the patient back in bed on his back and re-apply the restraints. Instead, would have had the patient lay to one side and stressed the importance, to the patient and family member, of frequent turning, to reduce the chance of pressure ulcers. Quality patient care can only be achieved with teamwork and open communication. The discussion of pressure ulcers in hospitalized patients has become an increasing issue with more attention to the prevention of such since the early to mid-1990’s. The Centers for Medicare and Medicaid Services (CMS) state that stage III and stage IV pressure ulcers occurring during admission are considered preventable (Zaratkiewicz et al., 2010). While the gentleman in our case scenario represented what would be considered a stage 1 pressure ulcer, with proper quality care and training, even this stage 1 ulcer could have been prevented or at the very least, the progression halted. If the nurse had a better understanding of nursing-sensitive indicators, or the theory behind them, then maybe he or she would take more ownership in the prevention of pressure ulcers. Harborview Medical Center in Seattle, Washington, conducted their own study regarding pressure ulcers and ways to prevent them. Their study was  intended to track, prevent and improve skin-related outcomes (Zaratkiewicz et al., 2010). While the results of the study showed a large increase in minor pressure ulcers, it showed a huge decrease in stage III and IV ulcers, the most costly and reportable types. Education and staff reinforcement lead to early detection and improvement in practice, ultimately faring better for the patient. Maybe if the hospital in the scenario had communicated such important figures or conducted their own study, the nursing staff and even the CNA’s would have a better understanding and ultimately provide better care. As far as ethical issues such as the request for a kosher meal that ended up not being kosher, we as nurses accept and agree to abide by a code of ethics. If I were the nursing shift supervisor and this case scenario occurred, there are a few different things I would use to discuss with my staff. First of all, I would remind all nursing staff of the code of ethics we all accepted the day we graduated nursing school and offer copies to each of them to serve as a reminder. Specifically, for this scenario, I would point out; â€Å"Human Dignity is respect for the inherent worth and uniqueness of individuals and populations. In professional practice, concern for human dignity is reflected when the nurse values and respects all patients and colleagues† (The Essentials, 2008). While I am not Jewish and not receiving a kosher meal does not seem to be a big deal to me, I know that it is important to my patient and an acceptable request, so it should be a priority for me. Secondly, I would start a monthly ethical education series, choosing a different topic to better educate my staff. In the world we live in today, there are so many cultures and a necessity to be more aware of ethical treatment, that the staff should not be expected to â€Å"just know it.† This knowledge comes from on-going education and it is up to the hospital and staff to make sure they are kept as up to date as possible regarding ethical treatment of patients. I would also involve my Board of Ethics or ethical expert from the hospital to intervene and sincerely apologize to the family. While we won’t be able to fix the meal that was already eaten, we can ensure the patient and family that steps have been taken to support special requests of patients from now on. References Nursing-Sensitive Indicators. (2015). Retrieved from http://www.nursingworld.org/MainMenuCategories/ThePracticeofProfessionalNursi