Reasons Of Market Failure Economics Essay

Reasons Of Market Failure Economics Essay Market efficiency is the property of society maximizes the benefits it achieves from the use of its scarce resources. When the production is efficient, the economy will obtain all it can from the scarce resources that is available and there is no way to produce more than a good without producing less of other goods. Market failure is a circumstance which a market will overlook its own fails to allocate resources efficiently. Thus, there are several possibilities that can cause market failure such as externalities, market power and public goods as well as incomplete information. Externalities are based on the impact of an individual action on the well-being of a bystander. Hence, they enforced people other than the consumers and producers of goods and services. Thus, externalities are also described as spillover effects. Third parties are refer as people except consumers and producers who are affected by these side-effects of market exchanges. Externalities may be either positive or negative which it may cause beneficial or disadvantageous to the third party. For instance, we are off to bed and our neighbour is having a dancing party with high volume rock music. The action of our neighbour is imposing negative externality toward us and the third parties who are trying to sleep. As the results from annoyance of our neighbours playing the music, this is an example of a consumption externality. However, externalities are also an external positive externality too; by the way, negative externalities are only caused by market failure. On the other hand, the production externality is generated, for examples, depletion of natural resources are caused by atmospheric pollution from factories and the long-term environmental damage. The factories expel harmful gases such as CFC, carbon monoxides, hydrocarbons from the chimney that causes bystander health. The externality is considered to be an important factor contributing to economic growth. Market power is also one of the reasons of causing market failure. Market power, which refers to a firm, can influence the price by exercising control over its demand, and supply. It does not exist when there is a perfect competition, but it does when there is monopoly, cartels, or monopolistic competition. The invisible hand of the market leads to an allocation of resources that makes total surplus larger as it can be. As monopolies can lead to an allocation of resources unlike from a competitive market, the monopolists keep its prices and profits high by using its market power to restrict output below the socially efficient quantity. The monopolists choose the profit-maximizing quantity of output at the intersection of the marginal-cost curve and the marginal-revenue curve. It is not at the lowest point of the average total cost curve, intend that the available resources are not fully use and it will fail to produce an efficient allocation of resources. The inefficiency of monopoly also can be measured with a deadweight loss triangle area between the marginal-cost curve and the demand curve, which reflects the total surplus loss and the costs of the monopoly producer. Buyers who have willingness to pay less than the price will not buy it. It is the reduction in economic well-being that fall out from the monopolys use of its market power. Microsoft market shares in PC operating system in the natural monopoly are one of an example because everyone is using their products. It would also leads to an increase in competition and variety as well as cheaper products for consumers. Moreover, after determining the level of Microsofts market power, we know that the relevant market is the licensing of all Intel-compatible PC operating systems world-wide. In addition, some consumers may not interest on some types of application, they might seek for others, such as Apple Company. Other than those reasons above, the reason which will cause market failure happen is public goods. Public goods can define as goods that will not reduce the availability of it for consumption by others after people making consumption. By the way, once public goods are available, no one can be withheld to consume them for free. Public goods are usually provided by the government examples like protection provided by police, fire departments, and the military. Public goods may provide free rider problem, which means the private organizations cannot get all the benefits of the public goods which they have produced, there would be no incentive for them to voluntarily provide public goods; consumers can take advantage of public goods without contributing sufficiently to their creation. This situation can produce inefficiency and a resulting market failure. When markets failure occurs, it will eventually affect economic recession, social unemployment rate to increase, financial deficits, and inflation and so on. In order to seek full employment, price stability, maintain economic growth and international revenue as well as expenditure in balance; government will launch a series of economic policies to intervene the market economy and to correct market failures. Government policy is a kind of coercive force which is a noticeable act that controlled by individuals and organizations performance during the trade. Moreover, the government policies are divided into three parts, which consist of taxes, price control and subsidies. Tax is an imposed manner which the burden of a tax is shared among participants in the market. When a tax is imposed on goods, this will affect supply curve to shift upward by the amount of the tax. In addition, taxes can directly and indirectly affect on other area such as cigarettes, petrol, and alcoholic drinks. According to the text above it has already shows out that an increase in tobacco tax is the best means to reduce tobacco uses, particularly to prevent young people to become smokers. The price of tobacco products has increased by 70%; it can avoid 1/4 of smoking death rate in the world. In addition, an increase in tobacco tax will not only help or reduce in tobacco production and consumption; it will also be a great solution to the shortage of national financial revenue problem. In high-income countries, 10% of the rate increase in tobacco products can reduce a consumption of tobacco by 4%.Whereas, in low-income countries it can reduce about 8% but tobacco taxes but will increase by almost 7%.For example, in the U.S. government make the federal tobacco tax from 39 cents per pack to $ 1.01, which is by far the most significant U.S. government to raise the federal tobacco tax. Select a recession in the domestic tobacco tax increase to help smokers to quit and this will be great power. Britain is the worlds that has highest tobacco tax. However, in 2009, the United Kingdom has doubled up the tobacco tax. Price control is the import and export of goods or services on the enforcement of price-fixing measures. At the equilibrium price, there will be no shortage or surplus. The government may prefer to keep prices above or below the equilibrium. There will be a shortage, if government sets a maximum price below the equilibrium price. Price will not be allowed to rise to get rid of this shortage. This is called a price ceiling. There will be a surplus, if government sets a minimum price above the equilibrium price. Price will not be allowed to fall to get rid of this surplus. This is called a price floor. For instance, fluctuation in weather can affect the crops. If industry demand is price inelastic, prices are possibility to fluctuate severely at a minimum price that can prevent a fall in producers incomes that would accompany periods of low prices. Whilst, if government sets a maximum prices to prevent them from rising above a certain level. This will generally be done for reasons of fairness. In wartime, or times of famine, the government may set maximum price for fundamental goods so that poor people can afford to buy the goods. Government keeps prices down for the consumers. Besides that, subsidies are also other forms of public policies to overcome market failure. Government policies are very common in countries and it is benefit a lot of industries. Other than that, agriculture, education, free school meals, employment, state benefits, transport, working tax credits, regional development, housing are also some examples of the subsidies from government. In the Egyptian economy, food subsidies can be affected in various sectors. A major objective of a research was done in order to examine the agricultural policy-making in the environment of a growing foods subsidy system. In addition, misallocation and in efficiencies of resources in agriculture take place when food subsidies are hidden costs of such systems. Nevertheless, it is a vital to divide out from the entire bundle of policy goals and relate it with those instruments that are directly or indirectly related to food subsidies. A complete quantitative evaluation of a country`s agricultural policy and its determinants can be provided by its basis. Furthermore, commodities that are strictly controlled on the production section are also strictly rationed at a fixed price on the food distribution are such as sugar and rice. Product such as maize, wheat and meat are non-rationed or not strictly rationed commodities. Moreover, products that are not strictly rationed commodities are considerably to have less interference in allocation and marketing. The input and output prices of agricultural are distorted in different ways. Tax are usually taxed or given under the field of crops. Whereas, the production of milk and meat has been protected by the supply of subsidized and by import restrictions. Food policy may cause a consumer-to-producer to transfer and a producer-to-producer to transfer when a special situation for livestock or feed has been point out, in which it accompanies redistribution of income among the production sectors in an agriculture sectors. In conclusion, as market failure will arise and government will established several policies to improve the market allocation. According to the cases as stated above, obviously, subsidies is the best effective policies that can be under take by market inefficiency. As it is the one of a positive solution and it can encourage producers to put more effort on producing and fully used the resources. The producers have no hesitation about accepting the government most generous offer. They are willing to produce maximum outfit by using subsidies that had given from the government. Hence, subsidies are no way to compare with other policies.

Essay --

One of the most loved Disney movies of all time, the 1991 animated movie Beauty and the Beast directed by Kirk Wise and Gary Trousdale features talking teacups, enchanted castles, gorgeous animation, catchy songs, and large helping of traditional gender roles. The countless favorite of many children and adults, many people know the story well. Belle, the bookish, dreamy, and beautiful daughter of an inventor is the talk of the town and the fixation of the most handsome guy around, the pushy and egotistical Gaston. After sacrificing herself for her father, Belle becomes imprisoned in an enchanted castle. Everyone in the castle is under a spell due to the selfish prince who lived there due to his failure to see what was inside of people. As a result, he is turned into a hideous beast and all of his servants are turned into household objects. To break this spell, he must fall in love with a girl and have her love him in return, despite his hideous exterior. But unfortunately for the Be ast it’s not only his exterior that’s hideous. He treats Belle with no respect, even going so far as to threaten and yell at her. He eventually changes her heart with the help of his enchanted friends and she changes his through her kindness. Gaston tries his utmost to make Belle his own, entrapping her and fighting the Beast, but eventually he is unsuccessful, the good guys win, and the whole castle and its inhabitants are transformed by love and everybody lives happily ever after. The primary female character, Belle, is introduced in the beginning scenes with her nose in a book, rolling her eyes at the continual advances of the most handsome man in town as the background chorus sings about how odd she is. She then talks about how she yearns for adv... ...he full scope of what a character can do. Every story needs a villain, and Beauty and the Beast’s is Gaston. Gaston is a handsome, strong, and powerful member of the community. He's also, in Belle's words, "rude and conceited" and is shown frequently injuring his sidekick due to negligence, checking his reflection in the mirror and talking about how wonderful he is. Interestingly, unlike other Disney villains who are evil due to a thirst for power or violent behavior, Gaston is considered a villain because of his poor treatment of women. His evil deeds such as attempting to sell Belle's father to the asylum or stabbing the Beast are done in the name of his conquest; his main objective is to win Belle like a prize for the taking. By showing a misogynistic character in a negative light, the film attempts to define what is and isn’t an acceptable way to treat women.

Graded Assignments Essay

You will learn how to match common risks or threats within the seven domains of a typical IT infrastructure with solutions and preventative actions. Assignment Requirements This is a matching activity. You will receive the Match Risks/Threats to Solutions worksheet, which contains a numbered list of common risks and threats found in a typical IT infrastructure. You must enter the letter for the correct solution or preventative action in the blank to the right of each risk or threat. Instructions: You are presented with a list of some risks and threats associated with the seven domains of a typical IT infrastructure. Below the list, the solutions or preventive actions to manage those risks and threats are listed. Write the letter of the correct solution or preventative action in the blank to the right of each risk or threat. Risks or threats: 1. Violation of a security policy by a user c ________ 2. Disgruntled employee sabotage i ________ 3. Download of non-business videos using the a ________ Internet to an employer-owned computer 4. Malware infection of a user’s laptop l ________ 5. Unauthorized physical access to the LAN n ________ 6. LAN server operating system vulnerabilities f ________ 7. Download of unknown file types from unknown sources by local users b ________ 8. Errors and weaknesses of network router, firewall, and network h ________ appliance configuration file m ________ 9. WAN eavesdropping 10. WAN Denial of Service (DoS) or Distributed Denial of d ________ Service (DDoS) attacks 11. Confidential data compromised remotely k ________ 12. Mobile worker token stolen g ________ 13. Corrupt or lost data e ________ 14. Downtime of customer database j ________  © ITT Educational Services, Inc. All Rights Reserved. -2- 02/12/2012 NT2580 Introduction to Information Security STUDENT COPY: Graded Assignment Requirements Solutions or preventative actions: A. Enable content filtering and antivirus scanning at the entry and exit points of the Internet. Enable workstation auto-scans and auto-quarantine  for unknown file types. B. Apply file transfer monitoring, scanning, and alarming for unknown file types and sources. C. Place employee on probation, review acceptable use policy (AUP) and employee manual, and discuss status during performance reviews. D. Apply filters on exterior Internet Protocol (IP) stateful firewalls and IP router WAN interfaces. E. Implement daily data backups and off-site data storage for monthly data archiving. Define data recovery procedures based on defined Recovery Time Objectives (RTOs). F. Define vulnerability window policies, standards, procedures, and guidelines. Conduct LAN domain vulnerability assessments. G. Apply real-time lockout procedures. H. Define a strict zero-day vulnerability window definition. Update devices with security fixes and software patches right away. I. Track and monitor abnormal employee behavior, erratic job performance, and use of IT infrastructure during off-hours. Begin IT access control lockout procedures based on AUP monitoring and compliance. J. Develop a disaster recovery plan (DRP) specific to the recovery of mission-critical applications and data to maintain operations. K. Encrypt all confidential data in the database or hard drive. L. Use workstation antivirus and malicious code policies, standards, procedures, and guidelines. Enable an automated antivirus protection solution that scans and updates individual workstations with proper protection. M. Use encryption and virtual private network (VPN) tunneling for secure IP communications. N. Make sure wiring closets, data centers, and computer rooms are secure. Provide no access without proper credentials. Assignment Requirements You are a networking intern at Richman Investments, a mid-level financial investment and consulting firm. Your supervisor has asked you to draft a brief report that describes the â€Å"Internal Use Only† data classification standard of Richman Investments. Write this report addressing which IT infrastructure domains are affected by the standard and how they are affected. In your report, mention at least three IT infrastructure domains affected by the â€Å"Internal Use Only† data classification standard. Your report will become part of an executive summary to senior management. User Domain is where only one user will have access to it. This can be configured to internal use only. By default, the IT department tries to maintain a certain level of Security for this, so that nobody can access  from the outside, only the IT Department can grant access privilege for Remote Access Point. The User Domain will enforce an acceptable use policy (AUP) to define what each user can and cannot do with any company data that he or she has access to. Also, every user on the company is responsible for the security of the environment. Workstation Domain is where all the users work. Before a user can log into the machine, he/she will need to be verified in order to gain access. At Richman Investments, we provide very secure access for the employee workstations with a username and password. A security protocol requires the password to be changed every 30 days. All computers maintain regular updates and continuous antivirus protection for monitoring. Additionally, no personal devices are allowed on the network. The Local Area Network (LAN) Domain is a group of computers all connected to a single LAN domain. The LAN Domain is a collection of computers connected to one another or to a common medium. All LAN domains include data closets, physical elements of the LAN, as well as logical elements as designated by authorized personnel. It requires strong security and access controls. This domain can access company-wide systems, applications, and data from anywhere within the LAN. The LAN support group is in charge maintaining and securing this domain. The biggest threat to the LAN domain is Un-authorized access to anything (the LAN, the systems, & the data) on the network. One thing we can do is requiring strict security protocols for this domain, such as disabling all external access ports for the workstation. This would prevent any user within the company from bringing an external jump drive, and connecting it to the workstations. This way, we can control company intellectual property, and prevent viruses on the LAN network.

Buddhist Economics Essay - 1489 Words

Buddhists Economics Ideas of Buddhist economists are foreign to those of western civilization. In a nation where business profit is the number one priority, ethics in Western economics are rarely given the same importance. In Buddha’s Eightfold Path is the principle to Right Livelihood. This means that one must live in such a way that does not bring harm or violence to another being, in all aspects of life, including how one obtains their wealth. This brings about the matters Buddhist feel western economists neglect in their efforts to consume toward happiness. In E.F. Schumacher’s Essay, Buddhist Economics, he contrasts the ideals of Buddhist economists with those of Western economists regarding the issues of the nature of†¦show more content†¦It is important that in order for work to be fulfilling it must contribute to ones character and values. In western economics defense, no matter what the job is if there is a will to find satisfaction and enjoyment in it then this can be accomplished and is up to the individual to find it. By doing so one will be able to find more significance in their work which is what Buddhists economics strives for. As much as one may enjoy their work there is always the desire to get away from it. If you are doing what you love then it is easier to be consumed in it but it is too idealistic to think that someone could always want to be working and never think about leisure time. Modern economists have become lazy and some do prefer leisure time over work, but to say all modern economists think this way would be too broad of a statement and take away from those that do find great meaning in what they do. Work should not be the only source of building character either, activities that one can do without being paid for can bring just as much personal growth. In the essay, the author points out that from the Buddhist point of view machines have the capability of replacing man’s work and in essence taking away from the ir ability to build character. Machines have become important in Western economics and as technology continues to progress so will the presence of machines. Machines have broughtShow MoreRelatedMindfulness And Its Impact On The Workplace Essay1649 Words   |  7 PagesMindfulness has enjoyed its popularity in recent years. Several big companies have used mindfulness to adopted the firms with change of management (Aviles Dent 2015). 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