The problem of sustainability at Marks and Spencer Essay

The problem of sustainability at Marks and Spencer - Essay Example The firm that is analyzed in the paper is Marks & Spencer, one of Europe’s leading retailers and a household name in the UK where it provides high-quality clothing, food, and home wares in about 30 countries through over 400 stores. It has thus employed many people worldwide and enjoys huge turnover. However, with the recent globalisation and increased competition, Marks & Spencer and other international companies face variant business challenges. The problem of sustaining the supply of high-quality clothing, food, and households is one of the major issues affecting Marks & Spencer. The core aim of Marks & Spencer is to provide great customer service since lack of it leads to customer disappointments and low turnover. Indeed, customers need full and consistent availability of high-quality services. In this case, Marks & Spencer aims at becoming the world's most sustainable major global retailer by 2015. The eight company executives who participated in the survey are specialist s who came from inside and outside Marks & Spencer. From the survey, we can establish that in 2007, Marks & Spencer launched a sustainability plan. As such, there is a clear relationship between sustainability and business models in various companies. This reflects an alignment between sustainability priorities and organisations’ business priorities. Indeed, this link is very significant as it enables the management to address the issues of sustainability in relation to business operations since all business operations should take into account the aspect of sustainability to guarantee a going concern for the company.... ctually, the survey reveals that Marks  &Spencer  aligns the concept of sustainability with core strategy in all business operations with an aim of realising sustainability in the quickest time possible. Indeed, most respondents established a clear correlation between the business strategy of the company and sustainability. However, many respondents established that there are wide gaps between the leaders’ aspirations towards sustainability and how sustainability applies within their organisations. This gap hinders the implementation of the sustainability policy and the success thereof. At the same time, we can derive form the survey that sustainability in any company faces internal and external challenges (Hogevold & Svensson 2012, p.142-151). Indeed, at Marks & Spencer, the current economy denies them an avenue to foster sustainability and its importance. Moreover, we can establish from the survey that companies face the challenge of balancing between sustainability prin ciples and sustainability objectives on one side and the actions and investments on another side. This seeks to ensure that we get maximum sustainability returns from potential investments. In addition, we can ascertain that being dependent on the importance of sustainability to the future business endeavours, the management faces a challenge of aligning the organisation’s sustainability practices with the principles of the company. As such, the management faces specific challenges of recruiting effective employees and personnel with the necessary skills to pursue the sustainability objectives as well as the challenge of making tradeoffs in other business areas. At the same time, sustainability faces a challenge of securing employee buy-in to business model changes (Deloitte 2010, p. 2-9). Most

Completing the Audit Assignment Example | Topics and Well Written Essays - 250 words - 1

Completing the Audit - Assignment Example The auditor may qualify audit opinion, if the effect of management’s refusal to provide written representation is material but not pervasive. However, if the effect of such refusal is pervasive, the auditor may disclaim his/her opinion. The auditor may also withdraw from engagement if he thinks it appropriate and the legislative authority permits him to do so. All events occurring after the date of Financial Statements are referred to as subsequent events. Subsequent events that occur after Financial Statements date but the condition existed at the Financial Statements date are called adjusting events. Those events require adjustment in the Financial Statements. Subsequent events that occur after the date of Financial Statements but the condition did not existed at the date of the Financial Statements are called non-adjusting events. Auditor is required to perform cut-off procedures to evaluate subsequent events effects. He may also obtain management’s representation regarding subsequent events. The auditor may also perform other audit procedures such as inquiring entity’s personnel, reading latest available interim Financial Statements and reading minutes of meeting of Board of Directors. 1. Interim Standards Copyright. Auditing. Public Company Accounting Oversight Board. American Institute of Certified Public Accountants, Inc, 2003-2013. Web. 15 April. 2013.

History of Theatre: From Greek to Modern Day

History of Theatre: From Greek to Modern Day Modern American Theatre Modern American theatre has changed a lot since the time of traditional Greek Tragedies and Roman Theatrics. Technology changes have changed many of the different methods that we use to convey artistic styles and themes. Todays theatre has many contrasting and diverse styles; it contains both higher levels of musical and acting talent. The Broadway sensation Wicked for instance, is a great example of modern theatre. It contains a very interesting script, and the theme of the story is a combination of comedy and tragedy. Technology changes in costuming, prop building and even acting has changed everything about the theatre. Wicked also took on an international presence, unlike past theatre, which was isolated to regional performances and even seasonal performances, Wicked has been shown on every continent on the planet. Even though there have been a lot of changes in modern theatre, the core components of modern theatre are still the same as they have been in the past. Although theatr e has evolved a lot from historical theatre, many of the same themes, styles and developments are still consistent with the past. Theatre had its origins in the earliest parts of human history. Before there was actual theatre and actors, the first form of theatre can be found in the development of dance culture. Dances were originally performed in commemoration of major events, celebrations and religious ceremonies. At first, they were very informal affairs with little practice, but dancing as rituals evolved into very sophisticated forms of artistry by the 3000B BCE era. The foremost reason that dancing occurred was for religious rituals. The theme of religion that first originated in ritualistic dancing will continue in theatre for more than four thousand years. Famed critic Ellis Havelock explains, Religious dances, it may be observed, are sometimes ecstatic, sometimes pantomimic. . . . Pantomimic dances, with their effort to heighten natural expression and to imitate natural process, bring the dancers into the divine sphere of creation and enable them to assist vicariously in the energy of the gods. The dan ce thus becomes the presentation of a divine drama. As dancing became more sophisticated with time, and they were eventually performed at every level, especially before major events such as wars, seasonal changes, or religious celebrations. Eventually, rituals evolved further into sophisticated displays that took on themes and styles, this was the first development of drama as we know it (Bellinger, 1927). The evolution of dance from tribal and informal affairs into very complicated rituals can be seen in Persian and Asian early civilizations, they exhibited the most complex form of evolving dance culture. Despite the early development of dance, there are many similarities to modern theatre. First, ritualistic dances had heavy religious overtones and only performed during key periods of time. This was the foundation of Greek theatre, which directly evolved from these tribal dances and dramas. Another similarity is the development of story-telling through theatre, as dances took on more sophistication; they took on story-lines, complicated plots and a common theme that is carried in the dance. The emerging concept of stories through dance was very important because it led to the creation of theatre. This type of dance culture evolved slowly into a new type of theatre during the Greek era, this era saw the rise of theatre, not as a religious experience, but rather as an art form. Greek theatre is where modern theatre draws its roots from. It is the start of the Western tradition of theatre because not only did the Greeks enjoy theatre as part of religion, but also saw it as an art form. The first steps towards Greek theatre occurred when dances and rituals to the ancient Greek God of Win, Dionysus, became more and more sophisticated. The biggest change was the addition of style and theme that led to the development of plays, where spoken word was used rather than only song and dance. Formal Greek theatre is renowned for its style, themes and physical constructions. Every element of modern theatre can be traced to Greek theatre. The great Greek playwrights were very interested in the development of theme in their plays. They were the first to create category of themes suited for different plays. These themes included tragedy, comedy and satire. Tragedy was the most common element in Greek plays, in particular, the biggest development that the Greeks made as in the concept of a Tragic hero, or a hero who is ultimately defeated by their hubris (Bates, 45-47). Stylistically, Greek plays had a very specific structure; they were created primarily to be played once, therefore, they were often staged in a series of four plays. With the first three being tragedies and the final one a comedy that tied them all together to lighten the mood of the crowd. The development of style and a system for organizing plays along scenes and acts was very important and is still something that persists in modern theatre. Finally, the Greeks were also known for their actual physical constructions of theatre areas. Unlike, the previous era where rituals were performs at religious centers and in preparation for battles, the Greeks created amphitheaters within every city where they would hold yearly plays and contests. Amphitheaters were large central stages that are surrounded by raised stairs for seating. They became the popular form of theatre construction for the next thousand years. Greek theatre can be seen as the roots of all modern theatre because they added many of the different core elements that we see in theatre today. They were also the first to have professional actors and playwrights rather than religious figures. Greek theatre started the trend of having professional performers by introducing the actor’s guild where they trained very skilled troupes that would travel around Greece and perform for cities and rural areas along the way. Following Greek theatre, the next evolution of theatre occurred during the Roman era. Roman theatre was not extremely original because it took many of the elements of Greek theatre and made it their own. Many Roman plays were adaptations or even direct copies of Greek plays, so much of their architecture, styles and themes were the same. The biggest difference between the two is that Romans made theatre much more secular. Their plays did not focus on religion nearly as much as Greek theatre, which meant that they were more focused on the aesthetics and art of theatre. This led to the extended use of props to communicate different meaning. For instance, a black wig was used to mean that a character is a very young man. The use of props and elaborate backgrounds surrounding theatre made them more attractive and accessible to the masses. This meant that theatre was one of the main forms of entertainment during the Roman era. Because Roman theatre was less sophisticated than Greek theatr e in many ways, and it did not have a religious focus, they performed many more comedies than tragedies. Overall Roman theatre is important to the history of theatre because it represented easier access to the arts and a secular approach to theatre. Theatre during the medieval era however, took a very large step backwards. While the Roman era expanded on the Greek era, the Medieval or Dark Ages represented a period of chaos and seclusion. The fall of the Roman Empire meant that Europe became less focused in the cities and more agrarian. Without a large audience to appeal to, the concept of theatre almost died completely. During this era, theatre and plays were exclusively religious in nature and were performed by monks and priests as they traveled around the country. The only type of theatre that was available related strongly to the Bible. Rather than having props or physical stages, plays were performed by traveling monks as they moved from village to village, there ewes no formal staging areas. From a style perspective, plays were performed as if they were direct translations of the Bible and all of the different scenes and acts corresponded with Biblical stories. One of the most famous plays of this era was the English Cycle s, which portrayed the birth and death of Jesus. Theatre during this era took a very large step backwards from the advances made from the Greek and Roman era, however, the majority of theatre development did not die, but they were not explored until much later during the Renaissance revival period. The era that had the most influence on modern theatre was the Renaissance era. American theatre draws most of its influences from this era because it closely relates to the style, themes and structures that we are use to in our modern era. The Renaissance was a period of revival that took place across Europe as changes in technology, art, science and all aspects of life took place at the same time. There were many different theatre movements during this era; the two largest of these was the Spanish theatre movement and the English theatre movement. In Spain, theatre evolved during the Golden Age of around 1550 to 1700 when Spain was the most powerful country on the planet. During this era, theatre became divided into three areas, religious, comedic and musical. The greatest development in theatre occurred in England during this period, English theatre is best known for the Elizabethan period, where theatre as an art form flourished. English theatre is known for two areas, theatre construction and its famous actors and writers. English theatre was the first to construct very large theatres solely for the use of plays and musicals. These â€Å"hubs† were where the most famous plays were performed, and the most famous of these was the Globe theatre where Shakespeare held his performances. The construction of these theatres was very influential to modern theatre because it resulted in the development of standalone arenas for performances. This was a much bigger step towards more stylized displays, better props and most importantly, permanent actors. Elizabethan era produced the most well known and famous writer, William Shakespeare. During Shakespeare’s career, he almost single handedly propelled theatre to the top of entertainmen t and national attention. His Globe theatre would attract royal donors and he was sponsored by the Queen. During this era, English theatre took theatre to new heights of success and as a result, many of today’s conventions are adopted from this era. Even today Shakespeare’s plays are reproduced in theatres around the country. The neo-classic era was known for using very formal decorum around each performance, where every part of the display had to be picture perfect. Modern theatre is very hard to explain unless we can see it through the lenses of history. American theatre is very diverse, it contains many different styles of theatre that includes traditional theatre in the form of Shakespeare plays, but it also extends out as far as Cirque De Soleil and the modern Broadway musicals. All of these different forms of theatre have common similarities however that were inherited from the past. One of the major developments of modern theatre is the location of a central theatre â€Å"Mecca† in New York City. The development of Broadway, especially in the early 1900s made it one of the most prominent areas of theatre culture in the world. Broadway brought out a new culture to theatre because it created â€Å"theatre as art† to a new level; it also brought social distinction between classes. The theme that is consistent in American theatre is Realism, a concept that was developed as early as the Roman era, but only became mainstream during the Renaissance and beyond. Realism is theatre that depicts real life, both its pitfalls and its brutality. This is best seen in a classic American play, â€Å"The Death of a Salesman†. Which showed how the American dream can sometimes be only a dream for the majority of the American middle class? Theatre has now diversified to many different thematic focuses however. Musicals, theatre, and classical theatre are very different each with their own â€Å"Mecca† and focus. Another major development is in the educational system for actors and writers, within modern theatre it is no longer a guild system as in previous generations and eras, but now there are formal schools and colleges that teaches the art of acting and theatre. Actors and writers formed their own guilds that were able to leverage their talents to help increase theatre within the US in general. As technology increased, theatre is now more accessible than ever, stages are much easier to construct and skilled actors and writers can travel the world in order to stage their performances. Technology has also made it much easier to build props, so performances today are becoming more realistic with better props and better technology. Theatre has a very strong place in our society because of its culture and history. However, even with the success of theatre it has changed because of the emergence of television and radio, which compete with theatre in terms of entertainment venues. As a result, theatre has become a more upper class or â€Å"sophisticated† enjoyment, which has led to the emphasis on musicals. In the new millennium, theatre will change even more, this can already be seen with the new types of musicals such as â€Å"Wicked† that are being performed on Broadway, as well as new theatre troupes like Cirque De Soleil which are revolutionizing how we see theatre and theatrical performances. In both cases, theatre is very much alive, and many of the elements of today’s theatre can be seen throughout history. For thousands of years, theatre has developed and become a very important part of our society. Therefore it only makes sense that it will continue to be more important as time goes on. References Lectures on Dramatic Art and Literature. August Wilhelm Schlegel. London: George Bell Sons, 1904. pp. 200-12 Manual of Greek Literature from the Earliest Authentic Periods to the Close of the Byzantine Era. Charles Anthon. New York: Harper Brothers, 1853. pp. 160-174. The Drama: Its History, Literature and Influence on Civilization, vol. 1. Ed. Alfred Bates. London: Historical Publishing Company, 1906. A Short History of the Drama. Martha Fletcher Bellinger. New York: Henry Holt and Company, 1927. A Short History of the Drama. Martha Fletcher Bellinger. New York: Henry Holt and Company, 1927. pp. 3-8. Book Title: The Dance of Life. Contributors: Havelock Ellis author. Publisher: Houghton Mifflin. Place of Publication: Boston. Publication Year: 1923. Page Number: iii.

Macbeth :: English Literature Essays

Macbeth The character of Macbeth is a classic example of a Shakespearean tragic hero. Some of the factors that justify this title to Macbeth are his greatness and outstanding potential, both as a warrior and a nobleman, his very powerful sense of ambition, and the outweighing of this flaw over his exceptional goodness. One of the many reasons that Macbeth is categorized as a tragic hero is his courage and success as a war hero. This is evident when, in the beginning of the play, the Captain narrates Macbeth’s braveries to Duncan, and the king himself refers to Macbeth as â€Å"noble Macbeth†. Right from the beginning of the play, Shakespeare clearly defines Macbeth as a well-respected war hero. The Captain talks about how Macbeth killed everybody in his path to get to Macdonwald and then â€Å"unseamed him from the nave to th’ chops† before finally spearing the head of his enemy. Furthermore, King Duncan himself refers to the protagonist as â€Å"noble Macbeth†, as he tells his noblemen, â€Å"What he (the Thane of Cawdor) hath lost, noble Macbeth had won† Therefore, the above mentioned instances convince the reader that Macbeth is indeed heroic, popular and courageous. Another reason leading to Macbeth’s tragic ending is his overpowering sense of ambition. This is discussed by his wife, Lady Macbeth, and Macbeth himself.After reading Macbeth’s letter, his wife voices concerns for him, one of which includes his ambition. She says that her husband has the ambition to be anything he wants, but not the heart to do what he has to do to get there. Moreover, Macbeth also characterizes himself as having a "vaulting ambition" which takes control of him and consumes his thoughts. Thus, Macbeth’s tragic flaw eventually leads to his self-destruction Yet another example of Macbeth’s tragic heroism is his flaw overtaking his capability to be naturally good. The murders of Duncan, Banquo and Macduff’s family are proof enough to show that Macbeth’s inner goodness and humanity have been destroyed and replaced by his ambition. When Duncan names Malcolm the Prince of Cumberland, Macbeth decides on the murder of the king. This involves him having to overcome hesitations, but aided by the persuasion of his wife, he undertakes this task. Additionally, Macbeth hires murderers to kill Banquo and his son, due to the witch’s prediction of Fleance becoming king. Finally, the slaughter of Macduff’s household by the same murderers, to ensure he would reach his ambition without obstacles, is a final seal to prove that Macbeth’s sense of ambition drives him to near-insanity. Macbeth :: English Literature Essays Macbeth The character of Macbeth is a classic example of a Shakespearean tragic hero. Some of the factors that justify this title to Macbeth are his greatness and outstanding potential, both as a warrior and a nobleman, his very powerful sense of ambition, and the outweighing of this flaw over his exceptional goodness. One of the many reasons that Macbeth is categorized as a tragic hero is his courage and success as a war hero. This is evident when, in the beginning of the play, the Captain narrates Macbeth’s braveries to Duncan, and the king himself refers to Macbeth as â€Å"noble Macbeth†. Right from the beginning of the play, Shakespeare clearly defines Macbeth as a well-respected war hero. The Captain talks about how Macbeth killed everybody in his path to get to Macdonwald and then â€Å"unseamed him from the nave to th’ chops† before finally spearing the head of his enemy. Furthermore, King Duncan himself refers to the protagonist as â€Å"noble Macbeth†, as he tells his noblemen, â€Å"What he (the Thane of Cawdor) hath lost, noble Macbeth had won† Therefore, the above mentioned instances convince the reader that Macbeth is indeed heroic, popular and courageous. Another reason leading to Macbeth’s tragic ending is his overpowering sense of ambition. This is discussed by his wife, Lady Macbeth, and Macbeth himself.After reading Macbeth’s letter, his wife voices concerns for him, one of which includes his ambition. She says that her husband has the ambition to be anything he wants, but not the heart to do what he has to do to get there. Moreover, Macbeth also characterizes himself as having a "vaulting ambition" which takes control of him and consumes his thoughts. Thus, Macbeth’s tragic flaw eventually leads to his self-destruction Yet another example of Macbeth’s tragic heroism is his flaw overtaking his capability to be naturally good. The murders of Duncan, Banquo and Macduff’s family are proof enough to show that Macbeth’s inner goodness and humanity have been destroyed and replaced by his ambition. When Duncan names Malcolm the Prince of Cumberland, Macbeth decides on the murder of the king. This involves him having to overcome hesitations, but aided by the persuasion of his wife, he undertakes this task. Additionally, Macbeth hires murderers to kill Banquo and his son, due to the witch’s prediction of Fleance becoming king. Finally, the slaughter of Macduff’s household by the same murderers, to ensure he would reach his ambition without obstacles, is a final seal to prove that Macbeth’s sense of ambition drives him to near-insanity.

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Capital is A ) tools, equipment, and factories used in the production of goods and services; one of four factors of production. Economics is the use of what to produce and distribute goods and services? Correct D ) resources Want is Correct B ) way of expressing a need that leads to a preference for some goods over others The fundamental economic problem is Correct B ) scarcity. Why do economists need to find the answer to all three of these questions? Correct D ) there are not enough resources to satisfy people's seemingly unlimited wants Markets where productive resources are bought and sold are ______ markets.Correct A ) factor The key feature of the circular flow of economic activity is the Correct C ) market. Economics is based on Correct B ) scarcity. includes the tools, equipment, machinery, and factories used in the production of goods and services. Correct B ) Capital Twenty percent of the world's people in the wealthiest nations consume ____ percent of the world's goods and services. Correct A ) 86 In this passage, â€Å"Too much marketing today focuses on awareness rather than reasons to buy. In the old days, awareness advertising was more effective.There was less competition. All you had to worry about was whether or not people remembered your product. As technology and more kinds of media have come about, it's no longer enough to be remembered. The consumer has too many choices. Your marketing has to send the message that you are relevant. You need to be sending reasons to buy. † Advertisers are advised to focus on the economic concept of Correct C ) utility Manufactured goods needed to produce other goods and services are called Correct B ) capital goods. The dollar value of all final goods and services and the ost comprehensive measure of a country's total production output is Correct D ) Gross Domestic Product (GDP). The three basic economic questions everyone must answer are Correct C ) WHAT to produce, HOW to produce, FOR WHOM to produc e. Human capital is Correct B ) the sum of the skills, abilities, health, and motivation of people. According to Alice Rivlin in this passage: â€Å"Economic literacy is like having a working knowledge of a foreign language. If you are with a group of foreigners and don't speak their language at all, you feel excluded.If you have a rudimentary working knowledge of the language, you can at least follow the drift of the conversation, ask a few questions and feel that, even if you are not getting the fine points, you are not totally left out and you have a basis for acquiring more knowledge. That, it seems to me, is what economic literacy means-a rudimentary working knowledge of the concepts and language of economic activity. If you have a rudimentary working knowledge of economic concepts, you will be Correct B ) able to ask questions to gain more knowledge. Factors of production is/are CorrectB ) productive resources that make up the four categories of land, capital, labor, and entr epreneurship. â€Å"There Is No Such Thing As A Free Lunch† reminds us that Correct A ) resources are scarce and that we must make careful economic decisions regarding WHAT, HOW, and FOR WHOM to produce. In this passage, â€Å"To take an example,†¦ One man draws out the wire, another straightens it, a third cuts it, a fourth points it;†¦ and [the making of] a pin is, in this manner, divided into about eighteen distinct operations. † Adam Smith is describing the basic economic concept of CorrectC ) division of labor. The situation in which some necessities have little value while some non-necessities have a much higher value is known as Correct A ) paradox of value. The money used to buy the tools and equipment needed for production is known as Correct C ) financial capital. In which type of economy do consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM decisions?. Correct B ) free enterprise Division of labor is a charact eristic of Correct B ) assembly line production. The free market economy has developed a strong CorrectB ) system of banks. In modern economies, the medium of exchange is Correct B ) money. Which of the following lists the four factors of production? Correct D ) land, labor, capital, entrepreneurs Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of Correct D ) economic interdependence. Uneven distribution of oil reserves around the world is an example of scarcity of Correct C ) geography. One advantage of a ___________ economy is that it gradually adjusts to change over time. Correct A ) market A traditional economy is an CorrectB ) economy in which the allocation of resources and nearly all other economic activity from ritual or habit. The high degree of freedom in a market system is illustrated by the fact that Correct A ) producers can make whatever they think will sell. To arrive at an economic decision, a decision-m aking grid may be used to evaluate Correct C ) alternative choices of action. Who makes economic decisions in a command economy? Correct C ) the government An example of a market economy is Correct C ) the United States Economics is the use of what to produce and distribute goods and services? Correct D ) resourcesIn the cost-benefit analysis described in this passage: â€Å"Research has long demonstrated the educational value of early intervention for America's at-risk children, but a new study also shows the federal programs are a wise public investment. who are the investors A cost-benefit analysis of the federally funded Chicago Child-Parent Center program, which serves children from low-income families in Chicago's inner city [shows that] an average annual cost of $6,730 per child generated a total return to society at large of $47,759 per participant. † Who benefited from the savings? Correct C ) all of societyA popular model used to illustrate the concept of opportunit y cost is Correct A ) the production possibilities frontier. Which of the following best describes the relationship between trade-offs and opportunity costs? Correct A ) Opportunity costs are incurred when trade-offs are made. The study of economics is important because it enables us to Correct C ) become better decision makers. The most important function of a distribution system is to link _____. Correct C ) producers and consumers Which term refers to the idea that if you have more of one thing, you must have less of another? CorrectB ) opportunity cost What type of economic system does this passage: â€Å"So long as mankind lived by raising crops and herding animals, there was not much need for measuring small units of time. The seasons were all important-to know when to expect the rain, the snow, the sun, the cold. Why bother with hours and minutes? Daylight was the only important time, the only time when men could work. † describe? Correct A ) traditional economy The pu rpose of government in a command economy is to Correct C ) make major economic decisions. A market economy Correct A ) does not provide for everyone's basic needs.Opportunity cost is the Correct D ) cost of the next best alternative use of money, time, or resources when one choice is made rather than another. An economy at its production possibilities frontier is operating Correct B ) at full potential. The term â€Å"standard of living† refers to Correct A ) quality of life in a country. Bar graphs Correct A ) shows relationships between different data series is the bar graph. Here the height of the bar represents the measured value or frequency: The higher or longer the bar, the greater the value. The main drawback of the traditional economy is that itCorrect A ) tends to discourage new ideas and ways of doing things. In the economic system described in this passage: â€Å"Diaguita Indians have lived in this region for generations†¦ We grow beans, corn and potatoes on the mountain slopes. To irrigate these crops, we still use the channels built centuries ago by our ancestors. We also breed llamas. In our community, the more llamas you own, the richer you are† . answers to the basic economic questions would be determined by Correct A ) habit and custom. All of the following are characteristics of a command economy EXCEPTCorrect B ) public services are available at little or no cost. In a ____________ economy, a central authority makes most of the WHAT, HOW, and FOR WHOM decisions. Correct B ) command What do we call a way of thinking that compares the cost of an action to its benefits? Correct A ) cost-benefit analysis What is the single largest source of revenue for the federal government? Correct C ) individual income taxes The benefit principle of taxation states that Correct D ) people who benefit from government goods and services should pay taxes according to the benefit they receiveFICA includes taxes to pay for Correct A ) Social Se curity and Medicare. Personal individual income tax is a _____________ tax. Correct B ) regressive An exception or oversight in the tax law that allows some people and businesses to avoid paying taxes is called a Correct C ) tax loophole The three criteria for effective taxes are Correct D ) equity, simplicity, and efficiency A ________ tax paid by corporations on their income. Correct D ) corporate income tax This passage: â€Å"We'll cut your taxes† is the most repeated campaign promise in the history of American politics.Yet somehow it is still considered visionary, worth a fight. Worth, indeed, a crusade. Why? It's in our blood. Historically, Americans have hated taxes, and not merely because we had to pay them. We've hated taxes because we've perceived them to be an infringement on our liberty-and the source of big, powerful, and mischievous government. This was true from the beginning. It wasn't just â€Å"taxation without representation† that bothered us so much . It was taxation. Period. † compares the feelings of Americans toward taxation today to those same feelings around the time of the Correct C ) American Revolution.The incidence of a tax can more effectively be shifted from the supplier to the consumer if Correct A ) the demand curve is inelastic. The ability-to-pay principle of taxation states that Correct C ) people should be taxed according to their ability to pay. Iowa residents can take solace in knowing that they'll likely help the state with its budget crunch if President Bush cuts federal taxes. Iowa's softening economy has left state government revenue stagnant, a problem caused by a lack of spending by Iowans. Sales-tax receipts have barely bumped up from last year, and it's coming back to hit the state budget.In Iowa, residents get to deduct their federal income taxes from their state income taxes. So if the federal government saves Iowans $1 billion in income a tax, that's $1 billion that the state will get to tax. According to the passage, how will a cut in federal income taxes help the Iowa state budget crunch? Correct A ) The state can tax more of residents' income. Intergovernmental revenues are generally intended for Correct A ) education and public welfare. According to the passage: America can celebrate Tax Freedom Day ® on May 3, 2001, according to the Tax Foundation's annual calculation.That means that the nation's taxpayers have to work from January 1, 2001, to the 123rd day of the year before earning enough money to pay for government-federal, state, and local-and start spending money on themselves. †¦ Individual income taxes represent the largest component of Americans' tax bills†¦. what is the meaning of â€Å"Tax Freedom Day†? Correct D ) By that day, you have earned enough to pay your income taxes for the year. The authority to levy a federal income tax comes from Correct B ) the Sixteenth Amendment. An excise tax is a Correct B ) tax on the manufacture and s ale of selected items. The â€Å"incidence of a tax†Correct B ) refers to those who bear the final burden of taxation. A _____________ tax is tax on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts. Correct B ) property The three largest sources of revenue for local governments are Correct A ) utility and liquor store income, property tax, and intergovernmental revenues. FICA is Correct D ) tax levied on employers and employees to support Social Security and Medicare According to the passage: â€Å"Back in 1940, when the Social Security program was just getting under way, average life expectancy was less than 64 years.The program's designers expected that most people would contribute to the program most of their lives and die before collecting a dime in retirement benefits. Today, average life expectancy in the United States is more than 75 years. As life expectancy has soared, birthrates have declined, leaving fewer and fewer workers to support the ballooning number of retirees. In 1950, [the system] was solidly supported with 16 workers paying for each retiree; today, there are just over three workers per beneficiary. † The increase in average life expectancy has created a problem for the Social Security system becauseCorrect B ) more people are collecting retirement benefits. The two broad categories of government spending are Correct B ) the purchase of goods and services and payments to disadvantaged groups. Although direct mail and special events are typical fundraising methods, one senator who was challenging an incumbent got the most money from his own personal phone calls to donors. Correct A ) True Transfer payments from the government to individuals or other levels of government might be used for all of the following EXCEPT Correct C ) maintenance of the armed forces. A Value-added tax is CorrectA ) tax placed on the value that manufacturers add at the end of production. B ased on this passage: â€Å"Every year at this time, Congress discovers, with a great public show of dismay and indignation, the existence of the American tax code and the agency that administers it, the Internal Revenue Service. There are high-minded calls for abolishing the current tax system and replacing it. Around April 15, Congress likes to pretend that the tax code just sort of appeared or just happened. But the Constitution puts the burden of taxes solely, exclusively and entirely on Congress' shoulders.The tax code is the way it is because a majority of Congress wants it that way. Members of Congress probably like to pretend that the tax code just â€Å"sort of appeared† because they Correct B ) don't want voters to associate them with taxes. Leisure and creative pursuits are called Correct D ) culture The Taxpayer Relief Act of 1997 Correct D ) did little to benefit people without children or capital gains. Overall, who benefited most from tax reform in 1997? Corre ct C ) the top 20 percent of wage and income earners __________ is the part of the economy made up of federal, state, and local governments. CorrectB ) Public sector The flat tax Correct D ) simplifies the tax process. A value-added tax (VAT) is Correct B ) tax on the value added at every stage of the production process The alternative minimum tax Correct B ) requires people to pay a minimum tax of 20 percent. The VAT is a ______ tax. Correct D ) federal All of the following are effects of increased government spending EXCEPT Correct D ) a decrease in competition between the public and private sectors. The flat tax Correct C ) departs from ability-to-pay principle of taxation. All levels of government combined consume about Correct B ) one-third of the nation's output.All of the following EXCEPT one are advantages to a value-added tax. Correct B ) it is invisible to consumers All of the following are effects of the federal debt EXCEPT Correct D ) interest rates are lowered. An examp le of mandatory spending is financing for Correct A ) interest payments on the federal debt. The pay-as-you-go provision is Correct D ) requirement that new spending proposals or tax cuts must be offset by reductions elsewhere. Who pays for the maintenance on the state highway linking Tyler, Texas, with Corsicana, Texas? Correct C ) Texas The sequence for the approval of the federal budget is CorrectB ) president to Congress back to president. Based on the facts given in the passage: â€Å"One result of the current Social Security debate has been to concentrate the public's mind on the true economic condition of the elderly. While the top 20% of seniors are relatively affluent? almost all of the rest are highly dependent on Social Security. The program provided at least half of the total income of more than 55% of senior citizens and at least 75% of the total income of more than a third. Social Security lifted 11. 4 million seniors-or nearly half of the 65-and-older population-out of poverty, cutting the elderly's poverty rate from 47. % to 11. 9%. ,† approximately how many Americans are age 65 or older? Correct C ) slightly under 22. 8 million Of the four categories listed below, which accounts for the largest amount of local expenditures? Correct B ) public utilities Which of the following statements best describes the relationship of the federal deficit to the federal debt? Correct B ) The federal deficit leads to borrowing, which adds to the federal debt. According to the passage: â€Å"One result of the current Social Security debate has been to concentrate the public's mind on the true economic condition of the elderly.While the top 20% of seniors are relatively affluent? almost all of the rest are highly dependent on Social Security. The program provided at least half of the total income of more than 55% of senior citizens and at least 75% of the total income of more than a third. Social Security lifted 11. 4 million seniors-or nearly half of th e 65-and-older population-out of poverty, cutting the elderly's poverty rate from 47. 6% to 11. 9%. ,† about what percentage of the elderly would be living in poverty if the Social Security system did not exist? Correct A ) 47. 6% The United States government accumulated huge deficits during the 1980's due toCorrect C ) a doubling of spending on national defense. All of the following are differences between the federal debt and private debt EXCEPT Correct C ) the federal debt is the total amount of money borrowed from investors. Interest on debt is Correct D ) costs incurred by both state and local governments for borrowing money Which of the following is NOT an example of a local government? Correct C ) neighborhood associations The federal debt is Correct D ) amount borrowed to finance deficit spending budget with neither a surplus or deficit Which of the following is an example of an entitlement payment?Correct B ) federal money given to a senior citizen as a Social Securit y payment All of the following are local officials with approval power for spending EXCEPT Correct D ) the tax assessor. Which of the following statements best describes the relationship of the federal deficit to the federal debt? Correct B ) The federal deficit leads to borrowing, which adds to the federal debt. From the choices below, identify when the federal government began significant deficit spending. Correct C ) 1980's Of the four categories listed below, which accounts for the largest amount of state expenditures?Correct D ) higher education Who formulates the federal budget? Correct C ) the president Of the four categories listed below, which accounts for the largest amount of local expenditures? Correct B ) public utilities Based on the passage: â€Å"The Aztec in Central America used cacao beans, from which chocolate is made, as money. Prices varied from a few beans for a piece of fruit to several thousand for an enslaved person. Aztec merchants had to take care when se lling expensive items. Payment usually came stored in sacks, and the sacks might contain counterfeit money-bean husks filled with mud. What type of money did the Aztec use? Correct D ) commodity money Which of the following statements about a gold standard is FALSE? Correct C ) It is easier to expand the money supply. The United States government ended the gold standard in Correct B ) 1934. Based on the passage: † To get its new Sacajawea dollar into circulation, the U. S. Mint has issued more than 500 million of the golden coins since the end of January, not only to banks, but also to Wal-Mart and Sam's club stores. But in what may be the greatest coin trick ever, the dollars have all but vanished.People are making them into jewelry, auctioning them off on eBay, and leaving them under pillows on behalf of the tooth fairy-anything but spending them†¦. The Mint expects Sacajawea to be back in circulation by year-end, when more than a billion of the dollars will have been m inted and the novelty, it hopes, will have worn off. † Sacajawea dollars have disappeared because many people believe they are Correct A ) worth more as a commodity than as currency. According to the passage: â€Å"After the collapse of the Soviet Union in 1990, Russian currency was not trusted. Real money played a fairly small part in Russia's economy.Most business was conducted by barter or with IOUs. For example, workers rarely received wages in the form of cash. A bicycle factory outside the city of Perm paid its workers in bicycles! To get cash, the workers had to sell their â€Å"paychecks† More often than not, they simply traded the bicycles for the products they want. † most business in Russia, at that time, was conducted without currency because Russian currency was not Correct A ) accepted. Greenbacks and United States notes were issued to Correct A ) raise money to finance the Civil War. The value of fiat money is Correct D ) faith in the government.Th ese passages in the United States Constitution† â€Å"Article 1, Section 8: The Congress shall have the power: To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures; To provide for the punishment of counterfeiting the securities and current coin of the United States; To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof and in Article 1, Section 10: No State shall coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts†¦. † made which of the following statements true at that time? Correct C ) The government could not print paper money.Which of the following statements about a gold standard is FALSE? Correct C ) It is easier to expand the money supply. The problem with Continental dollars was that Correct A ) so much was printed they became nearly worthless. Money that has an alternative use as an economic good is Correct A ) commodity money. Money functions as all of the following EXCEPT Correct D ) a measure of value. One disadvantage of using gold as a standard for money is Correct D ) paper currency holders could exchange it for gold. What is the origin of the American dollar? Correct B ) the Spanish peso and shillings Money by government decree; has no alternative value or use as a commodity is called Correct C ) fiat moneyFiat currency is also known as ________. (hint: look at the paper money in your possession. ) Correct A ) legal tender The part of modern money that we can touch consists of Correct B ) Federal Reserve Notes. Local banks in the 1800's that printed too much money were called Correct A ) wildcat banks. ________ is/are the monetary standard under which the basic currency unit is equivalent to, and can be exchanged for, a specific amount of gold Corr ect D ) Gold standard To make a difference with the Spanish peso, Benjamin Franklin and Alexander Hamilton divided the dollar into Correct B ) tenths (10 equal pieces). Most stocks in the United States are traded on theCorrect B ) over-the-counter market. In what city was America's first stock exchange located? Correct B ) Philadelphia To determine Gross National Product, Correct C ) add to GDP all payments received by Americans outside the U. S. and subtract payments made to foreign-owned resources in the U. S. In 2001, the national debt was $5. 1 trillion dollars. When President Obama was inaugurated in January of 2009, the national debt was $10. 6 trillion. Sixteen months later the national debt is Correct A ) $13. 1 trillion dollars. In the Gross Domestic Product defense spending is in which sector? Correct B ) governmenGross Domestic Product is CorrectD ) dollar amount of all final goods and services produced within a country's borders in a year. Which is the best measure of th e nation's income? Correct B ) GNP Which stock exchange the largest electronic screen-based equity securities trading market in the United States. Correct D ) NASDAQ A bull market is a Correct C ) period during which stock market prices move up for several months or years in a row. The Efficient Market Hypothesis argues that Correct A ) stocks are always priced about right and bargains are hard to find. A bear market is a Correct A ) period during which stock market prices move down for several months or years in a row.The great majority of stocks in the United States are traded on Correct C ) the over-the-counter market. The Efficient Market Hypothesis argues that Correct A ) stocks are always priced about right. According to the United States Treasury, the US national debt is the Correct A ) principal amount owed by the US to its lenders, for example, China and Japan A stock transaction that is made immediately at the market price is made in the Correct B ) spot market. The larges t sector of the macroeconomy is the Correct D ) consumer sector. The Dow Jones Industrial Average (DJIA) represent what market value of all U. S. stocks on the New York Stock Exchange Correct A ) fifth (20%)Which of the following is the most important aggregate of how a country is doing economically? Correct C ) gross national produce Investors who sign a contract guaranteeing them the option of selling shares of stock at a specified price in the future have agreed to a Correct D ) put option. In the model GDP = C + I + G + F, the â€Å"F† represents the Correct B ) difference between the dollar value of goods sent abroad and goods purchased from abroad. Since colonial times, the average size of a household in the United States has Correct B ) decreased. Which best describes the movement of the center of population of the United States? Correct C ) east to westBy April 2000, the population of the United States stood at about 281. 4 million people. This year's anticipated cens us will be _____ million people. Correct D ) 309 The official count of all people in the United States is called Correct D ) the decennial census. A price index is a ______________. Correct C ) a statistical series that can be used to measure changes in prices over time Real GDP is Correct D ) GDP adjusted to remove the distortion of inflation. Life expectancy is the Correct A ) average remaining life span in years for persons who attain a given age. Since colonial times, the rate of growth of the United States population has Correct B ) steadily decreased.What is the implicit GDP price deflator? Correct A ) a price index that measures price changes in GDP All of the following factors affect population growth EXCEPT Correct A ) demographers. All of the following statements about real GDP are true EXCEPT Correct C ) real GDP is the same as current GDP. Which of the following is the correct way to calculate real GDP? Correct B ) Divide current GDP by the implicit GDP price deflator an d then multiply by 100. The United States lost 600,000 soldiers during World War II and another 37,00 in the Korean War. In the years from 1946 until 1964 there were 76 million babies born. This era has been named the Correct B ) baby boom.The official count of all people in the United States is called Correct D ) the decennial census. Economists know it is important to track inflation because it Correct B ) distorts statistics about overall economic performThe mean center of United States population (using the centroid definition) has been calculated for each U. S. Census since 1790. Currently this point is located in Correct D ) Missouri. All of the following factors affect population growth EXCEPT Correct A ) demographers. To construct a price index, all of the following are needed EXCEPT Correct B ) the current inflation rate. Business cycles are Correct A ) nonsystematic upturns and downturns of real GDP.Real GDP per capita is the preferred measure of economic growth over the l ong run because Correct B ) prices and the population change over time. This marked the beginning of the Great Depression in 1929: Correct D ) stock market crash The United States experienced almost no growth in real GDP per capita Correct A ) between 1929 and 1939. Which of the following factors affect economic growth? Correct D ) all of the above Which of the following statements about economic growth is FALSE? Correct C ) Economic growth decreases the tax base. Increasing productivity results in Correct A ) increasing economic growth. An econometric model is a CorrectD ) macroeconomic model that uses algebraic equations to describe how the economy behaves. A number of factors are important to economic growth-especially the quantity and quality of the Correct C ) factors of production (A)(An) ___________ is a monthly statistical series that anticipates changes to the real GDP. Correct D ) index of leading indicators The United States experienced almost no growth in real GDP per ca pita Correct A ) between 1929 and 1939. A period during which real GDP declines for two quarters in a row, or six consecutive months, is call a(n) ___________. It begins when the economy reaches a peak, and ends when the economy reaches a trough. Correct A ) recession The passage: â€Å"A key gauge of future U. S. conomic activity declined 0. 5% last month, as the Sept. 11 terrorist attacks in New York and Washington weakened an already troubled economy. The Conference Board said Monday its index of leading economic indicators fell to 109. 2 in September,†¦ the largest one-month decline since January 1996†¦. The index indicates where the overall U. S. economy is headed in the next three to six months†¦. The economy had been struggling for several months before the Sept. 11 attacks. Many economists have said they believe that a recession is unavoidable with the new uncertainties raised by the disaster. † discusses a business fluctuation influenced by Correct D ) external shock.The _____ is a composite index of 11 economic series that move up and down in advance of changes in the overall economy; statistical series used to predict business cycle turning points. Correct C ) econometric model Your ________ is the quality of life based on the possession of necessities and luxuries that make life easier. Correct B ) standard of living Increasing productivity results in Correct A ) increasing economic growth. The business cycle since World War II has been characterized by Correct A ) extended expansions alternating with brief recessions. Changes in ____________ expenditures are one cause of business cycles. Correct D ) capital A major feature of a __________ is its ability to increase real per capita output enough to allow people to raise their standard of living.This system also increases people's free time, allowing them to devote more attention to families, hobbies, and recreational activities. Correct C ) free enterprise economy When product ivity grows, people produce relatively ______ with the same amount of inputs, and the prices of goods and services tend to stay _______. Correct D ) more, low The change in price level is the _______. Correct B ) an increase in the general price level Prices tend to _______ during expansions and then ________ during recessions. Correct A ) rise faster, slow down To measure the price level, economists select a market basket of goods and then construct a price index such as the Correct B ) consumer price index, producer price index, or implicit GDP.Because there are always some workers who are in the process of changing jobs, there will always be some ____________ unemployment in the economy. Correct D ) frictional According to the passage: â€Å"The nation's unemployment rate rose to 4. 5 percent in June as manufacturers continued to suffer heavy job losses and demand for workers in service industries fell to the lowest level in 10 months. The Labor Department reported Friday that t he jobless rate rose 0. 1 percentage point from a 4. 4 percent rate in May. The 4. 5 percent level matched the unemployment rate in April with both months representing the highest level the jobless rate has reached in the year-long economic slowdown. † what was the highest level that unemployment reached that year? Correct D ) 4. % All of the following are theories regarding the cause of inflation EXCEPT Correct C ) cost-pull. Unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills is called ___________ unemployment. Correct A ) technological The ________ curve is a curve that shows how much the actual distribution of income varies from an equal distribution. Correct B ) Lorenz At the peak of the Great Depression 1 out of ____ were unemployed. Correct A ) 4 A relatively low rate of inflation, usually 1 to 3 percent annually is Correct A ) creeping inflation A booming economy. Record-low unemployment.A blizzard of pink slips [a note stating that a person has been fired]. What's wrong with this picture? The fact is, even in the best of times hundreds of thousands of people lose their jobs through no fault of their own†¦. You might not get any advance warning, so don't be caught off guard. Have an up-to-date resume and networking system†¦. You want to be able to launch your job search soon after you get the bad news. What type of unemployment does this passage describe? Correct D ) frictional The unemployment rate understates employment conditions for all of the following reasons EXCEPT Correct A ) some workers are â€Å"between jobs† for one reason or another. Galloping inflation is CorrectB ) intense form of inflation that can go as high as 100 to 300 percent The passage: â€Å"For all the recent talk of cutting taxes, Congress rarely cuts them when the economy is growing robustly, as it is now, and unemployment is low. The worry among economists is that the extr a money in people's pockets may make an already strong economy too strong, finally stoking inflation after a long period of relatively stable prices. † describes rising inflation as a possible result of Correct B ) a booming economy. According to the demand-pull theory, inflation is caused by Correct D ) consumers. Full employment is reached when the employment rate drops below _____ percent. Correct B ) 4. 5 Changes in technology and changes in consumer tastes can cause Correct B ) structural unemployment.According to the demand-pull theory, inflation is caused by Correct D ) all of the above. Unemployment that is directly related to swings in the business cycle is Correct C ) cyclical unemployment According to the passage: â€Å"The Bank of Amsterdam was established in Holland in 1609. At that time, Amsterdam was a center of world trade. More than 340 different kinds of silver coins and about 500 types of gold coins circulated throughout the city. Dutch merchants had little idea how much these coins were worth, so the Bank of Amsterdam was set up under a charter from the city to standardize the currency. The Bank of Amsterdam operated as Holland's central bank for more than 200 years.After making a series of bad loans, however, it failed and went out of business in 1819-almost 100 years before America's central bank was founded. † why did the Bank of Amsterdam stop operating? Correct C ) It made bad loans. actions by the Federal Reserve System to expand or contract the money supply in order to affect the cost and availability of credit Correct D ) monetary policy A portion of the deposits in the form of coins and currency that banks and other depository institutions are required to hold are called ________ reserves. Correct D ) legal The quantity theory of money holds that excessive increases in the monetary supply Correct C ) lead to inflation.Federal Reserve Chairman Alan Greenspan decided seven years ago to publicize the central bank's intere st-rate moves once they were made. Now, each meeting of the Fed-whether the central bank changes rates or not-triggers a chorus of instant analysis of what it means for the economy and the financial markets. Which function of the Federal Reserve is the subject of this passage? Correct C ) regulating the money supply The Fed remains largely independent from politics for all of the following reasons EXCEPT Correct D ) the president and Congress appoint new members to vacant seats on the Board of Governors. he dilemma faced by the Fed when considering monetary policy is the choice between Correct A ) inflation and interest rates.Based on this quotation: â€Å"Not too many years ago, Federal Reserve officials conducted monetary policy as if they were members of the Politburo plotting behind the thick walls of the Kremlin. † the author believed that the Federal Reserve had been too Correct D ) secretive. When command economies make the transition to capitalism, they face all of th e following challenges except Correct A ) the Gosplan. Correct B ) debts and obligations. The Fed has defined different categories of money, M1 and M2, according to the money's Correct B ) function. Repeated short-run attempts to keep interest rates low result in a _________ of the money supply, making inflation _________. Correct A ) long-term expansion, worse e FED has defined M2 as Correct A ) represents the components of the money supply that most closely conform to money's role as a. store of value. Which letter designations mark Fed actions that will expand the money supply? Correct B ) Lower reserve requirement, Buy bonds, Lower discount rate. The ___________ is the interest the Fed charges on loans to financial institutions. Correct D ) discount rate Assets are Correct A ) properties, possessions, and claims on others. n the long run, changes in the supply of money affect the ____________. Correct C ) general level of prices Which letter designations mark Fed actions that wi ll contract the money supply? CorrectC ) Raise reserve requirement, Sell bonds, Raise discount rate For a bank to be profitable, how much of a spread must it maintain between the rate it charges on loans and the rate it pays for borrowed funds? Correct B ) 2-3 percent A balance sheet shows all of the following EXCEPT Correct A ) bank assets on the right of the T account. All of the following are tools of monetary policy EXCEPT Correct C ) tight money controls. The dilemma faced by the Fed when considering monetary policy is the choice between Correct A ) inflation and interest rates. The price of credit is the ______. Correct A ) rate of interest At times the Fed monetizes the debt in order to CorrectB ) keep interest rates from rising. In the short run, monetary policy affects Correct C ) interest rates and available credit. The social costs of economic instability include all of the following EXCEPT Correct A ) stagflation. Those who favor supply-side policies would tend to suppor t the government playing Correct B ) a reduced role in the economy. Monetarism is described as Correct D ) emphasis on the role of money and its growth as a key to controlling inflation and unemployment. Deregulation is most closely associated with Correct D ) supply-side economics. Economic instability wastes all of the following EXCEPT Correct C ) tax revenues.According to John Maynard Keynes's theory of the multiplier-accelerator effect, a decline in investment spending will Correct B ) lead to a downward spiral of the economy. ____________ policies are federal policies designed to increase or decrease total demand in the economy by shifting the aggregate demand curve to the right or to the left. Correct D ) Demand-side Aggregate demand will increase Correct D ) if consumers save less and spend more. Unlike demand-side economics, supply-side economics Correct A ) advocates reduced government involvement in business. The unofficial statistic that is the sum of monthly inflation an d the unemployment rate; same as discomfort index is Correct B ) misery indexAccording to Keynesian economics, only the _________ sector is big enough to step in and offset changes in investment sector spending. Correct B ) consumer The ____________ is the sum of the monthly inflation and unemployment rates. Correct A ) misery index Which is an example of the uncertainty caused by economic instability? Correct B ) A consumer delays a purchase. Social costs are Correct D ) price of economic instability in human terms. The _____________ like unemployment insurance and Social Security protect consumers and the economy in general if economic conditions worsen. Correct A ) automatic stabilizers Which of the following statements is FALSE? Correct B ) Economic instability is at the root of all social problems. John Maynard Keynes CorrectD ) introduced his theories in 1936. The social costs of economic instability include all of the following EXCEPT Correct A ) stagflation. Economists measu re the cost of economic instability with Correct D ) both a and b Wage price controls are Correct B ) regulations making it illegal for businesses to give workers raises or to raise prices without the explicit permission of the government. Stagflation is ________. Correct B ) period of stagnant growth combined with inflation The use of government spending and taxing to influence economic activity is called _ Correct B ) fiscal A period of stagnant growth combined with inflation is known as ____________. CorrectB ) stagnation The basis for international trade stems from Correct B ) the differences in production costs from one country to another. The Council of Economic Advisers Correct C ) advises the president on economic developments and strategy. The three-member group that reports on economic developments and proposes strategies to the president is called the Correct A ) Council of Economic Advisers. Which is the best description of the role of the Council of Economic Advisers? C orrect A ) report economic developments and propose strategies The nation's monetary policy Correct A ) often comes under attack from politicians. The United States imports CorrectC ) billions of dollars in products each year. Which of the following is proof that international trade is beneficial? Correct C ) the fact that free nations choose to trade vThe three-member group that reports on economic developments to the president is called the Correct B ) Council of Economic Advisers. A country has a(n) ___________ whenever it is able to produce more of a given product than another. Correct A ) absolute advantage ____________ economic policies grew out of the unemployment and other problems that occurred during the Great Depression of the 1930's. Correct D ) Demand-side All of the following describe economists EXCEPT CorrectB ) economists are sharply divided into competing schools of thought with little overlap of ideas and beliefs. If a country wants to trade a product with another country, it must have a(n) ___________ in the production of that product. Correct D ) comparative advantage Alpha can produce either 10 apples or 3 oranges. Beta can produce either 12 apples or 3 oranges. Correct C ) Beta has an absolute advantage in the production of apples. Imports are Correct B ) goods and services that one country buys from other countries. The ability of a country to produce a product with greater output per unit of input is Correct A ) absolute advantage. . A country has a comparative advantage when it can

KTG leader ship Essay

Introduction An environmental analysis in strategic management plays a very important  role in businesses by pinpointing current and potential opportunities or threats outside the company in its external environment. The external environment includes political, environmental, technological and sociological events or trends that can affect the business directly or indirectly. The main objective in this report is an environmental analysis using all the factors and analyzing tools , generally conducted as part of an analysis of strengths, weaknesses, opportunities, and threats (SWOT) when a strategic plan is being developed. Managers practicing strategic management must conduct an environmental analysis quarterly, semi-annually, or annually, depending on the nature of the business’s industry focusing on the followings: Analyzing factors effectiveness on our organization as one of the biggest group in the healthcare services in the region. Organization sources and competitors. Organization values chain construction. SWOT analysis evaluation. Ref: http://www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 2014 3.ANALYSING FACTOR EFFECTIVENESS: 3.1 Macro Environment Analysis: One of the best tools for considering trends in the Macro environment is the PESTEL analysis. (Figure 1) Figure 1 3.1.1Political factors: Since we are located here in the UAE, we have no taxation and this is one of the strength point we are depend on. but at the same time our administration team not recognizing that the minimum wages should be increased comparing with the other facilities and hospitals in our region as a big competitors. 3.1.2Economic: Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. And since our organization as privet health care facility, based on the profit rate it takes in the consideration all these factors especially after it involved in the stock market last year. Beside that the new plan is to minimize the expenses that related to the interest & exchange rate by following the centralization policy. ex. making one laboratory for all branches with a very controlled transportation system for sending the patients samples to the centralized laboratory instead of having a separate laboratory in each branch 3.1.3Social: Our organization as one of the privet hospitals in the region , is giving all the healthy activities, health care providing, never giving any changing as a demographic trends. We are doing outside activities supporting some certain people those who have a chronic disease like the diabetic patients to have more and more knowledge about themselves and how to take care about it. Ref(CBS course , topic 2 , page # 5) 3.1.4Technology: We are depending on the development of new technology to maintain competitiveness. Ex(opening new department of the Nuclear medicine for early Cancers diagnostics ) 3.1.5 Environment: factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. Ref http://en.wikipedia.org/wiki/PEST_analysis According to our national regulations and environmental roles ,we are following the EHSMS(Emirates Health & Safety Management System). 3.1.6 Legal  include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. The services in the hospital is the same for all patients and the priority is only for the urgent and emergency cases only not according to the nationality, color or any other discrimination issues. And on the other side there is a special track for the VIP patients ,giving the best quality to be the first choice in the region as a privet hospital. 3.2 Micro Environment Analysis: One of the best tools for considering trends in the Micro environment is the porter analysis. (Figure 2) Figure 2 Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics  to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An â€Å"unattractive† industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching â€Å"pure competition†, in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Three of Porter’s five forces refer to competition from external sources. The remainder are internal threats. 3.2.1 Threat of Substitute Products or Services: A substitute is a product that performs the same or similar function as another product. Microeconomics teaches that the more substitutes a product has, the demand for the product becomes more elastic. Elastic demand means increased consumer price sensitivity which equates to less certainty of profits. For example, public-transportation is a substitute for driving a car, and e-mail is a substitute for writing letters. Conditions that increase the threat of substitutes are: 1.2.1.1 An attractive price of substitutes: Our organization as a privet health care facilty depends on the insurance companies in how much they are fixing the prices of the services and products, but they are trying to do some marketing using special prices for the labors in some company by doing full checkup examination for those people who don’t covered by insurance. 1.2.1.2 Increased quality of substitutes: Our facility is trying to give the best quality to be the first choice in the region in the privet health care sector. Focusing more and more to follow the highest international standards like the JCIA (Joint Commission of international accreditation) ,CAP(Collage of American Pathologist) and the ISO ..Etc 1.2.1.3 Low switching costs to consumers: our Administration is not switching the cost to the consumers since they are covered by health insurance. But sometimes they are switching the costs to the staff by minimizing the staff without enough study to the work load or stopping the annual increments. 3.2.2 . Threat of Entry: Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, for instance, in telecommunications, the traditional phone company, typically called the â€Å"incumbent operator†), the abnormal profit rate will trend towards zero (perfect competition). The following factors can have an effect on how much of a threat new entrants may pose: The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Government policy Capital requirements Absolute cost Cost disadvantages independent of size Economies of scale Economies of product differences Product differentiation Brand equity Switching costs or sunk costs Expected retaliation Access to distribution Customer loyalty to established brands Industry profitability (the more profitable the industry the more attractive it will be to new competitors) Rivalry Between Established competitors: Rivalry refers to the degree to which firms respond to competitive moves of the other firms in the industry. Rivalry among existing firms may manifest  itself in a number of ways- price competition, new products, increased levels of customer service, warranties and guarantees, advertising, better networks of wholesale distributors, and so on. The degree of rivalry in and industry is a function of a number of interacting structural features: Rivalry tends to intensify as the number of competitors increases and as they firms become more equal in size and capability. Market rivalry is usually stronger when demand for the product is growing slowly. Competition is more intense when rival firms are tempted to use price cuts or other marketing tactics to boost unit volume. Rivalry is stronger when the costs incurred by customers to switch their purchases from one brand to another are low. Market rivalry increases in proportion to the size of the payoff from a successful strategic move. Market rivalry tends to be more vigorous when it costs more to get out of a business than to stay in and compete. Rivalry becomes more volatile and unpredictable the more diverse competitors are in terms of their strategies, their personalities, their corporate priorities, their resources, and their countries of origin. Rivalry increases when strong companies outside the industry acquire weak firms in the industry and lunch aggressive, well-funded moves to transform their newly-acquired firms into major market contenders. Two principles of competitive rivalry are particularly important: (1) a powerful competitive strategy used by one company intensifies competitive pressures on the other companies, and (2) the manner in which rivals employ various competitive weapons to try to outmaneuver one another shapes â€Å"the rules of competition† in the industry and determines the requirements for competitive success. Since our hospital is the biggest hospital in the area, it depends in the competition on increasing the branches in all areas inside and outside the city for more than 8 branches directed by the corporate office in the Capital. 3.2.4 Bargaining Power of Customers: 3.2.4.1 Markets for Outputs: Selling goods or services to customers (distributors, customers or other manufacturers) Customers’ influence dependent upon importance of products to them & their bargaining power We have a marketing team of 4 members working under the supervision of the corporate office , handling all the outputs issues like : the chronic patients disease health care activates offering free of charge checkup (ex. diabetic patients..) 3.2.4.2 Markets for Inputs: Purchasing raw materials, components and financial & labor services. The same team also cooperating with the purchasing department together working to get the best quality materials for the lowest prices in order to minimize the costs. And that will allow the hospital to give more best services more than the other competitors. 3.2.5 Bargaining Power of Suppliers: The power balance between organization and supplier is similar to the relationship between organization and customer The organization becomes the customer and the producer of the inputs it requires are the suppliers Some small groups of suppliers may form cartels or cooperatives to increase their bargaining strength Suppliers use leverage such as threats to raise prices or reduce quantity or quality of goods they supply We are depending on the process comparison in the market and to services the suppliers will provide to us. In the opposite side, we are a customer for the suppliers and since we are the biggest customer in the privet sector we can manage the deal according to our needs. 3.3 Formulating: Formulating is phase one in the strategic planning process and according to  the diagram below We can see that it plays a very important in taking the best decisions and actions to achieve the objective of the organization. In our hospital there are many plans in how to make all these decisions become a real. At the beginning of each new year , we are making our plan projects for the next 12 months And everyone have to achieve his planed objectives as individual under the umbrella of the administration and corporate office objectives. And at the end of the year will have an assessment to check how many objectives he reached , according to his work assessment will get his increment , so that will let him work harder during the year to achieve the organization objectives. Figure 3 Ref(CBS course , topic 1 , page #12). 3.3.1 Organization sources and competitors : Our hospital sources is strong enough to be a strong competitor in the market depending on: Best medical companies as materials providers.  Best marketing plans based on the corporate marketing plans. Patients (as a customers ): Accepting all the insurance cards at the time that some other hospitals don’t accepting all patients. 3.3.2 Organization value chain construction Value chain is a template that identifies the activities of a company from raw materials to customer, the value added by each activity and the cost of each activity, and that facilitates implementation of business-level strategy . Ref ( CBS Strategic Management Topic 3 Page#6) The axiom is true that you never get a second chance to make a good first impression, and hospitals have many opportunities to do so. Or not. At several junctures along the trek of accessing services, the patient confronts a series of opportunities to continue in the system or not, based on the success of the interaction. These touchpoints are not created equal, and it is important to know which has the greatest impact. Here, we can focus the Service Line Growth strategy. As a tool to understand the impact  of each touchpoint, value-chain service analysis maps the process to help us decide where to focus strategic intent. Hospital business planning adapts a model developed by Michael Porter, who defines the value chain as a means to analyze an organization’s strategically relevant activities to understand how to influence performance and cost. He breaks the activities of the firm into primary and support activities. Primary activities—which, for most firms involves inbound and outbound logistics, operations, sales and marketing—are supported by an infrastructure of underlying support activities, including HR, IT, and purchasing. How the product or service is ultimately developed and delivered to the customer depends on the effective interaction of these variable activities. The hospital value chain is diverse and complex. Our service offerings are far from clear cut, varying sharply between service lines. Each specialty and disease category has a distinct value chain to be flowcharted and analyzed prior to understanding where we can impact choice by creating value. In most cases this is at the physician referral point where patients make initial decisions. This may be a primary care physician or a specialty care physician who is directly involved in managing the hospital encounter. In most cases, it is the loyalty of the physicians and their attitude towards the hospital that determines the direction of the process. This analysis is a good tool for getting stakeholders on the same page. It helps focus planning efforts and gets to the key issue of where to go and what to do. This leads us to the question—what business are we in, and where do we strategically want to focus our efforts, which is the essence of strategy. Figure 4 4.1 Strengths (Internal Factors) The hospital key strengths are the following: Long Standing Reputation – was the previous monopoly Company in the industry Government Affiliated – trusted in the Market Most skilled employees in the industry – generated good client relations 4.2 Weaknesses (Internal Factors) The main functional areas of weakness are the following: Production Costs – in comparison to competitors Profit Margins – in comparison to competitors Service Delivery – poor operational functions Loss of Contracts – lack of continual Contract retention Company Culture – disconnected, divided, tall organisation structure HR Policies & Procedures – poor employee retention, lack of career development, low morale Lack of MIS – no common management information systems in place across functions. Brand Identity/Image – lack of Marketing department Conclusion: The main objective is the consideration of the external and internal analyzing factors, using all the analyzing tools and studies like: PORTER, SWOT and all other analyzing international methods. This report explained clearly the essential required methods for analyzing using the practical example of my organization (Privet Hospital), how to make the competitive advantages and how to use all the efforts to get the best analyzing results. After the analyzing how can we use our strength points to be the first choice in the market and how to correct the weakness points to avoid any problem in the future. In the light of the above there are essential factors which might be affecting in any organization , so we have to cover all the points that I mentioned about it before like : Analyzing factors effectiveness on our organization as one of the biggest group in the healthcare services in the region. Organization sources and competitors. Organization values chain construction. SWOT analysis evaluation. 6. References http://www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 2014 (http://en.wikipedia.org/wiki/PEST_analysis) , 2014 CBS course , topic 2 , page # 5 , 2014 http://en.wikipedia.org/wiki/PEST_analysis , 2014 http://www.oshad.ae/en/sectors/healthsector/Pages/ehsmsrequirements.aspx, 2014 http://www.dineshbakshi.com/igcse-business-studies/external-environment/revision-notes/63-external-environment-factors, 2014 http://en.wikipedia.org/wiki/Porter_five_forces_analysis ,7 March 2014) http://en.wikipedia.org/wiki/Porter_five_forces_analysis#Threat_of_new_entrants, 2014 http://www.strategy-formulation.24xls.com/en114 CBS course , topic 2 , page #17 , 2014 CBS course , topic 2 , page #20 , 2014 CBS course , topic 1 , page #12 , 2014 CBS Strategic Management Topic 3 Page#6 , 2014 http://healthcarestrategicadvantage.blogspot.ae/2007/11/value-chain-analysis.html , 2014 Strategic Management Unit 306 (CBS) , 2014