ESSAY SANYA DUA-ECONOMICS Essays - Economy, Economics, Market

ESSAY SANYA DUA-ECONOMICS Explain the role of the price mechanism in the market economy and how and why the government intervenes in the market. Market economy is an economic system where by all major economic decisions are made by individuals and private firms, which are both motivated by self-interest without government intervention. Process by which the forces of supply and demand interact to determine the market price at which goods and services are sold and the quantity produced is price mechanism. In market economy the price mechanism plays important role to determine the solutions to the economic problem. Market equilibrium is the situation where at a certain price level the quantity demanded of a particular commodity are equal. This means that the market clears and there is no tendency to change in either price or quantity. When market does not produce desired outcomes it is called market failure. This occurs because the price mechanism takes account of the private costs and befits of production but does not take into account social costs and benefits. When this occurs, governments may increase in the market. Governme nt may intervene in market place to impose price ceiling (the maximum price that can be charged for commodity) or price floors (the minimum that can be charged for a commodity in order to affect distribution of income. When market quantity is too high government action is taxes to increase equilibrium price and reduce quantity and also subsidies to reduce equilibrium price and increase quantity. 359473527876500Price mechanism determines the equilibrium in the market. The price mechanism is the interplay of the forces of supply and demand, which determine the prices at which commodities will be bought and sold in the market. Market equilibrium occurs where the demand and supply curves intersect. The quantities of goods and services demanded and supplied is regulated by the prices of those goods and services. If the price of a commodity for sale is too high according to consumer demand, the quantity supplied will exceed the quantity demanded. If the price of a commodity is too low according to consumer demand, the quantity that is demanded will exceed the quantity supplied. There is one price, and only one price, at which he quantity demanded, is equal to the quantity supplied. This is known as the equilibrium price. The diagram reveals that at price OP1 the quantity demanded (0Q2) exceeds the quantity supplied (0Q1). The rise in the price results in an expansion in supply and a contraction in demand (movement along the curve towards equilibrium point) This will continue as long as there is excess demand until reaching the intersection of supply and demand curves. At price 0PE the equilibrium. In next diagram at price OP2, the quantity supplied 0Q2 exceeds the quantity demanded 0Q1. Thus we have a situation of excess supply or a glut in the market. In order to remove excess supply sellers will offer to sell at a lower price. The fall in price results in expansion in demand and contraction in supply. 2670810252095000Market failure occurs when the price mechanism takes into account private benefits and costs of production to consumers and producers, but it fails to take into account indirect costs such as damage to environment. Private costs: The cost of an economic activity to individuals (consumers) and firms (production) Benefit is the rewards of an economic activity to individuals (consumers) or firms (producers). Social cost is the cost of an economic activity to society as well as the individual or firm. Social benefit is the benefit of an economic activity to society as well as to the individual or firm. Externalities are the spill over effects of consumption or production. They affect others and can be positive or negative. 3594735570039500When markets do not produce the desired outcomes it is called market failure. When this occurs, governments may intervene in market. The government may feel that the market determined price for some commodities is too high or market determined price of something is too low. The government may intervene in the market place in order to impose to price ceilings (the maximum price that can be charged for a particular commodity) or price floors (the minimum that can be

Paper 3

Paper 3 Paper 3 Iconographical and Iconological Analysis of â€Å"Jahangir Embracing Shah Abbas I† The painting â€Å"Jahangir Embracing Shah Abbas I,† by Abu’l Hasan, depicts Jahangir and Shah Abbas standing on a lion and lamb, respectively, on the globe with the sun and moon behind them. This painting, through iconographical analysis of the moon and sun, the two men’s embrace, and the animals combined with an iconological analysis of Jahangir’s diary entries and events surrounding Qandahar, shows Jahangir’s insecurity and passivity as a ruler. As the painting title suggests, Jahangir and Shah Abbas are indeed in an embrace. Jahangir, the taller of the two, has his arms around Shah Abbas in what initially looks like a friendly gesture. Shah Abbas appears to be shrinking away from him but still reciprocates the hug. Shah Abbas looks up to Jahangir as he looks down at Shah Abbas. This suggests that Jahangir is the more powerful of the two men and is the one being cordial extending his welcome to Shah Abbas. In the painting, although Shah Abbas and Jahangir share the focus of the painting, Jahangir’s head acts as the center of the sun. The sun is rimmed on the bottom with a sliver of moon. The sun acts as a halo for Jahangir which Asher says symbolizes â€Å"his legitimate right to rule†i reinforcing his authority over his empire where his feet are placed on the globe. The sun and moon represent his divinity and right to rule which also would suggest confidence on Jahangir’s part as well. Between Jahangir’s feet and the globe there is a lion. Underneath Shah Abbas lies a lamb. Both are asleep next to each other in an unnatural state for two natural enemies. An interesting pair that is a â€Å"peaceful coexistence between weak and strong† which Koch explains metaphorically represents Jahangir’s â€Å"qualities as [a] universal cosmic ruler who brings about a Golden Age† and allegorically â€Å"his ability to protect the oppressed from their oppressors.†ii The symbol of peace of the lion and lamb, combined with Jahangir’s right to rule and benevolence towards other rulers, makes him seem like a strong and confident leader. In contrast, history tells a very different story. Jahangir kept a diary during his time in office. When read, it gives off the impression that he was very passive, withdrawn, and uncertain of himself. He wanted structure in his life and this can be seen by his constant reference to rank and the very rigid organization of the Mughal

Family And Local History Essay Example | Topics and Well Written Essays - 2000 words

Family And Local History - Essay Example Local history surviving records, their location and uses Record of protests in the royal burgh of Perth are located in Perth and Kinross archives, these records are stored under the record number B59/11 and date from 1809 to 1849, these records can be used to the understand the issues of the people who lived in Perth and the reasons that forced them to hold the protests. A limitation in these records is that they have only been recorded for a short period of time between 1809 and 1849, which may make them not fully show the trend or the frequency of the protests in the long run. Another record that is available in the Perth and Kinross council archives is the register of acts of town council and indexes to the council minutes, which are recorded in under the identity B59/16-17. The register of acts of town council contains acts that were made between 1601 and 1752 while the indexes to the minutes of the council and the acts are recorded for the years between 1500 and 1797. These reco rd are relevant in explaining the evolution of the council acts and proceedings, in addition they also show the issues that were prioritised in that period depending on the number of acts or the depth of the act relating to that issue. Treasurer accounts of the council which are stored under the identification number B59/18 are recorded for the period between 1670 and 1765,these records shows the treasures charge and discharge with details of expenditure and income of the council including the names of burgesses entered and the names of all council employees (Dobson, 64). These records can be used to determine the trends of expenditure and sources of income for the council of Perth, this information can be used by modern day... This essay stresses that most of the records in the Perth and Kinross council archive collection include documents on how the region was governed which include the legal and administrative documents. Other documents were on how the authority carried out their financial processes and regulated business activities. However, these records contain scanty documents on family issues and the specific demographic characteristics. This paper makes a conclusion that to encourage people from, other regions of the world who may not be conversant with the ancient language used in Scotland, texts such as those that have financial and legal information should have a simpler version created which is easier to understand while still maintaining the original information. In order to increase the number of people that can access historical information on Perth and Kinross, the authorities should have copies of the documents in archives of other major cities in addition to posting them on the internet to build the desire of internet users to tour the country especially in the 2014 homecoming celebrations. Financial information contained in the collection has used the old standards of accounting principles; this makes it hard for the visitors, especially those from outside the United Kingdom to understand some of the information since they may not be conversant with the accounting procedures used.