Microeconomic Essay Example | Topics and Well Written Essays - 1000 words

Microeconomic - Essay Example It argues that if trade in the externalized cost is possible and there are no transaction costs and no substantial barriers to competition, bargaining over the externalized costs will lead to an efficient outcome. Poorly defined property rights and obligations or poor enforcement of those rights can lead people to shirk the obligation for damaging another's goods. Our polluting firm is harming the interests of local fishermen. Assuming a competitive market and the right of fishermen to the property either of the fish or of the water being polluted, the polluting firm will have to buy the rights to pollute either as a contract or buy the river fully. This will lead to an efficient result: Either the firm can't afford it, meaning that the social value of their product was transparently less than that of the fish; or it can, in which case the fishermen will get ample compensation for their trouble and society will get good X. If property rights belong to the polluter, then it is much ha rder for the social optimum to be achieved, as the polluter has little incentive to cooperate with the fishermen. Nonetheless, if the value of fish is high enough, then the polluter would have an incentive to buy the fish before the pollution has gotten too bad, and pay the local fishermen; if it isn't, then society didn't want the fish anyways (Mankiw, 2008, 217). Question #3: Risk averse preferences are preferences when faced with uncertainty to err on the side of caution. Risk averse agents, or agents with risk averse preferences, will choose a lower-risk scenario out of multiple scenarios, even if the ultimate outcome could be higher even after accounting for the risk. Consider a father trying to feed his family: He is not likely to tolerate an investment that has even a 5% chance of failure if that 5% chance could deprive him of feeding his family, even if the growth from that investment was in pure economic senses worth it. Risk averse preferences stem from scenarios whose ris k is more than is quantified economically: In the case of the father, the scenario where he can't feed his family has an infinite negative value. The certainty equivalent is the guaranteed, immediately available amount of money or value that an individual would view as equally desirable as a risky asset. Take a game where someone can play for $1000 or $0 or simply choose $500. Mathematical expectation says that the scenarios are identical, but the person playing wants guaranteed return: Thus, to make the show more interesting, it may offer only $250, meaning that $500 (or even a lower number up to $251) is a certainty equivalent. The risk premium is the amount of added value that a risky asset must bring. If an investment has a 1% chance to fail, I am likely to want a 1.5% growth rate on the investment at minimum so that over 100 years the failure of an individual year does not threaten my growth. Maximum willingness to pay for insurance is determined by these factors and others. It can be quantified mathematically: E.g. if I am offering a client a $1,000,000 life insurance policy, and he won't purchase the policy for less than $1000 annually, than that is his maximum willingness to pay (Besanko et al, 2010, 590-612). Question #4: Expected Utility: EU = (.8) * ? 100,000^.5 + (.2) * ? 50,000^.5 = 252.98221281347034655991148355462 + 44.721359549995793928183473374626 = 297.70357236346614048809495692925.

Free Essays on A Midsummer Night’s Dream: The Comedy :: Midsummer Nights Dream

Comedy in A Midsummer Night's Dream "why do they run away? This is a knavery of them to make me afeard."(3.1.99) This is a quote from the Shakespearean play "A Midsummer Night's Dream." In this quote, the speaker, Bottom, is wondering why everyone is afraid of him. He doesn't realize that as a practical joke, a trickster Puck, has put an ass head on his shoulders. This makes all of his companions afraid of him so that they run away. This is an example of the comedy involved in this play. This essay will show you that A Midsummer Night's Dream is a play that is mainly composed of comedy. The funniest part of this play seems to be when Puck, the trickster, keeps mixing up the people who he is assigned to put the love juice on. Even when he did put the love juice into the right people's eyes, they still fell in love with the wrong people sometimes. The first example of this mistake of Puck's is where he puts the love juice in Lysander's eyes, mistaking him for Demetrius. Oberon tells Puck to put the love juice in the eyes of an Athenian man, Demetrius, and to make sure that the first thing he sees after this is the woman whom he hates, but who loves him so much, Helena. Puck ends up finding Lysander and Hermia, lovers, sleeping on the forest floor. He puts the love juice in Lysander's eyes and leaves. Then along come Helena and Demetrius to this spot. They are still arguing and Demetrius leaves her with the sleeping Lysander and Hermia. Helena notices them there and tries to wake Lysander. Lysander wakes and the first thing he sees is Helena. "And run through fire for thy sweat sake. Transparent Helena! Nature shows art, That through thy bosom makes me see thy heart."(2.2.103). This is what Demetrius says to Helena when he sees her. He has fallen in love with her. This is where the comedy of this love mix up begins. Now Helena is confused and thinks that Lysander is playing a trick on her so she runs away. This is a most particularly funny part of the play and these mix ups with whom loves who seem to be the funniest pieces of the play. Another funny section in this play is where Puck puts an ass head on the shoulders of Bottom.

Capitalism Europe

Businessmen transformed economic activities by learning to take advantage of market conditions by alluding efficient networks of transportation and communication and by creating a system of regulating the price of a product based on supply and demand. 4. The institutions that supported early capitalism were banks and joint-stock companies such as the English East India Company and their Dutch counterpart. 5. The Dutch and English supported the growth of capitalism because the English East India Company and their Dutch counterpart were two large trading companies that spread the ideas of capitalism on a larger scale than ever before. . The Joint-stock companies set p by the ideas of capitalism and the English/Dutch would be authorized to conquer, explore, and colonize distant lands in search of commercial opportunities. Therefore, early capitalism developed in the context of Imperialism, as European peoples established fortified trading posts in Asia and colonial regimes in both South east Asia and the Americas. Imperial expansion was important to the spread of capitalism, since it enabled European merchants to get natural resources that would be distributed. 7.Crafts and guilds had fixed prices and wages and they regulated standards of quality. They did not seek to realize profits, therefore discouraging competition and resisted technological innovation. 8. The putting out system was system in which capitalist entrepreneurs delivered unfinished materials to rural households where the artisans would finish a part of the product in their homes (similar to an assembly line) and pass it on until the product was finished and then it was giving to the entrepreneurs, and then the artisans were paid for their labor. 9.The advantages of the putting out system were that because of the plethora of rural labor, entrepreneurs spent relatively title on wages and profited greatly. 10. The putting out system introduced large sums of money to the countryside which brought materi al benefits and disrupted the long-established patterns of rural life. The standard of rural life rose dramatically; households acquired more goods and rural people wore nicer clothes, ate better food, and drank better wine. Individuals had the opportunity to become wealth and stop relying on neighbors and family. Young adults and women began to earn their own incomes. 11.In Eastern Europe lacked cities so there was no alternative to working in the countryside, o landlords took advantage on this situation by forcing peasants to work under extremely harsh conditions whereas in Western Europe there were better working conditions and more cities. Western Europe was far better in comparison to Eastern Europe in the area of labor. 12. Capitalism posed moral challenges. Medieval theologians believed that profit-making was morally dangerous, since profiteers looked to their own advantage rather than the welfare of the larger community. The Church considered interest an unearned and immoral profit. 13.Adam Smith's response was that society loud prosper when individuals pursued their own economic interests. 14. Although Capitalism may not have necessarily caused changes in family life, it encouraged developments that helped to define the nature and role of the family. Capitalism favored the nuclear family; it offered opportunities doe independent families to increase their wealth. As these families became more important economically, their importance socially and emotionally increased. Love became more important in marriage (not simply strengthening alliances) and parents and their children became more important to family life.

Gay Marriage Shouldn t Be Something That The State Is...

Rashid Ivery Professor Stuart ENGL 1320 April 26, 2015 Gay Marriage Gay marriage shouldn’t be something that the state is against seeing as it is a personal matter. Gay and lesbian people are well-abiding citizens that are productive members of society so why shouldn’t they be afforded the rights the so many others enjoy in this country? The focal points of American culture are life, liberty, and the pursuit of happiness so it’s interesting to see that in Texas that statement has apparent limitations. Throughout the different parts of America there are many examples of subliminal discrimination against the LGBT Community. As troubling as this may sound there are many different ways to rectify these situations. By gripping the attention of†¦show more content†¦And because a separation between church and state exist legislature can t run off the notion that marriage is some gift from heaven. Government taking this stance against gay marriage is in many ways detrimental to the American culture as a whole. A straight person saying gay marriage affects them is like saying everyone can’t eat fast food because you’re on a diet; the two are completely independent. When the government begins to try and use legislature as a means to a social barrier you begin to stray into the realm of communism. Trying to force your ideology onto someone and strip them of their individuality is a social travesty. As recognized by the information Toubias writings, â€Å"†¦the complexities of gay relationships are not well understood because of the distinct lack of adequate research regarding the experience of individuals in gay relationships..†(Toubia) How can we expect for the public to evolve their thinking when they have no new knowledge on a subject they already have a pre-conceived notion about? Truth is, we can’t. Diversity in many ways is the American way of life and forcing people into a one track mind strips the country of what makes this country unique. There are 37 states that have already legalized same-sex marriage which is a little over half; meaning nearly half the country is either indifferent or in support of the LGBT movement. Such a segmented opinion on a social issue like this can cause divides in