Interest and Topic

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

Beazer Homes Case Essay

Investors were lead to believe that the company financials were healthier than they actually were, as evidenced by the changes noted when the financial statements had to be restated. As a result of doing this, investors who were under the impression of a healthier position, continued to invest in an organization that was essentially doing nothing more than stealing their money; money which could have been invested into a different enterprise rather than padding the pockets of executives that didn’t earn it. As a result of having to restate financial statements, the per share price of Beazer Homes dropped from the $35/share price level in may, to approximately $11/share by the end of July. This is a significant loss in wealth for investors. In addition to the allegations against Mr. Rand for possible accounting fraud, allegations were also brought against Beazer Homes for mortgage fraud. To address the question as to which is a more serious offense, it would be our opinion that both would carry an equal weight of seriousness. On the one hand, investors were misled, as noted above, and this led to a significant loss of wealth for many, especially those individuals and/or institutions that may have held a large position. On the other hand, to address the issue of mortgage fraud, new homeowners were oftentimes cheated out of money that they paid to Beazer Homes. A example of this is when Beazer Homes would require purchasers to pay a fee for â€Å"interest discount points† at closing. Then Beazer Homes would keep the cash received and not lower the interest rate. This is just one example, but it can be an extremely costly one when you look at how much a . 25 percent or . 5 percent reduction in an interest rate can be over the life of a 20 or 30 year fixed rate mortgage; that’s if Beazer Homes wasn’t trying to convince people that an adjustable rate or hybrid mortgage would be better for their situation. Additionally, Beazer Homes ignored income requirements when making loans to unqualified purchasers, which not only put the purchaser in jeopardy of having the income needed to make their ayments, but in the event of default or foreclosure, it can have a significant impact on the home values of the neighborhood. As a result of these legal issues with Beazer Homes, the SEC issued a notice to the Beazer Homes CEO called the Wells notice. The Wells notice was created under the Sarbanes-Oxley Act of 2002, which states that if a firm has to restate their financial statements, the SEC can require the CEO and CFO to return any and all bo nuses that were received during the period of restated financial statements. Additionally, the CEO and CFO do not need to have any knowledge of errors. The SEC issued the Wells notice to the Beazer Homes CEO, Ian J. McCarthy, on 13 November 2009, indicating that the SEC would be brining a civil case against him to collect incentive compensation. In the notice issued to the CEO, there was no indication or allegations of cover-up, or misconduct, on the part of Mr. McCarthy with respect to the financial statements or other disclosures that were published during the period in question.

Interoffice Memo Essay Example | Topics and Well Written Essays - 2000 words

Interoffice Memo - Essay Example I do believe that law enforcement agents can be an asset in this field of investigation where digital evidence need to be handled with care much like any physical evidence should be handled in order to be assured that evidence would not be tampered with from the time it is collected unto the time that the evidence is used in court. As you have informed me, your team is not computer-trained. This should not stop your team from broadening the scope of their responsibility. It used to be that only people who are highly trained in computers are able to assist in such cases of crime as involves computers or data objects found in computer files. However, due to the proliferation of computer crimes in recent years, it has become quite impractical to be only employing the "experts" as it slows down the investigation process. It is not only impractical; it becomes quite unreasonable to have a few experts perform these duties by themselves (O'Shea, n.d.). Thus it has become necessary that law enforcement agents also be involved in the "chain of custody" in a crime scene where computers are directly involved. In this connection it would be a good thing to come together and discuss vital issues on the management of digital evidence. Your law enforcement team could undergo basic training on how to recognize, seize, transport and store original evidence in order to preserve it for forensic examination. Details of this training will be discussed in a meeting that I hope to soon have with your team. But in a nutshell, let me lay out what I hope would give you an overview of how your law enforcement team could participate in the investigation of the case at hand. Seizure Methodology Let us discuss seizure methodology. Traditionally, the first thing that must be done is to secure the physical scene, followed by securing the digital scene. In such a scenario, "all hardware and media are seized, documented, labeled and packaged for delivery to the lab" (O'Shea, n.d.). In the lab, all seized data is analyzed. This is the simplest chain of duties to be done. This, however, works well if there is only a single computer or a few computers involved. In our case where a number of computers are involved, the methodology becomes a bit more detailed because seizing all the computers would be quite impractical to do. In the event where there are a handful of computers involved, the following steps are involved: digital media identification, prioritizing the physical media so as to minimize the crime scene and then the seizure of storage devices and media. In digital media identification we simply try to find the digital media that has the highest probability of having the much sought after evidence. After the identification of all possible media involved, it must be determined which among these contain information leading to the crime. It would be impractical to get all the devices at the

Human Resource Management Essay Example | Topics and Well Written Essays - 1500 words - 8

Human Resource Management - Essay Example It was only the people who could lead an organization in the right direction and could individually and collectively contribute to achievement of the business objectives (Armstrong, 1992) At present Human Resource management is a fast evolving field that has emerged as one of the focal points of any business. It is Human resource management that addresses the theoretical and practical techniques of managing a workforce. Many people have the perception that only job of the human resource management department is to consider present or upcoming job vacancies and fill them with suitable staff. Well, that’s not entirely untrue but human resource management entails much more than hiring firing decisions. (Armstrong, 1992) HRM includes many different functions which contribute to organizational value in a variety of ways. Some of these functions also contribute by reducing risk. In this essay we will firstly examine the major HR functions and then consider the extent to which these functions add value and reduce risk. (Armstrong, 1992) It is important to understand that the role of HRM as a department varies from organization to organization and also between countries. For the sake of simplicity we will assume an organization where there is a significant HR department. Generally the department will be considered to have the following responsibilities: Resource Management refers to the recruitment and selection of employees within an organization. The importance of effective recruitment programs cannot be highlighted enough. The HR department is the entry point or the funnel which channels the most valuable resource of an organization, so it is important that it is aware of organizational needs and requirements and work in tandem with other departments. Therefore resource management remains to be HR departments’ key roles; newer concepts such as knowledge management are linked to Resource management as well. One important

The Ultimate Reality of the Good God Essay Example | Topics and Well Written Essays - 750 words

The Ultimate Reality of the Good God - Essay Example The Ultimate Reality of Good and Bad Taoism proposes that Yin Yang is the cosmic symbol of primordial unity and harmony and manifest phenomenal quality; the two great regulating forces of cosmic order in the unparalleled world. If Lao Tzu, the founder of Taoism, is correct in his notion as regards the coexistence of good and bad in one body to attain balance, God then is not wholly good, or rather God does not manifest balance. God is good can be understood as a twofold claim: â€Å"God is wholly good—there is no defect or blemish in God or in his actions for He never does anything which is ultimately wrong or evil, and God is necessarily good because He is utterly invulnerable to evil† (Morris 48). As each of us perceives good and evil differently, there can be no definite meaning to both. What one sees as good can be evil in the eyes of another, or what appears to be a bad inception can yield a good result. Nonetheless, man has the tendency to accept a thing as good only if it satisfies his desires. God at times relates to man in ways that cannot be deduced by an ordinary mind, yet His purpose is incontestably good however it affects man. God gives us opportunities to rejoice and grieve, to triumph and suffer defeat, to love and hate for reasons that do not often come out on the surface. As in the story of Job when he was sardonically urged by his wife to curse God for all the mishaps that b efell him, he retorted â€Å"Shall we accept good from God and not trouble?† (Job 2:10 NIV). ... As in the story of Job when he was sardonically urged by his wife to curse God for all the mishaps that befell him, he retorted â€Å"Shall we accept good from God and not trouble?† (Job 2:10 NIV). Good and bad are â€Å"at one and the same time a division and reunion, and if they are spoken of as contending forces, they are also co-operating powers and the tension in which they are held is that of harmony, of the mutual play of creation, not of conflict† (Cooper, Fitzgerald and Stoddart 20). Apart from the nature of God, this is also evident in the way children are reared. The intention of a mother is constantly disposed at what begets good for her offspring, thus will put into practice again the approaches that proved favourable on her first. Despite growing up under the same roof and direction though, children do not grow to be identical in character, nor in fate. Good and bad demonstrates balance in the art of healing. Patients suffering from the same illness may be prescribed different doses of medicine, or different types of medication, for that matter. While a certain remedy benefits one, does not create a firm basis that it will not harm the other. It is true that good and bad are in two distant poles; yet the poles are not separate but bent towards each other to form a connection; that without the combined perception of good and bad, there lies no success in an endeavour. Balancing Reality in Pursuit of Holism Author Brian Luke Seaward (146) states that balance does not necessarily mean a 50/50 ration with whatever sits on either side of the scale. Rather, it might be proportional to a 60/40, 30/70 split, or any combination that equals to a whole (146). The opposites which Taoists suppose as contents of a whole are but merely stages in

Irish tort law Essay Example | Topics and Well Written Essays - 2000 words

Irish tort law - Essay Example Define nervous shock Before we go to the analysis proper there is a need to define what is ‘nervous shock’? Cane, P. (1993) defines the term saying: â€Å"This term is often now objected to as having no obvious meaning, and terms such as ‘mental injury’ or ‘psychiatric damage’ are often put in its place. But such terms do not capture the full range of situations covered by the older term, and so we have decided to retain it. Nervous shock is injury caused by the impact on the mind, through the senses, of external events.† He explained the term as follows: This term is often now objected to as having no obvious meaning, and terms such as ‘mental injury’ or ‘psychiatric damage’ are often put in its place. But such terms do not capture the full range of situations covered by the older term, and so we have decided to retain it. Nervous shock is injury caused by the impact on the mind, through the senses, of external events. Injury caused by the impact on the mind of external events, which is recognized by law, is of three types physical injury — a pregnant woman may suffer a miscarriage or a person may suffer a heart attack or a stroke; psychological injury such as hysteria, neurosis, depression or any other recognized psychiatric illness; and psychosomatic effects of psychiatric illnesses, such as paralysis. What is the legal rule in the compensatability of the regarding nervous shock? Cane (1993) answered the above question by saying: It must be stressed at the outset that no difficulty arises about awarding damages to a person who suffers nervous shock or even mental distress short of nervous shock, where this follows from the infliction of physical injuries on the sufferer.

Parental Involvement on Student Achievement Research Proposal

Parental Involvement on Student Achievement - Research Proposal Example The participation of parents can be formal or informal and constant or irregular. However, the most important thing is how effectively parents are participating in various educative programs/activities at home, school and in society to help children develop skill such as social, emotional and academic skills. Henderson & Berla remark that "when schools work together with families to support learning, children tend to succeed not just in school, but throughout life" (Gianzero, 1999 p.2). This overall development of students is evidenced by many studies across the world. At this juncture, the present study aims to explore the development of students in all respects by virtue of their parents' support. The study is intended to understand whether parent involvement in education can enhance the student achievement-socially, emotionally and academically. It also tries to throw lights on the effective ways of parental involvement that are high chances of student success in life. The study d oes not classify the students in respect of ethnicity, race, family and financial background. All types of students and parents are included in the survey to contribute their opinions and perspectives that, the researcher thinks, is necessary to come out with unbiased and generalized conclusions. The study focus on three aspects to empirically conclude that students' overall development is possible with parents' involvement in their education. These aspects are social achievement, emotional achievement, and academic achievement. The Research Problem As stated in the last paragraph, researchers all over the world are of the opinion that parental involvement does make positive results to students. But, little is studied and talked about the overall development of students as a result of the participation of their parents in their studies and other activities at school and home. Therefore, the present study is relevant in this context to examine whether the parental involvement can contribute to the overall development of students or not. The study put emphasis on three important variables, the validation of which is the ultimate objective of the study. Social Achievement The ability to socialize and communication skill is considered to be one of the key factors of success in life. Human beings are to interact with the fellow beings not only to communicate with them but also to understand and empathize with them in times of their troubles. Social interaction should be developed and encouraged by parents as well as teachers to equip students to keep away from the social evils and keep them ahead in the efforts to solve social problems. Emotional Achievement Now-a-days the success or otherwise of anyone is assessed on the basis of his/her Emotional Quotient (EQ) rather than Intelligent Quotient (IQ). It is also possible in schools and colleges to apply this parameter as the criterion for evaluation of student

BLUE RIDGE PARKWAY (GREAT SMOKY MOUNTAINS NATIONAL PARK) Research Paper

BLUE RIDGE PARKWAY (GREAT SMOKY MOUNTAINS NATIONAL PARK) - Research Paper Example The Blue Ridge Parkway is a carefully designed landscape that has been set in a narrow corridor of a protected land estimated to be about 88,000 acres (Whisnant 2). As the name suggests, it is a way through a park with boundaries surrounding the entire landscape designed to present and protect the Pathway. The park is owned and managed by the National Park Service system of the American public and is also the key component of the larger southern Appalachian park complex. The Blue Ridge Parkway is known to be an America’s most favorite drive that spans over 400 miles from Shenandoah Valley in Virginia to the Smoky Mountains of North Carolina (Karen 2). It is the second most visited National Park Services unit and annually welcomes over one million visitors (Reco 2). The park connects Shenandoah National Park in the Great Smoky Mountains National Park in Cherokee. It I also fed all round by several exits and entrances at all major federal and state highways extending even to towns and communities surrounding the region. Along the Blue Bridge Parkway are major cities like Boone, Asheville, NC, Roanoke, and VA. From its time of construction, the park still evolves through a dynamic increase of relationships in different facets. For instance, there is a continuous change in the landowners, the surrounding communities, and the public (Whisnant 2). Winding its way through 12 Virginia and 17 North California counties, it is characterized by beautiful and uncountable Appalachian landscapes. It is also surrounded by numerous communities with a profound impact on their social, economic, and cultures. The construction of the Pathway was a product of President Franklin D. Roosevelt and the Great Depression’s New Deal Programs to provide employment to the people to boost the economy of the United States. As the primary

Executing Strategies in a Global Environment Essay Example for Free

Executing Strategies in a Global Environment Essay Abstract This paper will analyze Federal Express’s value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, for this assignment I will attempt examine the efficiency of FedEx’s current business model and recommend a new business level strategy that will give Federal Express a competitive advantage over it rivals. In addition, this paper will also examine the manner in which overall, global competition may influence my recommended business strategy and I will suggest a significant way that Federal Express can confront its global competition. Introduction Federal Express began operating in 1973, under the leadership of Fred Smith Jr. Before Federal Express, a major portion for small packaging airfreight flew on commercial passenger flights. Fred Smith believed that these two services should be treated differently, because the commercial passenger and cargo shipper had different needs. The commercial passenger they wanted the convenience of daytime flights. As for the cargo shippers, they preferred night services, which would afford them late afternoon pickups and next day delivery (Hill,2013). Since small-package airfreight only went out based on the commercial flight scheduling, it was hard for cargo shippers to achieve next day delivery. To remedy the shipping issue cargo shippers had Smith aimed to build a system that could achieve next day delivery of small package airfreight (Hill,2013). Today Federal Express has grown from a express delivery company to a global logistic and supply chain management company (Crane, et al., 2003). Over the years Federal Express was able to grow through acquistions and large investmenst in information technoloy. The company was also able to stand out from the rest best on their business model operate independently, compete collectively. Smith segmented his compnay into 6 different  component – FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services, which allowed each component to focus on their own maket segment. By segmenting of each component it provided Federal express the oppurtunity to focus more on customer. Even though Federal Express 6 different components operated seperatley the competed together under FedEx Corporation. Federal Express’s Value Creation Frontier and Their Four Building Blocks of Competitive Advantage Federal Express profitability depends on three factors: The value a customer places on t heir services, the price Federal Express charges for their services, and the cost Federal Express has to incur to produce the services they provide (Hll Jones, 2013). The more favorable these factors are the more value is bestowed on Federal Express’s product. To accurately value, a company’s product management must distinguish the difference between utility and price (Hill Jones, 2013). Utility is the customer’s satisfaction or happiness with using or owning a company’s product or services. Federal Express has stepped up to the plate by making shipping easier and convenient for their customer. Today we can find drop off boxes in front of office buildings and small neighborhood shipping stores. Having drop off boxes offers the customer anytime drop offs and no waiting time. Federal Express has also invested heavily in innovation to add to the customer’s experience (Crane, et al., 2003). The option of wireless technology and the ability to track deliveries and schedule picks on the company’s website provides the customer shipping right at their fingertips. For their global customer Federal Express can offer shipping option to more than two hundred companies. The prices Federal Express set for their services are higher than many of their competitors. Federal Express pricing is considered a premium, which reflects the high quality level of service FedEx provides (Crane, et al., 2003). Based on FedEx stance, their premium pricing is worth it, but they fail to realize their very price sensitive customer who may go with a more cheaper option for certain services (UPS). In this case it make it difficult for Fedex to standout based on branding and the amenties they offer. They may have to think of a different way to differeinate themselves from the competitior. Since Federal Express’s growth and customer, satisfaction comes with a high price tag. Their return on invested capital (ROIC) is very low compared to its biggest competitor UPS. In 2011, FedEx ROIC was 7.41% and UPS was 19.39%  (Hill, 2013). Some say in time the money FedEx spent to build up their company, technology infrastructure, and customer satisfaction may soon pay off. The other positive side is that FedEx spending and acquisition expenses have made it hard for new companies to enter and compete in the packaging industry Along with value creation, a company must excel in the four building block of competitive advantage efficiency, quality, innovation, and customer responsiveness. How well a company performs in these four areas will determine their profitability and competitive advantage over the competitor. These four generic building blocks are a product of a company’s distinctive competencies, which will allow a company to differentiate its product and lower its cost structure (Hill Jones, 2013). In turn, sustain a competitive advantage and better profitability outcomes over their competitor. When determining a company’s efficiency we can look at what it takes (inputs) to produce a product or services (outputs). According to Hill and Jones, the more efficient a company is the fewer inputs it required to produce a particular output. The most common way to measure a company’s efficiency is through employee productivity – the out pout produced per employee (Hill Jones, 2013). When examining FedEx efficiency they were the first packaging company to invest in technology that enabled their employees to access company information wireless 24 hours a day. This wireless feature also allows the employee to collect packaging data, which allows employees to quickly enter packages into the company’s package tracking system, which reduces the possibility of error (Crane, et al., 2003). As for FedEx service, they can be review by its features, performance, durability, reliability, style, and design (Hill Jones, 2013). These features are used by customers to determine the quality level of the services that are offered by FedEx. Based on FedEx’s history, spending to build its infrastructure, and premium pricing FedEx is committed to providing a service of high quality standings. FedEx has also invested heavily in new technologies, which will improve their services, make it more reliable, and valuable to its customers (Amsler, Cullen, Erdmenger, 2010). An example that show FedEx is all about quality is their technology efforts such as tracking deliveries on their website, and offering convenient shipping at the customer’s fingertips. As mentioned before FedEx is all about innovation. They are into creating new services  and processes to make shipping easy and convenient for their customers. One of their major investments is the joint venture with University of Memphis. University of Memphis and FedEx have joined and formed the FedEx Institute of Technology. This investment will ensure that FedEx will not be let in dark when it comes to new technology (Crane, et al., 2003). When it comes to customer satisfaction FedEx tries to identify their customer needs. FedEx heard the customers demanded for a more convenient way of shipping. FedEx has extended drop off times by three hours, offer drop off boxes, and the ability for customer to schedule pickups on FedEx’s website. The only dissatisfaction is the premium pricing set on their services. FedEx fail to adhere to the demands of their cost sensitive customers. These are the customers who only care about inexpensive delivery services. This group of people may use FedEx as a last resort for their shipping needs. Product Differentiation The idea behind product differentiation is creating a product that satisfies the customers’ needs (Hill Jones, 2013). In order for a company to obtain a competitive advantage they must offer a product that better satistfies the customer’s need than its rival. When a company creates a stratergy that involves innovation, execellence, quality, and customer responsiveness they are offering custumers differentiation product. When the a company’s stratergy is about finding ways to increase efficiency and reliablity to reduce cost they are offering the customer low priced product (Hill Jones,2013). In the case of Federal Express their stratergy is not about offering a low priced product, but offering a product that is innovative, meets a high standard of execellence, high quality, and basing the product on the customer’s need. Federal Express understood the importance of differentiation. Since their strategy is not based on offering a low costing product Federal Express had to focus on information technology. Today customers are interested in monitoring their shipments, estimating arrival times, price and cost of shipments. These elements are important to most businesses and consumers as well as the safety of their delivery (Crane, et al., 2003). To satisfy the needs of their customers and to stand out from their competitor FedEx has  invested heavily in the technology infrastructure, which provides options for customers to track and validate shipments at their personal computer. Federal Express works hard to create a high quality level of service that is difficult for their rival to match (Crane, et al., 2003). Over the years, FedEx has been known as an innovator in the shipping sector, and providing a high level of quality services. Due to FedEx’s higher prices the level of service they provide may become unnoticed. To differentiate their standard of quality from their competitor FedEx lets their customers know that if they are willing to pay more it will be worth it (Crane, et al., 2003). Capacity Control With technology, forecasting, and planning strategies Federal Express is able to handle the fluctuating demand in shipping. With General Information Science (GIS) Federal Express is able to build routes for the driver, guide sorting activities of inbound freight, estimate and record delivery times. This information is stored on a cloud, which is use for future planning and test the durability of a route to accommodate package volume fluctuation (Conger, Dezemplen, Haas, McLeod, 2010). Efficiency of Federal Express’s Current Business Model Federal Express’s current business model is to â€Å"operate independently, compete collectively.† Currently Federal Express is under the leadership of FedEx Corporation. FedEx Corporations provides strategic direction and financial reporting for the following operating companies that compete collectively, but operate separately worldwide: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (Amsler, Cullen, Erdmenger, 2010). The idea behind â€Å"Operate independently, compete collectively† is that each company will operate independently, compete collectively and manage collaboratively. By operating independently, each of the organizational components (FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services) can focus solely on their market segment. Also by segmenting off each component by its own market segment has provided FedEx the competitive advantage in customer responsiveness and has limited wasted time and resources on problem that are not associated with each market (Amsler,  Cullen, Erdmenger, 2010). The benefit of all the organizational component competing collectively is carrying and competing under a well know name – FedEx, which is one of the most recognized names in the industry (Smith, 2005). Even though â€Å"operate independently, compete collectively† has worked for Federal Express thus far, but keep in mind it only provided FedEx with a competitive edge in specific customer focus. To gain a stronger competitive advantage FedEx should add cost leadership to their business level strategy. Cost leadership is a business model strategy that works towards lowering a company’s cost structure so they can make and sell their products at a lower price than its competitors (Hill Jones, 2013). This has been difficult for FedEx, because of their constant expenditures in their infrastructure (Amsler, Cullen, Erdmenger, 2010). Due to FedEx costly expenditures, they are unable to compete with their biggest rival, UPS in setting prices. Global Competition and the Impact on Suggested Business Strategy Based on the international shipping demand among integrated global corporations and manufactures it will be FedEx’s as well as its competitors best interest to enter into the global shipping industry. Global manufactures are interested in keeping their inventory at a minimum and have just in time delivery option. This way global manufactures can keep cost down, fine-tune their production, and meet delivery deadlines (Hill, 2013) . As for global corporation their shipping need are different. They are in need of fast and a safe way to ship document that are to confidential for internet transmisson or require a real signiture. These global coroporation are seeking for the same shipping services the receive in the U.S for their global operations (Hill, 2013). According to Case 7: â€Å"The Evolution of the Small Package Express Delivery Industry, 1973 -2010† the trend for global shipping need is forcasted to grow approxiamently 18% annually from 1996 to 2016. This means there is a big demand for air cargo operators to build global shipping networks that will allow them to provide shipping services across the globe with in a 48 hour time frame. Through acquistion Federal Express was able to build a global shipping network to meet the demand among intergrated global corporations and manufactures. The acquisition expenses, international start cost, customs regulation cost , labor issue associated with global shipping, and the barries to attaining landing right in many markets prevented FedEx to  include cost leadership in their global busines stratergy. Eventhough FedEx does not have the competitive edge when it come to pricing they are t more visible in the global shipping industry than their competitors. They can offer services and shipping time frames their rivals can not offer. FedEx also has shipping hubs all over the world, which include 600 or so air crafts , which allows them to provide shipping option most of their comepitives can not offer. Based on history this was very difficult for other companies to establish this task. Since very few competitor have the same golobal infrastructure as FedEx global companies relay more FedEx for the international shipping needs (Crane, et al., 2003) Conclusion In conclusion, Federal Express’s competitive advantage is not based on cost, but on its technology infrastructure. Over the years, Federal Express has spent heavily on technology and in acquisitions in order to offer delivery options and services their competitor cannot. The spending was geared towards satisfying the needs of the customer, innovation, offering a quality product and excellence services. The only negative side on spending heavily is that the cost was passed on to the customer, but Federal express stance is that they offer premium services and products. Federal Express can offer their international customers shorter delivery time, because of the major acquisition transactions Federal Express was involved in over the years. As for their domestic business, it may be a little difficult to stand out from their competitor. Currently the competitor (UPS) can offer similar services and convenient shipping options at a lower cost. References Amsler, M., Cullen, J., Erdmenger, J. C. (2010). Strategic Report for FedEx Corporation. Vector Strategy Group. Conger, R., Dezemplen, R., Haas, J., McLeod, J. (2010). Using GIS Strategic Planning and Execution at FedEx Express. Crane, B., Landthorn, B., Miri, B., Relph, J., Sanchez, C., Vernerova, A. (2003). FedEx Corpration: Strategic Management Project. Hill, C. L. (2013). Case 7: The Evolution of the Samll Package Express Delivery Industry, 1973-2010. In C. L. Hill, G. R. Jones, Strategic Management: An Integrated Approach (pp. C83-C96). Independence: Cengage. Hill, C. L., Jones, G. R. (2013). Strategic Management: An Integrated Approach (10th ed.). Independence: Cengage. Smith, F. W. (2005). FedEx. Retrieved from FedEx corporation annual report: http://www.fedex.com/us/investorrelations/financialinfo/2005annualreport/online/msg_chair.html

With Each Moment, Comes Great Triumph Essay Example for Free

With Each Moment, Comes Great Triumph Essay It is inherent to say that each of us refers back to memories of our childhood to reminisce in the awkward, comical and daunting experiences and discover parallelisms to our present existence. Rohinton Mistry writes of the parallel fears of water and swimming from childhood to adulthood and of overcoming, slowly but surely, a seemingly trivial act. The imagery and memory of water, specifically, is a key theme throughout the story. Mistry writes of the symbolism and meaning of water for the character in a philosophical way through self-exploring questions and recollections. The thought and discussion of taking swimming lessons as an adult gives an opening to memories of attempted swimming lessons and the importance of Chaupatty Beach. â€Å"It seemed that the dirtier it became, the more crowds it attracted†¦ (Or was it the crowds that made it dirtier? )†(260) This distant and uninviting body of water is the starting place for swimming lessons, though quick to be unenthusiastic â€Å"because of the filth†(261) and the ‘guttersnipes’ that taunted and teased the young learner. This causes the reader to remember some aspects of swimming and the experiences of struggling physically, fearing peer pressure, and the unknown of deep water. Mistry is increasingly descriptive of water imagery and moments of memory so these images move off the page and into imagination, allowing the reader to visualise the filth, the struggle and the fear. â€Å"The universal symbol of life and regeneration did nothing but frustrate me. (260) There are numerous symbolic terms and meanings for water where water is cleansing, type of renewal, or a connection between symbolic life and death. When the first adult swimming lesson is attempted, there is a feeling of hopelessness and terror. The character is weighed with emotion and burdened with dispelled expectation. â€Å"The swimming pool, like Chaupatty beach, has produced a stillbirth. †(263) The character is beyond disappointment when he realises his expectation of triumph emerges into a symbol of death. Failure to swim through filth must mean something other than failure to rebirth – failure of symbolic death? †(264) This question is posed as much for the reader as they are for the character. There is a need to answer for the character so he might come to the realisation that there is more to life than being imprisoned by the failed attempts, to press on, move forward and endeavour to reach your goal. The character eventually becomes in a way reborn through his seemingly ordinary experience in the bathtub and the human nature of anting to overcome a fear. We relate to the idea of feeling reborn when overcoming the anxiety of particular obstacles on our lives. Finally, at his own pace, he realises he must fight his panic and fear of water as he has seen â€Å"the world outside the water†¦ it is now time to see what is inside. †(270) He sees with a changed perspective, his eyes are opened to the opportunities that he is yet to face and eventually triumph.

Positive Effects Of Social Networking Media Essay

Positive Effects Of Social Networking Media Essay The first type of social networking created was Email, which was invented in 1975 (Email). Since then social networking has advanced into a profile with numerous features that can be used and has integrated the use of email. Now social networking is changing the way the world interacts with people, and has provided many useful tools for the world to use. Still these social networks are continuing to advance to provide better features for users, and these popular sites will continue to grow in size. Even though social networks can have negative effects such as wasting time, it also affects people positively by allowing people to communicate and remain in contact with friends in a much easier way. In the article Are social networking sites good for our society? (2009) social networking is defined as an online community that allow people to develop profiles of their backgrounds and interests, communicate with friends and strangers, and share thoughts, photos, Internet links, music, and more (p.1). Once a social network is joined users are prompted to identify others in the system with which they have a relationship known generally as friends. Social networking sites vary greatly with the features they have to offer, and is what makes each site different from the other. Six Degrees was the first major social network, similar to social networking today, to be launched and was launched in 1997 (Bhutkar, 2009). Social networking as it is today did not become popular until 2003 when Friendster MySpace and LinkedIn were launched. Then in 2004 Facebook was launched but was only open to college students with a valid university email. Facebook remained a college only network for two yea rs before it opened to the general public in 2006. Since then Facebook has become the number one social networking site (Bhutkar, 2009). Social networking sites allow people to communicate and remain in contact with friends as well as meet new people. These sites allow people to find others with similar interests that they can create a relationship with and get to know one another. Groups can be joined or formed to meet people with similar interests, and views. Social networking allows for creative expression by using tools such as blogging and messaging to post ideas and stories (Are social networking sites good for our society, 2009). Users also share poems, interest in music, TV shows, hobbies, photos, and many other things (Jasson). Event invitations can be made and sent to friends rather than having to mail invitations and friends can also rsvp for an event on the site. Not only is it used to talk to friends, but it is also used to discuss educational topics. Social networking is said to increase a persons quality of life, and can reduce health risks. Many people report that they have not had any negative experiences with social networking, and schools are starting to look at it as an educational tool (Thelwell, 2006). The use of social networking helps improve technological skills of students, and exposes them to many diverse views about things. It also has helped with communication skills, and allows the learning of cultures from users all over the world. Also students use social networking to discuss homework topics with peers online, and to get help on assignments (Reid, 2009). Sixty percent of students on social networks have said that they talk about education, and 50 percent specifically talk about school work assignments. These students seem to have an extraordinary set of traditional and 21st century skills including communication, creativi ty, collaboration, and leadership skills and technology proficiency. Parents are expecting schools to take advantage of using online social networking to educate children, but to do so in a safe way. Some public schools have created a secure social network for its student to be able to communicate with other students, and to do so in a more safe way (National School Board Association, 2007). Social Networking does not just benefit individuals, but it also benefits businesses as well. These sites allow businesses to advertise and market services to a large audience, and a profile is free to set up (Gillin). Numerous businesses have created profiles that provide detailed information about the business to advertise in a low cost way (Roberts, 2008). Businesses will gain more attention on social networks because the business profile is available to for all users of the social network to see. Also businesses like to use social networks to learn what potential employees are like, and make decisions based on the information provided on the persons profile (Ellison, Steinfield, Lampe, 2007). Social networking has already completely changed the way people interact in the world, but also it is advancing more to make it easier to access. Now social networking is becoming mobile and can be accessed through the use of a cell phone. It is thought to be a great idea and would increase the use of social networking since a lot of people carry cell phones with them at all times. People can use mobile phones to update their status, post comments, upload photos, send messages, and update profile from just about anywhere (Kharif, 2006). This allows people to be able to get things done as well as take some time to log onto social networks. Making social networks accessible through cell phones is also expected to increase the number of users by a significant amount (Gillin). So far mobile social networking is being used more than social networking from pc computers. The top sites that are being visited using mobile phones are Facebook, MySpace, and Bebo. Being able to access social net works from the cell phone unlocks the full potential of social network, and makes it more convenient for people to use. Since it is more convenient to use the number of users has increased and the mobile social networking has increased significantly (Hamblen, 2008). Social networking does have negative effects as well, but are nothing compared to the advantages of using it. These sites reduce the amount of face to face socializing and replace it with online interaction which is believed to result in low quality relationships with other people (Mikami, Szwedo, Allen, Evans, Hare, 2010). Teens over share information to the public that can hurt them in the future when trying to get a job, and deleting the information is not good enough. Cyber bullying occurs as well, which is bullying people online in a public way, but occurs at a small percentage. People that frequently use online social networking are also prone to social isolation which can lead to depression and decreased social skills (Mikami, Szwedo, Allen, Evans, Hare, 2010). A false sense of security leaves social networking site users vulnerable to security attacks such as hacking, leaking sensitive information, and sending viruses. Identity theft can occur when a cybercriminal uses the network to gather personal information posted about people (University of the Pacific). It also has been said that social networking sites endanger children by allowing pedophiles to seek out children (Are social networking sites good for our society?). Also since they are becoming mobile it might encourage people to use cell phone to access these sites while driving just like text messaging was a popular thing to do while driving. Social networking becoming mobile use will increase cell phone use and the problem with that is that cell phones have been found to emit electromagnetic radiation that is absorbed by the brain and body. This absorption disrupts the brain sites for memory and learning and can cause confusion and forgetfulness (Thomas, 2004). It is also been reported that cell phones can cause cancer from the electromagnetic exposure to other parts of the body, but little emphasis has been placed on it. The cause of cancer in the brain has been the main health concern with cell phones, which social networking by mobile phone is not exposing the brain to the waves. Also, cell phones give small amounts of radiation off and would require a lot of use and over a long period of time for it to start to cause cancer. Research is needed to provide evidence to determine that actual health risk of cell phones. Social networking has its advantages and its disadvantages like everything else does. The sites are continuously advancing, and changing to fix the negative problems. One example would be accessing social networking sites using cell phones so that people can access the site on the go rather than sit at home on a computer. Most users have stated that they have had only positive experiences with social networking, and very few people experience cyber bullying. There are still problems that need to be fixed, but it seems that the positive effects outweigh the negative effects. Social networking is a very valuable tool that can be used to meet new people, and allow people to remain in contact with friends. Even though it can waste time, social networking positively affects the world by allowing people to communicate, and remain in contact with friends in an easy and convenient way.