Role Of Price Mechanism Essay Example for Free

Role Of Price Mechanism Essay The role of price mechanism in a free market economy or capitalism! The price system functions through prices of both goods and services. Prices determine the production of innumerable goods and services. They organise production and help in the distribution of goods and services, ration out the supplies of goods and services and provide for economic growth. Let us analyse the role of prices in all these spheres. (1) What and How Much to Produce: The first function of prices is to resolve the problem of what to produce and in what quantities. This involves allocation of scarce resources in relation to the composition â€Å"of total output in the economy. Since resources are scarce, the society has to decide about the goods to be produced: wheat, cloth, roads, television, power, buildings, and so on. Once the nature of goods to be produced is decided, then their quantities are to be decided. How many kilos of wheat, how many million metres of cloth, how many kilometers of roads, now many televisions, how many million kw of power, how many buildings, etc. Since the resources of the economy are scare, the problem of the nature of goods and their quantities has to be decided on the basis of priorities or preferences of the society. If the society gives priority to the production of more consumer goods now, it will have less in the future. A higher priority on capital goods implies less consumer goods now and more in the future. This problem can be explained with the help of the production possibility curve, as shown in Figure 7.1. Suppose the economy produces capital goods and consumer goods. In deciding the total output of the economy, the society has to choose that combination of capital and consumer goods which is in keeping with its resources. It cannot choose the combination R which is inside the production possibility curve PP, because it reflects economic inefficiency of the system in the form of unemployment of resources. Nor can it choose the combination K which is outside the current production possibilities of the society. The society lacks the resources to produce this combination of capital and consumer goods. It will have, therefore, to choose among the combinations B, C or D which give the highest level of satisfaction. If the society decides to have  more capital goods, it will choose combination B and if it wants more consumer goods, it will choose combination D. (2) How to Produce: The next task of prices is to determine the techniques to be used for the production of articles. Prices of factors are the rewards received by them. Wage is the price for the service of labour, rent is the price for the service of land, interest for the service of capital and profit for the service of entrepreneur. Thus wages, rent, interest and profit are the prices paid by the entrepreneur for the services of the factors of production which make up the costs of production. Every producer aims at using the most efficient productive process. An economically efficient production process is one which produces goods with the minimum of costs. The choice of a production process will depend upon the relative prices of the factor services and the quantities of goods to be produced. A producer uses expensive factor services in smaller quantities relative to cheap resources. In order to reduce costs of production, he substitutes cheaper resources for the dearer. If capital is relatively cheaper than labour, the producer will use a capital-intensive production â€Å"process. Contrariwise, if labour is relatively cheaper than capital, labour-intensive production processes will be used. The technique to be used also depends upon the type and quantity of goods to be produced. For producing capital goods and large outputs, complicated and expensive machines and techniques are required. On the other hand, simple consumer goods and small outputs require small and less expensive machines and comparatively simple techniques. (3) To Determine Income Distribution: The price mechanism also determines how income is distributed in a capitalist economy. In such an economy, consumers and producers are largely the same people. Producers â€Å"sell goods at given prices to consumers for money, and consumers receive â€Å"incomes from producers in exchange for their services. The owners of factors of production who are all consumers sell their services at given prices for money to producers, and then spend that money to buy goods produced by producers. In fact, the price mechanism is a system of real flows from producers to consumers and from consumers to producers. This figure shows the price mechanism in the form of a circular flow. The  upper portion determines the prices on the goods market when the demand for goods by consumers equals the supply of goods by producers. It is this which decides what to produce. The decision as to how to produce is entirely taken by the producers. The lower portion of the figure shows that consumers or households are the controllers of the factors of production—land, labour, capital and entrepreneurial talent. It is they who supply their services to producers who demand them and in return the households receive money. This is how prices are determined on the factor market. Conclusion: Thus the price mechanism working through supply and demand in a free enterprise economy acts as the principal organising force. It determines what to produce and how much to produce. It determines the rewards of the factor services. It brings about an equitable distribution of income by causing resources to be allocated in right directions. It works to ration out the existing supplies of goods and services, utilises the economy’s resources fully and provides the means for economic growth. Price Mechanism in a Socialist or Controlled Economy: In a socialist economy, the decisions as to what, how and for whom to produce are not guided by the price mechanism as under a capitalist economy. Instead, they are made by the central planning board assisted by the various ministries, industries and state enterprises. Thus it is the central planning board that performs the functions of the market. The decisions as to what to produce and in what quantities are based on the objectives, targets and priorities laid down in the plan. The central planning authority decides, for example, if more bicycles are to be produced than cars, or houses for the masses more than hotels, or more eggs are to be produced than chocolates. It also fixes prices for all commodities. They are administered prices at which commodities are sold in state-run stores throughout the country. Administered prices are fixed arbitrarily by the central planning board without calculating the actual cost of production of commodities. Prices can be reduced or increased onl y by the central planning authority. People buy commodities according to their preferences and incomes. The decision as how to produce different commodities is also taken by the central planning authority. The latter allocates resources and decides which  methods of production to employ. What share of the factors of production should be allocated to the production of capital goods and what share to the production of consumer goods? The planning board lays down two rules for the guidance of plant managers. One, each manager should combine productive goods and services in such a manner that the average cost of producing a given output is the minimum. Two, each manager should choose that scale of output which equalises marginal cost to price. He must see to it that the industry produces exactly as much of a commodity as can be sold at a price which equals the marginal cost. In a socialist economy, raw materials, machines and other inputs are sold by public enterprises at prices which are equal to their marginal cost of production. So pricing in a socialist economy is based on the marginal cost pricing like that in a capitalist economy. If the price or cost of a commodity is above its average cost, the plant managers will earn profits and if it is below the average cost of production, they will incur losses. In the former case, the industry would expand and in the latter case it would cut down production. Ultimately, a position of equilibrium will be reached where price equals both the average cost and the marginal cost of production. But since goods are produced in anticipation of demand, it is accounting prices which are the basis of price determination. This, in turn, depends on the process of trial and error which necessitates small adjustments in prices from time to time. The problem for whom to produce is also solved by the state in a socialist economy. The central planning authority takes this decision at the time of deciding what and how much to produce in accordance with the overall objectives of the p lan. In making this decision, social preferences are given weight-age. In other words, higher weight-age is given to the production of those goods and services which are needed by the majority of the people over luxury items. They are based on the minimum needs of the people, and are sold at fixed prices through government stores. Since goods are produced in anticipation of demand, an increase in demand brings about shortages and this leads to rationing. The problem of income distribution is automatically solved in a socialist economy because all resources are owned and regulated by the state. All interest, rent and profit are fixed by the state and go to the state exchequer. As regard wages, they are also fixed by the state according to the amount and quality of work done by an individual.  Each individual is paid according to his ability and work. Economic surpluses are deliberately created and invested for capital formation and economic growth. Price Mechanism in a Mixed Economy: A mixed economy solves the problem of what to produce and in what quantities in two ways. First, the market mechanism (i.e. forces of demand and supply) helps the private sector in deciding what commodities to produce and in what quantities. In those spheres of production where the private sector competes with the public sector, the nature and quantities of commodities to be produced are also decided by the market mechanism. Second, the central planning authority decides the nature and quantities of goods and services to be produced where the public sector has a monopoly. In the case of consumer and capital goods, commodities arc produced in anticipation of social preferences. Prices are fixed by the central planning authority on the principle of profit-price policy. There are administered prices which are raised or lowered by the state. For public utility services like electricity, railways, water, gas, communications, etc., the state fixes their rates or prices on no-profit no-loss basis. The problem of how to produce goods and services is also solved partly by the price mechanism and partly by the state. The profit motive determines the techniques of production in the private sector. At the same time, the central planning authority intervenes and influences the working of the market mechanism. The state guides and provides various facilities to the private sector for adopting such techniques of production which may reduce costs and maximise output. It is the state which decides where to use capital-intensive techniques and where to use labour-intensive techniques in the public sector. The problem for whom to produce is also decided partly by the market mechanism and partly by the central planning authority. In the private sector, it is the market mechanism which determines what goods and services are to be produced on the basis of consumer preferences and incomes. Since a mixed economy aims at achieving growth with social justice, the allocation of resources is not left entirely to the market mechanism. The state intervenes to allocate resources â€Å"and for the distribution of income. For this, it adopts social security programmes and levies progressive taxes on income and wealth. In the public sector, the state decides for whom to  produce in anticipation of consumer preferences.

How Being in Love can Change People :: essays research papers

â€Å"How Being in Love can Change People†   Ã‚  Ã‚  Ã‚  Ã‚  In the three marvelous works, Matchstick Men, Punch-Drunk Love, and â€Å"Mama Day†, people are all changed greatly, and for the better by romantic or father/child love. How everyone knows that there is no one on Earth who is perfect, yet when there is love, we come so close to it. Within these three works of art, one can analyze how there is actual change through people when there is love present.   Ã‚  Ã‚  Ã‚  Ã‚  Cocoa states in Gloria Naylor’s â€Å"Mama Day†, â€Å"When I had come to New York seven years before that I had wondered about the need for such huge buildings. No one ever seemed to be in them very long; everyone was out on the sidewalks moving, moving, moving- and to where?† Cocoa starts out as a lost cause, going to New York as a resident tourist. Meeting George saved her vision of New York . . . . He knew what it was really about, â€Å"New York wasn’t on those Manhattan sidewalks, just the New Yorkers. My city was a network of small towns, some even smaller than here in Willow springs. It could be one apartment building, a handful of blocks, a single square mile hidden off with its own language, newspapers and magazines- its own judge and juries. You’d never realize that because you went and lived on our fringes.†   Ã‚  Ã‚  Ã‚  Ã‚  Cocoa was living in New York and had resided there for seven years, but was she seeing the real New York? Or was she seeing a New York fantasy world? †¦A forever-tourist New York resident. George insists that New York is much more than its’ buildings or looks, it’s the little things, â€Å"To live in New York you’d have to know about the florist on Jamaica Avenue who carried Yellow roses even though they didn’t move well, but it was his dead wife’s favorite color. The candy store in Harlem that wouldn’t sell cigarettes to twelve year olds without notes from their mothers. That they killed chickens below Houston, prayed to Santa Barbara by the East River and in Bensonhurst girls were still virgins when they married.†   Ã‚  Ã‚  Ã‚  Ã‚  One of the reasons why George offered to show Cocoa around New York was because she needed a â€Å"guide†. She had lived in New York for seven years and still had thought like a tourist, the same way of thinking she had had when she arrived seven years earlier.

Feasibility of Telehealth Essay

Health is a vital aspect of life, which is why it is important to have an access to different health care services. The world’s population is rising radically every year; thus, the demand for quality health care services also increases. With the application of modern technology the health system has been able to accommodate this demand in many countries through the implementation of Telehealth. In Canada, accessibility and distribution of health care services is influenced by aspects like large landmass, population concentration and economy and (Sevean, et. al., 2008). The feasibility of Telehealth as an instrument for delivering health care services in Canada will be discussed in this paper, focusing on four key themes: service to rural areas, cost effectiveness, responsiveness and ease of access that will be tackled consecutively. The first paragraph after the introduction aims to give an overview on what and how Telehealth works in Canada. Central to the arguments presented in this paper is the pros of using Telehealth by means of telecommunication technologies as a substitute to the actual patient-to-health care provider interaction. Telehealth is defined by Health Canada (2000) as â€Å"the application of telecommunications and information technology to the delivery of health care and health-related services and information over large and small distances†. It is basically divided into two distinct parts: the technology being used and the persons (patient or health care provider) (Thede, 2001, para. 2). Telehealth according to Prinz, Cramer, and Englund uses four modes of telecommunication: voice-only or telephone, video images or exchange of information through digital pictures, and virtual contract or video conferencing (Background section, para. 4). Included in the Telehealth Ontario service is a contact number that you can Canadians can call 24 hours a day seven days a week. In consulting the health care provider through phone, once on the line, the health care provider, usually registered nurse, will asks the person on the other line to describe his or her health concern, the nurse will then evaluate the person’s condition and will help him or her to determine the best option available for him or her; whether to go see a doctor, admit himself or herself in an emergency room, the nurse can also advise self-care (Ontario Ministry of Health and Long-term Care, 2009). Telehealth has already been incorporated in almost every medical field like Pediatrics, Psychiatry, Cardiology, Radiology and Oncology providing accuracy and more services to people. Telehealth aims to elevate the serviceability of health system by providing access for people who has a health concern anytime of any day anywhere. Telehealth provides better health service for people living in the rural areas. Canada has a large landmass with bodies of water surrounding it. The population is not equally distributed, most Canadians live in urban areas, and some smaller communities are located at rural areas and the Aboriginals mostly live in small isolated areas. In the study they conducted in 2008, Sevean, Dampier, Spadoni, Strickland and, Pilatzke found out that Canadians who live in smaller isolated community do not have an access to a quality health care because even though Canada has an excellent health services most of these health services centered on the urban areas and that is a lso why most health care professionals favor working on urban areas resulting to a shortage of health care professionals in the rural areas. In addition, specific services might only be available to large hospitals that are mostly located on big cities, forcing people in isolated communities to travel miles by land, water or air to get the medical help they need. Most road conditions in the rural areas are undeveloped increasing their inconvenience. Also, weather condition is also a great consideration in accessing health care, air and sea travel is usually cancelled during storms most roads are also inaccessible when there is a strong downpour of snow. Unavailability of help during emergencies results in fatality especially in the northern Aboriginal communities (Sevean et. al, 2008). By improving the access of health care for rural access it also decreases the mortality rate. Telehealth is designed to reduce the cost associated with the delivery of health care without compromising on the quality. Treatments and medications can be costly depending on the type and intervals plus the extra inconvenience associated with it such as travelling costs, hospital accommodations, stress, and physical limitations (Sevean et al., 2008). Included in the patient’s bill in the hospital is the room accommodation, the longer they stay at the hospital the more they have to pay. Through Telehealth, patients who underwent surgeries or had suffered illnesses have the option to check-out early and continue the recovery in their own homes; thus, lessening the costs of their hospitalization. As mentioned earlier, people who live in small isolated communities have to travel kilometers to miles in order for them to meet with their health practitioner on the cities to get medical attention or follow-up from post-recovery, through telehealth they are able to save on transportation, gas mileage and other extra expenses like parking fee. Moreover, Saqui et al, (2011) argued that telehealth consultation decreases morbidity, prevent unnecessary suboptimal costly treatment, patient transfers and travelling cost when a change in the diagnosis and treatment plan occur (Discussion Section, para. 2) Through videoconferencing, Telehealth are able to give immediate diagnosis for a patient who needs urgent care (Saqui et al., 2011). A lot of effort is involve before a patient co uld meet with his or her doctor such as making an appointment, sorting his or her schedule and so on and so forth. By the time the person with health concern meets with his or her doctor the illness might already aggravated; consequently, the health care system through Telehealth provides a quicker and more efficient way on determining the type and seriousness of the patients and illness without leaving the comfort of their homes. By contacting Telehealth as soon as a person notices some irregularities in the person’s normal body functions that indicates that he may or may not be ill, enable that person who called to act immediately preventing the illness from advancing any further or on the other hand be reassured that there’s nothing to worry about. Furthermore, Telehealth also made the monitoring on recovering patients at their homes faster, the registered nurse in-charge of monitoring the patient can guide the patient in his recovery process through a streaming media. Any concerns that may arise in the recovery process can be solved a lot quicker, the patient can leave a message or phoned and the health care provider will respond to it as soon as possible stating the fact that Telehealth service is available 24 hours a day. Moscovice and Rosenblalt (2000) that the quality of health care cannot be measured by the morbidity and mortality rates, but by the ability of the health care provider to recognize and respond to their patient immediately. One thing that proves that Telehealth is feasible in improving the delivery of health-care is its acceptability. Although Telehealth is designed mostly to cater the health care needs of people living in the rural areas and isolated communities, according to Health Canada, Telehealth service has been extended to the impoverished, the socially disadvantaged, ‘the institutionalized’ and the urban and suburban households has been added recently. The Telehealth system is tailored to improve enhance the access of the clients and their families to the health system in regards to their location, gender, age and condition. Prinz et. al, identify age as a barrier that create health discrepancy because of the limited access to health care, ‘home bound status’ and issues on transportation which is why in older patients, a branch of Telehealth called Telemonitoring is being used to provide an immediate respond in case of emergency, to allow them to stay at their homes, to lessen the risk for accidents and ‘to delay the institutionalization ( Pruski and Knops, 2005). This branch of telehealth has been proven to improve the elder’s quality of life, making the task of the caregiver easier, and lessen the elder’s admission to the hospital. The high acceptability of Telehealth comes from its ability to provide maximum support not only for the patients but also for their families. The clients feel secured because they are in a familiar environment where their families could assist them. Moreover, Telehealth has been proven to lessen the stress involve in the health care process especially for the patients with disabilities because of the reduced waiting time, omitting the need for transportation. In 2005, 100 % of the respondents in the Pediatric Surgical Telehealth Clinics survey conducted by Miller and Levesque indicated that they are satisfied in the service of Telehealth and would recommend it to others (Sevean et. al, 2008). Conclusion The four key themes of Telehealth discussed above: service to rural areas, cost effectiveness, responsiveness, and ease of access and acceptability, and the description on how Telehealth works illustrate its feasibility in delivering the health care the clients need and the advantages of using Telehealth versus the traditional way of patient-to-health care practitioners. Telehealth provides better health care services in the rural areas and isolated communities, it also lessen the cost of access to health care by decreasing the need to travel and other expenses, in addition Telehealth also provides an immediate feedback to the client or patient that is important during emergency, therefore decreases mortality and morbidity rate and lastly, it is designed for various ages, gender, disease to provide an ease of access and acceptability. Telehealth In conclusion is a more efficient way of delivering care to people through the use of various modern technologies; its feasibility has been proven. The health of future and current generations depends on the availability and efficient delivery of health care. References Office of Health and the Information Highway, Health Canada. (March 2000). Evaluating Telehealth ‘Solutions’ A Review and Synthesis of the Telehealth Evaluation Literature. Retrieved from: http://www.hc-sc.gc.ca/hcs-sss/pubs/ehealth-esante/2000-tele- eval/index-eng.php Ontario Ministry of Health and Long-term Care. (2009). Telehealth Program.-Ministry Program-Public Information. Retrieved from: http://www.health.gov.on.ca/en/public/programs/telehealth/ Prinz, L., Cramer, M., Englund, A. (July-August 2008). Telehealth: A policy analysis for quality, impact on patient outcomes, and political feasibility. Nursing Outlook. 56(4), 152-158. Retrieved from: http://www.sciencedirect.com/science/article/pii/S0029655408000456 Saqui O, Chang A, McGonigle S, Purdy B, Fairholm L, Baun M, Yeung M, Rossos P, Allard J. (2007). Telehealth videoconferencing: Improving home parental nutrition parent care to rural areas of Ontario, Canada. Journal of Parenteral and Enteral Nutrition. 31(3), 234-239. Retrieved from: www.ncbi.nlm.nih.gov/pubmed/17463150 Sevean P, Dampier S, Spadoni M, Strickland S, Pilatzke S. (2009). Patients and families experiences with video telehealth in rural/remote communities in Northern Canada. Journal of Clinical Nursing. 18(1), 2573-2579. Retrieved from: http://www.ncbi.nlm.nih.gov/pubmed/19694885 Thede, Linda Q. (2001). â€Å"Overview and Summary: Telehealth: Promise Or Peril?†. Online Journal of Issues in Nursing. 6(30). Retrieved from: www.nursingworld.org/MainMenuCategories/ANAMarketplace/ANAPeriodicals/OJIN/TableofContents/Volume62001/No3Sept01/TelehealthOverview.aspx Vincent, C., Reinharz, D., Deaudelin, I., Garcieau, M. (2005).Why some Health Care Professionals Adopt Telemonitoring and Others Not?. In Pruski, A. & Knops, H (Eds.). Assistive Technology: From Virtuality to Reality. Amsterdam, Netherlands: IOS Press

Students Attitudes Towards The Teaching English Language...

Abstract: The paper in hand, as the title indicates, is a study conducted for the sake of investigating BA students’ attitudes towards the teaching of English as FL alongside the home-culture, taking Islamic English vernacular as a case of study. To achieve the purpose of the study, a questionnaire was distributed to 1500 BA students in different universities all over different territories within Algeria. Basing on the results, students reveal positive attitudes towards the insertion of the Islamic English vernacular as a home-culture in EFL teaching. This may oppose the fore-known idea of teaching English through target culture. The results urge the program designers to implement the Islamic English vernacular, as home-culture, in the EFL learning process. Keywords: attitudes, EFL, home-culture, Islamic English vernacular. Introduction: Humans are able to decipher and relate the world through only one medium, culture. Through culture, people choose what to say and what not to say, when, and how to say it, according to their socio-cultural norms. A language is an aspect of a culture and a culture is an aspect of a language; both are so intimately interwoven that they cannot be separated without losing their significance. In this regard, the Sapir/Whorf hypothesis assumes a relationship between language and culture. Furthermore, in teaching English as a foreign language, there are two opposing stances concerning what culture to teach, local or target, alongside EnglishShow MoreRelatedDifferent Accents Of Non Native English Teachers1238 Words   |  5 PagesSaudi Universities assigned English language teachers from different parts of the world to teach English courses for their students. Most of those teachers come from: Egypt, India, Tunis, Sudan and South Africa and other parts of the worlds. Those different non-nat ive English teachers speak English with some kind of accent. 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