INTRODUCTION Every action or proposal needs to balance equity and efficiency needs in order to deliver optimal dividends to its targeted audience. Given the fact that resources are relatively scarce compared to the innumerable needs, businessmen, economists, administrators among other leaders reckon that every proposals needs the equity-efficiency balance in order for set goals and objectives to be achieved. This paper seeks to describe the role of equity and efficiency trade off in proposals. EQUITY AND EFFICIENCY TRADE OFF Efficiency is concerned with the optimal production and allocation of resources given existing factors of production while equity is concerned with how resources are distributed throughout society (Pettinger, 2010). The equity-efficiency trade-off is an economic situation in which there is a perceived tradeoff between the equity and efficiency of a given economy. This tradeoff is commonly viewed within the context of the production possibility frontier, where any additional gains in production efficiency must be offset by a reduction in the economy 's equity. Within this equity and efficiency tradeoff, equity refers to the economy 's financial capital, while efficiency refers to the future efficiency in the production of goods and services. This theory asserts that, in order for a nation to …show more content…
Despite the numerous wealth generated on a daily basis from oil exportation over the years and the vast amount of untapped resources laying in commercial quantity, the country does not have a single or recognize means of directly addressing the welfare of its citizenry. Only the present democratic administration has promised to execute out a compulsory cash transfer of N5,000 to the poorest 25 million Nigeria (based on some conditions), pay graduating corp members some stipends for a year and design a one-meal a day for public primary school
Taking Sides Summary-Analysis Form. Title and Author of Article: Christopher Jencks. Briefly state the main idea of this article: The main idea of this article is that economic inequality has steadily risen in the United States between the richest people and the poorest people. And this inequality affects the people in more ways than buying power; it also affects education, life expectancy, living conditions and possibly happiness.
Throughout history, many different types of economic models and theories have been developed. These different philosophies of business often were an important and integral part of a government’s basic structure. For example communist countries like China and the Soviet Union practiced a type of socialism. While, democratic nations like the United States and Canada practice forms of capitalism. Also within these economic models exists different theories as well such as Keynsian economics and laissez faire economics. To understand how these types of economies work in the world today, it is important to study and define a variety of economic systems. Researching such economic systems as capitalism and socialism, and also looking at the ideas of laissez faire and the Keynsian economics, a person will start to have a better understanding of how business works in the world today.
Classical economists such as, Jean Baptiste Say, Adam Smith, David Ricardo, and Thomas Robert Malthus, had a different view about the role of the government in a capitalistic society. The classical economists believed in a laissez-faire economy. They believed that the government should keep their hands off the nation’s economy. They felt that the market will be able to keep itself stable, without the intervention of the government. Jean Baptiste Say believed that supply would create its own demand. The classical economists had an assumption that the aggregate production of goods and services in the economy generate enough income to purchase all output. They also had the assumption that savings by the household sector matches investment expenditures on capital goods by the business sector.
In this paper I aim to tie the concepts of behavioral economics to issues in health economics. The goal is to use economics and psychology to explain how patients or physicians stray from the assumptions of the standard economic theory. In it through behavioral economic concepts that help researchers analyze and forecast patient or physician behavior. Behavioral economics has neumerous applications in the medical care field and these ideas can be used to create better health outcomes and stronger policies. I will be observing the economic issue of asymmetric information in certain spaces in the medical care field. According to the standard economic theory decision makers are fully informed have rational preferences with the aim to maximize utility. Behavioral economics literature examines patient and physician decision making through a variety of lenses such as the concepts of radical uncertainty and visceral factors. Through research and observation it is only “rational” to apply concepts of behavioral economics. In this sector uncertainty hovers above every decision where patients have limited information that influence decisions in the environment of fear make choices in the context of fear and trust in the physician. Every situation the medical field is unique to its own and this creates a great deal of uncertainties. These uncertainties can infiltrate decisions about diagnosis, treatment and prognosis. Since this is such a broad subject I will narrow it down to a few topics to explain the ideas. I will try to show patient and physician decision making capacity in risk situations and use the example of end of life care to make the argument tangible.
Is The Tyranny Of Shareholder Value Finally Ending? N.p., n.d. Web. The Web.
In today’s grim economic climate, cartoonists across the country have taken pen to paper to satirize and make light of the gloomy situation the United States is currently in. This particular cartoon deals with several major economic principles, such as the idea that people face tradeoffs (Raj). To illustrate, in society, there is a tradeoff between efficiency and equity. Efficiency means society is getting the most it can from its resources, whereas equity is distributing economic prosperity fairly among the members of society. Another principle this cartoon addresses is that a country’s standard of living is attributable to the productivity of the country (Raj). Well, when these principles are examined in light of today’s economy, they are not being applied well. We are hardly productive, as we are in the worst recession since the Great Depression, millions have lost their jobs, and in the tradeoff between efficiency and equity, the
This paper will discuss how a manager may decide a minimum acceptable rate of return will be for investors. The three models, dividend growth, CAPM, and APT will be analyzed as to each model’s ease of use and effectiveness and applied to General Mills, Inc. Additionally, some companies’ financial information will be compared using the CAPM model, to determine which company has the higher cost of equity and a conclusion will be made as to the effectiveness of these models.
The dividend policy of a firm will not affect the present value of its shares and shareholder’s wealth. A firm’s value depends on the profitability of its assets and its investment projects, but not how it is “packaged for distribution” (Miller and Modigliani, 1961: 414). Moreover, they indicated that investors would make homemade dividends by offsetting the amount they paid for the stock and reducing the effects of dividend policy. In addition, investors were rational who would choose to invest in plentiful pay-outs with their tax-preferences, which represented the “clientele effect” (Miller and Modigliani, 1961: 432).... ...
Wealth inequality is the uneven distribution of resources in a given state or population, which can also be called the wealth gap. The sum of one’s total assets excluding the liabilities equates the person’s wealth also known as the net worth. Investments, residents, cash, real estates and everything owned by an individual are their assets.In reality, the United States is among the richest countries in the world, though a few people creating a major gap between the richest, the middle class and the poor control most of its wealth. For more than a quarter of a century, only the rich American families have shown an increase to their net worth.Thisis a worrying fact for the less fortunate in the country and calls for assessment (Baranoff, 2015).
Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality.
Like most eastern countries that rely on one source of income Nigeria has had major
Aside from discrimination and crime, wealth distribution among the rich and poor is definitely an issue to be spoken upon. Charts on urban.org showed that “families near the bottom of the wealth distribution (those at the 10th percentile) went from having no wealth on average to being about $1,000 in debt, while families near the top (at the 90th percentile) saw their wealth increase fivefold, and the wealth of those at the 99th percentile—in other words, those wealthier than 99 percent of all families—grew sevenfold.” over the course of 50 years. These studies also found that Federal policies fail to promote asset building by lower-income families and explains that, “The federal government spends over $400 billion to support asset development,
Can a person’s worth be measured? Every person’s value or purpose in life is quantifiable by the economic worth of each individual. Those who are a burden to society by not being able to reach financial balance and must rely on others to provide and therefore are seen as dispensable. This is book argues that human life has no worth and we are only valued for what we can provide for those around us. Thus, those who can provide more to those around us are more successful in life. Within the book The Unit, a single person’s purpose and value in life is quantifiable to the economic worth of every other individual.
Adding to issue was the need to improve the lives of the Ogoni people by giving them jobs, an education, and cleaning up the region. Although “oil deposits in Nigeria’s Niger Delta generate 80 percent of current government revenues” (Weeks 599), “oil revenues have improved the lives of few Nigerians: Some 70 percent of the country’s 155 million citizens live in poverty, two-thirds lack access to basic sanitation and life expectancy is less than 48 years” (Weeks 600). The final proposal that promised education and job training for all people in the region from Shell and the government was hopeful in that the Ogoni would now have a form of income, and it would be a start to helping them get out of poverty. “Payments toward the Ogoni people will
The sacred ideal of a perfect economy is one of the greatest misconceptions of the current world. Everyone is taught and led to believe that if they work hard enough that they will receive what they are aiming for. Sadfully, this isn’t usually the case. Just as Thomas Carlyle said “A man willing to work, and unable to find work, is perhaps the saddest sight that fortune’s inequality exhibits under this sun.” A person can dream for something with the greatest desires known in the world yet the power to make it happen is not always in the hands of those that plan to help the world.