Social Behaviors Of Children With Learning Disabilities Essay

Introduction Learning Disabilities is a growing sensation throughout the world.Many people pass by children with a learning disability without notice. Unlike other disabilities, a learning disability is a hidden handicap. Students with learning disabilities do everyday things like going school and living a productive life of sports and activities. Many people believe that children with learning disabilities are lazy and are not determined, this idea is not true. Many students do not know what they are capable of and are scared to reveal their learning disability because they fear people will look down on them. It is a teacher’s responsibility in the classroom to become aware of these disabilities and to accommodate to these children to the best of his or her ability. Section One: Becoming aware of academic behaviors and social behaviors of children with learning disabilities is very important. 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Hamlet Essay Holly Silm - 1491 Words

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Faust Essay Questions Marlorw Example For Students

Faust Essay Questions Marlorw A monologue from the play by Johann Wolfgang von Goethe NOTE: This monologue is reprinted from Faust. Trans. Bayard Taylor. Boston: Houghton Mifflin, 1898. FAUST: In misery! In despair! Long wretchedly astray on the face of the earth, and now imprisoned! That gracious, ill-starred creature shut in a dungeon as a criminal, and given up to fearful torments! To this has it come! to this!Treacherous, contemptible spirit, and thou hast concealed it from me!Stand, then,stand! Roll the devilish eyes wrathfully in thy head! Stand and defy me with thine intolerable presence! Imprisoned! In irretrievable misery! Delivered up to evil spirits, and to condemning, unfeeling Man! And thou hast lulled me, meanwhile, with the most insipid dissipations, hast concealed from me her increasing wretchedness, and suffered her to go helplessly to ruin! Dog! Abominable monster! Transform him, thou Infinite Spirit! transform the reptile again to his dog-shape, in which it pleased him often at night to scamper on before me, to roll himself at the feet of the unsuspecting wanderer, and hang upon his shoulders when he fell! Transform him again into his favorite lik eness, that he may crawl upon his belly in the dust before me,that I may trample him, the outlawed, under foot! Not the first! O woe! woe which no human soul can grasp, that more than one being should sink into the depths of this misery,that the first, in its writhing deagh-agony under the eyes of the Eternal Forgiver, did not expiate the guilt of all others! The misery of this single one pierces to the very marrow of my life; and thou art calmly grinning at the fate of thousands!

Promotional Exam Econs Essay Example

Promotional Exam Econs Essay ST ANDREW’S JUNIOR COLLEGE H1 ECONOMICS (8819) JC1 Promotional Examinations Revision Package 2011 Contents Section A: Case Studies 1. 2007 TPJC Prelims H1 Paper CSQ1: China’s Water Woes 2. 2007 GCE A-Level Paper H1 CSQ1: International Tourism (covered in Lecture) 3. 2008 CJC Prelims H1 Paper CSQ1: The Illegal Drug Market 4. 2009 RVHS Year 5 End of Year Exams Paper CSQ1: Challenges of the Agricultural Sector Section B: Essays 1. 2006 SAJC H1 Final Exams: Application of Demand and Supply – Price Control 2. 2008 SRJC H1 Prelims: Market Failure . 2008 A Levels H2 Essay: Elasticity of DD and SS 4. 2009 PJC H1 Prelims: Theory of DD and SS, Price Elasticity of DD and SS and Market Failure 5. 2009 HCI H1 Prelims: Market Failure 6. 2009 YJC H1 Prelims: How the Macroeconomy Works – Key Economic Indicators and National Income Accounting Section A: Case Studies Answers to the Case Studies Case Study 1: Answers to 2007 TPJC Prelims H1 Paper CSQ1 (a)(i) Compare the perc entage of the coverage of urban water supply with that of rural water supply in China from 1990 to 2015. [2] Coverage of urban water supply is expected to fall slightly from 100% in 1990 to the projected 98% in 2015 [1] while coverage of rural water supply is expected to rise steeply from 59% in 1990 to 85% in 2015. [1] (a)(ii) Is water a public good? Justify. [2] Excludability [1] †¢ For a resource such as water from river, stream or underground water, it is non-excludable. It is too costly and almost impossible to restrict the benefits to those who pay for them (this is only in the case of water which runs across areas like the Mekong River which cuts across countries/Yangtze River – cuts across different states). It is available, free of charge to anyone who wants to use them. OR †¢ However, water in cities, provided by the state municipality, is excludable. Households or plants can be prevented from using this water by cutting supply. Rivalry [1] †¢ Water is rivalrous. The consumption of water decreases the amount available for the next person e. g. wells dry up if too many households dig wells and draw down the amount of underground water available. Rivers dry up if too many farmers divert water for irrigation. OR †¢ Clean drinking water that has been properly treated and purified is finite. One person’s use of the water diminishes other people’s use of it. Hence, water is not a public good. (b)(i) With the aid of a diagram, explain why â€Å"prices of water in China remained only about a third of the world average†. (Extract 2, paragraph 2) [2] Low prices as a sign of price ceiling †¢ â€Å"Prices of water in China remained only about a third of the world average† – concept of price ceiling. Price ceiling is the maximum price set by the government. With reference to Fig. 1, the world average market price is Pw where the demand curve intersects with the supply curve. We will write a custom essay sample on Promotional Exam Econs specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Promotional Exam Econs specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Promotional Exam Econs specifically for you FOR ONLY $16.38 $13.9/page Hire Writer China sets its price below the world average market price at Pc. [1] †¢ Diagram [1] [pic] Figure 1: Price ceiling (Pc) set by China Government to cap Price of Water Alternative answer 1. Subsidies (b)(ii) Who gains and loses as a result of such a policy mentioned in (b)(i)? [4] [pic] (b)(iii) With the aid of a diagram, explain and illustrate how water pollution in China results in market failure. [6] †¢ Students should draw the diagram for negative externality (water pollution) and explain how the water pollution causes the market to fail. pic] Figure 2: Water pollution as a negative externality †¢ Water pollution is a form of negative externalities. Externalities are defined as spillover effects to the third party arising from production or consumption activities. †¢ In the presence of negative externalities, marginal social cost (MSC) will be greater than marginal private cost (MPC). This is because the marginal social cost takes into account the marginal extern al cost. MSC=MPC +MEC (MEC) to the third party, in this case, ruined crops of farmers, health problems etc. From Fig 2, MSC is above MPC. Private equilibrium occurs at Qp where MPB = MPC. The socially optimum level, however, occurs at Q*where MSB = MSC. There is an overproduction of the good. At the private output Qp, MSCMSB and society will be better off if one less unit is produced. For all the additional units produced in excess of Q*, the welfare loss is represented by triangle abc. (c)(i) If you were the Minister for Environment, explain whether the water industry should be privatised. (indicated in the revision package to ignore this qn. ) [6] c)(ii) Evaluate the effectiveness of the current measures taken by the government as mentioned in Extract 1 as well as one other measure to reduce water pollution in China. [8] †¢ Students to be able to comment on the advantages and disadvantages of the current measures taken (i. e. imposing water quality standards, forcing heavily polluting industries to close, expand the use of alternative sources such as rainwater and recycled sewage) and to evaluate. †¢ Students to be able to explain one other measure and to evaluate the effectiveness of those measures (for example, imposing a tax or pollution permits). Imposing water quality standards Advantages: Ensure that the current water supply available will be of a quality standard and hence less external costs arising from the consumption of unclean water. Disadvantages: Difficulty of monitoring in a big country like China especially in rural areas. Since water is provided by local governments, they will incur the cost in ensuring the quality of the water. †¢ Forcing heavily polluting industries to close Advantages: Less water pollution and hence less money wasted in cleaning up water. Also, there would be more clean water available for consumption. Disadvantages: The industries may relocate to another country, e. g. India. This affects the economic g rowth of the country especially now that China is opening up its market. Also, the closure of the industries may lead to laying off of local workers and this may result in unrest. †¢ Expand the use of alternative sources such as rainwater and recycled sewage Advantages: Reduce dependency on the original sources of freshwater and hence the cost of getting more water from these rivers e. g. building of canals. Disadvantages: Takes time to come into effect. May require high cost in turning these alternative sources into fresh water for consumption. †¢ Tax on pollution An ad valorem or a specific tax can be imposed on firms who are involved in the pollution. The tax will add on to the costs of production and hence causing the supply curve (MPC) to shift up. The tax is effective in reducing water pollution if it fully internalises the marginal external cost. i. e. the amount of tax imposed is exactly the same as the amount of MEC. Taxes imposed must thus be flexible so that they can be varied to reflect changes in MEC. However, it is difficult to measure the marginal external cost and hence the amount of tax to be imposed. Also, the effectiveness of the tax depends on the price elasticity of supply. CSQ 2 – ans covered in Lect Case Study 3: Answers to 2008 CJC Prelims H1 Paper CSQ1 a) i) Compare the trend in retail cocaine prices in Europe and the USA from 1990 to 2005. Any of the 2 below. [2] Both are falling. Europe †“ fall by 50. 6%; USA – fall by 62. 3%; Prices in the USA falling at a faster rate Prices started to rise after 2002. Retail prices in the USA consistently higher than in Europe i) With reference to the data and using economic analysis, account for the trend in retail cocaine prices observed above. [4] Using demand supply analysis, explain why there is a falling trend (1990-2002) From Extract 3, plans to reduce both demand supply; Demand falls at a faster rate than the fall in supply. Illustrate with a diagram Also accept answers that explain why prices are rising from 2002-2005 Demand factor: From Table 2, demand fell (2002-2005) Supply factor: From Figure 1, supply fell Supply fell proportionally more than the fall in demand ( price rise ii) Account for the difference in wholesale prices of cocaine between Europe and the USA. [2] Possible reasons Higher cost of production; possibly due to higher transport costs Higher demand in Europe Any well explained demand or supply factor will be awarded 2 marks. b) i) Explain the market failure created by drug abuse. [4] Drug is a demerit good; goods that generate negative externalities that are deemed undesirable by the political process. Explain negative externalities with the aid of a diagram. Explain how MSC MSB results in market failure. Explanation of how underestimating private cost results in a demerit good ii) Evaluate the use of a ban on illegal drugs to correct this market failure. [6] Explain how a ban works on the market for drugs. With the aid of a diagram (diagram is not necessary as long as you are able to explain it clearly using proper economic analysis), show how a ban is efficient in correcting the market failure. Evaluate the use of the ban. c) With reference to the data, discuss the effectiveness of â€Å"Plan Columbia† and suggest alternative measures the government could adopt to bring about a more efficient allocation of resources. 12] Effectiveness: To a certain extent, it was effective as it reduced demand from 2002-2005 from 33. 9 million to 33. 7 million users, as seen from Table 2. However, demand started to rise in 2006 to 35. 3 million. Effectiveness in curbing demands is therefore inconclusive as data provided stopped at 2006. As for controlling supply, as seen from Figure 1, supply fell from 2000 onwards, which could be a sign of the plan working. However, the supply started to increase again in 2006, increasing by 16% in 2007. Also, the effectiveness was limited as even if the authorities sprayed herbicide, coca farmers moved elsewhere replant the crop because of its very profitable potential (4 times more than the most profitable legal crop). Alternative measures: Taxation Legislation Quotas Minimum of 2 well explained policies, with good evaluation. Case Study 4: Answers to 2009 RVHS Year 5 End of Year Exams Paper CSQ1 (a)(i) Calculate the change in the crude oil prices between 2007 and 2008. [1] 42. 86% (1m) (ii) Compare the level of projected soybean exports of the U. S with that of Brazil for the period between 2004/05 and 2015/16. 2] US’s exports are decreasing while Brazil’s exports are increasing over this period. (1m) Before 2007/2008, the soybean exports of USA are consistently higher than that of Brazil’s but after 2007/2008, the projected soybean exports of Brazil are higher than that of the USA. (1m) (iii) Using demand and supply analysis, account for the trend of the pro jected soybean exports for Brazil between 2004 and 2016. [5] The increase in the projected soybean exports could be due to an increase in the production in Brazil which is fuelled by an increase in demand and supply. Due to the increase in the prices of oil, according to the law of demand, quantity demanded of oil will decrease. This will lead to an increase in the demand for biofuels because oil and biofuels are substitutes. With a rightward shift in the demand for biofuels, the prices of biofuels will increase and quantity supplied for biofuels will increase as well. With a higher quantity supplied for biofuels, the demand for soybean will increase because soybean is a factor of production for biofuels. (2m) There is also an increase in the supply of soybean due to the improvement in technology, which resulted in development of new varieties of soybean suited for the rainforest climate. Therefore, the improvement in technology lowers the costs of production and suppliers will find it cheaper to produce soybeans now. As a result, they will produce more and supply increases. (2m) Market for Soybean in Brazil Referring to the diagram above, initial output is at Qo where DD cuts SS. After DD shifted to DD1 and SS to SS1, there is a new intersection at Q1, accounting for the increase in production hence an increase in the projected soybean exports. 1m for correct diagram showing an increase in total output) (b)(i) Suggest two reasons why the Brazilian government encourage the use of alcohol- based fuel. [2] The Brazilian government may want to reduce the country’s reliance on conventional fuel (1m) and to reduce the amount of pollution, which is an external cost to the society. (1m) (1 m for every valid reason) (ii) Explain how the use of alcohol-based fuel in Brazil affects the costs of car usage. [4] Costs of car usage include private costs and external costs of driving. Private costs of driving have been reduced (1m) because alcohol-based fuel is cheaper given the relatively lower production costs to conventional fuel. (1m) External costs of car usage are reduced (1m) because less pollutants are emitted. (1m) (c) Discuss the possible links between climate change and the agriculture sector. [8] Agriculture contributes to climate change †¢ The expansion of agriculture sector resulted in clearing of vegetation and deforestation for more farmland and this has led to less plant resources to store carbon, contributing to higher emission of green house gases and adverse effect on the climate. The use of intensive farming methods and modern farming techniques emphasizes farm productivity. The use of heavy machinery and industrial pesticide in intensive farming has similar negative impact on the environment. Widespread use of pesticides destroys farmland food chains and at the same time, a substantial portion of pesticide residue ends up in the environm ent, causing environmental pollution and biodiversity decline. †¢ However, if there are policies adopted by the agriculture sector or any forms of government intervention to reverse the damage of agriculture on the environment, e. . incentives to encourage the practice of non-intensive farming and reforestation programme, then the agriculture sector may not lead to adverse climate change. Climate change adversely affects agriculture †¢ Climate change can in turn affect the quantity and quality of the harvest of agriculture produce. The changing climate conditions lead to wider fluctuations in supply, since supply of agriculture products is price inelastic, this has led to instability in the prices of agriculture products causing the income of the farmers to fluctuate more severely. Thus, climate change has significant impact on the agriculture sector. †¢ However, the government often adopts policies to stabilise food prices by setting price control (price ceiling on major staple food) to ensure consumers are protected against rising food prices and/or protect the income of farmers through farm subsidies. These measures will reduce the adverse effect of a climate change on the producers and consumers in the agriculture sector. (d) Explain how the system of tradable obligations works and evaluate if the government should use such a policy. [8] System of tradable obligations Each year, the government decides how many acres of land should be devoted to non-intensive farming and decides on the number of tradable obligations to be allocated to each farmer. †¢ Each obligation specifies the acreage the farmer is required to farm in a nonintensive manner. If a farmer wishes to farm intensively, he can pay another farmer who practises non-intensive farming to t ake up his obligation. Strengths of tradable obligations †¢ This system recognises that different types of farms are of different efficiency levels when it comes to farming techniques. Intensive farms would pay efficient nonintensive farms to relieve them of their obligations. Both intensive and non-intensive farmers can gain as intensive farmers would probably pay less than if they had to devote resources to farm non-intensively themselves. Non-intensive farmers would probably get paid more than what it cost them to take over the obligations to farm non-intensively. A market-based system like this would be economically efficient and this would help sustain non-intensive farming and farm-reliant communities. The system would be flexible and easily adaptable to changing economic and environmental conditions since a different target for non-intensive acreage could be set each year. †¢ Both the systems of tradable obligations and farm subsidies encourage nonintensive farming but comparatively, tradable obligations could cost the government far less than if it should adopt a system of farm support and subsidies which causes more distortions. Limitations of tradabl e obligations †¢ The government may have to decide on what is an appropriate or optimal number of tradable obligations to issue each year. If too low, may not lead to significant cuts in external cost of intensive farming methods. If too high, may cause even greater welfare loss to society, thus the government needs to have good knowledge of how the agriculture sector operates and the alternative technology that could be adopted by the sector in reducing the external costs. †¢ Monitoring to ensure that farmers fulfill their obligation of non-intensive farming and tracking where the obligation has been traded, and continual inspection to ensure compliance may incur further cost in the implementation of the system. †¢ Alternative: taxes Answers to the Essays 1) 2006 SAJC H1 Final Exams The government has removed the price floor imposed on Malaysian Airlines under the new domestic aviation policy. Airfares will now be determined by supply and demand factors. It is about time the (Malaysian) government stopped controlling airfare tickets. The Straits Times, 10 July 2006 (a) Using the above context, explain the meaning of a price floor and discuss the underlying rationales behind its implementation. [12] (b) To what extent do you agree that the government should stop controlling the price of air tickets? 13] Part (a) Define price floor, in the context of the domestic market for Malaysian Airline tickets. Illustrate the price floor by means of a diagram. The diagram should indicate: Definition of the market; Pe and Qe under a free market; price floor above Pe; a surplus (Qs – Qd); the area showing the loss of consumer surplus. Discuss the underlying rationales: 1. The government perceives that Pe, as determined by free market forces is too low. Hence it sets a minimum price via intervention. 2. Government wants to protect the domestic airline. Why? Due to inefficiencies in the firm, total costs are high. Hence government hopes that the minimum price (higher than Pe) would then help cover the costs. 3. To protect the workers working in the aviation industry (stewards, pilots, technicians, baggage personnel). The wage of these workers is largely dependent on the profits of the airline. If the government perceives that the aviation sector is important to the economy, the implementation of the price floor is all the more important. 4. The government is concerned that MAS may not be able to cover its high initial set-up costs (sunk costs). Given that the government has a stake in MAS, it would want to earn sufficient revenue to cover these costs. NOTE: A thorough discussion of any 2 rationales is sufficient. No evaluation needed here. |Knowledge, Application, Understanding and Analysis | |Level |Descriptors | |L3 |Good to thorough knowledge of price floor and its rationales. Clear explanation, showing good knowledge of| | |facts and ability to apply within the context of the question. | |L2 |Fairly good grasp of knowledge of a price floor. Accurate though underdeveloped explanation of the | | |underlying rationales. Some attempt to apply to given context. | |L1 |Skimpy or smattering of points with no proper diagram illustrating what a price floor is. Answer ranging | | |from mostly irrelevant to showing basic conceptual errors in explanation. No attempt to apply to given | | |context. | Part (b) A balanced argumentative approach has to be displayed by the candidate within the context. Thesis: 1. The deadweight loss that results from government intervention. Problem of surplus of tickets: Loss of CS Consumers who are willing to pay for the ticket at equilibrium price are forced out of the market. Consumers who still remain in the market pay higher price now. Hence consumers are worse off with a price floor. Possibility of the loss of PS – The airline is flying its flights at a less than full capacity. It is not as cost effective when the number of air crew remains the same even if half the plane is full. Government may have to give a lump sum subsidy to compensate the firm for the loss in revenue at this higher price. Is this a waste of tax payers’ money? Consider the opportunity costs of using the government’s funds in this way. 2. Managing the demand and supply determinants may be a more socially optimal approach as opposed to price control. What should the government do instead of having a price floor? i) Increasing the demand for Malaysian airline tickets for domestic flights Advertising Price of related goods – Complements (have tie-ups with business partners such as domestic travel agencies) ii) Retraining the workers in the aviation firm such that they are able to get higher wages on the basis of their higher productivity. Equip them with the skills such that they are occupationally mobile. Anti-thesis arguments have already been discussed in part (a). i. e. The government should continue controlling the price of airfare tickets. Stand: To a large extent, the government should indeed leave the price of air tickets to the price mechanism. Additional credit should be given for the mention of a cost-benefit analysis in the decision process. |Knowledge, Application, Understanding and Analysis | |Level |Descriptors | |L3 |Clear explanation of how welfare loss is accounted for. A well balanced discussion on the issue. Suggestions of | | |alternative policies in place of a price floor to achieve intended objectives, with ample development. |L2 |Fair grasp of how the price floor leads to loss of welfare to the different groups of people in the market. | | |Undeveloped suggestions on what the government could do instead. | |L1 |Too general; lacks direction with no clarity with regards to the loss of welfare to the different groups of people| | |in the market. | Allow up to 4 additional marks for Evaluation |Level |Descriptors | |E2 |A clear judgment on the issue, showing evidence of real-life contexts. Evaluation of alternative policies stated in | | |place of a price floor in achieving intended rationales. | |E1 |Merely stating a stand on the issue, with raw justification. | 2) 2008 SRJC H1 Prelim â€Å"Chinas booming economy is driving a rapid rise in water pollution so severe that densely crowded cities could be left without adequate supplies,† said a Cabinet minister on Tuesday. The government has tried in recent years to rein in environmental damage by imposing water quality standards. But such efforts have had only limited success. Adapted from China Daily News, 30 March 2008 a) Explain how water pollution gives rise to inefficiency in resource allocation. [10] (b) Assess the policies which a government can adopt to deal with inefficiency in resource allocation arising from water pollution. [15] Part (a) Introduction †¢ Define efficiency in resource allocation: Economic efficiency in the allocation of scarce resources is achieved if it is not possible to change th e existing resource allocation to make someone better off without making someone else worse off. †¢ Explain the meaning of inefficiency in resource allocation: Resources are allocated in a way whereby social optimal level of output is not met. Society welfare is compromised when resources are allocated in a way that no right type or amount of the good is produced or the good is not produced at the lowest possible cost. Body: Explain and give examples of private costs, external costs, social costs ? Private costs to individual producer include explicit cost of producing the good. For example, cost of inputs such as cost of raw materials/semi-finished goods (steel), cost of capital such as machines, cost of labour such as wages of workers and cost of land such as rent of factory space. There is also the external cost to the society of implied depletion of natural resources such as clean river. ? External costs refer to costs incurred by 3rd parties who are not directly involved in the production / consumption of a good/service and these 3rd parties are not compensated for the damage done to them. ? In this example, the external costs to 3rd parties include the harmful effects on the health of people around the industrial area such as skin diseases or illness related to consumption of contaminated water, thus resulting in medical bills incurred and these 3rd parties are not compensated for the damage done to them. Due to the existence of externalities, social cost of producing the good is the sum of the private and external costs. Well-labelled diagram Explain Qm and Qs and conclude over production and wastage of resources ? When left to itself, private individuals who consider only their own private costs and benefits will produce up to the point where MPC=MPB at Q m. ? However, the socially optimal level is where MSC=MSB at Qs. ? Since Qm ; Qs, there is overproduction of such goods leading wastage of resources and market failure. Explain DWL ? Between Qm and Qs, each additional unit over consumed adds more to costs than to benefits since MSC;MSB. Hence, total welfare loss to society as a result of over consumption is measured by the shaded triangle, known as deadweight loss. Conclusion: Personal Comment: Since inefficiency in resource allocation represents wastage of resources, it is necessary for the government to intervene to solve the problem of water pollution in China so as to increase the welfare of the society. Mark Scheme: L1 |Explanation of how externalities lead to market failure with basic errors in concept and/or application to context. | |L2 |Generally clear explanation with some attempt at application. | |L3 |Clear explanation of concepts with strong application to given context. | Part (b) Intro: Direction of essay: to discuss at least 3 measures to solve the problem of pollution Body: Taxes †¢ Impose a tax on production equal to the marginal external cost. A tax on production has the same effect as an increase in the cost of production of the firm. The tax shifts the firm’s marginal private cost curve vertically upwards by the full amount of the tax. †¢ If the tax is calculated to reflect accurately the marginal external cost the firm inflicts on a third party, the firm is then said to internalize the external cost. The resulting higher cost now induces him to reduce production to an amount equal to OQs which is the socially optimum output level where the marginal social cost is equal to the marginal social benefit (MSB = MSC). The welfare loss arising from overproduction is thus eliminated. Evaluation Fair because it is according to the ‘polluter-pay’ principle. †¢ Many economists favour the tax solution to correct externalities because it still allows the market to operate. Hence, benefits of consumer sovereignty and the automatic working of the price mechanism prevail. Hence, it promotes efficiency. †¢ It also forces firms to take on board the full social costs of their actions. Thus, it is fair because it is according to the polluter-pays principle. †¢ The tax thus acts as an incentive over the long run to reduce pollution: the more a firm can reduce pollution, the more taxes it can save. By taxing firms for polluting, producers may be encouraged to find cleaner ways of producing an output. †¢ The main problem of using this method is that there is imperfect knowledge. The damage from pollution is extremely difficult to assess. It is also difficult to apportion blame. For example, the damage to lakes in China has been a major concern. However, just how serious that damage is and what are its monetary costs, are difficult to assess. An overestimation or underestimation of the size of the external cost would mean either a less than or more than social optimum level of output respectively. Other problems include the need for manpower to assess the tax. This imposes an additional burden on the government. †¢ Better than fines because there is incentive to look for more eco-friendly way of producing the good Tradable Permits Emissions trading (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achievin g reductions in the emissions of pollutants. It is sometimes called cap and trade. A central authority (usually a government or international body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emissions must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those that can easily reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest possible cost to society. Evaluation †¢ Like taxes, it is market-based solution. Thus, allows market to operate – promotes efficiency in resource allocation. †¢ Incentive for firms to reduce pollution esp. if the permits are sold by the govt and not allocated free. †¢ Enforcement issues – if pollution permits are to be successful then firms need to be regularly policed and inspected. This clearly will be expensive and therefore involves an opportunity cost issue. Difficult to determine what is the level of permits to be issued to begin with? This is the most important issue, as if too many are issued (possibly by governments under political pressure) then the price of permits will collapse and the system will be rendered ineffective. †¢ It is impossible to accurately measure emissions. If output levels are used as a guide t o pollution, then this ignores the possibilities of low emission technology. †¢ Permits lead to increased costs for firms which will damage their international competitiveness. This could lead to inflation if firms pass on higher costs to consumers. †¢ Pollution permits will only be effective if introduced on a global basis as firms will otherwise switch production from one country to another. Rules and regulation: Penalty/Fines The government can impose severe penalty such as fines on factories which release toxic chemical wastes into river system. In a way, this will act as deterrent to the producers in contributing to water pollution in China. Evaluation: It has the power of law behind it (ie it is enforced by the state). Such laws can lead to a change in behaviour. Fines provide an incentive to change behaviour / a deterrent against bad behaviour. †¢ Simple to understand/easy to implement. †¢ Regulation provides a quick solution / immediate impact. †¢ Regulation backed up by fines will raise government revenue. This could be used to correct the negative externality or to compensate those suffering from the negative externality. Howev er, it is a blunt weapon to discourage water pollution. Affects all firms equally. †¢ There is no incentive to look for more environmentally-friendly ways to produce the goods. †¢ Difficult to estimate the correct amount of fines – same problem as tax. The government has to employ supervisors to monitor or closely watch pollution emissions from industrial, farming and other sectors. This entails administrative costs which can be very substantial in some countries. The government has to weigh the costs and benefits to assess the effectiveness and desirability of this measure. If the benefits derived from successful implementation of measure i. e. cleaner rivers are greater than the costs incurred in channeling resources towards employing supervisors and conducting monitoring checks, then this measure should be adopted by the government. Licensing To control the total amount of pollutant emissions, authorities will devise a license system for emitters of wastewater containing toxic or radioactive materials. Without the license, enterprises will be banned from discharging pollutants into water. Evaluation: †¢ For smaller firms which are not able to afford the license, they will have to stop production completely. This may lead to retrenchment of the workers in that factory which may lead to additional burden for the government to provide financial aid to these workers. With the firm being out of production, it may also deprive the people in the area of the supply of the good. †¢ (ranking: 4th)- Not as effective as penalty because the factories are still allowed to discharge pollutants into the river system even though the amount is not reduced. Moral suasion/Educating the public †¢ The government can educate the public through schools or via campaigns or media to reinforce the message of the importance of keeping the rivers clean or eliminating the problem of water pollution in China. Awareness of the negative consequences of water pollution such as related illnesses, reduction in supply of fish or even a threat to their source of drinking water supply can be highlighted. 3) 2008 A Level H2 Essay In 2005 the rate of Goods and Services Tax (GST) in Singapore rose from 3% to 5%. Incomes rose by approximately 4. 5% in 2005. a) Explain the likely effect of this change in GST on expenditure by consumers on different types of goods. [10] [Note: Before we begin this essay proper, it would be prudent to introduce the relevant concepts. In this case Demand, Supply and the Price Elasticity of Demand (PED) are involved. ] The supply of a good is the quantity that producers are willing and able to produce and offer for sale at various prices over a period of time, ceteris paribus. The law of supply states that there is a direct relationship between price and quantity supplied. In other words, it is drawn as an upward sloping curve. On the other hand, effective demand is the desire to possess a good or service backed up by the ability and willingness to pay for a good or service over a range of prices in a given period, ceteris paribus. The Law of Demand states that there is an inverse relationship between price of the good and its quantity demanded. Thus, it is drawn as a downward sloping curve. Price elasticity of demand (PED) measures the degree of responsiveness of quantity demanded to a given change in its price, ceteris paribus. It is calculated by dividing the percentage change in quantity demanded of a good with the percentage change in its price. Demand is price elastic when quantity demanded responds more than proportionate to price changes. On the other hand, demand is price inelastic when the change in quantity demanded of a good is less than proportionate to the change in its price. It would be fair to assume that consumers and producers are rational and seek to maximise satisfaction and profits respectively. Application of Theory and Examples A tax is a non-price determinant of supply and will cause the price at every quantity supplied to rise as producers raise their prices to accommodate the tax commitment (payment) to the government. Hence, the effective supply curve contracts or shifts to the left. With GST being an ad valorem tax, this would also mean that the supply curve will also pivot anti-clockwise upwards while shifting. How the movement of the supply curve will affect consumer spending depends on the nature of the demand curve. Some products have price inelastic demand curves and are likely to see an increase in expenditure while others have price elastic demand curves that are likely to see a fall in expenditure. Price Inelastic Demand: A good example of such a good is petrol or diesel. According to the determinants of PED, motor fuel is a necessity for commercial livelihood and even personal transportation to those who live far away from their work place. Additionally, there are also few substitutes for petrol/diesel as electric power cars are impractical while compressed natural gas modifications to cars force them to sacrifice boot space and possibly even engine power. With this in mind, the following might happen (Fig. 1): [pic] As the price of fuel rises from P1 to P2 due to the imposition of higher GST which reduces supply from S1 to S2, the quantity demanded falls from Q1 to Q2. However, the total expenditure (price x quantity) actually rises from 0P1AQ1 to 0P2BQ2. This is because the percentage fall in quantity demanded is more than offset by the percentage increase in price. Price Elastic Demand: A prime example of this would be holiday packages to Europe, the U. S. and even New Zealand. These are usually quite expensive with rates as high as $3000/head. Hence, as the proportion of income spent is quite high, a change in the price would significantly affect the affordability of the holiday package. For example, a 2% rise in the price due to the change in GST might cause many holidaymakers to switch from visiting Europe to a cheaper destination like Taiwan. It might also be said that holidays to faraway destinations would be considered as luxuries as opposed to trips to Asian countries like Thailand or Vietnam. Hence, as most consumers in Singapore might consider the former destinations to be optional, the increase in price would lead to a greater than proportionate fall in quantity demanded. To illustrate the effect of the higher GST on price elastic goods like holidays to Britain, please refer to Fig. 2: [pic] With a contraction of the supply curve from S3 to S4, the price increases to P4 from P3 and the quantity demanded falls to Q4 from Q3. However, it should be noted that the total expenditure of all consumers has shrunk from 0P3EQ3 to 0P4FQ4. This is because the percentage fall in the quantity demand is more than the percentage increase in its price. It can thus be said the producers of goods with a price inelastic demand would benefit from a rise in the GST (while consumers would suffer and spend more for lesser quantity demanded). However, the Singapore government has decided to cushion the impact of the GST hike by ensuring that household necessities (e. g. washing powder, toiletries, etc) and essential foodstuffs (e. g. bread, rice, cooking oil) sold in government affiliated supermarkets (NTUC FairPrice) are not subject to the GST hike. Level |Descriptors | |L3 |Answer shows a good knowledge of the facts and theory of the question, clear evidence of the ability to use facts and| | |theory with accurate reference to the question. | | |Excellent ability to describe explain this in a precise, logical, reasoned manner. | | |Answer covers both price elastic and inelastic demand with clear and detailed examples given. | | L2 |Theoretical foundation is correct and reasonably complete. Question has been understood with correct graphs drawn | | |theories correctly applied. | | |The answer is approached in a one dimensional manner. (i. e. only one PED scenario is given). | | |Examples might be given but lack details/relevance. | |L1 |Answer is mostly irrelevant | | |Answer shows some knowledge but does not indicate that the meaning of the question has been properly grasped. | 4) 2009 PJC H1 Prelims Beginning in 2012, all airlines arriving or leaving from airports in the EU would be obliged to buy some pollution credits, joining other industrial polluters that trade in the European emissions market. For consumers, such rules could mean further increases in air fares. Adapted from New York Times (28th June 2008) (a) Explain the extent to which airlines can successfully pass on the cost of pollution permits to passengers. [10] (b) Evaluate if pollution credits are an efficient method to internalise the externalities associated with air travel. [15] Part (a) 1. Intro Identify that pollution permits add on to the COP for airlines ( fall in provision of airline tickets (fall in ss) The extent to which airlines can pass on higher COP in the form of higher prices to consumers will depend on the relative elasticity of dd and ss 2. Body 2. 1 Explain how airlines can pass on the higher COP to businessmen and very rich since dd is price inelastic especially on long haul travel (international) Given that dd is price inelastic for businessmen (little substitutes) as they have to arrive at their intended destination for corporate meeting Given that dd is price inelastic for the very rich (air tickets takes up a small % of their income) Given that dd is price inelastic for long-distance travel (lack of good alternative travel modes) A given rise in price results in a less than proportional fall in quantity demand for air travel ( hence TR increases from PoQo to P1Q1 Illustrate with the aid of dd-ss diagram 2. 2 Explain how airlines will find it more difficult to pass on higher COP for holiday travelers (economy class) and on short distance travel (transatlantic travel) Given that dd is price elastic for holiday maker as they are sensitive to price changes (takes up a huge % of income spent and could make alternative travel plans) Given that dd is price elastic for short distance travel (availability of other travel modes eg. car, train and ferry with EU) A given rise in price results in a more than proportional fall in quantity demand for air travel ( hence TR decreases from PoQo to P1Q1 ? less effective Illustrate with the aid of dd-ss diagram 3. Conclusion It depends on the type of customers and type of flights. Mark Scheme Knowledge, Application, Understanding and Analysis | |Level |Descriptors | |L3 |For a well developed and structured that gives both sides of the explanation. Good application to the EU context. | |L2 |For an undeveloped answer as to how airlines can pass on higher costs to consumers. Answer is mainly one-sided. | | |Rigor is lacking. | | |Some attempt to apply to the context. |L1 |Mere listing of points. | Part (b) 1. Intro Av iation is one of the fastest growing area of the carbon emissions in EU Define pollution permits Identify that pollution permits is a possible method to internalize the externalities 2. Body (i) Highlight the problem of –ve externalities GHG emitted by air planes ( millions of metric tonnes more carbon dioxide being created each year from additional aviation traffic. Negative externalities created by airlines who are only concerned about their own marginal private benefit and cost and ignore external cost (of GHG) on the environment. Give examples of MPC: cost of running the airline (cost of hiring fop) Given examples of MEC: external cost to environment (air pollution, respiratory diseases, noise pollution and congestion to those living near the airport, global warming and climate change) Hence MEC creates the divergence between MPC and MSC Illustrate with aid of MSB and MSC diagram When there is a negative externality, the community bears costs additional to those borne by the individual firm or consumer. The MSC of the activity exceeds the MPC. To the individual airline producer, he will produce up to the point where MPB=MPC (private efficiency). He does not take into account external costs. Qp is being produced. However, the socially optimal level of output is at Qs, where MSC=MSB. There is overproduction/ over-consumption of the good that generates negative externalities, and hence a welfare loss to society occurs. At Qp, the MSC;MSB. One extra unit of output adds more to costs than to benefits. So by decreasing production to output Qs, society can avoid the welfare loss. The market fails because pareto optimality has not been achieved at Qp. Indicate that there is over-production of air travel (Qp vs Qs) and over-consumption of air travel by travelers (ii) Thesis: Yes, Pollution credits appear to be an efficient method Explain and assess the workings of pollution credits in the air travel industry EU is to set a cap on the total allowable level of emissions (qty of CO2 emission) each year. EU divides quantity into tradable permits and ration to individual airlines. Airlines trade carbon permits. If the airlines produce less its quota of CO2 emission, airline gets a credit. This can be sold to another airline (for money), allowing it to exceed its original limit. Polluters have to pay for the external cost they inflict (when they buy credits) on society. Provides incentives for airlines to reduce emission so that additional permits can be sold to other firms. Trading of permits continue until all profitable opportunities have been exhausted. Advantages of pollution credits (+) certainty since the overall level of pollution will be reduced as EU can set the level of emissions it deems desirable. Disadvantages of pollution credits (any 2 with elaboration) -) This system can involve very high administrative cost due to the complexity of the trading scheme especially when many organisations are involved. â€Å"Thorny issues† involved like the proper level of the cap, timing and certification procedures. During implementation period from now to 2012, airlines continue to emit carbon with no cost consequences. (-) Overly dependence on the market to det ermine the â€Å"fair price† of pollution. Uncertainty of pollution permits due to market fluctuations. Relies on market participants to determine the fair price ( may devolve into a system for producers to raise their prices so as to maximize profits -) Pollution credits are mainly for air pollution and does not consider noise pollution and car congestion especially near for residents living near the airport. (-) Consumers to bear the brunt of high prices as airlines could replace inefficient oil guzzling airplanes with more efficient and costly technologies. (-) Difficulty of estimating the ideal quota level. EU could over-issue too many credits, it defeats purpose of cap as level of carbon emission emitted exceeded optimal level ( Govt Failure. (iii) Anti-Thesis: Other Methods Alternative Policy 1: Carbon Tax The government can impose a carbon tax = MEC on each unit of output. The tax forces the firm to take into account the external costs, raising the MPC to be at the same level as the MSC. Faced with the new supply curve, the firm will reduce production to Qsoc, which is the socially efficient level. The welfare loss to society has been eliminated. Taxes can either be imposed on airlines or tax can be imposed on consumers Advantages of tax system: The tax system still allows the market to operate, and also acts as an incentive and encourages firms to seek low-cost alternatives such as installing certain antipollution devices or use cleaner fuels to reduce emission so as to pay less tax. The revenue from the tax could be used to pay for the external damages from the production of the product. Disadvantages of tax system: There is a lack of knowledge and difficulty in measuring the value of MEC accurately in monetary terms, as externalities are â€Å"unpriced† effects. If the external costs are overestimated, the government may levy excessively high taxes that more than correct for the actual external cost, resulting in underproduction of the good and thus greater inefficiency in resource allocation. Each airline produces different levels and types of externality, and it is administratively difficult and infeasible to charge each airline its own particular tax rate. The extent by which a tax can reduce the externality produced is uncertain, depending on the elasticity of demand for the good. Alternative Policy 2: Command and Control Regulations (Legislation) Set uniform standards for airlines to reduce carbon emission (1) Technology-based standards ( specify method/technology that airline must comply with regulation (2) Performance-based standard ( set uniform control target for firms flexible in how target is being met Evaluation A legal maximum ensures certainty in outcome; there is a cap on the maximum amount of externality produced. However, legal maximums tend to be a rather blunt weapon, as there is no incentive for firms to reduce emissions below the permissible level. Alternative Policy 3: LT: Should invest in developing lighter and cleaner planes and fossil-free fuels. Evaluation Cost of R ( reduces profits margins Long gestation period before R bears fruits 3. Conclusion Carbon emissions which results in global warming is an international problem and will require international assistance and cooperation. EU will need to seek cooperation from other countries around the world. Other sources of carbon emission will also need to be tackled. Marking Scheme |Knowledge, Application, Understanding and Analysis | |Level |Descriptors | |L3 |A well-balanced and structured answer that provides 3 policies to resolve negative externalities associated with | | |air travel. Good application to EU context. | |L2 |For an undeveloped answer that only explains 2 policies. For an undeveloped answer that explains policies with no | | |application to context. | |L1 |Mere listing of the policies. Some conceptual errors. | |Level |Descriptors | |E2 |For a reasoned assessment of the effectiveness of the policies in internalizing the externalities. Acknowledgement of | | |govt failure and the need for international cooperation. | |E1 |For an unexplained assessment of policies. | Evaluation: †¢ Moral suasion/Educating the public on the negative consequences of water pollution is considered the best measure since it tackles the root of the problem by raising awareness via changing the mindset and making the people more conscious of the consequences of their actions. †¢ However, it takes time to see the effectiveness of this measure. Hence, the government needs to consider other measures to tackle the problem in the short term. Conclusion: Personal comment: The fact that it is given in the preamble that â€Å"such efforts have had limited success† seemed to imply it is impossible to eradicate the problem of water pollution completely. The government has to re-consider both the short-term and long-term effects of such measures as well as the limitations of each measure. In my opinion, a mix range of measures have to be adopted in addition to the ones currently in place. Mark scheme: |L1 |Explanation of the policies with basic errors in concept and/or application to context. |L2 |Generally clear explanation of policy to reduce the problem of water pollution with some attempt at application. | |L3 |Clear explanation of policies with strong application to given context. There could be brief attempt at the evaluation of the | | |policies. Evaluation/ranking may not be consistent across all policies. | |L4 |Clear and thorough evaluation of the policies. Insightful analysis on how resources are allocated mo re efficiently using each | | |policy with reference to other policies. | 5) 2010 HCI H1 Prelims The Singapore Government vowed to improve drainage and step up alert systems after parts of the city-state were hit by flash floods, damaging homes and business. The Straits Times, 20 July 2010 (a)Explain what is meant by public good and consider whether the flash flood alert system is an example of a public good. [10] (b)Discuss whether government intervention in the markets for goods and services within Singapore should be restricted to the provision of public goods. [15] (a)Introduction Public goods are those goods or services that are non-rivalry and non-excludable in consumption. Whether the flash flood alert system is an example of a public good depends on its characteristics; do they fit into the category of good/service that is non-rivalry and non-excludable? Body The flash flood alert system relies on the meteorological forcast of the weather, ie, whether will there be impending heavy rainfall and rising tide. If there is an impending heavy downpour, alert will be sent out or broadcast to the neighourhood near the vicinity to warn people of likely ocurrence of flood. Non-rivalry in consumption In this case, an additional person consuming or receivng the alert does not diminish the information available to the others in the vicinity. Hence it can be considered as non-rivalry in consumption. The characteristic of non-rivalry in consumption shows that the marginal cost of provision of public goods to an additional user is zero. This is because once the alert system is set up; the government does not incur extra cost in providing one additional person with the broadcast information. When a public good is provided to one person, it is provided to all. Non-excludable in consumption Once the alert is broadcast to the public, it is not possible or is costly to prevent non-payers from receiving the flood warning/alert. Due to the characteristic of non-excludability in consumption of public goods, this leads to the problem of free ridership here where individuals do not want to reflect their wants in the market system. Hence leading to zero production resulting in complete market failure. Hence the government has to provide for the flash flood alert system. Conclusion The flash flood alert system has the characteristics of non-rivalry and non-excludability, hence it is better placed in the category of public goods. (b) Introduction In a mixed economy, governments intervention in the markets for goods and services extends beyong the provision of public goods. Government often needs to intervene to achieve a more efficient allocation of resources. Thus there are instances where the Singapore government attempts to subsidise and impose regulations to induce the market to achieve a socially efficient outcome. Body Explanation of why government intervenes in the provision of public goods Not only is public good non-rivalry and non-excludable, it is also beneficial to the society as it possess large positive externality. The non-rivalry and non-excludable characteristics of public goods make it impossible for a price to be charged for the consumption of public goods. The consumers can free ride on the good. As a result, free market will not allocate resouces for the provision of public goods as no private firms will be willing to supply these goods when they cannot collect revenue for the costs incur in the production of the good or service. Governments intervention is thus required to make sure that such goods are being provided in the market and financed by taxation or other government revenue. Evaluation Yes, government should provide, but in what quantities? The government will find it difficult to identify the level of public demand for the public good such as the flood alert system without a price mechanism. Highlight that governments intervention in resource allocation in markets includes goods that exhibit externalities (including merit and demerit goods). Externalities Price mechanism does not take into account external cost or benefit. Consumers and producers, concerned only with self-interest, will ignore the third party effects. As a result, there is either an over consumption/production (for goods and services with external cost) or under consumption/production (for goods or services with external benefit). These create deadweight loss to society indicating that resources are not allocated efficiently in the market as desired by the society as a whole. Taxation, regulations, subsidies can be used to correct this aspect of market failure. Merit and Demerit Goods Merit goods and demerit goods arise due to the divergence between the values of society and the values of individuals. The divergence in value is usually because of unawareness of the full benefits or costs to the consumers or producers. Such goods can be provided by the private producers/consumers as they are excludable, but private producers/consumers either do not provide or consume sufficient quantities or produce/consume too much. Same policies used for externalities apply for this category of goods. Evaluation Government may create inefficiencies when they intervene in markets due to imperfect information, costs of administration and enforement and electoral pressurest etc†¦(government failure). Conclusion Government’s economic activity should not be restricted to the provision of public goods. They need to also intervene via various policies to address other forms of market failures present in the economy. However, government intervention may not necessarily lead to a more efficient outcome due to possible government failures. 6) 2009 YJC H1 Prelim a) Explain the economic indicators which may be used to indicate the health of an economy. [10] (b) To what extent is GDP a good measurement of standard of living in Singapore? [15] Part (a) †¢ Define ‘health’ of an economy. †¢ Link to macroeconomic goals of government: stable price level/low inflation rate, full employment/low unemployment, Balance of Payments equilibrium and stable exchange rate, high and st able economic growth. †¢ Explain (not just state) what indicators can be used to measure health of the economy. economic growth figures unemployment rate inflation rate Balance of Payments Conclusion: Health of an economy is multi-faceted, should not be too hasty in concluding that economy is in poor health on basis of one indicator alone. Even though the judgment of the health is based on the above 4 indicators, there exists other indicators which could further improve that judgment. |Knowledge, Application, Understanding and Analysis | |Level 3 |Clear explanation of the 4 economic indicators with links to health of the economy. indicators clearly | | |explained ( max 7m | |Level 2 |Underdeveloped explanation eg an explanation of each economic indicator but not its interpretation/link to | | |health of economy. | | |OR | | |Explanation of only two indicators with link to health of economy. |Level 1 |For an answer which has some basic correct facts such as unexplained defin itions of economic growth, inflation| | |rate, unemployment rate and BOP. | Part (b) 1. Intro †¢ Define GDP: Measures the value of final goods and services produced within the geographical boundaries of the country in a year. The production process may either make use of the factors of production owned by the citizens of the country or involve the factors of production owned by foreigners †¢ GDP can be used as an indicator of economic performance and standard of living. . Body Thesis: Data is generally sufficient as a rough proxy †¢ Economic growth of a country can be roughly approximated by the % change in GDP to estimate the rise in output and income > proxy for living standards Anti-Thesis: However there are better indicators than GDP †¢ Needs to consider real GDP versus nominal GDP. Nominal GDP could have risen but general price levels could have risen at a faster rate and thus eroding the real purchasing power of the individual and living standards in the ec onomy. To obtain real national income, money national income (expressed in current prices of each year) must be adjusted to constant prices of a chosen base year. †¢ Needs an indicator of population growth to determine per capita income > otherwise, if population has grown by more than GDP growth, than on average, each person will see a fall in his living standards > better indicator to be GDP per capita †¢ Needs an indicator of income inequality (Gini coefficient) > otherwise, there is a rise in GDP growth for the whole country, but this rise in incomes is not enjoyed equally by all. GNP could be a more accurate indicator as it includes net factor income from abroad. Especially in view of Sporeans working overseas and Spore firms who are based overseas > need to include remittances from overseas to get true gauge of economic performance and SOL of the Spore Anti-Thesis 2: Need to consider other indicators (macroeconomic aims) to provide broad overview of economic performance in S pore †¢ Govt could be concerned with other macro performance like UN+ rate, inflation rates and external performance of Spore †¢ UN+ rate †¢ Inflation rate measured generally by % change in CPI in Spore. External performance to be indicated via the status of the BOP (current and capital accounts as well as strength of ER) Anti-Thesis 3: Need also to include the non-material aspect of SOL †¢ Material versus non-material SOL †¢ Human Development Index (HDI) is composed of three components, per capita income and two additional measures – life expectancy at birth and a measure of educational attainment that pools together adult literacy and educational enrolment > better indicator of SOL since it incorporates non-material SOL †¢ Needs to see the quality of life (amenities like access to clean air, sanitation, schools, libraries and museums). For instance, Green GNP is the informal name given to national income measures that are adjusted for the depletion of natural resources (both renewable and non-renewable) and degradation of the environment. The types of adjustments made to standard GNP would include the use cost of exploiting a natural resource and valuing the social cost of pollution emissions. Damages to the global environment such as global warming, depletion of the ozone layer should also be deducted but these damages are hard to estimate. . Conclusion The GDP is generally used as a rough proxy of economic performance and living standards of Spore citizens. However it does have its limitations and one will need to take care when interpreting its results. End Suggested Answers and Mark Schemes Qty of fuel Price of fuel 0 S1 S2 D1 Q1 Q2 P2 P1 A B Fig. 1 Qty of holiday packages Price of holiday packages 0 S3 S4 D3 Q3 Q4 P4 P3 E F Fig. 2

Alejandro Iglesias Essays (1088 words) - Education,

Alejandro Iglesias Sociology The Marriage and Family Experience January 7th How to NOT treat Child Geniuses In today's speech we are going to talk about a very interesting topic. Imagine being surrounded by a classroom of peers. And now imagine that these "peers" are all about ten years older than you as you sit in a University classroom at 12 years of age. This may seem like some movie scene that I'm describing, however this is the eventual situation that unfolds for many of the most precocious "child geniuses". This very general term is used to describe a child prodigy. That is a child typically under the age of ten who is capable of doing one or more fields at the technical level of an adult. Mozart would be a good example. Intellectually gifted children seem to not only experience different things in their lives compared to average children, they progress faster in respect to their chronological age mentally but not emotionally. The development of child genius's brain allowing them to perform at an adult level at one or more general tasks may show that higher intelligence is also linked to higher maturation in cognitive abilities. There is more evidence to support this than there is evidence to support that high intelligence means an equivalent level of maturation emotionally, largely because this has to do with life experiences that have to be lived over time for people to be mature. This which has implicit things to consider on behalf of educational institutions. Specifically it is not recommendable to move children of high intellectual ability out of the classroom with similar aged peers and then putting them into environments with people that are older. This does not afford these children with the opportunity to develop alongside same aged peers and could negative affect the socio-emotional state of the children over time I once knew a child who could be considered a "child genius". This child has a very poor childhood in my and many others opinions of those who knew him. I knew him all through growing up in elementary school. He was capable of doing high school level mathematics by the fifth grade. Although he was not separated from the rest of the classroom until around the sixth grade when we transitioned into middle school, those couple years were quite bad for him now that I think about it in retrospect. From first grade up until the fifth he was always treated very differently by the teachers, he often worked alone in separate rooms, had different assignments and textbooks than the rest of the students and was barely involved in many of the extracurricular activities. He always seemed to be ion a completely different schedule than the rest of his peers. It was almost immediately noticed by the rest of the other kids and I remember him being often picked on from the other kids. Even though he wasn't really bullied he was completely alienated from the others through the way that the school treated him and in retrospect looking at the situation through a more mature point of view I think that the child (I forgot his name) could have had a better experience if the school had handled his ability in a more productive matter. I believe that while he was certainly challenged educationally which is important, part of the role of school that's at least equally important is to literally socialize children. So, in these instances where schools tend to separate and alienate the gifted, they may be serving their higher ability for educational material, but what about them just being kids. Just because a ten year old can do theoretical physics like a fully grown man does not mean that he has the emotional maturity or life experience to best be surrounded by adults with whom the gifted child becomes "peers" with if this is implemented. Healthy development must include appropriate benchmarks not only in a mental sense for these children but rather in an emotional sense simultaneously. Because this is the healthy way for a child to develop in general, that is, with simultaneous emotional and mental benchmarks growing up, schools are fundamental in appropriating gifted students without divergence from

Increase in Benefits for Retired and Disabled Veterans

Increase in Benefits for Retired and Disabled Veterans Cost of Living Adjustment to Raise Military Pensions, Disability Benefits The Social Security Administration (SSA) recently announced a 2.8% increase in benefit payments for 2019. A detailed story on the increase- the largest adjustment since 2012- is available here.The cost of living adjustment (COLA) will benefit both military retirees and veterans receiving disability benefits through the Department of Veterans Affairs (VA). Last years increase was 2%, and the previous three years amounted to only 2% combined. Based on $1,500 in benefit payouts each month, the 2.8% COLA increase would provide the recipient with an additional $500 over the course of a year.Setting the BaselineCurrent law allows for automatic COLA increases for those who receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) through the SSA without congressional intervention. Other federal agencies, including the VA, base their yearly calculation of benefit reauthorizations on the SSAs COLA figures. While veterans’ advocates have long pushed to ma ke these COLA adjustments automatic, they have had little success.The Real EffectThe change will go into effect in January 2019. The law will raise disability benefits, compensation for dependents, clothing allowances, and other benefits. Officials from the SSA indicate more than 67 million Americans will benefit from the increase- which is based on both current and predicted inflation rates.We Can HelpIf you are disabled and unable to work, call Disability Attorneys of Michigan for a free confidential consultation. We’ll let you know if we can help you get a monthly check and help you determine if any money or assets you receive could impact your eligibility for disability benefits.Disability Attorneys of Michigan works hard every day helping the disabled of Michigan seek the Social Security Disability and Veterans Disability benefits they need. If you are unable to work due to a physical, mental, or cognitive impairment, call Disability Attorneys of Michigan now for a free consultation at 800-949- 2900.Let Michigan’s experienced disability law firm help you get the benefits you deserve.Disability Attorneys of Michigan, Compassionate Excellence. Michigan Veteran Disability Benefits, Michigan Veteran Disability Lawyer, Veterans Benefits

Analyse and assess the factors behind the motivation of American Essay

Analyse and assess the factors behind the motivation of American soldiers in the Civil War - Essay Example In the reconstruction era most of the issues raised in the civil war were settled however, some of the issues remain unsolved but people got the solution of their major causes and problems1. The American Civil War has been regarded as one of the earliest industrial war fought in America. During the war mass produces weapons, railways, telegraphs streams and roadways were widely employed. It was also the deadliest war in the history of United States because over 620,000 soldiers were killed during the war and numbers of civilian casualties were also reported from all over the country. The war concluded with the desired outcomes for the North in term of termination of Confederacy and slavery. The demand of free men society was approved and all the slaves were freed from the slavery and were bestowed the rights to live freely in the country2. Factors behind the Motivation of Soldiers The identification of the factors behind the motivation of the soldiers to fight in the Civil war is an important issue that has been explored extensively by the historians and social scientists. The social and political situation of the country has been assessed in detail to understand the perspectives of people and soldiers. In addition to this, the letter, dairies and life stories of different soldiers participated in the war are also widely read and analyzed to understand their motive to take part in the war. Since, Civil War soldiers were the most literate soldiers in the war history they had strong intellectual base and thoughtful motivations behind their fight that they widely expressed through their letters and personal diaries3. Understanding the thinking style and direction of the Civil war soldiers is a complicated and challenging task that became easy by reading the diaries and letters of these soldiers. This understanding is very important to identify the factors that actually worked to motivate them at that time and to understand what the soldiers were thinking and feeli ng at the war time. Due to this reason, their personal writings have been regarded as most important source to list out the factor behind the motivation of soldiers during the civil war. The letters and dairies acted as major source to understand the thoughts and actions of the soldiers during the Civil war. On the basis of this analysis the historians and war experts have listed out numbers of factors that encouraged the soldiers to fight in the war. The American Civil War lasted for four years during which thousands of soldiers were dead but war was fueled by more soldiers came forward to take part in the war. There are several factors that motivated the soldiers to take part in the Civil war. Most of the soldiers participated in the Civil War were volunteer from the civilian life and they were not professional soldiers. They don’t have professional training of war but their motivation kept them fighting throughout the war just like the professionally trained soldiers. The motivation of the soldiers during the Civil war is a golden part of the political history of America because people were fighting for their cause with full dedication and potential. The traditional thoughts affirm that the soldiers were motivated to fight during the war by the factors like patriotism, ideology, religious issues and quest for glory however, the in depth studies have pointed out towards some close and real reasons

Case Study - Disney Essay Example | Topics and Well Written Essays - 4500 words

Case Study - Disney - Essay Example 191). At that time, the film industry, movies did not have sound; Mickey Mouse was supposed to make his first appearance in silent film called â€Å"Plane Crazy† (Richardson, 2004, p.19). Since then, the Company has a diversified international investment in a range of industries; it has five business segments i.e. parks and resorts, media networks, consumer products, studio entertainment and interactive media (Company Overview, n.d.). In the year of 1955, Walt Disney opened Disneyland. Subsequently, it converted into The Walt Disney Parks and Resorts (WDP&R) as one of the leading facilitators of leisure experiences and family travel. Currently, there are five vacation destinations with 11 theme parks having 43 resorts in North America, Asia and Europe and sixth destination is under construction in mainland China’s Shanghai province. WDP&R also provide the Disney Cruise Line along with its four ships i.e. Disney Wonder, Disney Magic, Disney Fantasy and Disney Dream; Disn ey Vacation Club along with 11 properties and more than 5, 00,000 participants as members are the main services offered by the company. Mainly, it is the contribution of the Walt Disney Studios that has provided the strong foundations to the Walt Disney Company. ... The Disney Theatrical Group issues licenses to and produces live events, encompassing Disney on Ice, Disney on Broadway and Disney Live. Subsequently, the Disney Music Group includes the Hollywood Records and Walt Disney Records and Disney Music Publishing. Disney Consumer Products (DCP) is the major business segment of the company. The DCP sells products such as home decor, books, stationary, beverages, foods, electronics and fine arts. Currently, DCP, which was formally launched in 1987, operates in North America, Japan and Europe through various retail chain stores under the label of the Disney Store. In the year of 2008, the company launched its new business segment with the label of Disney Interactive, which entertains families, kids through the products compatible with all sorts of digital media platforms including social and console games and blockbuster mobile. Situation analysis Environmental trends Macro Analysis Macro analysis can be carried out by PESTEL analysis of the C hinese market. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal aspect of market. The acknowledged benefit of using the PESTEL analysis as macro analysis tool is to understand the strategic position of an organization within a macro environment. In the following parts, macro analysis would mainly focus on the Chinese macro environment particularly relevant to Shanghai Disneyland. Political The Chinese government has put in place a considerable number of regulatory conditions applicable to both domestic and foreign companies operational in China. For instance, the land in China remains under the ownership of

Creative Writing - Belonging Essay Example for Free

Creative Writing Belonging Essay The clear, bright and enlightening blue skies greet my face as I ponder through my thoughts in my head. The sun blossoms it’s radiating sunlight, which glisten and reflect off the tranquil, wavy sea to reveal elements of a mystifying, inexplicable, yet convivial world. My heart beat pulsates through my ears†¦ so silent and blissful this world of beggaring-description, words could not hope to utter moments like these. It was the idea of confronting, change and experience which led me to this endeavouring challenge of discovery. In preceding life, â€Å"discovery† was but a mere artwork to me; its extravagant detail painted an image which took me to a new world of the unknown. Its colours merged and intertwined, creating infinite pathways for life to take me far beyond the norm. But, it was just a painting. Vibrant as the sky could ever be, inhabitants of birds and seagulls cluster amongst the sky’s surface to shadow various regions of radiation. Numerous shades of varying size, shape and darkness swam steadfast past my eyes, stimulating diverse light shades across the sea surface. I travel along a path to encounter countless fish as their scales unleash myriad hexagonal-structured reflections, capturing every single colour of the rainbow. I touch the water and an instant sensation crawled through my fingertips, as the water almost desiccated back down my finger, revealing wondrous ripples. The constant expansion and flow of ripples developed into motions of diffracting sunlight which followed a distinct pattern of iridescent white light. The sea so pure, its reflections illuminated my face with the pattern of the undulating water flow. A flash before my eyes re-writes the memoirs of my past life solitary and confined to the one passageway of safety and security. Ironic is it not? That such an introverted life could lead to the feeling of belonging to something ordinarily worthwhile, or to conduct a life of normality. I still hear a screech suddenly exerted from the fancy convertible making an unceremonious turn, piercing the dusk, still fog of night. The periodic fear of tomorrow, dreading what society had in stall for me. A vision of â€Å"my world† was painted bit by bit, colour by colour and section by section; a world of drifting into the crystalline sea far beyond human sight. It shimmered into this blazing, crimson sunset that protrudes colours of red, white and tinted blue clashing and smashing, latticing over and over again, against one other only to produce an amalgamation of beautified hope and warmth, resulting in this augmentation of sanctity, safety and assurance. A world I longed to belong†¦ I always questioned myself, repeatedly over and over and over again about my identity, destiny and independence. Was it really necessary to do what I did? To precariously determine my own destiny, where life was to be lived unknowingly? To see my father tremulous and mother on her knees, with her hands drenched in tears. A sudden emotion of fear and regret struck my heart in its centre, but also a sigh of relief. I was suddenly brought back to reality by the roar of the motor. The consistency of ripples flowing causes my reflection to distort with the scaly and incandescent rays from the schools of fish and the sun’s protruding rays of warmth and somewhat, hope. I closed my eyes for a few seconds to relax and enjoy this free moment†¦ 1|Page Jason Chan Year 12 Ms. Sake However, I felt a drop of water plummet on the right side of my cheek. My heart froze for a micro -second, dreading to open my eyes as I assumed for the worst. I hear the deafening silence of the waves, on the brink of a complete halt in their tranquil motion. No longer did the extravagant light shower the crystal sea, nor did the birds flourish over the sky. Foul-coloured fluffs of clouds conquered the remaining essence of light the sky had to offer. Cataclysmic roars of thunder clashed in every direction, ringing my ear drums heavily like lava and debris suffocating the mountain sides. â€Å"My world† I belonged to flashed for one second and I saw the usual back gate with a pathway leading my innate mind to the cataleptic regret. It was then I compelled myself up knowing it was and is finality. I remember clearly tilting my head to the side, seeing the sun’s arms reaching through the minute openings of my curtains, greeting my face and mind, pondered with thoughts and feelings of beggaring description. My face heated up, my hands trembled, my fingers shook hysterically as I held the key to freedom, and a drop of water plummeted from the right side of my cheek onto the pure, hue labelled, â€Å"Father and Mother†. That final tear symbolised the very last essence of me, only to distribute out and smudge the ink. Nevertheless, I told myself my world is and always will be created by me, so I relieved myself of intense emotion and wiped my tears away, got my bag and strode with pride to my new world. The sight flashed again, bringing me to a world of catastrophe, as lightning collapsed from the sky as if Zeus had deliberately done so. My fear multiplied as fast as the rain drops fell. I felt a gush of aggravated wind fly past my hair at a ghastly speed. A continuation of heaviness impeded my stability as the turbulent sea rocked like an exacerbated avalanche. It was as if the glistening, crystal sea has become the enemy, the hardship, a hurdle to overcome – my world had become my enemy. I grasp the sides of my capsule with my sweat-bear hands, clenching in fear for my life. Spontaneously, words of my cataleptic regret begin surging in and out, left, right and centre of my mind†¦

Lean Manufacturing In Automobile Industry Of Pakistan Commerce Essay

Lean Manufacturing In Automobile Industry Of Pakistan Commerce Essay The objective of the lean manufacturing is to reduce the lead time and cost of production. In competitive markets, the issue of lead-time is of great importance, it is the main driving factor for business profitability but people are less aware of the lean manufacturing its importance that can bring drastic improvement in Automobile industry of Pakistan. Lean manufacturing is the production of goods using less of everything compared to mass production. It focuses on less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. Lean manufacturing is a generic process management philosophy derived mostly from the (Toyota Production, 1991) Toyota Production System (TPS) Womack, James P., Jones, Daniel T., and Roos, Daniel (1991). In the simplest form, lean manufacturing means producing goods with less; it applies fewer resources without affecting the quantity or quality of the goods produced. Toyotas purpose in developing the system was the elimination of waste, and TPS is focused on seven sources of it: over-production caused by emphasis on supply rather than demand; wasted motion due to poor processes; waiting time generated by tuning the production system to the fastest rather than the slowest process; conveyance waste caused by poorly designed supply systems that delay the transit of goods; processing waste from badly designed systems; raw material waste from inefficient design or ineffective supply strategies; correction waste caused by reworking badly made products. (Toyota Production, 1991) Toyota Production System (TPS) Womack, James P., Jones, Daniel T., and Roos, Daniel (1991). The results of TPS have included enormous advances in robotic manufacturing systems and factory design, just-in-time inventory management, the kanban system of visual inventory replacement cues, demand-pull management of manufacturing planning and others. But lean manufacturing also has evolved into a business philosophy based on a unique set of practices, and the resulting business culture demonstrates how to use these to create a lean approach to other aspects of business; one area ripe for this lesson is supply chain management. Lean manufacturing is the systematic elimination of waste from all aspects of an organizations operations, where waste is viewed as any use or loss of resources that does not lead directly to creating the product or service a customer wants when they want it. In many industrial processes, such non-value added activity can comprise more than 90 percent of a factorys total activity (Simon Caulkin, 2002). The supply chain permeates every face of the enterprise, and if a lean approach to managing it is to succeed, the entire organization has to focus on removing waste and adding value. As a part of this change it requires everyone to involve for looking beyond the boundaries of the company to relationships with customers and suppliers at all levels. The change in focus is essential, but implementing it can be difficult in todays international supply chain environment. Nevertheless, the principles of lean business are straightforward and can form the foundation for an organizations new approach to its supply chain. (Ventana Research , Europe). First, product value has to be defined from the customers point of view, not the companys. This seemingly simple principle is the key to eliminating waste caused by such things as making the wrong product (one that nobody wants), making the product at an unsuitable quality level, making too much or too little of it, or delivering it too slowly or through the wrong channel. A second principle is that the supply chain should flow continuously, and so should the information that supports it. Delays and discontinuities in the supply chain process are often caused by starting and ending processes or information streams that could smooth things out if they were operated continuously. Product should be pulled by the customer, not pushed by the company. That is, no part of any supply chain process should be started without a complete understanding of the demand destination of the final product that will complete the cycle. Finally, the entire organization needs to continue to manage toward perfection, concentrating on the elimination of waste and the addition of value in all of its supply chain processes. This is a continuous process that starts with the launch of a lean supply chain management strategy and it continues. Purpose:- The main purpose of this thesis is to determine the importance of lean manufacturing and create its awareness amongst the automobile industry of Pakistan, which then can be applied by the whole manufacturing sector of Pakistan to make them more competitive in terms of price as well as in speeding the delivery time. The thesis is to draw together the evidence about the benefits of lean manufacturing in automobile industry of Pakistan. It has been noticed that automobile industry is concerned about the cost delivery time, which are the key success factors for this industry. At present, the whole automobile sector is suffering from losses, which has led many businesses to shutdown. Problem discussion: Pakistans automobile industry is losing its competitiveness in the market due to the intense competition faced from world markets in terms of cost delivery time. Buyers get low quality products which reduces their confidence in Pakistani products. Up till now Pakistan automobile industry has been unable to meet the lead time demanded by highly profitable automobiles and is also unable to fulfill the low price expectations of western markets. Until and unless any initiative to reduce the cost and delivery time of product will not be taken, any improvement in the industry would not take place. In order to bring improvements in this industry, it is important to direct this industrys attention towards lean manufacturing. This thesis has been done to focus in this area to check that why lean manufacturing has not yet been implemented in the automobile industry of Pakistan. De limitation of the study:- There are some limitations of this thesis. The work focuses on Manufacturers and assemblers of Automobiles industry located in Pakistan and which has the sales volume more than 10 million. Due to the limited time only top few Manufacturers are included in the research work, which are Indus Motor Company -Toyota Motor Co Pak Suzuki Motors. Al-Ghazi Tractors Further the work doesnt include interview with supplier customer which requires detail research so it is limited to the organizations internal boundary only. Research Question:- This thesis is an attempt to answer the following question:- Q: What is the knowledge level of production people about the lean manufacturing? Q: Are the production manager of automobile industry aware of lean tools? Q: Are the production manager of automobile industry aware of lean manufacturing benefits? Q: To understand the issues of adoption of lean manufacturing in automobile industry in Pakistan? Implication of the study: The purpose of this thesis is to find how much the management of this industry in Pakistan is aware of lean manufacturing and then highlight the obstacles that exist in its implementation. This thesis also provides the benefits of lean manufacturing to the automobile industry of Pakistan, which is facing troubles in these days due to higher cost of production delay in delivery dates. Hence, this thesis is beneficial for the automobile manufacturers so that they can realize the importance of lean manufacturing and then implement it to gain the competitive advantage in terms of lower costs and on time deliveries. CHAPTER 2 LITERATURE REVIEW Lean manufacturing is a technique that allows companies to be more responsive to quickly changing markets and more sophisticated demanding customers. (Dohse, JurgensMalsh,1985,p.118). History of Lean Manufacturing Toyota is often considered one of the most efficient manufacturing companies in the world and the company that sets the standard for best practices in Lean Manufacturing. (James Womack Daniel Roos, 1992). Lean Manufacturing has increasingly been applied by leading manufacturing companies throughout the world, lead by the major automobile manufactures and their equipment suppliers. Lean Manufacturing is becoming an increasingly important topic for manufacturing companies in developed countries as they try to find ways to compete more effectively against competition from developing countrie. Starting about 1910, Ford and his right-hand-man, Charles E. Sorensen, fashioned the first comprehensive Manufacturing Strategy. They took all the elements of a manufacturing system people, machines, tooling, and products and arranged them in a continuous system for manufacturing the Model T automobile. Ford was so incredibly successful he quickly became one of the worlds richest men and put the world on wheels. Ford is considered by many to be the first practitioner of Just in Time and Lean Manufacturing. Beyond large scale production 7 categories of muda or waste:- Overproduction producing more unit than customers are demanding or producing them earlier than customer order them. (Taiichi Ohno, 1988) Waiting people waiting for machine or process; product waiting for people, machines or processes. Transportation moving product from one place to another. Inventory Raw material, work in process (WIP), finished goods in excess of direct customer requirement. Motion: Any movement people or machines that does not actually transform product from one state to another. Over processing Performing operation that are unnecessary. Defect creating or passing along product which contains error in material or processing. Definition of lean manufacturing Lean manufacturing is the systematic elimination of waste from all aspects of an organizations operations, where waste is viewed as any use or loss of resources that does not lead directly to creating the product or service a customer wants when they want it. In many industrial processes, such non-value added activity can comprise more than 90 percent of a factorys total activity. (Simon Caulkin. Waste Not, Want Not, The Observer (September 2002). Many of the concepts in Lean Manufacturing originate from the Toyota Production System (TPS) and have been implemented gradually throughout Toyotas operations beginning in the 1950s. By the 1980s Toyota had increasingly become known for the effectiveness with which it had implemented Just-In-Time (JIT) manufacturing systems. The brainpower that businesses bring to bear to eliminate wasted assets, materials, and time in production should  equally be deployed to improve the processes of consumption that customers follow. Like their earlier work, this is both a landmark synthesis of ideas whose implications havent been fully understood and a breakthrough to new territory. (Thomas A.Stewart, 2000) Main Kinds of Waste Originally 7- 9 main types of waste were identified as part of the Toyota Production System. However, this list has been modified and expanded by various practitioners of lean manufacturing and generally includes the following: 1. Over-production Over-production is unnecessarily producing more than demanded or producing it too early before it is needed. This increases the risk of obsolescence, increases the risk of producing the wrong thing and increases the possibility of having to sell those items at a discount or discard them as scrap. However, there are some cases when an extra supply of semi-finished or finished products is intentionally maintained, even by lean manufacturers. 2. Defects In addition to physical defects which directly add to the costs of goods sold, this may include errors in paperwork, provision of incorrect information about the product, late delivery, production to incorrect specifications, use of too much raw materials or generation of unnecessary scrap. 3. Inventory Inventory waste means having unnecessarily high levels of raw materials, works-in-progress and finished products. Extra inventory leads to higher inventory financing costs, higher storage costs and higher defect rates. For more on this, please see section 2.5 below. 4. Transportation Transportation includes any movement of materials that does not add any value to the product, such as moving materials between workstations. The idea is that transportation of materials between production stages should aim for the ideal, that the output of one process is immediately used as the input for the next process. Transportation between processing stages results in prolonging production cycle times, the inefficient use of labor and space and can also be a source of minor production stoppages. 5. Waiting Waiting is idle time for workers or machines due to bottlenecks or inefficient production flow on the factory floor. Waiting also includes small delays between processing of units. Waiting results in a significant cost insofar as it increases labor costs and depreciation costs per unit of output. 6. Motion Motion includes any unnecessary physical motions or walking by workers which diverts them from actual processing work. For example, this might include walking around the factory floor to look for a tool, or even unnecessary or difficult physical movements, due to poorly designed ergonomics, which slow down the workers. 7. Correction Correction, or reprocessing, is when something has to be re-done because it wasnt done correctly the first time. This not only results in inefficient use of labor and equipment but the act of re-processing often causes disruptions to the smooth flow of production and therefore generates bottlenecks and stoppages. Also, issues associated with reworking typically consume a significant amount of management time and therefore add to factory overhead costs. 8. Over-processing Over-processing is unintentionally doing more processing work than the customer requires in terms of product quality or features such as polishing or applying finishing on some areas of a product that wont be seen by the customer. 9. Knowledge Disconnection This is when information or knowledge isnt available where or when it is needed. This might include information on correct procedures, specifications, ways to solve problems, etc. Lack of correct information often leads to defects and bottlenecks. For example, unavailability of a mixing formula may potentially suspend the entire process or create defective items due to time-consuming trial-and-error tests. What kinds of companies benefit most from lean? Lean is most widely used in industries that are assembly-oriented or have a high amount of repetitive human processes. These are typically industries for which productivity is highly influenced by the efficiency and attention to detail of the people who are working manually with tools or operating equipment. For these kinds of companies, improved systems can eliminate significant levels of waste or inefficiency. Examples of these companies include wood-processing, garment manufacturing, automobile assembly, electronic assembly and equipment manufacturing. Lean Manufacturing is also appropriate in industries for which it is a strategic priority to shorten the production cycle time to the absolute minimum as a source of competitive advantage for the company. Recently, some companies in Vietnam have actively conducted training and implemented lean methods to eliminate process inefficiencies. This resulted in an improvement to their production and service lead times. For example, Toyota Ben Thanh, a service center of Toyota in Vietnam, has implemented lean methods to significantly reduce the process time for its automobile maintenance service from 240 minutes to 45-50 minutes per car, and as a result, increased the total number of cars processed at each service center from 4-6 cars up to 16 cars per day. Toyota Ben Thanh achieved significant reductions in the process lead time by successfully eliminating unnecessary waiting time, inefficiencies of physical motions and process flow. (Thoi Bao Kinh Te Saigon, 2004) Objectives of Lean Manufacturing Lean Manufacturing, also called Lean Production, is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process. The main benefits of this are lower production costs, increased output and shorter production lead times. More specifically, some of the goals include: 1. Defects and wastage Reduce defects and unnecessary physical wastage, including excess use of raw material inputs, preventable defects, costs associated with reprocessing defective items, and unnecessary product characteristics which are not required by customers. 2. Cycle Times Reduce manufacturing lead times and production cycle times by reducing waiting times between processing stages, as well as process preparation times and product/model conversion times. 3. Inventory levels Minimize inventory levels at all stages of production, particularly works-in-progress between production stages. Lower inventories also mean lower working capital requirements. 4. Labor productivity Improve labor productivity, both by reducing the idle time of workers and ensuring that when workers are working, they are using their effort as productively as possible (including not doing unnecessary tasks or unnecessary motions). 5. Utilization of equipment and space Use equipment and manufacturing space more efficiently by eliminating bottlenecks and maximizing the rate of production though existing equipment, while minimizing machine downtime. 6. Flexibility Have the ability to produce a more flexible range of products with minimum changeover costs and changeover time. 7. Output Insofar as reduced cycle times, increased labor productivity and elimination of bottlenecks and machine downtime can be achieved, companies can generally significantly increased output from their existing facilities. In a 2004 survey by Industry Week Magazine, U.S. companies implementing lean manufacturing reported a median savings of 7% of Cost of Goods Sold (COGS) as a result of implementing lean (George Taninecz, 2004). We believe that the savings actually are higher for companies in Vietnam considering the higher levels of waste which they typically have compared to U.S. based manufacturers. Another way of looking at Lean Manufacturing is that it aims to achieve the same output with less input less time, less space, less human effort, less machinery, less material, less cost. When a U.S. equipment manufacturing company, Lantech, completed the implementation of lean in 1995, they reported the following improvements compared to their batch-based system in 1991: (James P. Womack; Daniel T. Jones, 1996) à ¢Ã¢â€š ¬Ã‚ ¢ Manufacturing space per machine was reduced by 45%; à ¢Ã¢â€š ¬Ã‚ ¢ Defects were reduced by 90% à ¢Ã¢â€š ¬Ã‚ ¢ Production cycle time was reduced from 16 weeks to 14 hours 5 days; and à ¢Ã¢â€š ¬Ã‚ ¢ Product delivery lead time was reduced from 4-20 weeks to 1-4 weeks. Why Lean Consumption Now? While lean consumption would be a sensible idea in any era, we see several convergent trends that we think make it inevitable and indeed, a competitive necessity now. With the regulated economy steadily contracting, consumers have a broader range of decisions to make, from how to invest retirement funds, to what telecommunications provider to use, to what airline to fly at what price. The mass-producer uses narrowly skilled professionals to design products make by unskilled or semiskilled workers tending expensive, single-purpose machines. These churn out standardized products at high volume. Because the machinery costs so much and is so intolerant of disruption, the mass-producer adds many buffers extra supplies, extra workers, and extra space to assure smooth productionà ¢Ã¢â€š ¬Ã‚ ¦. The result: The customer gets lower costs but at the expense of variety and by means of work methods that most employees find boring and dispiriting. (Womack, 1990 p 13). While on a tour of a large customer, Michael Dell saw technicians customizing new Dell computers with their companys standard hardware and software. Do you think you guys could do this for me? his host asked. Without missing a beat, Dell replied, Absolutely, wed love to do that.4 Within a couple of weeks, Dell was shipping computers with factory-installed, customer specific hardware and software. What took the customer an hour could be done in the factory in minutes, and furthermore, computers could be shipped directly to end-users rather than making a stop in the corporate IT department. This shortening of the value chain is the essence of lean thinking. Direct from Dell, (Catherine Fredman, 1999) Basic Principles of Lean Add Nothing But Value (Eliminate Waste) The first step in lean thinking is to understand what value is and what activities and resources are absolutely necessary to create that value. Once this is understood, everything else is waste. Since no one wants to consider what they do as waste, the job of determining what value is and what adds value is something that needs to be done at a fairly high level. Lets say you are developing order tracking software. It seems like it would be very important for a customer to know the status of their order, so this would certainly add customer value. But actually, if the order is in house for less than 24 hours, the only order status that is necessary is to inform the customer that the order was received, and then that it has shipped, and let them know the shipping tracking number. Better yet, if the order can be fulfilled by downloading it on the Web, there really isnt any order status necessary at all. To develop breakthroughs with lean thinking, the first step is learning to see waste . If something does not directly add value, it is waste. If there is a way to do without it, it is waste. Taiichi Ohno, the mastermind of the Toyota Production System, identified seven types of manufacturing waste, (2002 Poppendieck.LLC) Do It Right The First Time It is instructive to explore the origins of the slogan Do It Right the First Time. In the 1980s it was very difficult to change a mass-production plant to lean production, because in mass production, workers were not expected to take responsibility for the quality of the product. To change this, the management structure of the plant had to change. Workers respond only when there exists some sense of reciprocal obligation, a sense that management actually values skilled workers, and is willing to delegate responsibility to [them]. The slogan Do It Right the First Time encouraged workers to feel responsible for the products moving down the line, and encourage them to stop the line and troubleshoot problems when and where they occurred. ( Womack ,1990 p 99). A more appropriate translation of such slogans as Zero Defects and Do It Right the First Time would be Test First. In other words, dont code unless you understand what the code is supposed to do and have a way to determine whether the code works. A good knowledge of the domain coupled with short build cycles and automated testing constitute the proper way for software developers to Do It Right the First Time. (2002 Poppendieck.LLC) Center On The People Who Add Value Almost every organization claims its people are important, but if they truly center on those who add value, they would be able to say: The people doing the work are the center of:- Resources Information Process Design Authority Decision Making Authority Organizational Energy In mass-production, tasks are structured so that low skilled or unskilled workers can easily do the repetitive work, but engineers and managers are responsible for production. Workers are not allowed to modify or stop the line, because the focus is to maintain volume. One of the results of mass-production is that unskilled workers have no incentive to volunteer information about problems with the manufacturing line or ways to improve the process. Maladjusted parts get fixed at the end of the line; a poor die or improperly maintained tool is managements problem. Workers are neither trained nor encouraged to worry about such things. The truly lean plant has two key organizational features: It transfers the maximum number of tasks and responsibilities to those workers actually adding value to the car on the line, and it has in place a system for detecting defects that quickly traces every problem, once discovered, to its ultimate cause.9 Similarly in any lean enterprise, the focus is on the people who add value. In lean enterprises, traditional organizational structures give way to new team-oriented organizations which are centered on the flow of value, not on functional expertise. The first experiment Taiichi Ohno undertook in developing lean production was to figure out a way to allow massive, single-purpose stamping machines to stamp out multiple parts. Formerly, it took skilled machinists hours, if not days, to change dies from one part to another. Therefore, mass production plants had many single purpose stamping machines in which the dies were almost never changed. Volume, space, and financing were not available in Japan to support such massive machines, so Ohno set about devising simple methods to change the stamping dies in minutes instead of hours. This would allow many parts of a car to be made on the same line with the same equipment. Since the workers had nothing else to do while the die was being changed, they also did the die changing, and in fact, the stamping room workers were involved in developing the methods of rapid die changeover. Ohno transferred most of the work being done by engineers and managers in mass-production plants to the production workers. He grouped workers in small teams and trained the teams to do their own industrial engineering. Workers were encouraged to stop the line if anything went wrong, (a management job in mass production).Before the line was re-started, the workers were expected to search for the root cause of the problem and resolve it. At first the line was stopped often, which would have been a disaster at a mass production plant. But eventually the line ran with very few problems, because the assembly workers felt responsible to find, expose, and resolve problems as they occurred. Flow Value from Demand The idea of flow is fundamental to lean production. If you do nothing but add value, then you should add the value in as rapid a flow as possible. If this is not the case, then waste builds up in the form of inventory or transportation or extra steps or wasted motion. The idea that flow should be pulled from demand is also fundamental to lean production. Pull means that nothing is done unless and until a downstream process requires it. The effect of pull is that production is not based on forecast; commitment is delayed until demand is present to indicate what the customer really wants. Pulling from demand can be one of the easiest ways to implement lean principles, as LL Bean and Lens Crafters and Dell found out. The idea is to fill each customer order immediately. In mass-production days, filling orders immediately meant building up lots of inventory in anticipation of customer orders. Lean production changes that. The idea is to be able to make the product so fast that it can be m ade to order. True, Dell and Lens Crafters and LL Bean and Toyota have to have some inventory of sub-assemblies waiting to be turned into a finished product at a moments notice. But its amazing how little inventory is necessary, if the process to replenish the inventory is also lean. A truly lean distribution channel only works with a really lean supply chain coupled to very lean manufacturing. In addition to rapid, Just-in-Time information flow, Lean Software Development means rapid, Just-in-Time delivery of value. In manufacturing, the key to achieving rapid delivery is to manufacture in small batches pulled by a customer order. Similarly in software development, the key to rapid delivery is to divide the problem into small batches (increments) pulled by a customer story and customer test. The single most effective mechanism for implementing lean production is adopting Just-in-Time, pull-from-demand flow. Similarly, the single most effective mechanism for implementing Lean Development is delivering increments of real business value in short time-boxes. 2002 Poppendieck.LLC Optimize across Organizations Quite often, the biggest barrier to adopting lean practices is organizational. As products move from one department to another, a big gap often develops, especially if each department has its own set of performance measurements that are unrelated to the performance measurements of neighboring departments. For example, lets say that the performance measurement of a stamping room is machine productivity. This measurement motivates the stamping room to build up mounds of inventory to keep the machines running at top productivity. It does not matter that the inventory has been shown to degrade the overall performance of the organization. As long as the stamping room is measured primarily on machine productivity, it will build inventory. This is what is known as a sub-optimizing measurement, because it creates behavior which creates local optimization at the expense of overall optimization. (2002 Poppendieck.LLC) Lean manufacturing Automobile Industry Lean manufacturing is applicable to almost every industry and it is known that the initiators of this technique is TOYOTA by the name Toyota Production System, than this techniques became generalize and open for all with some modifications and named as Lean. We fully expect that lean manufacturing will give a competitive advantage to this industry. Automobile Industry of Pakistan Pakistan is a rising market for automobiles offers massive business and investment opportunities. The total involvement of Auto industry to GDP in 2007 was 2.8% which was expected to increase up to 5.6% in 5 years. Total gross sales of automobiles in Pakistan were Rs.214 billion in 2006-07 or $2.67 billion. The industry tax accumulated to Rs.63 billion in 2007-08 that the government has imposed on automobiles. There are 500 auto-parts producers in the country that supply parts to original equipment manufacturers. Auto sector presently, contributes 16% to the manufacturing sector which also is projected to increase 25% in the next 7 years, compared to 6.7% during 2001-02. Vehicles manufacturers directly employ over 192,000 people with a entire investment of more than $ 1.5 billion. At present, there are about 82 vehicles assemblers in the industry producing passengers cars, light commercial vehicles, trucks, buses, tractors and 2/3 wheelers. The auto policy is geared up to make an inv estment of $ 4.09 billion in the next five years thus, making a target of half a million cars per annum achievable. Pakistan has the highest number of CNG-powered vehicles in the world with more than 1.55 million cars and passenger buses, constituting 24% of total vehicles in Pakistan with improved fuel efficiency and conforming to the l