Analysing the economic relationship between households and firms

Analysing the economic relationship between households and firms The household is the basic unit of analysis in many social, microeconomic and government models. The term refers to all individuals who live in the same dwelling. In economics, a household is a person or a group of people living in the same residence. Household are owners of the factors of production which is includes land, labor, capital and entrepreneurship. Which are made available to firm that will pay factor incomes to the households. The firm will use the factors of production to produce output in the form of goods and services, which will purchase by the households. In buying the goods and services, households therefore incur expenditures. 2.0 Circular Flow between Firm and Households The circular flows between firms and household may therefore be represented by the following 4 flows: Flow of factor of production from household to firms Flow of incomes from firm to household Flow of output of goods and services from firm to households Flow of expenditures from household to fi rm These four flows are illustrated as appendix 1. Outer flow of incomes and expenditures are flow of money, whereas the inner flows of factors of production and outputs are flows of goods and services. According to Google 2011 the basic circular flow of income model consists of seven assumptions it include the economy consists of two households and firms sectors, households spend all of their income on goods and services or consumption. There is no saving and all output produced by firms is purchased by households through their expenditure, there is no financial, government, overseas sector. Last it is a closed economy with no exports or imports. Withdrawals occur when there are movements of funds out of the circular flow of income. 3.1 Saving (S) Households may not speed all the factors income received on current consumption, preferring to keep some for later deferred consumption. The first is the Financial Sector that consists of banks and non-bank intermediaries who engage in th e borrowing (savings from households) and lending of money. In terms of the circular flow of income model the withdrawals that financial institutions provide in the economy is the option for households to save their money. This is a withdrawal because the saved money cannot be spent in the economy and thus is an idle asset that means not all output will be purchased. 3.2 Taxation (T) The next sector introduced into the circular flow of income is the Government Sector that consists of the economic activities of local, state and federal governments. The withdrawal that the Government sector provides is through the collection of revenue through Taxes (T) that is provided by households and firms to the government. A tax is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority and is any contribution imposed by government. For example income tax is compulsory charge by the government to the people who is salary RM3000 and above for a month. 3.3 Import (M) Households may prefer to purchase goods and services from abroad instead of consuming domestically produced goods and services. In the circular flow of income model is the overseas sector which transforms the model from a closed economy to an open economy. The main withdrawal from this sector are imports (M), which represent spending by residents into the rest of the world. There are two basic types of import which is include industrial and consumer good, intermediate goods and service. For example we will import the apple for other country which is not suitable plant in our country.

CRIMINAL JUSTICE SYSTEM Term Paper Example | Topics and Well Written Essays - 2000 words

CRIMINAL JUSTICE SYSTEM - Term Paper Example The Latinos are of Spanish origin and are immigrants while the African Americans originated from slavery. As a result of the mixed races, there are a lot of allegations of racism in all aspects of the lives of the Americans. Racial discrimination in the criminal justice system is therefore apparent and has been blamed for the rising number of young black males in prison and jails as compared to their white counterparts. For example, by 2002 10.4% of black males ages 25-29 were in prison and more than one in every four black men are expected to be incarcerated in state or federal prison at some point in their life time (Rennison, 2003). The same report indicates that 45% of all inmates at the end of 2002 were black, 34% white and 18% Hispanic. According to Bonczar & Allen (1997), the likelihood of incarceration is related to race. The likelihood is higher for African Americans with 16.2% compared to the whites whose likelihood is 2.5%. This shows the extent of discrimination that exis ts in the American judicial system. However, it is difficult to proof the existence of racial discrimination as it may occur during police arrests or during judicial process. There are also various factors that determine who is involved in crime which affects the rate of crime for different racial and ethnic groups. Some may get involved in crime for personal gains and to reduce pain caused by inequalities and other factors, some engage in crime due to sociological, psychological and biological factors, substance abuse among others hence commit different offenses which are dealt with differently depending on severity of harm caused. However, since the colonial times during slavery, the blacks tend to be given stiffer penalties as compared to the whites due to laws in place such as Jim crow laws and laws to curb war on drugs which prescribe severe punishment for the blacks who are involved in crack drugs rather that powder drugs which are specialty of the whites (Siegel, 2009). The p aper will explore the reasons why black men age 25-29 are so much likely in jail as compared to people of white or Latino descent. Factors Associated with who Gets Involved in Crime There are many theories that try to explain why people engage in criminal behavior and the kind of punishment they deserve for such acts. The strain theory indicates that people engage in crime to reduce or run away from stressful situations (Banks, 2004). The black people are associated with low socio- economic status; their standards of living are poor, lack employment, low income and poverty and lack social status or respect from the middle class and the rich whites. As a result, the black people especially the young who are unemployed engage in criminal behavior such as violence, assault, and robbery to ascertain their position in society. This helps them to accomplish their goal of gaining respect. They also desire to be rich so as to be equal with their white counterparts hence engage in crime. The young black men are also prone to childhood neglect and abuse hence turn to crime to cope with stressful situations. For example, they can engage in violent behavior to avert anger. The classical theorists on the other hand argue that people engage in criminal acts at free will. According to Siegel (2009), individuals are rational and always act to maximize pleasure and reduce pain. If the suspects perceive that the gains from crime are more than the cost or punishment, they would act rationally and hence commit crime. The black young men have more to gain from crime than their fellow whites. Due to racial disparities, the blacks are considered inferior and unintelligent hence lack respect from the

Exams versus Another Form of Assessment Case Study

Exams versus Another Form of Assessment - Case Study Example Up to today, almost all students usually think that taking of exams will rank them according to what they can do or achieve. This paper despises the fact that examinations are not proportional to what a student can do. Therefore, it seconds that fact that exams should be outlawed in favor of another assessment.According to Albert Einstein (2008), he said that everyone is a genius. However, the genius levels usually vary and that exam cannot equate someone’s potential to how he or she performs after a given exam seating. Children are different from each other, and this will make them have different abilities. Therefore, there is no any single day that a teacher can judge student’s learning ability through the same means for all the children. Since each child is a different being, they then portray very different learning styles. However, it is disheartening to affirm that when assessing the children who have different learning styles, that most teachers usually do not ap preciate these differences. It is worth noting that, this evaluation style usually gives out a very wrong perception on the students. In other words, this gives a very inaccurate reflection of the progress plus learning abilities of the student. What teachers should understand is that, if they know that students are usually learning differently, why are they using the same criterion of evaluation to them all?Sadly, from the time immemorial, if a certain number of students fail exams, it is noted that the whole concept will never be repeated. Teachers usually claim that they are rushing to finish the syllabus or if they repeat the same concept then his or her subject will lack behind in terms of syllabus finishing (Beatley, 2010.p. 102). It is good for finishing syllabus, however, how will that benefit students who did not understand a certain concept and they failed it in exams? Students are frequently ushered into another topic, without them understanding the previous concept. This is a clear evidence that there is no way, a student’s ability of potential can be measured by the use of exams.