The factors that contribute to the volatility of investment spending in investment are changes in interest rates. Interest expense is a cost of making an investment. Therefore, it will affect the profitability of potential investments. Other than that, expectations about the state of the economy in the future also causes this volatility in investment. When firms are optimistic about the future, investment spending increases, and vice versa. Marginal efficiency on investment (MIE) also contributes to the volatility of investment spending in investment. MIE is the expected rate of return over cost of an additional unit of a capital good. When MIE increases, investment spending increases because firms believe that they will get a higher return …show more content…
The shortcomings of GDP as a measure of society’s well-being and standard of living are the exclusion of non-market activities. These activities do not occur in the market. They are productive actions that are done voluntarily or with mutual aid such as house chores and carpenters fixing their own furniture. Since there are no financial transactions, they are excluded in the calculation of GDP. The other shortcoming of GDP is the underground economy. It basically refers to financial activities that are not reported to the Inland Revenue Board. They can be legal works being practised unofficially on account of the benefit that results to it not being reported. Usually those people who are involved in this matter are gamblers, smugglers or drug dealers which is obvious why they conceal their income. Apart from that, GDP excludes leisure. In recent years, the working hours were reduced to great extent like in the US, weekly working hours were reduced from 56 to 36. Leisure certainly improves employee performance. However, leisure is not a part of GDP although it is quite clear that people are working less and producing more outputs which shows improvement in productivity and well-being of people. GDP also fails to take into account the noneconomic resources of well-being. Income of households does not indicate their happiness. The same goes with GDP. Higher GDP never guarantees that individuals and households are happy and satisfied. A reduction in crime and violence, peaceful relationship, parents and children with better understanding and a reduction in drug and alcohol abuse could lead to happiness and
As we take account for the things produced, also keep in mind some things cannot be included in GDP. First GDP excludes non production transaction and another thing that is not accounted for are shortcoming of GDP. Non production item include paper for paper, or as the text states, financial transactions. Also excluded are secondhand sales. The paper for paper money
The GDP is manly used to measure the greatness of the economy. It tells the total dollar value of all goods and services produced over a specific time period. GDP is calculated by either the income approach or by the expenditure method. The income approach is calculated by adding up the total compensation to employees, gross profits for firms, and taxes, less any grant.
Bhutan, a country with high levels of happiness, is unique in its own way in which the higher national goal is for gross nation happiness (Belic, 2011). Unlike other countries, Bhutan’s society presented the government the responsibility to allow and build opportunities to gin happiness (Belic, 2011). Through this, the government has control over the levels of happiness that citizens gain. Beneficially, citizens of Bhutan are offered opportunities that allow each to gain happy experiences but the level of happy they become, depends on the effectiveness of their civic engagement. Without the government containing the responsibility of providing opportunities for happiness, citizens would not have the highest chance to work within the
Safeguarding is the action that taken to promote the welfare of children and protect them from harm. The Children 's Act of 1998 put procedures in place that mean local authorities, courts, parents and other agencies in the United Kingdom have been given specific duties to ensure children are safeguarded and their welfare is promoted. The UK has policies and laws around education, health and social welfare which cover most aspects of safeguarding and child protection. Laws ' are passed to prevent behaviour that can harm children, or require action to protect them and informs what agencies should do to play their part in keeping children safe Guidelines and procedures have been put in place for people who work with children.
Nickel and Dimed Analysis: Minorities vs Majority vs Socioeconomics In Ehrenreich’s classic “Nickel and Dimed: On (not) getting by in America,” the protagonist opens up the dialogue with admitting that she picked out her job out of laziness (Ehrenreich, 1). With the setting in Key West, Florida, the main character being Ehrenreich herself, decides to experiment with the possibilities of existing as a person on the lower terminal of the socioeconomic ladder. For her experiment, she lives in the lower rung of the ladder, becoming a waitress (Ehrenreich, 10). Based in 1996, the novel is investigating the benefits and effects of the 1996 welfare reform bill, which was considered a jugular stab to the spirit of social reform and government assistance to the hapless.
Arguably, the happier an individual is, the better the quality of their life, and the better off they are. But despite this, there are people who will even argue that lower levels of happiness are the best because you maintain the ability to progress in life and your motivation is still present. Although many people will only see two sides to this argument, there is a totally different view that provides the optimal quality of life and the most beneficial outcome in the big picture; and that is moderate happiness. Cliff Oxford’s essay “High Performance Happy” evaluates the effect that an individual’s happiness has on their beneficiality to society and how you should always strive to be the happiest you can be. Oxford’s main point is that
First I will address the term happiness. I would like to argue that happiness is whatever you want it to be, either having good relations to others, having obscure measures of money or even being free, but I can not argue with the fact that happiness is controlled by chemical reactions in the brain that stimulate us into thinking we are happy. It is nothing more than simple biology.
One study revealed that money was an essential need for happiness, but it was not what made the people happy. They established satisfaction in close relationships with loved ones, community work, fulfillment and pride from their work and accomplishments (Diener and Biswas-Diener 162). The highest life satisfaction was found in societies of wealthy nation while the unhappiest nations were the extremely poor ones. When it comes to materialism, it does not matter if someone is rich or poor, all that matters is that “your income is sufficient to your desire,” and that “differences in aspirations lead to very different amounts of happiness” (Diener and Biswas-Diener 170).
If the economy is flourishing, it tends to increase the purchasing power of the individuals and it is likely that customers will be purchasing new, perhaps more expensive cars on a regular basis. Hence, the premiums and payments would increase. So when the economy is thriving, customers are likely to have more of disposable income which they are willing to spend on the leisure activities
Efficiency of financial markets is one of the fundamental issues in finance. The central idea of market efficiency is that market prices of securities represent true value of securities. All relevant information is immediately reflected in the prices causing abnormal profit making impossible in the market. The efficient market hypothesis further implies that prices will move randomly that makes prediction of prices extremely difficult. Efficient market hypothesis requires that investors will be rational and have homogenous expectation.
The Economic factors are determinants of an economy’s performance that directly impacts a company. These factors include inflation rates, interest rates, exchange rates and economic growth. These affect how businesses operate and make decisions. The economic climate in the country is of major concern to every company as it has impacts on the business and consumer spending. For example, the exchange rates can affect the costs of the supply and price of imported goods and exporting goods in an economy.
Making investment in real estate is one of the most profitable money making opportunities. However, many investors make certain mistakes while investing in real estates. For example, many new investors approach this kind of investment with the mentality of becoming rich as fast as possible. Due to this wrong mindset, they often lose a substantial amount. Even experienced investors hire mentors or coaches to avoid deadly real estate investment mistake.
Thus, it will boost the economic status of the country as well as to increase the Gross Domestic Product of the
REFLECTION PAPER IN INVESTMENTS AND INVESTMENT PORTFOLIO As they say, "Money isn't everything, but happiness alone can't keep out the rain. " It is often said that money is not the most important thing in the world. Despite of this, we still need to understand the true value of money. Money, in and of itself, is not very spectacular.
There is a very popular cliches that money cannot bring us happiness, however, new research of Cambridge shows that people who spent more money on purchases that matched their personality are happier. Money problem is an age-old question, there are many various thoughts of their believes, many people believe that money is the star of crime and the fade of true feelings. However,researchers show that people who has higher incomes is happier than people have lower incomes. Because money expands peoples’ choices of their future, and money changes their lives’ qualities to be more modern to bring them happiness. Therefore, people should build their lives to make more and more money to find more choices and more joyful life.