Strategic Human Resource Management Essay Example | Topics and Well Written Essays - 2500 words - 1

Strategic Human Resource Management - Essay Example The ever-changing environment reminds us that, for a business to survive, it has to concentrate on its core competencies to be ahead of the competitors. The concept of Strategic Human Resource Management has changed keeping in mind to be sustainable in this world of high cut throat competitions. Human resource management (HRM) involves all management activities and decisions that directly or indirectly keep marks on the human capital of the company. HRM is full of different strategies, in the other way HRM in strategic level is called SHRM. SHRM implies different aspects of an organization. First it gives importance on the human resources which is a differentiator among the competitors. Secondly it gives a clear idea about the process and goal of the company. Third it reflects different HR programs. The main aim of SHRM is to be successful through human capital. SHRM helps organization to get skilled, dedicated and motivated human capital. It also helps a company to retain its valuable workforce. There are lots of elements are related with SHRM. Those are discussed below. SHRM creates a transformation among the staffs. It brings certain changes among the staffs. Those are team building, global perspective, strategic planning. SHRM also brings transformations in organizational structures. The hr policy will maybe centralize or decentralized. It would be guided by SHRM. It is a discipline which enlightens different practises, ideas, concepts keeping in line with HRM tactical planning, philosophy, activities and long term goal of the company. SHRM gives great guidelines on how to lay the strong base for strategic advantages by the creation of effective organizational structure and design culture, value proposition of workforce. The appropriate communication strategy also can be prepared for a changing landscape. It gives Strategic human resource management Essay Example | Topics and Well Written Essays - 1500 words Strategic human resource management - Essay Example Building Business Case for HR as a Strategic Asset Human resource professionals need to build strong case studies supporting the business objective communicated by the management to employees. The HR department can use previous research works, academic resource, survey reports and industry data in order to support order to build business case. Strategy Map Creation Performance measurement action needs to be integrated by HR department in order to trigger value creation process. The company needs to create graphical representation of performance drivers while mapping the value chain process. HR Deliverable within Strategy Map HR managers need to depict performance drivers and HR enablers separately in order to increase potentiality of strategic map. HR deliverables must support firm level performance drivers of strategy map. Aligning HR Architecture with HR deliverables HR managers need to architect existing HR system (work organization, competencies) in accordance with HR deliverable s (low turnover) to increase strategic value of the map. Aligning existing HR system with organization’s macro level strategy plays cordial role in this step (Becker, Ulrich and Huselid, 2001, p.p 36-47). Strategic Measurement System In this stage HR managers develop measurement tool for HR deliverables to fulfil business objective of the organization. Measurement Detailed process flow for executing and monitoring is drawn in this step. HR managers focus on implementation strategy of the HR Scorecard in context to objective of the organization. The seven step model can be defined in the following manner. (Source: Becker, Ulrich and Huselid, 2001, p.p 36-47) 2.0 Balance Scorecard Some of the major performance measurement tools that are being used in current business scenario include Balanced Scorecard, Economic Value Added (EVA), Activity Based Costing and Management, Performance Prism and Quality Management. However among the aforementioned tools, importance and usage of bala nced scorecard will be principally highlighted through the entire report. While the saying ‘balanced scorecard was coined in the early 1990s’, the origin of this approach however is believed to be deep, and also embrace radical work of General Electric (GE) during the early 1950s. The work was basically based on reporting of performance measurement. Apart from this French process engineers have also contributed immensely towards the development of performance management tools. There work was during the early 20th century. In this context the engineers literally developed a â€Å"dashboard† in order to monitor performance levels in a simplified and efficient way. Despite of its early conception, it was originally developed at Harvard business school by Dr. David Norton and Dr. Robert Kaplan in the year 1992 (Eckerson, 2010, P. 11). During the initial phases after the development of balanced scorecard, it was merely used as the performance measurement tool or a per formance measurement agenda. Nevertheless slowly with the passage of time balanced scorecard has been able to gain much more importance in the professional field. A number of companies incorporated balanced scorecard into their system of operation in order to facilitate effective and well-organized performance measu

Restorative justice, Inmate forgiveness, and the Right to Privacy Assignment

Restorative justice, Inmate forgiveness, and the Right to Privacy - Assignment Example To this end, the paper addresses the concerns of the family and restates the benefits of meeting the inmate. Introduction Restorative justice is a type of justice whereby the parties who have stake in crime, victims, offenders and their families together with the community, collectively agree on how to deal with the consequences of crime and its future implications (The Sage Dictionary of Criminology, 2005). It is based on the view that crime is not only a transgression against laws but also hurt human social interactions. Therefore, the main aim of this form of justice is to heal the damaged interpersonal relationship caused by the wrongdoer’s actions. To this end, restorative justice takes it that both the victim and offenders families are affected by the crime. Consequently, their participation is crucial in conflict resolution and justice administration. Q1. The restorative justice principles are in line with biblical teachings about justice which focuses on repentance, fo rgiveness and reconciliation (Miller, 2008). As so, the process gives the offenders an opportunity to understand and assess the impacts of their actions. Therefore, this form of justice does not address the injustice with harm or punishment. Consequently, it is not retaliatory in nature and therefore, yields great social benefits to the community. Instead of taking an eye for eye approach, which is a moral issue, it focuses on community members’ integration. In doing so, this form of justice recognizes that nobody is beyond the point of correction. Therefore, no matter the crimes committed, an individual must actively respond to crimes. The process of restorative justice may take many forms; restitution is one of them. Restitution refers to the process of compensating victims for the losses suffered as a result of the offender’s actions. It is founded on the view that when a crime is committed, the wrongdoer benefits at the expense of the victim. Therefore, for justice to prevail, the offenders should give back what they took from the victims as a whole or in part depending on the agreements reached. This is form of justice is also found in biblical teachings. There are texts in the scriptures that refer to the distribution of wealth in exchange for salvation for those who had unfairly accumulated riches. By practicing restitution, justice is given meaning through active involvement. For, there is no justice done when victims still feel that they have been denied their rightful entitlement. Q2. The application of restorative justice concept in criminal justice system has raised serious ethical issues. By its nature, the concept adopts reconciliation and compensation as possible methods of administering justice. Under, reconciliation a victim may accept to forgive the offender after face to face deliberations. However, the issue of whether or not the forgiveness is for greater social good is remains contentious. According to utilitarian theory, ac tions moral worthiness is gauged by the beneficial outcomes of such actions (Pollock, 2012). Consequently, based on this theory, some crime are not worth forgives because of their magnitude of harm. This includes crime against humanity such as genocide and terrorism which results into many deaths. Besides, besides, in as

Global Warming Essay Example | Topics and Well Written Essays - 750 words - 5

Global Warming - Essay Example Various reasons have been given to justify their disbelief. The sceptics reason that contrary to allegations by advocates, the increase in carbon monoxide in the atmosphere has enhanced wheat production by 50 to 75 percent, vegetables by 51%, and increased vitamin and antioxidant concentration in the produce. According to these detractors, the present increase in global temperatures is due to natural causes such as solar activity, volcanic activity, and so on, and that car and industrial emissions are too insignificant to cause climate change. Other reasons are given mostly in terms of dollars and cents. For instance, one website entitled Global Warming Lies (2010), manned by a webmaster who chose to remain anonymous, cites the $400 billion yearly cause as the major reason for not joining the Kyoto Protocol (the worldwide agreement to significantly reduce carbon emissions). So far the United States is the only country in the world that has continually refused to affix its signature o n the agreement (UNFCCC, 2010). Recently, the spate of cold weather was also cited as proof that global warming did not exist, because the weather was so cold, not warm (Charisse, 2010). To this, advocates have responded soundly, According to Fitzpatrick (2010), the present extended period of cold and snowy weather over North America is actually confirmation that global warming is still happening. Global warming does not mean that the world is getting warmer, but that weather extremes are being experienced in different parts of the globe. Presently, there is an El Nino weather disturbance, the warmer than usual sea surface temperatures over the East Pacific. The phenomenon causes many more storm systems to develop over North America, and energizes the jet stream. Furthermore, the negative North Atlantic Oscillation has created a

The Importance and Challenges of European Ministries of Foreign Research Paper

The Importance and Challenges of European Ministries of Foreign Affairs - Research Paper Example This brings the aspect on which continents diplomacy is very important. The Ministries of Foreign Affairs of the countries in Europe are viewed as very important and this means that these ministries have an uphill task in their diplomacy towards other countries in the world. This has led to the fact that the European continent has faced many challenges and they are still increasing as the world is undergoing through various changes. There are many aspects under which the challenges are increasing and this calls for more efficient diplomacy tactics to be adopted by entire Europe. It is important to note that Europe is viewed as a motivator for developing countries and this means that it is in a very tricky position and the continent’s foreign policy will need to address some issues that have been rising in recent years around the world. This is the art and practice of accomplishing negotiations and it is done by representatives of an entity, most notably states or groups. It is used mainly in reference to international diplomacy which is concerned with international relations between different countries of the world. One of the key factors of diplomacy is the intercession of professionally trained diplomats who negotiate such aspects as trade, economics, peace-making, war, and culture. In regards to international treaties, diplomats are involved in the negotiations while the politicians of a nation will endorse the treaty. Diplomacy cannot be limited to formal sense and hence in an informal sense or a social sense, diplomacy is seen as the application of tact in order to have an advantage which is deemed advantageous to a group or to somebody. It can also be seen as a means by which different groups come to an agreeable solution to a common problem (Berringe, 2005). There is a notable difference between the real world diplomacy and the intellectual university debates since in a university debate, an argument is decided upon the merits  that the arguments have and the negotiators can split the difference to come to a deal.

National curriculum frameworks Assignment Example | Topics and Well Written Essays - 1750 words

National curriculum frameworks - Assignment Example The learning objectives of the literacy framework are â€Å"aligned to 12 strands to demonstrate progression in each strand† (p.171). One of the literacy framework learning objectives for pupils to speak and listen for a variety of purposes and in many contexts; and there are four strands under this objective that will demonstrate progression – (1) speaking, (2) listening and responding, (3) group discussion and interaction and (4) drama (p.171). The second learning objective of the primary national framework for literacy is to â€Å"read and write for a range of purposes on paper and on screen† (p. 171). The progression strands related to this objective are as follows: The learning objectives of the literacy framework are â€Å"aligned to 12 strands to demonstrate progression in each strand† (p.171). One of the literacy framework learning objectives for pupils to speak and listen for a variety of purposes and in many contexts; and there are four strands u nder this objective that will demonstrate progression – (1) speaking, (2) listening and responding, (3) group discussion and interaction and (4) drama (p.171). The second learning objective of the primary national framework for literacy is to â€Å"read and write for a range of purposes on paper and on screen† (p. 171). The progression strands related to this objective are as follows:†¢ â€Å"Word recognition: decoding (reading) and encoding (spelling)†Ã¢â‚¬ ¢ â€Å"Word structure and spelling†Ã¢â‚¬ ¢ â€Å"Understanding and interpreting texts†Ã¢â‚¬ ¢ â€Å"Engaging and responding to texts†Ã¢â‚¬ ¢ â€Å"Creating and shaping texts†Ã¢â‚¬ ¢ â€Å"Text structure and organization†Ã¢â‚¬ ¢ â€Å"Sentence structure and punctuation†The literacy framework demonstrates that literacy skills, particularly reading and writing, need to be applied in all subject areas; including numeracy. The Speaking and listening statutory requir ements are also present in the literacy framework.The numeracy framework was renewed as well in 2006 with improvements observable in simplified learning objectives and a broad overview of the primary phase mathematics curriculum. Unlike the literacy framework, the mathematics frameworks contain seven strands that demonstrate progression which is aligned to the learning objectives.  ... One of the literacy framework learning objectives for pupils to speak and listen for a variety of purposes and in many contexts; and there are four strands under this objective that will demonstrate progression – (1) speaking, (2) listening and responding, (3) group discussion and interaction and (4) drama (p.171). The second learning objective of the primary national framework for literacy is to â€Å"read and write for a range of purposes on paper and on screen† (p. 171). The progression strands related to this objective are as follows: â€Å"Word recognition : decoding (reading) and encoding (spelling)† â€Å"Word structure and spelling† â€Å"Understanding and interpreting texts† â€Å"Engaging and responding to texts† â€Å"Creating and shaping texts† â€Å"Text structure and organisation† â€Å"Sentence structure and punctuation† â€Å"Presentation† The literacy framework demonstrates that literacy skills, pa rticularly reading and writing, need to be applied in all subject areas; including numeracy. The Speaking and listening statutory requirements are also present in the literacy framework. The numeracy framework was renewed as well in 2006 with improvements observable in simplified learning objectives and a broad overview of the primary phase mathematics curriculum. Unlike the literacy framework, the mathematics frameworks contains seven strands that demonstrate progression which are aligned to the learning objectives. The seven strands of the mathematics framework is (1) using and applying mathematics, (2) counting and understanding number, (3) knowing and using number facts, (4) calculating, (5) understanding shape, (6) measuring, and (7) handling data (p. 172). Teaching programmes,

What evidence is there to suggest that Hamlet Essay Example for Free

What evidence is there to suggest that Hamlet Essay What evidence is there to suggest that Hamlet would have become a successful leader of Denmark had he survived? In the final scene Forthinbras declares that Hamlet, Was likely, had he been put on, To have proved most royal; By examining traits of Hamlets character and comparing his to the characters of others in positions of power I will discuss whether this statement is correct. In Act 1 Scene 2 Shakespeare shows Hamlet has many leadership qualities. He is kind to Horatio when he tries to make out he is a truant. I would not hear your enemy say so. He has created a strong friendship with Horatio and the guards, Marcellus and Barnardo, respect him even though he has not become King. He can discuss his grief over his fathers death frankly and openly with them. This show of trust for, and respect from, his piers is very important in a prospective leader. Hamlet is bitingly witty when talking of his fathers funeral and mothers wedding. Thrift, thrift, Horatio. The funeral baked meats Did coldly furnish the marriage tables. This not only shows his bitterness but also his sharp intelligence. At other points in the play Hamlets intelligence and wit are shown in his feigned madness. An example of this is when he is ridiculing Rosencrantz and Guildenstern. I am but mad north-north-west. When the wind is southerly, I know a hawk from a handsaw. The meaning of this riddle is clear but Rosencrantz and Guildenstern are clearly bewildered. This shows Hamlets intellectual superiority over his schoolfellows. In Act One Scene Two Hamlet goes on to exhibit his ability to question the men very shrewdly about the sightings of the Ghost. His questions are direct, penetrating and enable him to gain the information he needs. This is emphasised by the short, sharp sentences and the hard f sounds used. Then you saw not his face? What, looked he frowningly? This would be a valuable quality for a leader in a crisis when the details needed to be known. Hamlet is shown to have the positive resolution of a leader here as he determines to watch for the Ghost that night. However he never loses sight of reason by being caught up in the excitement and is still able to reflect on the need for caution. He tells the guards, If you have hitherto concealed this sight, Let it be tenable in your silence still Conversing with the devil goes against the laws of Christianity and so they need to keep the sightings a secret to protect themselves. It is a mark of Hamlets leadership that the men obey him in this. Hamlet is very astute and cannot be easily deceived. He sees through the spies, Rosencrantz and Guildenstern, immediately despite their efforts at pleasantry. You were sent for and there is a kind of confession in your looks A lesser person may have trusted them and revealed the whole situation to them but Hamlet does not endanger himself by doing this. He compares them to a sponge that soaks up the kings countenance, his rewards, his authorities. When he needs you what you have gleaned, it is but squeezing you, and, sponge, you shall be dry again. This is a very perceptive and truthful image of the way in which Claudius treats them. Shakespeare provides other examples of leadership within Hamlet to highlight Hamlets own qualities or flaws. An example is Claudius, the current King of Denmark. In contrast to Hamlet he lacks the discerning nature needed in a leader. His failure to grasp the full danger presented by Fortinbras and his advancing army prove fatal to Denmark. Claudius chooses to rely on politics and negotiation to win his wars and so is fooled by the report brought by his ambassadors. It is clear to the audience that Fortinbras has a strong motive for invading Denmark to revenge his fathers murder and the ground that he supposedly fights for in Poland hath in it no profit but the name. Claudius also fails to understand Polonius character and places too much trust on his judgement in state matters. Polonius influence is shown. Thou still hast been the father of good news This misjudgement proves fatal for Claudius because the news Polonius brings of Hamlets madness being that of a distracted lover in Act Two Scene Two is incorrect. Claudius is distracted from taking any steps to remove Hamlet because of this. Hamlets own perceptiveness is shown again in his understanding of Polonius as he aptly describes him as a foolish, prating knave. However Claudius has qualities such as ruthlessness, that make him a good leader, and which, Hamlet is lacking. When Claudius has realised the full threat Hamlet poses to him he has no quibbles about having him sent to his death in England immediately. Hamlet only possesses this strength when he seals the letter to have Rosencrantz and Guildenstern killed. He declares, They are not near my conscience. Claudius has the character of a leader who wants to drink and party in the style of royalty with his people. This may make him popular with some but Hamlet takes this view against Claudius custom, It is a custom More honoured in the breach than in the observance. Hamlet has uptight morals that are fitting for a leader who must set an example to his people. Hamlet understands politics and wants the people of Denmark to be respected by those in other countries and not cleped drunkards as they are under Claudius rule. Hamlet feels a greater responsibility for the reputation of his country than Claudius does and so is more kingly. A quality a political leader shown in both Claudius and Hamlet is their use of language to cover up their true meaning. Hamlet does so in his madness when he produces veiled threats against Claudius in his riddles. Claudius skill is more developed and successful in execution. His opening speech is full of rhetorical artifice; he is contradicting himself but the audience have to listen hard to pick this up. For example he says. With mirth in funeral and with dirge in marriage He is talking about the incest that has occurred in his marrying his dead brothers wife but his eloquent language and smooth, flowing speech hides the meaning well. Shakespeare uses young Fortinbras of Norway as an exact parallel to Hamlets character. His own father has been murdered and his uncle has taken his throne. However Fortinbras is opposite to the reflective, moralising Hamlet. He is a man of umimprovi d mettle hot and full. Fortinbras is uninhibited and can boldly take action to revenge Denmark for his fathers murder. His plan is simple but he easily tricks Claudius and achieves his aim as he takes control of Denmark in the final scene. Shakespeare shows in Act Four Scene Four that he considers Fortinbras direct active response is better then Hamlets reflective one as Fortinbras presence makes Hamlet conscious of his own failings. Now whether it be Beastial oblivion, or some craven scruple Of thinking too precisely on th event- Shakespeare shows how Hamlet moralises over the deed too much and ends up being cowardly. Hamlet cannot match the intrepid delicate and tender price that can lead twenty thousand men to war for the sake of a straw. The presence of Fortinbras causes Hamlet to take up his fight with resolution. My thoughts be bloody or nothing worth. Through the play we see this growth of Hamlets character a progression to what Fortinbras is able to be. Hamlet overcomes his reticence in allowing Claudius to take his throne by asserting his right to it as he declares in Act Five Scene One, . This is I, Hamlet the Dane At this point Hamlet may truly be called royal and worthy of being King. Despite all Hamlets kingly qualities the view of Ophelia in Act Three Scene One must be considered. She believes that through feigning madness Hamlet has destroyed all the virtues he was previously warrant to. Oh what a nobler mind is here oerthrown! This means that Hamlet has disqualified himself from the chance being elected to the throne as he has destroyed his own self. This may be a just argument but we must consider the true extent of Hamlets insanity and believe that Hamlet would be able to return to his intelligent and discerning self after Claudius death. In the final scene Shakespeare shows us that Hamlet couldnt be successful leader of Denmark. He still has not the tenacity to take his revenge. He only kills Claudius in retaliation to an attack upon himself and not because of any merit of his own. This procrastination would be a serious failing in a prospective leader because ruthless decisions and actions would need to be taken without the moralising that Hamlets character exemplifies. His other qualities, though still intact despite the feigned madness, would not compensate for his lack of resolution. Shakespeare highlights this flaw by including the characters of Claudius and Fortinbras who are both ruthless and decisive.

Factors That Affecting Elasticity Of Supply Economics Essay

Factors That Affecting Elasticity Of Supply Economics Essay According to (HASHIM ALI,1999, page 40),price elasticity of supply is basically means the responsiveness of the quantity supplied due to a change in price. The factors that affecting elasticity of supply are whether the product is perishable or not. In other words, if the product is perishable, therefore when there is change in price, it wont affect the quantity supplied. Hence, the supply is inelastic For example: fruits, it is because fruits are perishable. The second determinant is the time. There are two time of time which are the short run and the long run. In the short run, the supply will be inelastic. Its because, the supplier cant increase the supply of a product immediately due to a change in price. Where by in the long run, suppliers are able to increase their product, because they have more time to produce more. And therefore the supply is elastic. For example: in the short run, the price of the laptop increase in the market price. However, the supplier of laptop cant increase their supply immediately due to a short run. In the long run, the supplier have more time to produce more laptop due to more time to produce laptop. PART B Businesses can use price elasticity to decide on their pricing strategy. By using the price elasticity, they can know whether the goods that they are selling is elastic or inelastic. If the good that they are selling is inelastic, for example: necessities, therefore they can set a higher price. It is because if the good is inelastic, the change in price wont effect the change in demand. In other words, consumers are not that responsive due to a change in price. And if the good is elastic, such as luxuries goods or goods that have several substitutes, therefore the supplier cant set a high price. It is because the price is elastic, in other words the consumers are responsive due to a change in price of the good. Thats how the business use the elasticity concept to decide the pricing strategy. Question 3 PART A Supply of a product will increases caused by the technology are getting more advance. As technology has increases, therefore to produce a good will be easier and faster, hence to higher supply of that particular product. For example: a textile company used to produce their goods by manually (by human or workers) and they manage to produce 100pcs of the good per month. In the future, as the technology increases, the quantity of the good produced increases to 300pcs each month.. hence the supply of the good increases. Second reason that might affect the supply of a good will increase is the intervention from the government by giving subsidies to the suppliers. By giving subsidies to the suppliers, it tends to reduce their cost of production. Therefore, higher profit will earned and motivate the suppliers to supply more of the good. For example: a cost of production to produce a good is RM500, the company manage to sell at RM550 each good and earned RM50 for profit this is before any subsidies from government. After a while, the government decided to give subsidies to the business. Hence, the cost of production of the good decreases to RM450. the business still sell the product for RM550 but now, RM100 is earned for the profit. Therefore, the higher the profit, will motivate the supplier to supply more. Third reason that will increase a supply of a product is the price of the good it self. When the price of the good increases in the market, therefore the supplier motivated because no they can earn more revenues and get higher profit compared to before the price increased. For example: the price of a chair was RM100 in 2009 and the supplier of the chair supply at 100 quantities and earn RM10,000 revenues. In 2010, the price if the chair has increases to RM120. now while the price increased, the supplier will definitely increase their quantity supplied of chair maybe to 130(or more) and they can get RM15,600 revenues which is much more compared to the previous quantity.(HASHIM ALI,1999,PAGE 37) PART B Price floor is a price that set by the government above the equilibrium price and the price set b the suppliers are not legal if they set lower than the price the set by the government.. its actually to help those suppliers to get higher income. Because of the price of the good is higher now, and therefore the supplier will produce more. However, at the end, the demand for the good will decrease and therefore, surplus occur. This is how its effect the rationing function of prices and distort resource allocation. The graph below will shows the surplus caused by the price floor. Quantity Price D S Equilibrium price P0 Q0 Qd Pf surplus Qs 0 The graph above shows that when there is price floor set by the government, the demand will stop until Qd and there fore surplus occur. Hence this occur, supplier cant manage to sell all their product, and therefore, black market will occur(sell lower price illegally). Whereby price ceilings is also price that set by the government. Its the maximum price that seller can charge to consumers. Lower than the price ceiling is legal and otherwise is not. The objectives of government by doing this is to help those consumers that cant afford to buy their essential good. The graph below will shows the price ceiling. S D Equilibrium price Q0 P0 Quantity Price Qs Qd Pc shortage 0 The graph above shows that when there is a price ceiling(Pc) set by the government, the price is under the equilibrium price. in other words, the price is cheap at the moment. however, because of the price has reduced, the suppliers will feel that its not profitable and therefore they are not motivated to produce more. Therefore the quantity supply stops at Qs. Hence, lack of supply and high demand due to a shortage.(McConnell,2009,page 59-62) Question 6 PART A Consumer surplus is basically means its benefit for the consumers, as they are able to pay higher price for a particular good, but in fact the actual price is lower than what they willing to pay. In other words, the consumers are able to pay above the equilibrium price. For example: john willing to buy a sport shoes at RM200, whereby the actual price of the sport shoes is RM150, and there fore RM200-RM150= RM50 is johns surplus as consumer. The graph below will show where is the consumer surplus: D Equilibrium point Q0 P0 Consumers surplus Quantity demanded For good Z Price for good Z The graph above shows the consumer surplus at the triangle shape where The actual price is at P0, and even though the price is suppose to be at P0,the consumers are willing to pay above the P0 which is higher and therefore, consumers surplus occur. Producer surplus is actually a benefit to the producer of a particular good to earn more than what they plan to earn. For example: suppose to be good A is at RM5 in market price, but john only plan to sell good A for only RM3(has cover the cost of production). therefore RM5-RM3=RM2 is johns producer surplus as an producer. S Price for good Z Quantity supply for good Z Producer surplus Equilibrium price = P0 Q0 P0 The graph above shows that the producer surplus is actually under the equilibrium price which means the producers are willing to sell at lower price but in fact, the equilibrium price for good Z is at P0, and therefore, the producers surplus occur.(McConnell,2009,page 126-127). PART B According to(HASHIM ALI,1999, page 2-3) basically there are three economic concepts. Which are scarcity, choice and opportunity cost. Where as the PPF or production possibilities frontier is to shows a possible combination with in two goods. The PPF graph below will explain the 3 economic concepts. Laptop Sugar 0 10 7 5 3 2 1 1 2 3 5 6 7 A B C D E FBasically, scarcity means there are unlimited wants and limited resources. And to explain this concept by using this Production Possibilities Frontier(PPF), the graph shows that it is impossible to actually produce 7 sugar and 10 laptop. because when 7 sugar is produced there is only 1 laptop can be produced and its caused by the limited resources. Which at the end will bring to a choice. Choice means, the consumer will to chose to have more on sugar or laptop. if they want more sugar, lesser laptop they will get and otherwise. Due to this the third concept will occur where by opportunity cost means something has to be forgone in order to get the best alternative. For example, in this graph, if the consumers want to get 6 of sugar not 5, there fore he/she has to forgone 1 laptop in order to get 6 sugar. The forgone 1 laptop is the opportunity cost. Question 5 PART A A decrease in demand will SHIFT the demand curve to the left, there are several factors that will decrease the demand. Taste and fashion, a change in income, changes in population, changes in price of related goods(either complementary goods or substitutes goods), increase of advertisements, introduction of new product, social and economic conditions, festive seasons, speculation. Price of good A D0 D1Quantity demanded for good A The graph above shows the decrease in demand. The demand curve SHIFTED to the left from D0 to D1 and it is caused by the factors that mentioned earlier. Where as the decrease in quantity demanded will caused the MOVEMENT along the demand curve to move upward which means not a shift. The ONLY factor that will move the demand curve upward is the price of the good it self. Quantity demanded for good A Price for good A D0 B A Q0 Q1 0 P0 P1 The graph above shows that when there is a decrease in quantity demanded, this is ONLY caused by the PRICE of good A has increased from P0 to P1 therefore caused the quantity demanded to decreased from Q0 to Q1 as well as the movement upward from point A to point B. The ONLY factor that due to this movement along the demand curve is the PRICE of the good it self. (HASHIM ALI,1999, page 22-25) PART B According to (HASLIM ALI, 1999, page 32) Income elasticity of demand basically means the measure of the responsiveness of demand in a particular good due to a change in income of the consumers. the income elasticity of demand is measured by percentage. Here is the formula to calculate income elasticity of demand: income elasticity of demand: the change in quantity demanded over the change in income of the consumers. = Q1-Q0 x 100( change in quantity demanded) Q0 ______(over) Y1-Y0 - x 100(change in income of the consumers) Y0 Keys: Q1( new quantity demanded) Q2(original quantity demanded) Y1(new income of consumers) Y0(original income of consumers) There are 3 degrees or responses of income elasticity: 1.positive 2.negative 3.zero The positive degree of income elasticity of demand can be describe more or classified into 3 more parts: elastic (YED or income elastic of demand is > 1), unit(YED=1), and inelastic(YED