Effect Of Consumption On Disposable Personal Income Essay

As we read in our text book this week the definition of the marginal propensity to consume is the ratio of the change in the consumption to the change in disposable personal income.(Rittenberg Tregarthen, 2009, p. 308) We can write it this way: MPC=Change in Consumption Divided by Change in Disposable Personal Income. (AmosWeb, 2014) Every household will have their own marginal propensity to consume, in macro economics we are not focusing on just one household but the economy as a whole. That is why we need a formula to calculate marginal propensity to consume henceforth referred to as MPC. Once we have determined MPC using the above formula, then we can calculate the amount that consumers will spend for every extra dollar earned. If for example, our MPC turns out to be 0.6 then theoretically, for every extra dollar a consumer receives, they will spend 0.6 percent or .60 cents. (Rittenberg Tregarthen, 2009, p. 308) When deciding on an fiscal spending policy the MPC will be very important to determine the potential growth to the economy. As seen in this consumption schedule this consumption schedule is based on a MPC of 0.75.( AmosWeb,2014) (in trillions of dollars) It is also safe to say, that MPC will always be less than 1 as there will some amount that people will save also referred to as Marginal Propensity to Save. As noted in our text book MPC plus MPS is always 1. (Rittenberg Tregarthen, 2009, p. 313) Multiplier Effect: Now that we have discussedShow MoreRelatedJohn Maynard Keynes Absolute Income Hypothesis1481 Words   |  6 Pagesmuch of macroeconomic consumption theory rests with John-Maynard Keynes’ Absolute Income Hypothesis, described in The General Theory of Employment, Interest and Money (1936). 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These policies are expansionary fiscal policy and expansionary monetary policy. While both policies have an effect on the aggregate demand, GDP, and employment; expansionary fiscal policy sets changes in taxes and government spending, and expansionary monetary policy acts to increase the money supply to boost the economy. In expansionary fiscal policy the government usually decidesRead MoreFiscal and Monetary Policies893 Words   |  4 Pages(economic boom) or it is not producing enough and falls into a recession. In a recession, an economy’s GDP suffers two consecutive quarters of negative growth. Personal consumption, government spending and the amount a country imports and exports measure GDP (Amadeo, nd) while Rittenberg and Tregarthen state that personal consumption (C), gross private domestic investment (I), government purchases (G) and net exports (Xn) make up GDP (2009). The most recent recession in the U. S. economy was in

The Advantages and Disadvantages of Expanding a Business Through the Essay

Essays on The Advantages and Disadvantages of Expanding a Business Through the Use of Franchising Essay The paper "The Advantages and Disadvantages of Expanding a Business Through the Use of Franchising" is an outstanding example of an essay on marketing. A franchise can be described as a business agreement in which the franchiser (business owner) allows others (the franchisees) to own as well as operate a business on his/her concept and trade name. According to Tassiopoulos (2009), franchising is a proven business strategy developed by a franchisor that permits the franchisee to make use of its established trade names, propriety business strategy, and methods of carrying out business; in return for a recurring payment that involves a given percentage of gross profits or gross sales, along with a yearly fee.The concept of franchising has over the last couple of decades expanded internationally and has now become a common entry mode for numerous establishments. According to Tassiopoulos (2009), franchising comes along with advantages and disadvantages, with the underlying advantages and disadvantages being able to be presented at a domestic and international level. This particular paper, therefore, seeks to discuss the advantages and disadvantages of expanding business through the use of franchisees.One of the biggest advantages offered as a result of expanding business through the use of franchisees is self-funding expansion. According to Talloo (2007), a franchiser is able to expand the business rapidly without incurring much additional cost since the initial costs of creating and providing the franchise such as launch support, training, intellectual property rights, software license, and site selection are normally recovered by the franchisee. Additionally, investment requirements to open each business operation, including vehicles and staff recruitment, lease, store fittings, are undertaken directly by the franchisees.The ongoing costs of marketing, promotional activities, sales, websites, ongoing communications, providing support and managing the franchise ne twork are also met by an ongoing management service fee provided by the franchisee, normally a percentage of the franchisee’s turnover. The only costs met by the franchisor are that of the overheads that are not met by the franchisee's opening franchise fee (Moschandreas, 2000). Franchising as a business expansion strategy, therefore, requires less capital outlay compared to other business expansion strategies. Additionally, as a result of the self-funding expansion, franchisers find it easier to open multiple units, thus, gaining a competitive advantage on any prospective competitors. The multiple developments of units increase the firm’s advantage within the marketplace.Marks Spencer, one of the United Kingdom’s leading retailers of home products, clothing financial services, and food represents an example of an internationally franchising firm.

Theory of Organizational Behavior Behavior and Management - Sample

Question: Discuss about the Theory of Organizational Behavior. Answer: Interaction of certain group of people is known as organizational behaviour. Generally, organization adopts various effective strategies in order to enhance their efficiency for achievement of desired goals and objectives. This helps the organization to manage the workers and employees in a systematic manner. There are numerous organizational behaviour theories are available through which purpose of human resource management can be evaluated as well as it is also helpful in enhancing the efficiency of organizational workers. According to Ivanko, S. (2013), to perform the activities in the workplace irrelevance to their nature and size, implementation of organizational behaviour and management is must. It helps the organization to manage the activities in a systematic manner. The implementation of organizational behaviour theories and its concepts are considered as the scientific approach as these are relevant from the perception of enhancement of the organizational efficiency (Usman, et. al., 2015). While considering the different requirement of the organization, it was analysed that management, leadership and managerial process requires three basic concepts i.e. socio-economic, human and technological whereas organizational behaviour requires only human aspect. The basic motive behind the implementation of the organizational behaviour in the workplace is to enhance the organizational performance through developing efficient relationship between employer and employee. The more organization will focus on improving the behaviour of its employees, the more it will impact over the performance of the organization. Major issues are raised within the workplace due to communication gaps as well as due to non-fulfilment of the behaviour required as per the standards set up by the management of the organization (Ivanko, 2013). As per Bauer, T. Erdogan, B. (2012), numerous models and theories are available in the context of organizational behaviour and management. Under this approach, various issues within the workplace could be ascertained and resolved through providing an efficient resolution. Concept of organizational behaviour helps the organization to improve the efficiency of its employees; job satisfaction could also be enhanced from the perception of employees, etc. And to implement these tactics in appropriate manner, adaptation of adequate strategies to implement these resolutions as well as to enhance the efficiency of the organizational members with the objective of achievement of desired goals and objectives. With the understanding of Bauer, T. Erdogan, B. (2012), it helps to resolve the employees and employer level issues as well as it also helps them develop an adequate environment and business culture which could make the employees feel comfortable in the workplace. This provide competitiv e advantage to the organization as well as building positive business culture will affect the organization to reduce the retention from organization as well as labour turnover ratio will also get declined (Bauer Erdogan, 2012). According to Mullins, L. J. (2010), all the actions and efforts of employees helps the organization to direct towards the achievement of goals and objectives. The study of organizational behaviour and management helps the organization to analyse the issues and gaps present in the workplace which are affecting the performance of the organization. Apart from this, the major role of conducting this study is to evaluate all possible ways through which organization could resolve those gaps and issues. With the implementation of this technique, personal as well as combined issues of the employees in the workplace could be resolved and this builds the trust level in the employees for organization. Conducting of interactive activities also comes in the organizational behaviour concept and it is used to develop the comfortable level amongst the employees as well as it also helps the employees to share their opinions in relevance with the performance of the task. Organization will be able to b uild confidence in the employees towards themselves and it will motivate them to perform effectively (Mullins, 2013). As per Robbins, S. P. Judge, T. A. (2013), the organisational behaviour theory helps the organization to analyse the issues linked to various objectives such as emotions of employees, personality, motivation, and communication gap issues. Being in an organization, colleagues develop different perceptions for their team mates, for their team leader as well as for their manager too and then they start linking their positive as well as negative decision with the perceptions built earlier. This is the major source through which issues arises such as communication gaps between the team mates. This also leads to disturbance in the organizational performance as well as it also creates gaps in the various teams of the organization. And to resolve this issue, concept of organizational behaviour as well as its theories comes into play to resolve these issues (Robbins Judge, 2013). References Bauer, T. Erdogan, B. (2012). An Introduction to Organizational Behaviour. Organizational Behaviour. Vol. 1 (1). https://2012books.lardbucket.org/pdfs/an-introduction-to-organizational-behavior-v1.1.pdf Ivanko, S., (2013). Organizational Behaviour. Faculty of Public Administration. PP. 1-280. https://www.fu.uni-lj.si/fileadmin/usr-files/Mednarodna_pisarna/ORGANIZATIONAL-BEHAVIOR-2013.pdf Mullins, L., (2013). Management Organisational Behaviour. Management Organisational Behaviour. Vol. 9. https://www.pearsoned.co.uk/media/OnlinePreview/Mullins_9780273728610/assets/pdf/A01_MULL4087_09_SE_FM%20(3).pdf Robbins, S. P. Judge, T. A. (2013). Organizational Behaviour. Pearson. Vol. 15. https://www.pearson.com/us/higher-education/product/Robbins-Organizational-Behavior-15th-Edition/9780132834872.html Usman, M., Shahzad, K., Roberts, K.W. and Zafar, M.A., 2015. The Effect of Job Insecurity on Attitude towards Change and Organizational Citizenship Behavior: Moderating Role of Isl?mic Work Ethics.Journal of Islamic Business and Management Vol,5(1), p.70. https://www.jibm.org/sites/default/files/files/7-Muhammad%20Usman.pdf

what is an imgage Essay Example

what is an imgage Essay What is an image? What composes an image? In the following paragraphs, we are going to talk about the definition of an image and discuss how the particular image chosen employs elements such as composition, colour, camera angles, frames and emotional impact. An image is something we see and something that has emotional impact on the viewer according to their personal experiences. According to the Merriam-Websters Collegiate Dictionary, an image meansa tangible or visible representation, a vivid or graphic representation or description. An image must be composed in a frame by putting the camera shots in the right angles so it makes attractive shapes. The chosen image is a black and white photograph of a site within a city. There is a bridge in the back between two rows of buildings; there are people, cars and carriages on the street, the weather seems to be sunny because there is a clear contrast of around the shadows; the era is unclear because of the style of the buildings and the carriages and the cars belong to the 19th century, but the style of the bridge and the buildings behind it belong to the 20th centuries. This is clear that this photograph has been modified by a computer by software like Adobe Photoshop to combined two images of different time period together into one image. The image is attention grabbing because of its unbalanced composition. The camera was panning to the right to push the vanishing point to the left, leaving the right row of the building larger than the left row, thus create a feeling that the right side of the image is heavier than the left side. The vanishing point of the foreground image is going to the left but the direction the bridge in the background goes to the right, because of the different angles, it gives a feeling that the image is curved. The bridge is emphasized because it composed in the center in the frame. The colour has given the image a great