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JJJ_economics
Economics
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Course
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What are the differences between accounting and economic definition of profit?
An accounting profit is the business income surplus more than the business expenses. A business makes money after it sells its goods or services. When the money made is more than the money they spend when making the goods and services, then it is said that that business has made an accounting profit. When the total cost is deducted from the total income made by a business, in case the remaining amount is positive then it is regarded as accounting profit. An accounting profit is therefore the excess of accounting income over accounting expenses.Accounting Profit = Total Income – Total Expenses
Economic profit includes opportunity cost of the firm that is used for production. The opportunity costs are the implicit costs. whenever a firm’s total revenue surpass all its economic costs both implicit and explicit the remaining goes to the entrepreneur is known as economic or pure profit. Economic profit is calculated as total revenue less all opportunity lost costs (explicit & implicit) (Copeland& Shastri, 2004).
Economic Profit = Total Income – Total Expenses – Opportunity Lost Cost
When one compares accounting profit and economic profit of an investment, it is clear that an economic profit in the at the end will quite often be less than the accounting profit, since the additional deliberation of opportunity lost cost. However, the other investment makes a loss.
From an economic perspective which capital budgeting technique is the only one that is consistent with maximizing shareholders wealth?
In an economic view, the appropriate capital budgeting technique that is responsible for maximizing a shareholders wealth is the net present value. When one deducts today’s cash outflow so as to make an investment, the remaining difference can be an increase or decrease in one’s wealth and it is known as net present value (Copeland& Shastri, 2004).
The net present value (NPV) is the current cost of all anticipated cash flows. Therefore one can refer to the net present value as the differentiation between present value of cash inflows and present value of cash outflows.
The NPV method is reliable when it comes to owners’ wealth maximization regardless of capital rationing or mutually exclusive projects.
How do capital markets benefit society?
Capital markets are vital for a society since it allow individuals to borrow funds against their expected future income (endowments). This helps the individuals to yield higher productivity growth in their businesses. The individuals borrow from others who lend surplus current income (endowments) and issue positive interest rates. This creates employment opportunities since there is growth in businesses. Capital markets guides to a competent allocation of resources to investment projects within the society.
What are the differences between CAPM and APT?
The Capital Asset Pricing Model is a unique case of the Arbitrage Pricing Model (APT) such that CAPM uses a single factor known beta as sensitivity to market price changes while the APT has various factors that does not consist of the CAPM beta. CAPM applies on the demand side’ in that it is usually based on the market’s aggregation of individual investors’ effectiveness maximization curves. APT applies on the supply side in that it normally takes account of macroeconomic factors. CAPM regard s only in a single factor while APT regards multi-factors; CAPM depends on the historical data while APT is futuristic; CAPM is more consistent as the probability may fail; CAPM is very simple to calculate while APT is difficult to calculate.
What do you believe are the weaknesses in ‘capital market efficiency’ theory what are its strengths?
Capital market efficiency theory states that market efficiency does not mean having no improbability about the future, but it is an overview of the world which might not constantly hold true, and that the market is basically resourceful for investment reasons for most individuals. The theory states it is not possible to challenge market efficiency. The future prices may not be foretold through past price analysis (Drake, 2002).
Define EVA?
Economic Value Added (EVA) is a firm’s estimation of economic profits to be the surplus formed cost of a company’s investor’s essential return. It is calculated as the net profits following taxes deduct capital charge. A company that has a positive EVA is said to have produced wealth while the one with a negative EVA is said to have consumed capital. The key strength of the EVA is that it presents a sign of wealth formation that supports the goals of separation managers to the common business goals. However, its limitations, are viewed when it comes to financial orientation, size differences, short-term orientation and outcome orientation.
How has the role of the CFO changed over the last 25 to 50 years?
The role of the CFO has noticeably changed in the last 25 to 50 years with CFO’s moving from the occupation of reporting outcomes to being active in the operations in order to comprehend the financial impact of decisions. In addition, holistic financial and solid strategy takes into account market conditions and potential risks in the long term. Observance of the highest standards of internal and governance controls has become a critical aspect of a CFO’s role (Drake, 2002).
References
Copeland, T& K. Shastri (2004). FINANCIAL THEORY AND CORPORATE POLICY, FOURTH EDITION (4th Ed.). United States: Paper back
Drake, P., & Fabozzi, F. (2002). Capital budgeting: Theory and practice. New York, NY: Wiley
Topic Description
Economic perspective: Evaluation of Health Benefits, Burdens and Strategies for Control.
Would a public health approach to environmental equality related to water pollution improve health outcomes in developing countries?
From a Future Nurse’s Perspective
Date
Name
West Coast University
Topic Description
In a journal article specified under environmental effects on public health from an economic perspective, we critically study economic literature, both in the developed and developing world, on the effect of changes in the economy on public health. We concentrate first on the economic methodologies available for public health assessment of environmental changes’ consequences (social expenditures and benefits) (degradation/preservation). We then clarify how these effects’ monetary analyses will strengthen economic policies to establish agent-specific incentives for effective, equitable, and environmentally sustainable public health management. The synthesis of the available quantitative empirical findings goes hand in hand with our explicationADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.3390/ijerph6082160″,”ISSN”:”16604601″,”PMID”:”19742153″,”abstract”:”In this article we critically review the economic literature on the effects of environmental changes on public health, in both the developed and the developing world. We first focus on the economic methodologies that are available for the evaluation of the effects (social costs and benefits) of environmental changes (degradation/preservation) on public health. Then, we explain how the monetary valuations of these effects can feed back in the construction of economic policy for creating agent-specific incentives for more efficient public health management, which is also equitable and environmentally sustainable. Our exposition is accompanied by a synthesis of the available quantitative empirical results. © 2009 by the authors; licensee Molecular Diversity Preservation International.”,”author”:[{“dropping-particle”:””,”family”:”Remoundou”,”given”:”Kyriaki”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Koundouri”,”given”:”Phoebe”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”International Journal of Environmental Research and Public Health”,”id”:”ITEM-1″,”issue”:”8″,”issued”:{“date-parts”:[[“2009″,”8″]]},”page”:”2160-2178″,”publisher”:”Multidisciplinary Digital Publishing Institute (MDPI)”,”title”:”Environmental effects on public health: An economic perspective”,”type”:”article”,”volume”:”6″},”uris”:[“http://www.mendeley.com/documents/?uuid=1ccd611b-ebc3-3b30-bd7f-0de4d29f54a2″]}],”mendeley”:{“formattedCitation”:”(Remoundou and Koundouri)”,”plainTextFormattedCitation”:”(Remoundou and Koundouri)”,”previouslyFormattedCitation”:”(Remoundou and Koundouri)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Remoundou and Koundouri). Climate change and anthropogenic forcing of the atmosphere to threaten the bility and the capacity of the ecosystem to provide resources that could become economic benefits for humans, including health quality and the prevention of deaths. Even as environmental goods and services are socially important, policy-making sometimes ignores them because they’re not traded on markets and are not priced as such. The primary cause of environmental degrades and the consequent health hazards is the lack of appreciation and internalization of ecosystems’ financial value in decision-making.
Problem Statement
Economic Perspective from an International Journal of Environmental Research and Public Health states Water/Air pollution is a major environmental risk to health and is estimated to cause approximately two million premature deaths worldwide per year. Air pollution reduction is expected to reduce the global burden of disease from respiratory infections, heart disease, and lung cancer. Studies have attempted to monetize health benefits generated by improved air quality by valuing health damages from air pollution in the developing world. Some forms of pollution, notably inhalable particulate matter and ambient lead, are serious matters for concern since they are associated with severe health damages in monetary termsADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“ISBN”:”0821361791″,”PMID”:”21250344″,”abstract”:”Environmental pollution has many facets, and the resultant health risks include diseases in almost all organ systems. Thus, a chapter on air and water pollution control links with chapters on, for instance, diarrheal diseases (chapter 19), respiratory diseases in children and adults (chapters 25 and 35), cancers (chapter 29), neurological disorders (chapter 32), and cardiovascular disease (chapter 33), as well as with a number of chapters dealing with health care issues.”,”author”:[{“dropping-particle”:””,”family”:”Kjellstrom”,”given”:”Tord”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Lodh”,”given”:”Madhumita”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”McMichael”,”given”:”Tony”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Ranmuthugala”,”given”:”Geetha”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Shrestha”,”given”:”Rupendra”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Kingsland”,”given”:”Sally”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”Disease Control Priorities in Developing Countries”,”id”:”ITEM-1″,”issued”:{“date-parts”:[[“2006″]]},”publisher”:”The International Bank for Reconstruction and Development / The World Bank”,”title”:”Air and Water Pollution: Burden and Strategies for Control”,”type”:”book”},”uris”:[“http://www.mendeley.com/documents/?uuid=92292442-f781-3e6f-a4f8-0327cb3dbacc”]}],”mendeley”:{“formattedCitation”:”(Kjellstrom et al.)”,”plainTextFormattedCitation”:”(Kjellstrom et al.)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Kjellstrom et al.). Mortality and mobility effects have been studied through contingent valuation. A cost of illness approach is employed by Gupta to estimate the monetary benefits to individuals from health damages avoidance due to air pollution reduction in India. The majority of studies addressed outdoor air pollution, combined revealed and stated preference techniques to estimate monetary benefit gains from improved indoor air quality. The authors conduct a meta-analysis to estimate concentration-response coefficients for different health outcomes. They then assigned an economic value based on existing values from the literature to provide economic grounds for supporting investment in air pollution abatement; a cost-benefit-analysis is often applied.
Findings indicate that there would be some benefit gains for the owners-employers and the society if certain regular filter sets were adopted. Hedonic studies have also been applied to estimate a relationship between housing prices and housing attributes, including health risks associated with air pollution. The value people place on reduced health risks through improved air quality is inferred by their willingness to pay more for houses with better air quality, all else being equal. There is evidence that hedonic price analysis does not capture all of the health costs of air pollution because individuals are not fully informed about their health effects to incorporate them into property valuesADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.1016/j.envint.2006.09.007″,”ISSN”:”18736750″,”PMID”:”17055055″,”abstract”:”In contrast to a majority of reported damage-cost literature being focused on outdoor pollution, this paper describes the development of a protocol that links population exposure data with reported epidemiological concentration-response coefficients. A change in indoor particulate level is expressed as a change in total exposure levels, which is then linked with a corresponding change in ambient particulate concentrations before evaluating the associated health benefits. In this study, the development of protocol is illustrated by using a typical office building environment and daily time activity patterns of office occupants in Hong Kong. Our results indicate that some benefit gains for the owners-employers and the society would be anticipated if certain filter set configurations had been adopted. However, the amount of benefit gains for the owners-employers is shown to be increased with the average salary level of employees and the duration of their stay in offices. © 2006 Elsevier Ltd. All rights reserved.”,”author”:[{“dropping-particle”:””,”family”:”Chau”,”given”:”C. K.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Hui”,”given”:”W. K.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Tse”,”given”:”M. S.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”Environment International”,”id”:”ITEM-1″,”issue”:”2″,”issued”:{“date-parts”:[[“2007″]]},”page”:”186-198″,”title”:”Evaluation of health benefits for improving indoor air quality in workplace”,”type”:”article-journal”,”volume”:”33″},”uris”:[“http://www.mendeley.com/documents/?uuid=24e25946-cca0-3f1d-8b69-83722ac707b4″]}],”mendeley”:{“formattedCitation”:”(Chau et al.)”,”plainTextFormattedCitation”:”(Chau et al.)”,”previouslyFormattedCitation”:”(Chau et al.)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Chau et al.).
Purpose of the Topic
Environmental impacts are unmarked and thus difficult to measure in quantitative value. Valuation outcomes are essential for creating economic tools to internalize externalities generated by the public existence of environmental capital. Enhancing air quality and ensuring a sufficient supply of healthy drinking water offer important benefits to human health and well-being. Important advantages are often correlated with the efficiency of bathing water, socially justifying the expense of abatement policies. The implementation of financial instruments, the introduction of charging systems, and/or the development of pollution markets can only facilitate sustainable outcomes if set at an optimal social level. Therefore, it is important to evoke the expectations and valuations of the different social groups through valuations. There are very few reports on the public health risks of air pollution in Europe, valuing health benefits from enhancing surface and groundwaterADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.1017/CBO9780511674686″,”ISBN”:”9780511674686″,”abstract”:”Many reproductive and developmental health problems are caused by exposure to chemicals that are widely dispersed in our environment. These problems include infertility, miscarriage, poor pregnancy outcomes, abnormal fetal development, early puberty, endometriosis, and diseases and cancers of reproductive organs. The compelling nature of the collective science has resulted in recognition of a new field of environmental reproductive health. Focusing on exposures to environmental contaminants, particularly during critical periods in development and their potential effects on all aspects of future reproductive life-course, this book provides the first comprehensive source of information bringing together the arguments that are spread out among various scientific disciplines in environmental health, clinical and public health fields. It provides a review of the science in key areas of the relationship between environmental contaminants and reproductive health outcomes, and recommendations on efforts toward prevention in clinical care and public policy.”,”author”:[{“dropping-particle”:””,”family”:”Woodruff”,”given”:”Tracey J.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Janssen”,”given”:”Sarah J.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Guillette”,”given”:”Louis J.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Giudice”,”given”:”Linda C.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”Environmental Impacts on Reproductive Health and Fertility”,”id”:”ITEM-1″,”issued”:{“date-parts”:[[“2010″]]},”number-of-pages”:”1-250″,”title”:”Environmental impacts on reproductive health and fertility”,”type”:”book”},”uris”:[“http://www.mendeley.com/documents/?uuid=fc89dbd7-be36-3545-a244-71dcdded5615″]}],”mendeley”:{“formattedCitation”:”(Woodruff et al.)”,”plainTextFormattedCitation”:”(Woodruff et al.)”,”previouslyFormattedCitation”:”(Woodruff et al.)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Woodruff et al.).
Climate change and anthropogenic forcing endanger environmental stability and the ecosystem’s ability to provide products and services that can be converted into economic benefits for humans, including health quality and death prevention values. While environmental products and services have value to society, they are often ignored in policy-making as they are not traded on markets and, as such, are not priced. The failure to recognize and internalize habitats’ economic importance in decision-making is the primary cause of environmental degradation and consequent health hazards. Given the public nature of environmental resources, market data, if available at all, can lead to misleading decisions as to the importance of protecting resources, resulting in more depletion and degradation of resources. Therefore, economic valuation is of the utmost importance in providing the right economic metrics and signals for the production of successful and sustainable economic policies.
Reference
ADDIN Mendeley Bibliography CSL_BIBLIOGRAPHY Chau, C. K., et al. “Evaluation of Health Benefits for Improving Indoor Air Quality in Workplace.” Environment International, vol. 33, no. 2, 2007, pp. 186–98, doi:10.1016/j.envint.2006.09.007.
Kjellstrom, Tord, et al. “Air and Water Pollution: Burden and Strategies for Control.” Disease Control Priorities in Developing Countries, The International Bank for Reconstruction and Development / The World Bank, 2006, http://www.ncbi.nlm.nih.gov/pubmed/21250344.
Remoundou, Kyriaki, and Phoebe Koundouri. “Environmental Effects on Public Health: An Economic Perspective.” International Journal of Environmental Research and Public Health, vol. 6, no. 8, Multidisciplinary Digital Publishing Institute (MDPI), Aug. 2009, pp. 2160–78, doi:10.3390/ijerph6082160.
Woodruff, Tracey J., et al. “Environmental Impacts on Reproductive Health and Fertility.” Environmental Impacts on Reproductive Health and Fertility, 2010, doi:10.1017/CBO9780511674686.
Understating pollinator-plan networks
Ecology Experiment
Name
Institution Affiliation
Understating pollinator-plan networks
The hummingbird is one of the smallest birds in the world and is mostly found in the Americas. Interestingly, it is the only bird that can fly backward. The name humming is derived from the humming sound it makes with its wings as they flap at very high speed sometimes between 12 to 90 times per second. However, this is dependent on the species and the size of an individual bird. These birds have a very short lifespan, with most of them not able to survive a year after they are born with many dying after three to four years.
Hummingbirds feed on nectar from plants and usually live in the western hemisphere. They are specifically found in Canada and Alaska to Terra del Fuego. They live in families made up of about 340 species and have an extraordinarily diverse morphology, behavior, and ecology (Biddick & Burns, 2018). Almost all their diet is based on nectar, which is a dilute solution found in plant flowers containing various types of sugars. These sugars are easily converted into energy through the process of digestion and fulfill the carbohydrate requirements of the hummingbird (Carvalheiro et al. 2013). The other 10 percent of the hummingbird diet includes arthropods that act like protein, vitamin, and fat supplements.
Plants that are visited by hummingbirds are mostly herbaceous undergrowth plants, which are founding in numerous similar species and variably distributed. A good example is those of the genus Helicon and Costus. These plants produce flowers that only last day and release most of their nectar before opening at sunrise to reduce the damage by nectar feeders.
Hummingbirds have shared a complex ecological network with plants, which is most beneficial for both organisms. These mutual interactions can be credited for the generation of the earth’s diversity. It is important to create an understanding of the patterns in hummingbird grouping and an extensive analysis of the main factors leading to patterns of interactions in this humming bird-plant network. The most central concept, however, is whether specific morphological traits have any influence on the patterns of interactions in this mutual interdependences.
The experiment applies several methods to assess the importance of morphological traits for configuring the interaction between plants and hummingbirds. The first approach is the analysis of the effect of avian morphological features and plenty on the ecological specialization of humming-birds. The second approach is considering if the plants and the hummingbird have matching traits that suggested the interaction strength in these mutual co-dependences. The third systematic approach is evaluating where matching traits were connected to feeding times by hummingbird species. MacArthur and Pianka (1996), in their foraging theory, believe that hummingbirds tend to feed more on those flowers that match well with their bill morphology because this association is connected to an increased proficiency of resource use.
Methods
Fieldwork conducted in the local woods because a tropical forest is far and cannot be easily accessed. The chosen areas must first be scouted for samples. The area should be considerably diverse in terms of species with at least 1000 different species of plants, at least 300 species of trees and more than 350 species of birds.
Sampling will include the collection of data on profusions and functional features of nectar, which is the resources and hummingbirds. Pollen loads carried by hummingbirds will also be sampled to know how the hummingbirds interact with the plants at individual levels as well as species level. To understand the kind of forage preferred by certain hummingbird species, an experiment will be conducted using artificial feeders and flowers.
Analysis
Experimental and observational data will be used to evaluate the feeding preferences of hummingbird species on the artificial as well as the natural flowers while looking at morphology. The visits made by the birds to artificial feeders and those visiting the artificial flowers will show what kind of flowers they prefer. The results collected will suggest the different processes and mechanisms fundamental to the functionality of the plant-humming bird mutualistic coexistence.
The use of analyses that are based on traits alongside experimental and observational methods as crucial for a wide-ranging understanding of the evolutionary and ecological dictating of how plants and pollinator networks operate. These bases are important for and provide huge value for the understanding of the systematic bases of community muster and system structure in other types of collaboration networks.
Conclusion
Looking at the feeding preferences of nectar feeders or pollinators, in general, helps with the comprehension of factors that define the interactions of these species and the factors that influence the split among nectar feeders and pollinators. A better understanding of what traits hinders some species from nectar resources and whether birds have to get these resources for flowers that match their morphology. The experiment will check what other factors beyond this would influence how hummingbirds or pollinators interact with plans.
References
Biddick, M., & Burns, K. C. (2018). Phenotypic trait matching predicts the topology of an insular plant–bird pollination network. Integrative zoology, 13(3), 339-347.
Carvalheiro, L. G., Kunin, W. E., Keil, P., Aguirre‐Gutiérrez, J., Ellis, W. N., Fox, R., … & Van de Meutter, F. (2013). Species richness declines and biotic homogenisation have slowed down for NW‐European pollinators and plants. Ecology letters, 16(7), 870-878.
