Price effect: The price change effect on consumption can be broken down into two parts depending upon the change relative in pricing of products and income. The first one is called substitution effect wherein price change of a product leads to change in consumption‚ here the income remains constant. The second is the income effct wherein the relative income of people changes which leads to a change in the purchasing power‚ here the price is considered constant. * prices change >> income
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Causes for Parallel Economy There are several factors responsible for the emergence – of parallel economy. It would be relevant to discuss those factors so that a correct understanding about the genesis‚ growth and expansion of black money can be made. The principal factors are: 1. Rigid and Complicated tax & high tax rates implemented by the government- High tax rates and defective tax structure have also been responsible for the existence of black money to a large extent. Take for instance
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meshing of objectives‚ in which the managers throughout an organization strive to achieve goals that are consistent with the goals set by top management. Goal congruence is important for organizational success because managers often are unaware of the effects of their decisions on the organization’s other subunits. Also‚ it is natural for people to be more concerned with the performance of their own subunit than with the effectiveness of the entire organization. In order for the organization to be effective
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curve as rendering the same level of utility (satisfaction) for the consumer. A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. For an individual‚ indifference curves and an assumption of constant prices and a fixed income in a two-good world will give the following diagram. The consumer can choose any point on or below the budget constraint line BC. This line is diagonal since it comes from the
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Teenage Drinking has been a factor in the past years. There are causes of drinking as well as effects of drinking and solutions. There are many causes that are related to drinking. One cause is peer pressure. Peer pressure comes from older people that are probably already drunk at the time‚ trying to force a teenager to have an alcoholic drink. Usually the teenager says yes. About 92% of high school seniors have admitted having tried alcohol. Many of them have tried their first drink around the
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Global Warming: Causes‚ Effects‚ and Solutions. Global Warming is the rise in the average temperature of Earth ’s atmosphere and oceans since the late 19th century and its projected continuation. Many people do not see this as a problem. However‚ it is currently a huge issue that is often talked about among scientists and many other people. Global Warming is caused by many different things. Greenhouse gases‚ deforestation‚ and solar activity are three different proven facts that cause global warming
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Global Warming: Causes‚ Effects and Solutions "’The future is here. Greenhouse warming is no longer just a possibility‚ it is happening now‚’ said Dr. Michael Oppenheimer‚ a senior scientist with the Environmental Defense Fund" ("Greenhouse Warning"). Representatives from more than 160 countries met together in the first ten days of December this year to come to an agreement on a treaty to slow down global warming by setting the limits on the countries’ greenhouse gases emissions‚ which include
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of gases that collectively form the atmosphere; the imbalance caused by the increase or decrease of the percentage of these gases can be harmful for survival. What are Air Pollutants? Air pollutants are the substances that cause air pollution.In order to understand the causes of Air pollution‚ several divisions can be made. Primarily air pollutants can be caused by primary sources or secondary sources. The pollutants that are a direct result of the process can be called primary pollutants. A classic
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There were many direct causes and effects of Industrialization in America. Some effects were immediately after the revolution like urbanization and increased transportation. Some causes were as simple as improved technology and a strong‚ stable government. Industrialization even affects us today. Industrialization first began with the agricultural revolution‚ which was basically landowners buying small farms and getting a huge profit. With the agricultural revolution‚ also came crop rotation. Crop
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Is Functional Literacy a Prerequisite for Entering the Labor Market? An Analysis of the Determinants of Adult Literacy and Earnings in Ghana Niels-Hugo Blunch and Dorte Verner Working Paper 00-05 April 2000 Published by Centre for Labour Market and Social Research Universitetsparken‚ Building 350 8000Aarhus C‚ Denmark Editor: Peder J. Pedersen Copyrights: Niels-Hugo Blunch and Dorte Verner ISSN 0908-8962 Is Functional Literacy a Prerequisite for Entering the Labor Market? An Analysis of the
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