Monday, September 30, 2019

Sample Questions

Chapter-1 MANAGERIAL ECONOMICS Multiple Choice Questions 1 Which of the following is a characteristic of a perfectly competitive market? a. Firms are price setters. b. There are few sellers in the market. c. Firms can exit and enter the market freely. d. All of these 2 If a perfectly competitive firm currently produces where price is greater than marginal cost it a. will increase its profits by producing more. b. will increase its profits by producing less. c. is making positive economic profits. d. is making negative economic profits. 3 When a perfectly competitive firm makes a decision to shut down, it is most likely that a.Price is below the minimum of average variable cost. b. Fixed costs exceed variable costs. c. Average fixed costs are rising. d. Marginal cost is above average variable cost. 4 In the long run, a profit-maximizing firm will choose to exit a market when a. Fixed costs exceed sunk costs. b. Average fixed cost is rising. c. Revenue from production is less than tota l costs. d. marginal cost exceeds marginal revenue at the current level of production. 5 When firms have an incentive to exit a competitive market, their exit will a. Drive down market prices. b. Drive down profits of existing firms in the market. . Decrease the quantity of goods supplied in the market. d. All of the above are correct. 6 In a perfectly competitive market, the process of entry or exit ends when a. Firms are operating with excess capacity. b. Firms are making zero economic profit. c. Firms experience decreasing marginal revenue. d. Price is equal to marginal cost. 7 Equilibrium quantities in markets characterized by oligopoly is a. Lower than in monopoly markets and higher than in perfectly competitive markets. b. Lower than in monopoly markets and lower than in perfectly competitive markets.Higher than in monopoly markets and higher than in perfectly competitive markets. d. Higher than in monopoly markets and lower than in perfectly competitive markets. 8 In economic s the central problem is: a. b. c. d. e. Allocation. Consumption. Scarcity. Money. Production. c. 9 Indicate below what is NOT a factor of production. a. Land. b. A bank loan. c. Labor. d. Capital. 10 Macroeconomics deals with: a. The behavior of firms. b. Economic aggregates. c. The activities of individual units. d. The behavior of the electronics industry. 11 Microeconomics is not concerned with the behavior of: a. Aggregate demand. . Consumers. c. Industries. d. Firms. 12 The study of inflation is part of: a. Normative economics. b. Macroeconomics. c. Microeconomics. d. Descriptive economics. 13 Aggregate supplies is the total amount: a. Produced by the government. b. Of products produced by a given industry. c. Of labor supplied by all households. d. Of goods and services produced in an economy. 14 The total demand for goods and services in an economy is known as: a. National demand. b. Economy-wide demand. c. Gross national product. d. Aggregate demand. 15 If marginal benefit is greater than marginal cost, a rational choice involves: a.More of the activity. b. Less of the activity. c. No more of the activity. d. More or less, depending on the benefits of other activities. 16 A student chooses to study because the marginal benefit is greater than the ________ cost. a. average b. total c. marginal d. expected 17 Periods of less than full employment correspond to: a. b. c. d. Points outside the production possibility curve. Points inside the production possibility curve. Points on the production possibility curve. Either points inside or outside the production possibility curve. 18 The circular flow of goods and incomes shows the relationship between: a.Income and money. b. Wages and salaries. c. Goods and services. d. Firms and households. 19 In a free market system, the amount of goods and services that any one household gets depends upon its: a. Income. b. Wage and interest income. c. Wealth. d. Income and wealth. 20 In a planned or command economy, all the economic decisions are taken by the: a. Consumers. b. Workers. c. Government. d. Voters. Answers for Multiple Choice Questions 1 (c) 2 (a) 3 (a) 6 (b) 7 (d) 8 (c) 11(a) 12(b) 13(d) 16(c) 17(b) 18(d) 4 (c) 9 (b) 14(d) 19(d) 5 (c) 10 (b) 15(a) 20(c) Chapter-2 PRINCIPLES OF MANAGERIAL ECONOMICSMultiple Choice Questions 1 The word that comes from the Greek word for â€Å"one who manages a household is a. Market. b. Consumer. c. Producer. d. Economy. 2 Economics deals primarily with the concept of a. Scarcity. b. Poverty. c. Change. d. Power. 3 Which of the following is NOT included in the decisions that every society must make? a. what goods will be produced b. who will produce goods c. what determines consumer preferences d. who will consume the goods 4 In a market economy, characterized by Capitalism, there is full interference by the State in the economic activities of consumers and producers. a)True (b) False 5 In a market system of economy, there is no harmony between individu al interests and interests of the community. (a)True (b) False 6 Efficiency is the relation between returns and cost. (a)True (b) False 7 The subject matter of macro –economic includes the theory of income and employment at an individual level. (a)True (b) False 8 Rational decision results in†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦for the employees. a. Division of work. b. Centralization. c. Discipline. d. Motivation 9 A Theory Y approach is more suitable where a job offers: a. a high degree of intrinsic satisfaction. b.The ability to exercise initiative. c. An element of problem solving. d. All of the above. 10 Breech identifies four main elements of management. They are planning, control, coordination and: a. The division of work. b. Centralization. c. Discipline. d. Motivation. 11 Many well-known business economists participate in public debates. (a)True (b) False 12 Marginal Utility is the utility derived from the additional unit of a commodity consumed. (a)True (b) False 13 Compared to the static model, the fishing effort in a dynamic model is likely to be a. Larger. b. Smaller. c. Similar. . Larger or smaller. 14 Land, labor, and money are the three categories of economic resources. (a)True (b) False 15 Which of the following is not an interest rate derivative used for interest rate management? Interest rate guarantee a. Floor b. Swap c. Cap d. All of the above are interest rate derivatives 16 An agreement which guarantees an investor a minimum return on a principal amount is called a: a. Cap b. Executive stock option c. Stock option d. Floor 17 Which of the factors listed below is not a reason for decision making in organizations being a complex process? a.Modern information systems enable people to evaluate a range of possible outcomes b. Factors in the current context of the organization affect the decision c. Several stakeholders will have an interest in the decision d. People have to make decisions in a historical context 18 The overall process of decisi on making in, for example, staff selection includes which of these stages? a. Deciding which candidate to appoint b. Identifying the need for a new member of staff c. Agreeing the job specification d. All of the above 19 A manager who is helping a customer return some shoes they purchased last week is dealing with what type of decision? . Uncertainty b. Non-programmed decision c. Bounded rationality d. Programmed decision 20 Decision making situations can be categorized along a scale which ranges from: a. Uncertainty to certainty to risk b. Certainty to uncertainty to risk c. Certainty to risk to uncertainty d. Certainty to risk to uncertainty to ambiguity Answers for Multiple Choice Questions 1 (d) 2 (a) 3 (c) 6 (a) 7 (b) 8 (d) 11(a) 12(a) 13(a) 16(d) 17(a) 18(d) 4 (b) 9 (d) 14(b) 19(d) 5 (b) 10 (d) 15(d) 20(d) Chapter-3 CONCEPT OF DEMAND Multiple Choice Questions 1 The quantity demanded of Pepsi has decreased.The best explanation for this is that: a. The price of Pepsi increased. b. Pepsi consumers had an increase in income. c. Pepsi's advertising is not as effective as in the past. d. The price of Coca Cola has increased. 2 Demand curves are derived while holding constant: a. Income, tastes, and the price of other goods. b. Tastes and the price of other goods. c. Income and tastes. d. Income, tastes, and the price of the good. 3 When the decrease in the price of one good causes the demand for another good to decrease, the goods are: a. Normal b. Inferior c. Substitutes d.Complements 4 Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are: a. Substitutes. b. Complements. c. Unrelated goods. d. Perfect substitutes. 5 If the demand for coffee decreases as income decreases, coffee is: a. An inferior good. b. A normal good. c. A complementary good. d. A substitute good. 6 Which of the following will NOT cause a shift in the demand curve for compact discs? a. A change in the price of pre-recorded cassette tape s. b. A change in income. c. A change in the price of compact discs. d. A change in wealth. When excess demand occurs in an unregulated market, there is a tendency for: a. Quantity supplied to decrease. b. Quantity demanded to increase. c. Price to rise. d. Price to fall. 8 Market equilibrium exists when _____________ at the prevailing price. a. b. c. d. quantity demanded is less than quantity supplied quantity supplied is greater than quantity demanded quantity demanded equals quantity supplied quantity demanded is greater than quantity supplied 9 A movement along the demand curve to the left may be caused by: a. A decrease in supply. b. A rise in the price of inputs. c.A fall in the number of substitute goods. d. A rise in income. 10 The quantity demanded of a product rises whenever (a) The product’s price falls. (b) Incomes increase. (c) Population increases. (d) The prices of substitute goods rise. (e) Consumer tastes and preferences change. 11 The equilibrium quantity mu st fall when (a) There is a decrease in demand. (b) There is a decrease in supply. (c) There is an increase in price. (d) There is an increase in demand and supply. (e) There is a decrease in demand and supply 12 The demand curve will shift to the left for most consumer goods when (a) Incomes decrease. b) The prices of substitutes fall. (c) The prices of complements increase (d) All of the above. 13 Producer goods, also called intermediate goods, in economics, goods manufactured and used in further manufacturing, processing, or resale. (a)True (b) False 14 Consumer goods are alternately called final goods, and the second term makes more sense in understanding the concept. (a)True (b) False 15 GDP stands for a. Gross Domestic Product b. Gross Deistic Product c. Gross dynamic product d. All of these 16 GNP stands for a. Gross national product b. Gross natural product c. Both (a)and (b) d.None of these 17 When the demand for a product is tied to the purchase of some parent product, its demand is called induced or derived. (a)True (b) False 18 An industry is the aggregate of firms (a)True (b) False 19 The ‘law of demand' implies that: a. As prices fall, quantity demanded increases. b. As prices rise, quantity demanded increases. c. As prices fall, demand increases. d. As prices rise, demand decreases. 20 When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as: a. Price rationing. . Price fixing. c. Quantity adjustment. d. Quantity setting Answers for Self Assessment Questions 1 (a) 2 (d) 3 (c) 6 (c) 7 (c) 8 (c) 11(d) 12(d) 13(a) 16(a) 17(a) 18(a) 4 (b) 9 (a) 14(a) 19(a) 5 (b) 10 (a) 15(a) 20(a) Chapter-4 DETERMINATION OF DEMAND 1 The demand for a product or a service depends on a host of factors. (a)True (b) False 2 Demand curves may also be shifted by changes in expectations. (a)True (b) False 3 Quantity demand is a specific quantity that buy ers are willing and able to buy at a specific demand price. (a)True (b) False 4 If the price of a complement increases, all else equal, a.Quantity demanded will increase. b. Quantity supplied will increase. c. Demand will increase. d. Demand will decrease. 5 Which of the following would lead to an INCREASE in the demand for golf balls? a. An decrease in the price of golf balls. b. An increase in the price of golf clubs. c. A decrease in the cost of producing golf balls. d. An increase in average household income when golf balls are a normal good. 6 If input prices increase, all else equal, a. Quantity supplied will decrease. b. Supply will increase. c. Supply will decrease. d. Demand will decrease. 7 Which of the following would decrease the supply of wheat? . A decrease in the price of pesticides. b. An increase in the demand for wheat. c. A rise in the price of wheat. d. An increase in the price of corn. 8 When Sonoma Vineyards increases the price of its Chardonnay from $15 per bo ttle to $20 per bottle, the result is a decrease in†¦ a. The quantity of this wine demanded. b. The quantity of this wine supplied. c. The demand for this wine. d. The supply of this wine. 9 Which of the following will cause a change in quantity supplied? a. Technological change. b. A change in input prices. c. A change in the market price of the good. d. A change in the number of firms in the market. 0 In which of the following cases will the effect on equilibrium output be indeterminate (i. e. , depend on the magnitudes of the shifts in supply and demand)? a. Demand decreases and supply decreases. b. Demand remains constant and supply increases. c. Demand decreases and supply increases. d. Demand increases and supply increases. 11 An increase in the number of firms selling pizza will cause, ceteris paribus, (a) an increase in supply. (b) an increase in demand. (c) a decrease in quantity demanded. (d) a decrease in the quantity supplied. 12 A change in demand is a change in th e ENTIRE demand relation. a)True (b) False 13 The demand for a given product will rise if: a. Incomes rise for a normal good or fall for an inferior good b. The price of a complement falls c. The price of a substitute rises d. All of these 14 Two explanations for the law of demand are (a) Price and quantity effects. (b) Substitution and income effects. (c) Opportunity cost and substitution effects. (d) Substitutes and inferior goods. (e) None of the above. 15 An increase in demand, ceteris paribus, will usually cause (a) A decrease in quantity demanded. (b) an increase in quantity supplied. (c) an increase in supply. d) a higher quantity and a lower price. 16. The quantity demanded of a product rises whenever (a) the product’s price falls. (b) incomes increase. (c) population increases. (d) the prices of substitute goods rise 17 The demand curve is downward-sloping because at a higher price for a good (ceteris paribus) (a) people buy fewer substitutes. (b) people buy more com plements. (c) people search for substitutes. (d) income rises. (e) substitutes become complements. 18 The supply curve is upward-sloping because at higher prices for a good (a) consumers search out more substitutes. (b) consumer income increases. c) demand is lower. (d) None of the above. 19 If the factors held constant along a supply or demand curve change, (a) the equilibrium may change. (b) the demand and supply equilibrium may be disrupted. (c) the supply or demand curve may shift. (d) All of the above. 20 If the price of crackers goes up when the price of cheese goes down, crackers and cheese are (a) inferior goods. (b) substitutes. (c) both substitutes and complements. (d) complements Answers for Self Assessment Questions 1 (a) 2 (a) 3 (a) 6 (c) 7 (d) 8 (a) 11(a) 12(a) 13(d) 16(a) 17(c) 18(d) 4 (d) 9 (c) 14(b) 19(a) 5 (d) 10 (c) 15(b) 20(d)Chapter-5 PRICE ELASTICITY OF DEMAND 1 If the price elasticity of demand for a good is . 75, the demand for the good can be described as: a . normal b. elastic c. inferior d. inelastic. 2. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is: a. elastic b. inelastic c. cross-elastic. d. unitary elastic. 3. If the price elasticity of demand for a product is equal to 0. 5, then a 10 percent decrease in price will: a. increase quantity demanded by 5 percent. b. increase quantity demanded by 0. percent. c. decrease quantity demanded by 5 percent. d. decrease quantity demanded by 0. 5 percent. 4 If an increase in the supply of a product results in a decrease in the price, but no change in the actual quantity of the product exchanged, then: a. the price elasticity of supply is zero. b. the price elasticity of supply is infinite. c. the price elasticity of demand is unitary. d. the price elasticity of demand is zero. 5. If 100 units of product K are sold at a unit price of $10 and 75 units of product K are sold at a unit price of $1 5, one can conclude that in this price range: a. emand for product K is elastic. b. demand for product K is inelastic. c. demand for product K has shifted to the right. d. consumers are sensitive to price changes of product K. 6 Total revenue falls as the price of a good increases if price ela sticity of demand is: a. elastic. b. inelastic c. unitary elastic d. perfectly elastic. 7 The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that: a. Cheerios are a luxury. b. cereals are a necessity. c. there are more substitutes for Cheerios than for cereals as a whole. d. onsumption of cereals as a whole is greater than consumption of Cheerios. 8 What is the most likely effect of the development of television, videocassette players, and rental movies on the movie theater industry? a. b. c. d. decreased costs of producing movies increased demand for movie theater tickets movie theater tickets become an inferior good increased price elasticity of demand for movie theater tickets 9 The price elasticity of demand will increase with the length of the period to which the demand curve pertains because: a. consumers' incomes will increase. b. the demand curve will shift outward. . all prices will increase over time. d. consumers will be better able to find substitutes. 10. A state government wants to increase the taxes on cigarettes to increase tax revenue. (a)True (b) False 11 This tax would only be effective in raising new tax revenues if the price elasticity of demand is: a. unity b. elastic c. inelastic d. perfectly elastic. 12. Sony is considering a 10 percent price reduction on its color television sets. If the demand for sets in this price range is inelastic: A) revenues from color sets will remain constant. B) revenues derived from color sets will decrease.C) revenues derived from color sets will increase. D) the number of television sets sold will decrease 13 Elasticity of demand for a commo dity with respect to change in its price. (a)True (b) False 14 An elasticity alternative in which infinitesimally small changes in price cause infinitely large changes in quantity. (a)True (b) False 15 Three factors that affect the numerical value of the price elasticity of demand are the a. b. c. d. availability of substitutes time period of analysis proportion of budget All of these 16 The price elasticity of demand is one of four common elasticity’s used in the analysis of the market. a)True (b) False 17 Cross elasticity of demand is: a. negative for complementary goods b. unitary for inferior goods. c. negative for substitute goods d. positive for inferior goods. 18. A positive cross elasticity of demand coefficient indicates that: a. a product is an inferior good. b. a product is a normal good. c. two products are substitute goods. d. two products are complementary goods. 19 A market without legal prices is in equilibrium when: a. quantity demanded equals price. b. the d emand curve remains constant. c. quantity demanded equals quantity supplied. d. uantity demanded is greater than quantity supplied. 20 A relatively small change, say 1% on an INR 100,000 house, can make a BIG difference in the buyer’s decision to buy. (a)True (b) False Answers for Self Assessment Questions 1 (d) 2 (a) 3 (a) 4 (d) 5 (a) 6 (a) 7 (c) 8 (d) 9 (d) 10 (a) 11(d) 12(c) 13(a) 14(a) 15(d) 16(a) 17(a) 18(c) 19(c) 20(a) Chapter-6 TYPES OF ELASTICITIES OF DEMAND 1 If it is observed that, in a particular market, price has risen and quantity exchanged has increased, it is likely that: a. supply has increased. b. supply has decreased. c. demand has increased. d. emand has decreased. 2 The quantity of a good demanded rises from 1000 to 1500 units when the price falls from $1. 50 to $1. 00 per unit. The price elasticity of demand for this product is approximately: a. 1. 0 b. 16 c. 2. 5 d. 4. 0 3 If the elasticity of demand for a commodity is estimated to be 1. 5, then a decrea se in price from $2. 10 to $1. 90 would be expected to increase daily sales by: a. 50% b. 1. 5% c. 5% d. 15% 4 A long-run demand curve, as compared to a short-run demand curve for the same commodity, is generally: a. more elastic b. less elastic c. of the same elasticity d. none of the above. The price elasticity of demand is 5. 0 if a 10 percent increase in the price results in a a. 2%decrease in quantity demanded. b. 5%decrease in quantity demanded. c. 10% decrease in quantity demanded d. 50% decrease in quantity demanded. 6 Demand for a good will likely be more elastic, a. The higher the level of income. b. The larger the proportion of monthly income spent on it. c. The fewer the good substitutes available. d. The higher the price of complementary goods. 7 Demand will be more elastic, a. The higher the income. b. The lower the price. c. The shorter the passage of time after a permanent price increase. . The more substitutes available for the good. 8 The price elasticity of demand measures the sensitivity of demand to price changes. (a)True (b) False 9 If a good has no close substitutes and is regarded as a necessity by many consumers, then demand for the good will be quite elastic. (a)True (b) False 10 Cross elasticity of demand is the ratio of the percentage change in demand for a good to the percentage change in price for another. (a)True (b) False 11 A 50 percent increase in price that results in a 90 percent decrease in the quantity demanded indicates that demand is elastic in this price range. a)True (b)False 12 Demands for most goods tend to become more elastic with the passage of time. (a)True (b) False 13 If two goods are substitutes, then an increase in the price of one good will leads to an increase in the demand for the other good. (a)True (b) False 14 If two goods are complements, then a decrease in the price of one good will results in a decrease in the demand of the other good. (a)True (b) False 15 The price elasticity of demand is the same as the slope of the demand curve. (a)True (b) False 16 If demand is price elastic, then: a. a rise in price will raise total revenue. b. a fall in price will raise total revenue. . a fall in price will lower the quantity demanded. d. a rise in price won't have any effect on total revenues. 17 Complementary goods have: a. The same elasticity’s of demand. b. very low price elasticity of demand. c. negative cross price elasticity of demand with respect to each other. d. positive income elasticity of demand. 18 The price elasticity of demand generally tends to be: a. smaller in the long run than in the short run. b. smaller in the short run than in the long run. c. larger in the short run than in the long run. d. unrelated to the length of time. 19 If the price elasticity of supply of doodads is 0. 0 and the price increases by 3 percent, then the quantity supplied of doodads will rise by a. 0. 60 percent. b. 0. 20 percent c. 1. 8 percent d. 18 percent. 20 If the cross-price elastic ity between two commodities is 1. 5, a. The two goods are luxury goods. b. The two goods are complements. c. The two goods are substitutes. d. The two goods are normal goods. Answers for Self Assessment Questions 1 (c) 2 (a) 3 (d) 6 (b) 7 (d) 8 (a) 11(a) 12(a) 13(a) 16(b) 17(c) 18(b) 4 (a) 9 (b) 14(b) 19(c) 5 (d) 10 (a) 15(b) 20(c) Chapter-7 SUPPLY ANALYSIS 1 The cost of factor inputs like land, labor, and capital has a major influence on supply. a)True (b) False 2 Which of the following factors will make the demand for a product more elastic? (Assume the product has a straight-line, downward sloping demand. ) a. The product has no close substitutes. b. A very small proportion of income is spent on the good. c. A long time period has elapsed since the product’s price changed. d. A lower price 3 For a given normal supply curve, the amount of a tax paid by the buyer will be larger a. the more elastic the demand. b. the more inelastic the demand. c. the income elasticity is equa l to zero d. when the price is high. With a perfectly elastic demand and a normal supply (upward-slopping) a. consumers will bear the entire tax burden. b. consumers will not bear any tax burden. c. consumers and producer will split the tax burden in half. d. producers will not bear any tax burden. 5 Which of the following leads to the producers paying all of a tax? a. The supply is perfectly elastic. b. The supply is perfectly inelastic. c. The demand is unit elastic. d. The demand is perfectly inelastic. 6 The incidence (split) of sales tax is determined by the a. level of government which imposes the tax. b. federal government in all cases. c. greed of the seller. d. rice elasticity of supply and demand. 7 The market supply curve is the horizontal sum of the individual supply curve. (a)True (b) False 8 Supply determinants are five ceteris paribus factors that are held constant when a supply curve is constructed. (a)True (b) False 9 Supply is the willingness and ability of produce rs to make a specific quantity of output available to consumers at a particular price over a given period of time. (a)True (b) False 10 Individuals supply factors of production to firms. (a)True (b) False 11 The supply curve for tomatoes is not thus more elastic in the short run than in the momentary period. (a)True (b)False 2 Macroeconomic studies are based on empirical evidence. (a)True (b)False 13 Demand curve slopes upwards from left to right. (a) True (b)False 14 In the market, anyone who agrees to pay the requisite price of a product would be excluded from their consumption. (a) True (b)False 15 Aglets are the metal or plastic tips on shoelaces that make it easier to lace your shoes. The demand for aglets is probably a. perfectly elastic. b. inelastic. c. elastic but not perfectly elastic. d. unit elastic. 16 The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of a.Its complements but not its substit utes. b. its substitutes but not its complements. c. its substitutes and its complements d. neither its substitutes nor its complements. 17 If goods are complements, definitely their a. income elasticity’s are negative b. income elasticity’s are positive. c. cross elasticity’s are positive. d. cross elasticity’s are negative. 18 If a rise in the price of good 1 decreases the quantity of good 2 demanded, a. the cross elasticity of demand is negative b. good 1 is an inferior good. c. good 2 is an inferior good d. the cross elasticity of demand is positive. 9 The price elasticity of demand generally tends to be: a. smaller in the long run than in the short run. b. smaller in the short run than in the long run. c. larger in the short run than in the long run. d. unrelated to the length of time. 20 The demand for your services becomes more elastic. (a)True (b)False Answers for Self Assessment Questions 1 (a) 2 (c) 3 (b) 6 (d) 7 (a) 8 (a) 11(b) 12(a) 13(b) 16(c ) 17(d) 18(a) 4 (b) 9 (a) 14(b) 19(b) 5 (b) 10 (a) 15(b) 20(a) Chapter-8 PRODUCTION DECISION 1 Which of the following functions is not a core function of an organisation? a. The product/service development function b.The operations function c. The accounting and finance function d. The marketing (including sales) function 2 Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing â€Å"pure† services? a. IT company b. A Restaurant c. Counsellor/therapist d. Steel company 3 Operations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classified as high volume, low variety? a. A family doctor b. A carpenter c. A front office bank d.A fast food restaurant 4 Which of the following activities is not a direct responsibility of operations management? a. Designing the operation’s products, services a nd processes b. Planning and controlling the operation c. Developing an operations strategy for the operation d. Determining the exact mix of products and services that customers will want 5 Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classified as high variation and high visibility? a. A front office bank b.A family doctor c. A fast food restaurant d. A carpenter 6 The production function incorporates the technically efficient method of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. a. production. b. process c. function d. All of these 7 A fixed input is one whose quantity cannot be varied during the time under consideration. (a)True (b)False 8 Economists find it convenient to distinguish between the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. and the long run. a. short run b. large run c. big run d. None of these 9 The law of variable proportions states th at as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. a)True (b)False 10 MRP stands for a. Marginal Revenue Product b. Marginal Revenue process c. Both (a) and (b) d. None of these 11 The book value of old equipment is not a relevant cost in a decision. (a)True (b)False 12. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. (a)True (b)False 13. A differential cost is a variable cost. (a)True (b)False 14. All future costs are relevant in decision making. (a)True (b)False 15. Variable costs are always relevant costs. (a)True (b)False 6 Only the variable costs identified with a product are relevant in a decision concerning whether to eliminate the product. (a)True (b)False 17 Managers should pay little attention to bottleneck operations because they have limited capacity for producing output. (a)Tr ue (b)False 18 A cost that does not affect a decision is called an a. opportunity cost b. incremental cost c. avoidable cost d. irrelevant cost 19. Costs that change between alternatives are called a. fixed costs. b. opportunity costs. c. crelevant costs. d. sunk costs. 20. A cost incurred in the past that cannot be changed by any future action is a(n) a. pportunity cost b. sunk cost c. relevant cost d. avoidable cost Answers for Self Assessment Questions 1 (c) 2 (c) 3 (d) 6 (a) 7 (a) 8 (a) 11(a) 12(a) 13(b) 16(b) 17(b) 18(d) 4 (d) 9 (a) 14(b) 19(c) 5 (b) 10 (a) 15(b) 20(b) Chapter-9 ISOQUANT AND PRODUCTION FUNCTION 1 Economists typically assume that the owners of firms wish to a. produce efficiently. b. maximize sales revenues. c. maximize profits. d. All of these. 2 Efficient production occurs if a firm a. cannot produce its current level of output with fewer inputs. b. given the quantity of inputs, cannot produce more output. c. maximizes profit. d. All of the above. Limited liab ility is a benefit to a. sole proprietorships. b. partnerships. c. corporations. d. all of the above. 4 Which of the following statements best describes a production function? a. the maximum profit generated from given levels of inputs b. the maximum level of output generated from given levels of inputs c. all levels of output that can be generated from given levels of inputs d. all levels of inputs that could produce a given level of output 5 With respect to production, the short run is best defined as a time period a. lasting about six months. b. lasting about two years. c. in which all inputs are fixed. d. n which at least one input is fixed. 6 In the long run, all factors of production are a. variable. b. fixed. c. materials. d. rented. 7 The short-run production functions for Albert’s Pretzels. The marginal productivity of labor equals the average productivity of labor a. for all levels of labor. b. at none of the levels of labor. c. only for the first worker. d. only fo r the fifth worker. 8 the short-run production function for Albert’s Pretzels. The law of diminishing marginal productivity a. appears with the second worker. b. has not yet appeared for any of the levels of labor. c. first appears with the fifth worker. d. s refuted by this evidence. 9 If the average productivity of labor equals the marginal productivity of labor, then a. the average productivity of labor is at a maximum. b. the marginal productivity of labor is at a maximum. c. Both A and B above. d. Neither A nor B above. 10 Average productivity will fall as long as a. marginal productivity is falling. b. it exceeds marginal productivity. c. it is less than marginal productivity. d. the number of workers is increasing. 11 Factors of production are a) inputs and outputs. b) outputs only c) inputs only d) the minimum set of inputs that can produce a certain fixed quantity of output. 2 The set of all pairs (z1, z2) of inputs that yield the output y is the y-is quant. (a)True (b)False 13 L-shaped isoquants imply that production requires that the inputs are perfect substitutes. a. are imperfect substitutes. b. cannot be used together. c. must be used together in a certain proportion. d. None of these 14 Isoquants that are downward-sloping straight lines imply that the inputs a. are perfect substitutes. b. are imperfect substitutes. c. cannot be used together. d. must be used together in a certain proportion. 15 Isoquants that are downward-sloping straight lines exhibit a. n increasing marginal rate of technical substitution. b. a decreasing marginal rate of technical substitution. c. a constant marginal rate of technical substitution. d. a marginal rate of technical substitution that cannot be determined. 16 The profit maximization firm will choose the least cost combination of factors to produce at any given level of output. (a)True (b) False 17 The production function is useful in deciding on the additional value of employing a variable input in the pro duction process. (a)True (b) False 18 The additional use of an input factor should be stopped when its marginal revenue productivity just equals its price. a)True (b) False 19 The least cost combination of-factors or producer’s equilibrium is now explained with the help of †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. curves and iso costs. a. iso product b. iso process c. Both(a) and (b) d. None of these 20 MRTS stands for†¦Ã¢â‚¬ ¦.. a. Marginal rate of technical structure b. Marginal rate of technical substitution c. Both(a) and (b) d. None of these Answers for Self Assessment Questions 1 (d) 2 (d) 3 (c) 6 (a) 7 (c) 8 (a) 11(c) 12(a) 13(c) 16(a) 17(a) 18(a) 4 (b) 9 (a) 14(a) 19(a) 5 (d) 10 (b) 15(c) 20(b) Chapter-10 THEORY OF COST 1 The cost of capital is critically important in finance. a)True (b)False An implicit cost is a. the cost of giving up an alternative b. the cost of a chosen alternative c. calculated by subtracting the monetary cost. d. none of the above 3 The historical co st of an asset refers to the actual cost incurred at the time the asset was acquired. (a)True (b) False 4 An Explicit cost is a business expense accounted cost that can be easily identified such as wage, rent and materials. (a)True (b) False 5 Private is the cost that has to be paid by an individual who is directly involved in the production or consumption of a particular good. a)True (b) False 6 Social cost or external cost is not the cost burden carried by individuals who are not directly involved in the production or consumption of that particular good (a)True (b) False 7 Average cost is the sum total of Average variable it and average fixed cost. (a)True (b) False 8 Cost-output relationship facilitates many managerial relationships such as: a. Formulating the standards of operations. b. Formulating the rational policy on plant size. c. Formulating a policy of profit prediction. d. All of these 9 Cost in the short-run can be classified into†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦and variable cost. a. fixed cost b. sset c. both (a) and (b) d. None of these 10 Total fixed costs remained fixed irrespective of increase or decrease in production of activity. (a)True (b) False 11 Marginal costs is the change in total cost resulting from unit change in†¦Ã¢â‚¬ ¦.. a. output b. input c. both(a) and (b) d. None of these 12 The †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. implies that the cost of production continues to be low till the firm reaches the optimum scale (Marginal cost = Average cost). a. V-shape b. Q-shape c. U-shape d. All of these 13 Scale economies and returns to scale generally produce a U-shaped long-run average cost curve, such as the one displayed to the right. a) True (b) False 14 __________ is concerned with the branch of economics relating the behavior of principals and their agents. a. Financial management b. Profit maximization c. Agency theory d. Social responsibility 15 A concept that implies that the firm should consider issues such as protecting the consumer, paying fair wag es, maintaining fair hiring practices, supporting education, and considering environmental issues. a. Financial management b. Profit maximization c. Agency theory d. Social responsibility 16 Which of the following is not normally a responsibility of the treasurer of the modern corporation but rather the controller? . Budgets and forecasts b. Asset management c. Investment management d. Financing management 17 The __________ decision involves determining the appropriate make-up of the righthand side of the balance sheet. a. asset management b. financing c. investment d. capital budgeting 18 A long-run is also expressed as a series of short-runs. (a)True (b)False 19 Which of the following are used in calculating opportunity costs? a. monetary costs b. the cost of time c. preference d. all of the above 20 An explicit cost is a. the cost of giving up an alternative b. the cost of a chosen alternative c. alculated by subtracting the monetary cost of an alternative by the time invested d. none of the above Answers for Self Assessment Questions 1 (a) 2 (a) 3 (a) 6 (b) 7 (a) 8 (d) 11(a) 12(c) 13(a) 16(a) 17(b) 18(a) 4 (a) 9 (a) 14(c) 19(d) 5 (a) 10 (a) 15(d) 20(b) Chapter-11 MARKET STRUCTURE, AND PRICING 1 Which of the following cannot be classed as a market structure? a. Oligopoly. b. Perfect competition. c. Communism. d. Monopolistic competition. 2 Income and population are two variables that can be used in ______ segmentation: a. psychographic b. demographic c. lifestyle d. behavioural 3 Strong exchange rates can: a. help stimate consumer purchasing power. b. help predict change in lifestyle across Europe. c. predict the evolution of sales for particular brands. d. drive imports to become cheaper. 4 BERI stands for: a. Business Economic Risk Index. b. Business Economic Rating International. c. Business Education Rating Indicator. d. Business Environment Risk Index. 5 The size and liquidity requirements are based on the minimum invest ability requirements for the MS CI Global Standard Indices. (a) True (b) False 6 Oligopoly is a market structure in which a small number of firms account for the whole industry’s output. (a) True (b) False The number of firms and product differentiation are extremely crucial in determining the nature of competition in a market. (a) True (b) False 8 type of market structure represented by the constant returns to scale (CRS) technology includes a. Monopolistic competition b. Oligopoly c. Duopoly d. Perfect competition 9 In industries in which there are scale economies, the variety of goods that a country can produce is constrained by a. the fixed cost b. the size of the labor force c. the marginal cost d. the size of the market 10 A monopoly firm engaged in international trade but enjoying a protected home market will a. quate marginal costs with foreign marginal revenues. b. equate marginal costs with marginal revenues in both domestic and foreign markets c. equate average costs in local and foreign markets d. none of the above 11 Minimum efficient scale of production in relation to the overall industry output and market requirement sometimes play a major role in shaping the market structure. (a)True (b) False 12 Price and output decisions of firms that want to maximize profits always depend on costs. (a) True (b) False 13 Which of the following is NOT a financial objective of pricing? a. Corporate growth. b.Return on investment. c. Profit maximization. d. None of these 14 Which of the following is NOT a marketing objective? a. Cash flow. b. Positioning. c. Volume sales. d. None of these 15 Setting a price below that of the competition is called: a. Skimming. b. Penetration pricing. c. Competitive pricing. d. None of these 16 Which of the following is NOT a reason for cutting prices? a. Capacity utilisation. b. Increasing profit margins. c. Market defence. d. None of these 17 Which of the following is NOT a reason for increasing prices? a. Cost pressures. b. Price comparison. c. Curbin g demand. d.None of these 18 The costs that depend on output in the short run are: a. both total variable costs and total costs. b. total costs only. c. total fixed cost only. d. total variable costs only 19 A firm will shut down in the short run if: a. fixed costs exceed revenues. b. total costs exceed revenues. c. it is suffering a loss. d. variable costs exceed revenues. 20 In the long run, every cost is variable cost. In this period, all costs ever incurred by the firm must be recovered. (a)True (b) False Answers for Self Assessment Questions 1 (c) 2 (b) 3 (d) 6 (a) 7 (a) 8 (d) 11(a) 12(a) 13(a) 16(b) 17(b) 18(a) (d) 9 (d) 14(a) 19(d) 5 (a) 10 (b) 15(b) 20(a) Chapter-12 PERFECT COMPETITION 1. A perfectly competitive firm will maximize profit at the quantity at which the firm's marginal revenue equals a. price b. average revenue c. total cost d. marginal cost 2 Which of the following is not a valid option for a perfectly competitive firm? a. Increasing its output. b. Decreasing i ts output. c. Increasing its price. d. Increasing its resources. 3 In the long run, a perfectly competitive firm will achieve all but which of the following: a. Economic profit b. Allocative Efficiency c. Productive Efficiency d.Normal profit 4 If the price a firm receives for its product is equal to the marginal cost of producing that product, the firm is: a. Always earning an economic profit b. Always productively efficient. c. Always allocatively efficient. d. Always experiencing an economic loss. 5 A firm that is producing at the lowest possible average cost is always: a. Earning an economic profit. b. Productively efficient. c. Dominating the other firms in the market. d. Not producing enough output. 6 Which of the following is the best example of a perfectly competitive market? a. diamonds b. athletic shoes c. soft drinks d. arming 7 Perfect competition is an industry with a. a few firms producing identical goods. b. many firms producing goods that differ somewhat. c. a few fi rms producing goods that differ somewhat in quality. d. many firms producing identical goods. 8 In a perfectly competitive industry, there are a. many buyers and many sellers. b. many sellers, but there might be only one or two buyers. c. many buyers, but there might be only one or two sellers. d. one firm that sets the price for the others to follow. 9 In perfect competition, the product of a single firm a. is sold to different customers at different prices. b. as many perfect complements produced by other firms. c. has many perfect substitutes produced by other firms. d. is sold under many differing brand names. 10 In perfect competition, restrictions on entry into an industry a. do not exist. b. apply to labor but not to capital. c. apply to both capital and labor. d. apply to capital but not to labor. 11 Price for a firm under monopolistic competition is ______. a. equal to marginal revenue b. greater than marginal revenue c. less than marginal revenue d. greater than total reve nue 12 In the long run, monopolistically competitive firms tend to experience ______. a. high economic profits b. ero economic profits c. negative economic profits d. substantial economic losses 13 Marginal revenue for a monopolist is ______ a. equal to price b. greater than price c. less than price d. equal to average revenue 14 Perfect competitions describes a market structure whose assumptions are extremely strong and highly unlikely to exist in most real-time and real-world markets. (a)True (b) False 15 Monopolistic competition is a market structure characterized by a large number of relatively small firms. (a)True (b) False 16 A monopolist can sell more of his output only at a lower price and can reduce the sale at a high price. a)True (b) False 17 A monopoly is a market structure in which there is not only one producer/seller for a product. (a)True (b) False 18 A perfectly competitive firm produces the profit-maximizing quantity of output that equates marginal revenue and marg inal cost. (a)True (b) False 19 A perfectly competitive firm faces †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. production alternatives based on a comparison of price, average total cost, and average variable cost. a. four short-run b. three short-run c. five short-run d. All of these 20 A perfectly competitive firm’s marginal cost curve that lies above the †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. of the average variable cost curve is its supply curve. . minimum b. maximum c. both(a) and (b) d. None of these Answers for Self Assessment Questions 1 (d) 2 (c) 3 (a) 6 (d) 7 (d) 8 (a) 11(a) 12(b) 13(a) 16(b) 17(b) 18(a) 4 (c) 9 (c) 14(a) 19(b) 5 (b) 10 (a) 15(a) 20(a) Chapter-13 OLIGOPOLY AND PRICING STRATEGIES 1 A price- and quantity-fixing agreement is known as: a. game theory. b. price leadership. c. collusion. d. price concentration. 2 A group of firms that gets together to make price and output decisions is called: a. a cartel. b. price leadership. c. an oligopoly. d. a concentrated industry 3 Products produced by oligopolistic ? rms are: a. Homogeneous. b. Heterogeneous. . Differentiated. d. Heterogeneous or differentiated. 3 Oligopoly is the only market structure characterized by: a. Interdependence in pricing and output decisions. b. Differentiated products. c. Barriers to entry. d. Pro? t-maximizing behavior. 4 Oligopoly is characterized by all of the following except: a. A few large ? rms. b. Differentiated product. c. Difficult entry into the industry. d. Price competition 5 A major threat to longer term profits exists when barriers to entry into an industry are high. (a)True (b) False 6 Under kinked demand theory the prices of oligopolists are predicted to be rather rigid or ‘sticky'. a)True (b) False 7 In contestable markets, large oligopolistic firms end up behaving like: a. a monopoly. b. monopolistically competitive firms. c. a cartel. d. perfectly competitive firms 8 Which of the following types of oligopoly competition would you expect to result in the highest market out put, other things equal? a. b. c. d. Stackelberg. Bertrand. Cornet. Collusion 9 The demand curve has a kink at the price which is equal to full cost price. (a) True (b) False 10. An pro? t maximizing, oligopolistic firms produces at an output level where: a. P = ATC. b. MR = MC. c. MR = ATC. d. AVC > MR. e.P = MR 11 Cartels are most likely to arise in which of the following market structures? a. Perfect competition. b. Monopolistic Competition. c. Oligopoly. d. Monopoly. 12 A cartel is a formal collusive organization of the oligopoly firms in an industry. (a) True (b) False 13 Needs such as training the group, setting standards and maintaining discipline, and appointing sub-leaders may be called: a. team functions. b. work functions. c. individual functions. d. task functions. 14 The Hall and flitch model of the kinked demand curve is based on an empirical survey of a sample of 38 well managed arms in England. a) True (b) False 15 The model uses the analytical tools of reaction func tions of the duopolists derived on the basis of is not profit curves. (a) True (b) False 16 The important models of non-collusive oligopoly are: (a) Cournot model, (b) Kinked Oligopoly demand curve models. (a) True (b) False 17 Which of the following is not an operations strategy? a. response b. low-cost leadership c. differentiation d. technology 18 Which of the following is not one of the leadership styles identified in House’s pathgoal theory? a. Participative. b. Employee-centered. c. Directive. d. Achievement-oriented. 9 The petroleum industry is an example of a. monopolistic competition. b. pure oligopoly. c. duopoly. d. differentiated oligopoly. 20 The kinked demand curve model assumes that a. firms match price increases, but not price cuts. b. demand is more elastic for price cuts than for price increases. c. changes in marginal cost can never lead to changes in market price. d. None of the above is correct. Answers for Self Assessment Questions 1 (c) 2 (a) 3 (d) 6 (b ) 7 (a) 8 (b) 11(b) 12(c) 13(a) 16(a) 17(d) 18(b) 4 (a) 9 (b) 14(a) 19(b) 5 (d) 10 (a) 15(b) 20(d) Chapter-14 PROFIT ANALYSIS 1.A variable cost is a cost that a. varies per unit at every level of activity b. occurs at various times during the year c. varies in total in proportion to changes in the level of activity d. may not be incurred, depending on management's discretion 2. A cost which remains constant per unit at various levels of activity is a a. variable cost b. fixed cost c. mixed cost d. manufacturing cost 3. A fixed cost is a cost which a. varies in total with changes in the level of activity b. remains constant per unit with changes in the level of activity c. varies inversely in total with changes in the level of activity d. emains constant in total with changes in the level of activity 4. Cost behavior analysis is a study of how a firm's costs a. relate to competitors' costs b. relate to general price level changes c. respond to changes in activity levels within the co mpany d. respond to changes in the gross national product 5. Cost behavior analysis applies to a. retailers b. wholesalers c. manufacturers d. all entities 6. The relevant range of activity refers to the a. geographical areas where the company plans to operate b. activity level where all costs are curvilinear c. levels of activity over which the company expects to operate d. evel of activity where all costs are constant 7. Which of the following is not a plausible explanation of why variable costs often behave in a curvilinear fashion? a. Labor specialization b. Overtime wages c. Total variable costs are constant within the relevant range d. Availability of quantity discounts 8. Firms operating constantly at 100% capacity a. are common b. are the exception rather than the rule c. have no fixed costs d. have no variable costs 9. Which one of the following is a name for the range over which a company expects to operate? a. Mixed range b. Fixed range c. Variable range d.Relevant range 10 The graph of variable costs that behave in a curvilinear fashion will a. approximate a straight line within the relevant range b. be sharply kinked on both sides of the relevant range c. be downward sloping d. be a stair-step pattern 11. A mixed cost contains a. a variable cost element and a fixed cost element b. both selling and administrative costs c. both retailing and manufacturing costs d. both operating and non-operating costs 12. The variable costing method is also known as the direct costing method indirect costing approach absorption costing method period costing approach 13.The costing approach that charges all manufacturing costs to the product is referred to as a. variable costing b. contribution margin costing c. direct costing d. absorption costing 14. Variable costing is acceptable for a. financial statement purposes b. profit tax purposes c. internal use by management only d. profit tax purposes and for internal use by management 15. CVP analysis does not consider a. level of activity b. fixed cost per unit c. variable cost per unit d. sales mix 16. Which of the following is not an underlying assumption of CVP analysis? a. Changes in activity are the only factors that affect costs b.Cost classifications are reasonably accurate c. Beginning inventory is larger than ending inventory d. Sales mix is constant 17. Which of the following would not be an acceptable way to express contribution margin? a. Sales minus variable costs b. Sales minus unit costs a. b. c. d. c. d. Unit selling price minus unit variable costs Contribution margin per unit divided by unit selling price a. b. c. d. 18. The level of activity at which total revenues equal total costs is the variable point fixed point semi-variable point break-even point 19. The break-even point is where a. otal sales equals total variable costs b. contribution margin equals total fixed costs c. total variable costs equal total fixed costs d. total sales equals total fixed costs 20. Gross profit also includes rent that arises from the entrepreneur’s own land used in his production of output. a. True b. False Answers for Self Assessment Questions 1. (c) 2. (a) 3. (d) 4. (c) 7. (c) 8. (b) 9. (d) 10. (a) 11. (a) 14. (c) 15. (b) 16. (b) 17. (b) 18. (d) 5. (d) 12. (a) 19. (b) 6. (c) 13. (d) 20. (a) Chapter-15 1. There are †¦Ã¢â‚¬ ¦. methods which can be used to appraise any investment project: (a) 1 (b) 2 (c) 3 (d) 4 2.National income is the total of the value of the goods and the services which are produced in an economy. (a) True (b) False 3. Which two of the following are likely to raise the equilibrium value of National Income? (a) Rise in savings. (b) Rise in imports. (c) Rise in government spending. (d) Rise in exports. 4. Which two of the following are excluded when measuring National Income? (a) Value added in the output method. (b) Value of intermediate inputs in the output method. (c) Consumer spending in the expenditure method. (d) Transfer payments in the income method. 5.The return on an investment comes in the form of a stream of earnings in the future. (a) True (b) False 6. Cost-benefit analysis is a process for evaluating the merits of a particular project or course of action in a systematic and rigorous way. (a) True ` (b) False 7. ‘Real’ investment is not (a) the amount that shareholders are willing to provide for shares in a company (b) the cost of development of a new product (c) expenditure on public relations, staff training or research and development (d) expenditure on non-current assets such as plant, machinery, land and buildings 8.Which of the following statements about IRR and NPV is not correct? (a) NPV always gives the correct investment decision. (b) IRR gives an unreliable answer with non-conventional projects. (c) IRR can accommodate changes in the cost of capital. (d) IRR is a useful relative measure if comparing projects of differing sizes. 9. Gross Domestic Product (GDP) is the total market value of all final goods and services currently produced within the domestic territory of a country in a year. (a) True (b) False 10. Which of the following will not be a relevant factor when using the payback method of capital investment appraisal? a) The timing of the first cash inflow (b) The total cash flows generated by the asset (c) The cash flows generated by the asset up to the payback period (d) The cost of the asset 11. Why the payback method is often considered inferior to discounted cash flow in capital investment appraisal? (a) I is more difficult to calculate (b) It does not calculate how long it will take to recoup the money invested (c) It does not take account of the time value of money (d) It only takes into account the future income of a project 12.Gross National Product is the total market value of all final goods and services produced in a year. (a) True (b) False 13. In 2005†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. was the least significant liability of U. S. nonfinancial businesses i n terms of total value. (a) bonds and mortgages (b) bank loans (c) inventories (d) trade debt 14. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. are examples of financial intermediaries. (a) Commercial banks (b) Insurance companies (c) Investment companies (d) All of the above 15. Financial assets †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. a) directly contribute to the country's productive capacity (b) indirectly contribute to the country's productive capacity (c) contribute to the country's productive capacity both directly and indirectly (d) do not contribute to the country's productive capacity either directly or indirectly 16. The means by which individuals hold their claims on real assets in a welldevelopedeconomy are (a) investment assets. (b) depository assets. (c) derivative assets (d) financial assets 17. Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the goal of the firm. a) True (b) False 18. Although derivatives can be used as speculative instru ments, businesses most often use them to (a) attract customers. (b) appease stockholders. (c) offset debt. (d) hedge 19. The investment in fixed assets increases the fixed cost of the firm which must be recovered from the benefit of the same project. (a)True (b) False 20. National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. (a) True (b) False Answer 1. (c) 2. (a) 3. (c) 4. (b) 5. (a) 6. (a) 7. (a) 8. (c) 9. (a) 10. (b) 11. (c) 12. (a) 13. (b) 14. (d) 15. b) 16. (d) 17. (a) 18. (d) 19. (a) 20. (a) Chapter-16 1. In period of inflation, phantom or paper profits may be reports as a result of using the: (a) FIFO costing assumption (b) Perpetual inventory method (c) LIDO costing assumption (d) Periodic inventory method 2. Inflation is: (a) an increase in the overall price level. (b) an increase in the overall level of economic activity. (c) a decrease in the overall level of economic activity. (d) a decrease in th e overall price level. 3. Aggregate supply is the total amount: (a) produced by the government. (b) of goods and services produced in an economy. c) of labour supplied by all households. (d) of products produced by a given industry. 4. The value of a dollar does not stay constant when there is inflation. (a) True (b) False 5. The inflation rate in India was recorded at 7. 23% in†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ (a) April of 2009 (b) April of 2010 (c) April of 2011 (d) April of 2012 6. The function of money that helps assess the opportunity cost of an activity is money's use as a (a) medium of exchange. (b) store of value. (c) unit of account. (d) store of debt. 7. An official measure of money in the United States is M1, which consists of the sum of (a) currency plus traveler's checks. b) currency plus checkable deposits. (c) currency plus traveler's checks plus checkable deposits. (d) currency plus traveler's checks plus time deposits. 8. Implies no trade-off between unempl oyment and inflation. (a) GDP deflator (b) Shoe leather’ costs (c) Long-run Phillips curve (d) ‘Menu’ costs 9. The inflation rate is used to calculate the real interest rate, as well as real increases in wages. (a) True (b) False 10†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ the quantity of money in the United States. (a) The State Department controls (b) The Department of Treasury controls (c) The Federal Reserve System controls (d) Commercial banks control 11.There are broadly †¦.. ways of controlling inflation in an economy. (a) 2 (b) 3 (c) 4 (d) 5 12. The balance of payments of a country is said to be in equilibrium when the demand for foreign exchange in exactly equivalent to the supply of it. (a) True (b) False 13. A general decline in prices is often caused by a reduction in the supply of†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. (a) money or debit (b) money or credit (c) money (d) None of these 14. The opportunity cost of holding money is the (a) inflation rate minus th e nominal interest rate. (b) nominal interest rate. (c) real interest rate. (d) unemployment rate. 15.If the Fed is worried about inflation and wants to raise the interest rate, it (a) increases the demand for money. (b) increases the supply of money. (c) decreases the demand for money. (d) decreases the supply of money. 16. The circular flow of goods and incomes shows the relationship between: (a) income and money. (b) goods and services. (c) firms and households. (d) wages and salaries. 17. Fiscal measures to control inflation include taxation, government expenditure and public borrowings. (a) True (b) False 18. Hyperinflation (a) occurs in the United States during each business cycle. b) occurs only in theory, never in reality. (c) has never occurred in the United States. (d) happens in all countries at some time during their business cycle. 19. Hyperinflation refers to a situation where the prices rise at an alarming high rate. (a) True (b) False 20. The inflation rate is used t o calculate the real interest rate, as well as real increases in wages. (a)True (b) False Answer 1. (b) 2. (a) 3. (b) 4. (a) 11. (a) 12. (a) 13. (b) 14. (c) 5. (d) 6. (c) 15. (d) 16. (c) 7. (c) 8. (c) 17. (a) 18. (c) 9. (a) 10. (c) 19. (a) 20. (a)

Sunday, September 29, 2019

Problems and Benefits of Privatization of Public Sector Organizations in China Essay

Privatization as an important role of economy , has great contribution for all over the world. So what is privatization? Privatization means transfer of assets of economic activity from public sector to private sector, it has been seen by many governments as a means of revitalizing inefficient industries and as an opportunity to raise revenues to ease budgetary problems; however, privatization in China is very complicated. When reform started in 1978, almost of the productive assets were state-owned in China. But reforms since then have not included privatization. Today, there is more than 70 per cent of Chinese productive wealth which belongs to Chinese government. During the first 20 years of reform, the government concentrated the country’s assets with a great purpose of development which helped to achieve the creation of infrastructure and expansion of industrial capacity. We can image, if the state assets had been privatized, it would become a big trouble for China to mobilize resources during the tremendous industrialization between 1980s and 1990s.That’s why the initial marketization-without-privatization approach has been successful. Also because of that, China has emerged a robust infrastructure and become an industrialized economy. However, this industry-first, government-investment-driven and export-oriented growth model which has been highly resource intensive has run its course. China has expanded export almost of the world, not only the developed countries, also Latin America, the Middle East and Africa. But this growth model is limiting the speed of export. China has to turn towards growth driven by domestic demand, not exports, and one led by service not industry to shift its economy. So what can help to stimulate the transformation? The answer is privatization. Privatization remains a thorny issue in a country where private property became a constitutional right only in 2004 and where the right to own productive assets remains unclear. Many vibrant, purely private companies have sprung up despite this uncertainty, but take care to stay out of the limelight. For example, the most famous Chinese private company is Legend Holdings Ltd, is Chinese investment holding company in IT, investment, and real estate formed by the Chinese Academy of Sciences- the best-known of which is the Lenovo Group in which Legend is the controlling shareholder. In 2006, the volume of its business was 4,033,096 million RMB. Another famous private company is Huawei which makes and sales telecommunication equipment. It is biggest supplier who provides the solution of telecommunication network. Until 2011, the whole company had 146,000 employees, and the annual sales volume was 203.9 billion RMB. Obviously the kinds of private companies become a main power to improve C hinese economy and increase national income. Proverbially, privatization can help to reduce the government financial and administrative burden. The best example is Legend Holdings Ltd. Legend Holdings Ltd was based on the Chinese Academy of Sciences. Chinese government only invested 200 thousands to organize the company. However, until now, the company has developed to an international holding company with the influence from all over the world. The Chinese government doesn’t manage the company directly but it controls a part of stock of the company. According to an analysis suggests that privatization of China’s state-owned enterprises is achieved with limited compromise on the social welfare responsibilities, and much of the improvement in the firm performance comes from the reduction in the agency cost at the management level. The state-owned enterprises generally have bloated management structure with excessive amount of managerial expenses. It is because the State Assets Agency has multiple objectives, and so long as the management meets those objectives it is neither motivated nor disciplined for profit maximization. On the contrary, private companies have their own management systems, they don’t have so much social welfare duties as state-owned enterprises. Rapid development of privatization also can help government to increase their financial income. According to the data suggests, in 2004, mainly to the private economy of small and medium-sized enterprises created 58.8 per cents of GDP, 68.3 per cents of exports and 48.2 per cents of revenue in China. Also we can see the data from Legend Holdings Ltd. Until 2003, this private company handed over to the national tax 5.45 billion RMB. As the state-owned enterprises, the government has to invest by themselves to get profit; however, as private company, government can get revenue without investing or management. Increasing efficiency and productivity in certain public sector is the third advantage of privatization in China. Some state-owned enterprises sale to specific purchasers through MBO(Management Buy-Outs). The managers cooperate with foreign companies which can help to import high technology equipment and improve the manufacturing technology. Obviously, this can increase the efficiency and productivity of company. The most famous example in China is Haier. Haier as a global electrical appliances brand, cooperate with 28 companies from difficult countries like America, Japan and Germany. As of 2008, Haier has surpassed rival Whirlpool as the world’s top refrigerator producer in terms of sales, according to Euromonitor, an independent business intelligence provider. Haier said it sold 12 million refrigerators worldwide last year, up 20% over the previous year. Its market share reached 6.3% globally. On the other hand, with the development of privatization in China, there are many problems which disturb the road of privatization. As I talked before, MBO is a kind of form of state-owned enterprises privatization. The government selling the state-owned enterprises to private organization or individual is another form. The biggest problem for this form is the individual will change the enterprise to family business. The Chinese Social Science Center had a research about Chinese private economy. The data showed 61.82 per cent companies admit that they are family business. Only 27.4 per cent of enterprises’ stock was controlled by family under 90 per cent. In China, family business enterprises’ average life is only 2.8 years. Why? Many bosses of private companies provide management job to their family. However, with the development of enterprise, importing the skills of manufacture and the experience of management become more and more important. Family members are not en ough for the development of business. The crisis of stock is another problem for privatization in China. A while back Huawei company was in trouble of old employees demanded the stock of enterprise. According to this event, we can notice there is more stock crisis in privatization of China. The owners of enterprises want to control the whole company; however, when the state-owned enterprises change to private enterprises, the distribution of stock is very confused. The lack of clear strategy of cooperation and the lack of coordination system make the partner scramble for stock, which can make the management layer into disarray. The developing of enterprise is seriously for entrepreneur. However, the growth of enterprise is not only expanding the company or increasing the number of employees, it appears in many aspects. Chinese entrepreneur always want to control their companies, this means they do not want to decrease their stock of the company. This phenomenon result to the lack of investment. For example, we can connect to family business. The lack of investment and management skills make the enterprises’ average life only 2.8 years. How to affect foreign investment and increase the capital is big challenge for Chinese entrepreneur because when the enterprises become private, the government cannot control or manage or invest to the companies directly. China’s privatization has developed more than 20 years, the private company increase the government financial income and develop Chinese economics. However the privatization in China is still not mature. A state-owned enterprise which changes to private enterprise has to face many problems. In general, the trend of Chinese privatization is optimistic. This also can help to develop the world economics.

Saturday, September 28, 2019

Alumni Tracking System Essay Example for Free (#2)

Alumni Tracking System Essay An issue tracking system (also ITS, trouble ticket system, support ticket or incident ticket system) is a computer software package that manages and maintains lists of issues, as needed by an organization. Issue tracking systems are commonly used in an organization’s customer support call center to create, update, and resolve reported customer issues, or even issues reported by that organization’s other employees. An issue tracking system often also contains a knowledge base containing information on each customer, resolutions to common problems, and other such data. An issue tracking system is similar to a â€Å"bugtracker†, and often, a software company will sell both, and some bugtrackers are capable of being used as an issue tracking system, and vice versa. Consistent use of an issue or bug tracking system is considered one of the â€Å"hallmarks of a good software team†.[1] A ticket is an element contained within an issue tracking system which contains information about support interventions made by technical support staff or third parties on behalf of an end-user who has reported an incident that is preventing them from working with their computer as they would expect to be able to. Tickets are commonly created in a help desk or call center environment. Typically the ticket will have a unique reference number, also known as a case, issue or call log number which is used to allow the user or support staff to quickly locate, add to or communicate the status of the user’s issue or request. These tickets are so called because of their origin as small cards within a typical wall mounted work planning system when this kind of support started. Operators or staff receiving a call or query from a user would fill out a small card with the user’s details and a brief summary of the request and place it into a position (usually the last) in a column of pending slots for an appropriate engineer, so determining the staff member who would deal with the query and the priority of the request. Alumni Tracking System. (2016, Dec 09).

Friday, September 27, 2019

GLOBUS ENTERPRISES YEAR END BALANCES Assignment

GLOBUS ENTERPRISES YEAR END BALANCES - Assignment Example $81,200 and it is believed that it should be allotted either in attractive investments or transferred to retained profit account. The current ratio of 2.37 shows that the company has sufficient funds for fulfilling its liabilities and it should consider about decreasing the amount of current assets to a significant level so that there is proper balance between the assets and liabilities of short term period within the organization. This balance between the assets and liabilities would prove to be useful for the business in the long term and allow the organization to gain competitive advantage. The net working capital is an important indicator about the proper allocation of a company’s current assets and it is used to review the financial health of the company for one year. Considering the working capital of Globus Enterprises which is $86,800, it is a clear sign of the organization that it is in effective utilization of the company’s resources. It shows that the company has a positive working capital and has appropriate amount of liquid cash to meet the immediate monetary requirements of the business. Positive working capital for the business is a highly advantageous position for the business. Businesses require capital for expansion and other investments and positive working capital would assist the business in accomplishing such goals. It has to make sure that its working capital ratio is grown in an upward direction in upcoming years so that it does not have to face any sort of financial problem and it can smoothly run its business operations. The figure also ensures that it is able to pay off its current liabilities without any difficulty and it can even bear any expense required for the prepayments with convenience. Globus Enterprises has debt to equity ratio of 1.1 which is a good sign of the company’s internal health. For every organization, the ideal ratio is in between 1-2 and the company’s figure

Thursday, September 26, 2019

HUI 235 Sex Love and Tragedy in Early Italian Literature Assignment

HUI 235 Sex Love and Tragedy in Early Italian Literature - Assignment Example Dante took pains for the development of his character reaching the final concept of love. He presents her first as a quite ordinary woman who achieves greater status at the end and it likens her to Christ. Here Dante wins his attempt of constructing his own legend; the Holy Beatrix. Dante could not acknowledge the fact that Beatrice was one of many ladies. Later, different meanings are attributed Beatrice like the symbols of Christ and miracle (The Florence Newspaper, n. d.). Virgil is the other character appearing with Dante in Inferno. Critics have attributed different symbolisms to the presentation of Virgil’s ghost in the poem. They are of the opinion that the ghost represents human reason which guides and protects persons from the world of sin. Reading through the poem, one feels that Virgil’s character best suits for reason where he proves sober, measured, resolute, and wise. He has been presented in the poem as the protector of Dante from demons and monsters. Virgil also reminds the readers about the significance of religious faith— Reason is powerless without faith, by following the words of angelic messenger. Here, Virgil acts as the guide of Dante, who enables Dante to have a clear view of Hell and for strengthening his moral lessons. He leads him as a master, expressing the acknowledgement and appreciation of the classical tradition. Francesca was the contemporary of Dante, whose presentation in Inferno attracted the attention of many critics. According to them her personality is sufficient to atone for her sin. For a reader it is easy to understand her character. Presenting Francesca in his poem was a great challenge to Dante. But he won in his attempt to present her as one of the most charming creatures to appear in world literature (Alighieri,Dante., Musa, Mark, 1995. P. 310) Her aristocratic behavior is well appreciated and it enables her to wipe out her

Business Research Method2 Essay Example | Topics and Well Written Essays - 2250 words

Business Research Method2 - Essay Example The metamorphosis of education industry is visible at all levels such as primary education, secondary education, higher education, adult education and alternative education. The change has been with the curriculum, learning modalities, teaching, technology, and economics. Education at preschool levels: Education at the preschool level has seen enormous changes in the last two decades. Preschool or Childcare was initially started with an intention to serve those working couple who have to leave the child in a creche, which can take care of the child during the day. Gradually these creche started converting themselves into education providers for the little toddlers. Creches not only provide care for children of working mothers but also play an educational role, with the pre-school education play a key part in child's development (Vlok 1996, pg.403). These schools fulfills the basic issues which the parents would like their children to achieve including personal, social, and emotional development apart from communication, knowledge and understanding of the world Since the initiation of the globalization process, the education industry has changed completely. Now educational institutions can spread their wings globally to any part of the world where potential exists including in developing but potential countries like China, India, etc. Educational institutions try to enter new markets through entry strategies like the franchisee system. According to a report â€Å"the preschool industry in India accounts for 985million$ and the largest chain of pre schools in India comprises of just 550 schools, less than 4% of the total market potential of 15,000 preschools†. (Kumar 2008). Though the above mentioned fact, it is very clear that in a country like India there is a huge potential to start preschool businesses. Modern pre schools which would like to distinguish from the rest and stay away from cut throat competition, now offers other extra curricular activitie s to the children who enroll with them like playing, teamwork, self help skills, scientific thinking, creative arts, etc. As far as the pre school industry is concerned the competition is from the unorganized sector. Parents wanting to put their wards in the best schools located at far away places have left many a school go vacant in the UK. In December 2008, revised school admission code was formulated and was presented in the parliament. One of the agenda is to â€Å"improve the application process so that parents can apply for a school place to the local authority in which they live, instead of the authorities where their preferred schools are located† (nfer.ac.uk) With the visible improvement in the lifestyle of the people, the demand for a well structured, branded pre-school will grow leaps and bounds in the years to come. â€Å"The preschools which have a good track record and look for new things to inculcate in their curriculum remain successful. Moreover, the educati on and training sector is ever growing and everyone wants to try his or her hand at it.† (Arora 2010). The other issue plaguing the pre-school sector is the shortage of teachers, which has become a universal challenge. The global teaching force in primary education has expanded since 1971 but, has slowed down ever since 2000. In primary education sector, education providers who can provide a decent pay to the teachers could stay afloat in serious competition.

Wednesday, September 25, 2019

John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 words

John Maynard Keynes - Essay Example He initiated the "Keynesian Revolution" which split economics into two divergent paths; one away from a traditional laissez faire economic system and toward an economic theory that saw the government as an essential player in maintaining growth within a capitalist economy. The following paper will review the economic policies of Keynes. Firstly, a review of his contribution to the USA recovery form the Great Depression shall be given. Secondly, a discussion of Keynes contribution to the global economic recovery following World War II will be presented. Thirdly, the use of Keynesian theory during the Conservative Era in the USA will be outlined. A conclusion will summarize the main points of the paper. The Great Depression was a global event of economic downturn that was initiated in 1929 and spanned across a decade until 1939. As such it is the longest and most harrowing depression that the industrialized world had known. Beginning in the USA, the Depression resulted in significant reductions in output, widespread unemployment and poverty, and acute deflation worldwide (Romer 3). At the time, the gold standard provided almost a global network of fixed currency exchange rates, and it has been stated that this was a core reason that the economic downturn in the USA swept through other national economies. In the USA, the Depression has been described as the second worst socio-cultural event since the Civil War. The actual causes of the Depression are still contentious issues today among economist and academia. Although it is generally agreed upon that there was a multitude of contributing factors; declines in consumer demand; financial panics; and misguided government policies (Calo moris 5; Romer 4). The recovery from the Great Depression was enabled by fundamental changes to national economic approaches, macroeconomic policy and the theory of economics itself. Keynes played a key role in the recovery with his advocating of interventionist government policies, which required the government to draw on fiscal and monetary sources to buffer the detrimental effects of the present Depression, as well as future potential recessions and booms. Keynes stressed the need for the government to intercede occasionally and exert force on the market economy (Romer 3; Skidelsky 5). Previous to this time, economists had simply believed that an economy would continue to grow and develop; it was thought that a market failure would be a temporary situation that could fix itself if given time. This laissez-faire approach was developed by the economist Adam Smith. It was argued by Smith that if the market was left alone it ("the invisible hand") would run itself (Skidelsky 15).In fact, many approache d an economic crisis as a state that would stimulate new opportunities to make a profit. Keynes, though presented a theory wherein the economy could become stagnant, and remain so, regardless of the amount of unused resources. He postulated that capitalism had no intrinsic ability to maintain growth regardless of external circumstances (Romer 7). Such a dramatic shift from the present approach to economics was revolutionary; that during times of severe depression the government was the only hope for an economic recovery. In this way, Keynes became known as the father of

Tuesday, September 24, 2019

Discrimination Law In Employment Essay Example | Topics and Well Written Essays - 1000 words

Discrimination Law In Employment - Essay Example Having had a trans-gender operation will not alter her efficacy as a worker in any significant way. Hence, Alluria’s is a clear cut case of injustice and if she makes a lawsuit she will win. The Disability Discrimination Act of 1995 describes a disabled person as someone who has a â€Å"physical or mental impairment, which is long-term or substantial and makes them unable to carry out normal day to day activities and has more than a minor or trivial effect and lasts or is likely to last at least 12 months.† Karen’s disability has been congenital (hence long-term), substantial and certainly not trivial. It is difficult to see how Karen can be effective in a boutique with such a major disability. However, she had a right to apply for the job. She also did the right thing by disclosing her disability during the interview. It is due to the sloppiness of the interviewer that she got hired in the first place. If this is the real issue then Sonia should inform her so and follow proper Employee Dismissal Procedure, with its due notice period, full and final financial settlement, etc. But Sonia had not pursued this line of action and instead is nagging Karen t o â€Å"stop biting her nails†, which is irrelevant to the issue. Karen is also being victimized by Sonia for taking her previous employer to the Employment Tribunal. Karen had every right to take her previous employer to task. Discrimination by way of victimization is said to occur when an employer treats the employee less favourably due to their actions they have taken under or in connection with the DDA Regulations. In sum, Karen has two grounds for discontent – Disability Discrimination and Victimization – if she decides to take legal action. But Karen has to ensure that the total number of personnel in the boutique is more that 20, as the DDA is applicable only to employers with 20 or more employees. Also, she has to confirm that her particular

Monday, September 23, 2019

Business Plan Essay Example | Topics and Well Written Essays - 4000 words

Business Plan - Essay Example ............................................page 4-5 5). BUSINESS AIMS..............................................................................................page 5 6). BUSINESS OBJECTIVES..............................................................................page 5-6 7). BUSINESS PRODUCTS AND SERVICE.......................................................page 6-7 8). MARKETING MIX............................................................................................page 7 9). BARRIERS TO ENTRY....................................................................................page 7-8 10). DEFINITION OF TARGET MARKET.........................................................page 8-9 11). BUSINESS ENVIRONMENT..........................................................................page 9-10 12). COMPETITOR ANALYSIS.............................................................................page 10-11 13). MARKETING PLAN.................................................... ....................................page 11-12 14). OPERATIONAL PLAN....................................................................................page 12-14 15). FINANCIAL PLANNING AND FORECASTS..............................................page 14-15 16). RISK MANAGEMENT.....................................................................................pag 15 17). HUMAN RESOURCE ISSUES........................................................................page 15-16 18). ... INTELLECTUAL PROPERTY MANAGEMENT†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦page 20 22). CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...page 20-21 1). EXECUTIVE SUMMARY This business plan is designed to secure funding for my idea, which is basically a restaurant and cookery school in Leicester city and/or surrounding villages in the United Kingdom. It covers the following topics: the business idea, business vision, a mission statement, aims, objectives, the product or service, marketing mix, barriers to entry, a definition of target market, the business environment, competitor analysis, marketing plan, operational plan, financial planning and forecasts, risk management, human resource issues, design strategy, time management, potential five year development plan and intellectual property management. I am seeking money from pot ential investors, business advisors, and bank managers who will see this business plan. Therefore, in this business plan, the following key questions are addressed: 1). How much investment do I require?; 2). What percentage equity am I offering in return for the investment?; 3). How will the investors obtain a return on their investment?; 4). What is the potential financial exit strategy for the investors? The business plan provides the answer to all these relevant topics and questions. 2). THE BUSINESS IDEA The business idea of Extensively British restaurant and cookery school comes from its owner’s dream. It will be a 100 seat restaurant with a 20 seat lounge, and 2 rooms for instruction with a capacity for 30 students yearly. Its specialization is British cuisine with an Italian touch. The students will take classes from the cookery school, so the restaurant and cooking courses will be in the same place. It

Sunday, September 22, 2019

A Beautiful Mind Essay Example for Free

A Beautiful Mind Essay You have to wonder what goes through the mind of a person with schizophrenia. I have often wondered if the people who have this disorder have had experiences similar to those of John Nash, portrayed by Russell Crowe, the Oscar nominated best actor in a leading role. The movie was A Beautiful Mind. This 2001 film received four Oscars in 2002 for Best supporting Actor, Best Director, Best Picture, and Best Writing Screenplay Based on Material Previously Produced or Published. I think all too often people are given medication and other intrusive forms of treatment for mental illness when cognitive therapy with motivating factors can help to overcome the crippling illness. This is the drama represented in this film. This film depicts mathematician John Nash and his lifelong struggles with his mental health. Enrolling at Princeton in 1947 as a graduate student, Nash almost immediately stood out as an odd duck (Honeycutt). He devoted himself to finding something unique, a mathematical theorem that would be completely original. He kept to himself for the most part and while he went out for drinks with other students, he spends a lot of time with his roommate, Charles, who eventually becomes his best friend. Five years later John is a professor at MIT where he meets and eventually marries a graduate student, Alicia. The problem that John Nash writes on the blackboard in his lecture is a real one (unlike in other movies, where math on boards is usually either too simple or fake). See more:  Masters of Satire: John Dryden and Jonathan Swift Essay There is an important theorem in mathematical physics that directly says the answer to this is 1. Later, when he discusses the problem with Alicia Nash, he makes additional restrictions for the solution, without which the problem is much harder, so he is pretty confident she didnt solve it. Over time however John begins to lose his grip on reality, he secretly goes to work for the Pentagon and an elusive spy, breaking hidden messages from the coded newspapers sent by Soviets to operatives in the United States, warning of Armageddon (David). As the depths of his imaginary world are revealed, we find out that Charles, along with his niece, is a figment of his imagination; Nash withdraws from society and eventually is institutionalized and diagnosed with schizophrenia. Years of partially successful psychiatric treatment combined with medication follow, and although there was some success with this form of treatment, Nash realizes his thinking is a fog and his marriage is falling apart and to op it off he does not feel like he is a husband. With tremendous effort and much practice he learns to ignore the delusions of his mind and focus on reality, Alicia stands by him and continues to support Nash in his daily struggle. Its not until the 1970’s that John makes his long journey back into the world of academics, gradually returning to research and teaching. In 1994, John Nash was awarded the Nobel Prize in Economics (David). Paraphrasing Nash’s acceptance speech, in the movie Russell Crowe sums up his career by saying â€Å"And I have made the most important discovery of my career, the most important discovery of my life: It is only in the mysterious equations of love that any logic or reasons can be found (Crowe). † In conclusion I would like to state that by being compassionate and loving towards a person with mental illness it is possible to help them to cope with life without drugging them. Thank you. Are there any questions?

Friday, September 20, 2019

History of Tourism | Comparing Past Tourism to Today

History of Tourism | Comparing Past Tourism to Today In 1936, the League of Nations defined foreign tourists as someone traveling abroad for at least twenty-four hours. Its successor, the United Nations, amended this definition in 1945, by including a maximum stay of six months. Since the human race existed they have been migrating, travelling all around to achieve different goals, religious purposes, sports, and other leisure activities, for better life, better facilities. In fact there can be hundred reasons for travelling. There cant be fixed and set date to determine when and where and how the first pilgrimage occurred but we can say people started travelling and moving back and forth since they were born. But if we look through the history then we see it happened in 5th and between 3rd millennia BC, when paganism was the culture and religion in the Europe. In the Christian world people have been travelling to Israel where Jesus was born and lived because they spiritually relate themselves to the holiness, and to the shrines of disciples. In the Muslim world the first pilgrimage occurred in 629-628 CE. And it was from Makkah to medina. (www.grand-tour.org) In the ancient times Hindus, Romans, Greeks have long been migrating, travelling for different reasons. So its not particularly related to any specific religion. Grand Tours: Grand Tour specifically means the travel taken by young, wealthy, privileged people for the purpose of education, enhancing their travelling experience to excel in their careers. Grand tours history dates back to the 18th century Britain when the British people and their country was the wealthiest on the face of the earth. So the wealthy people used to send their young kids on grand tours to different countries, mainly to Europe to enhance their experience to practical life and for the education related purposed as well. In Britain Thomas Coryats travel book Coryats Crudities(1611) was a great influence Grand Tour but it was the far more extensive tour through Italy as far as Naples undertaken by the Collector Earl of Arundel, together with his wife and children in 1613-14 that established the most significant precedent. 3. http://en.wikipedia.org/wiki/Grand_Tour Grand Tours was involving a period of year long, because in those times the means of travelling were so slow and because the term grand tour ventures more than one country so it used to take one year or more. As the time passed the means of travelling got so fast, challenging and more efficient the travelers went more far and far for more exotic places and countries. James Boswell was the most famous in this regard who kept all records in a journal of his travelling and other experiences during such Tour. The first Journal Grand Tour and was published in 1749 by Thomas Nugent. Regarding the professional Travel and tourism the first person to develop this idea was Thomas cook in 1850s he developed and then on he offered travel packages to all parts of the world. So this thing eventually made this effectively cheap and affordable for the middle class as well, as it was only affordable for rich people before. In 1867, Mark Twain had a European and Eastern Mediterranean Tour and sent back the dispatches to Alta California, which was a San Francisco paper. His dispatches were later published a book called The Innocents Abroad or The New Pilgrims Progress. In 1873 at the age of 10 William Randolph Hearst took Grand Tour, travelled one and a half year with the habit of collecting. And his collections can be seen at Hearst Castle in USA. By the late 19th century, the Grand Tour had turned to be an American phenomenon because newly wealthy citizens related themselves to the heirs of the western traditions and they traced their cultural lineage from the Greece to the Roman Empire, European Renaissance. So during those times rich Americans would tour ancient cities of Mediterranean, great European cities as part of their Grand Tours. They felt so related and aspired by the Venices well-to-do merchants and traders who collected the wealth from around the world, loved the architecture. From 1960s the grand tour has taken a totally new shape all over again, students are travelling with backpacks and living in the youth hostels and travelling around. Because the means of transportation are increased to the maximum level, things are starting to slow down a little bit like the olden days, i.e. people again starting to find ships, cruises more lovely and enjoyable like olden days. (www.grand-tour.org) The Modern Tourism: The difference between modern and past tourism is that, modern tourism involves mass availability and mass participations in holidays. Modern travel involves a universal access to travel for individual in every part of the world with destination on an international scale. Modern tourism involves many different types each that in turn have had an impact on the transport means. The different types of tourism can be divided based on the tourists main interest of their trip. Tourism can involve one of the following; adventure, pleasure, sports, cultural, sports, study, incentive, research, professional and country. (www.exampleessays.com) Modern tourism is totally changed from the past because it has got vital modern tool which are high -tech and fast and they save a lot of time. So since the modern inventions have arrived such as, trains, airplanes, cruises, ships, roads, trains, they have changed the face of tourism tremendously. The whole scenarios have been changed. Travel has become cheap and within the access of everybody unlike the past where only rich and wealthy were the ones who were able to travel. Now the tourism has become faster, easier and cheaper and easier and there are more varieties in the forms of tourism then the past. Here we will discuss some of the modern historic developments that has helped modern tourism to take a whole new shape. Factors Facilitating Growth of the Travel and Tourism: The most important factors which are facilitating the travel and tourism and their growth are as follows: Sea Travel. Rail Travel. Air Travel. Sea, air and rail have been playing an important part in the growth of travel and tourism. With these factors the tremendous growth and increase in travel and tourism have become possible. Trains: In the past traveling was so slow, it was taking months and years to travel but since the invention of the trains it has become far easier and faster to move around and its one of the most enjoyable way of traveling among the tourists. The history of rail transport dates back nearly 500 years, Modern rail transport systems first appeared in England in the 1820s. 6. http://en.wikipedia.org/wiki/History_of_rail_transport. Ships and Cruises: The first boats are presumed to have been dugout canoes, developed independently by various Stone Age populations, and used for coastal fishing and travel. 7. http://en.wikipedia.org/wiki/Maritime_history The earliest boats were invented by Egyptians in 3100 BC, and then in 2700 BC they invented ships for trade. (www.localhistories.org) The age of sail, technically and formally speaking, is the period in which international trade and naval warfare were both dominated by sailing ships. The age of sail mostly coincided with the age of discovery, from the 15th to the 18th century 9. http://en.wikipedia.org/wiki/Maritime_history The modern cruises are the most modern addition to the sea travel. The cruises have casinos, swimming pools, playing fields, dance venues or we can say the provide almost all the facilities like any high class hotel. Traveling through cruise has become posh and very fashionable and people are being drawn more towards the traveling through cruises. Air Travel The first hovercraft was launched in 1959. The first hovercraft passenger service began in 1962. In 1919 aero planes began carrying passengers between London and Paris. Jet passenger aircraft were introduced in 1949. However in the early 20th century flight was a luxury few people could afford. Furthermore only a small minority could afford foreign travel. Foreign holidays only became common in the 1960s. The Boeing 747, the first Jumbo jet was introduced in 1970 and The Channel Tunnel opened in 1994. (www.localhistories.org) Since the invention of the aero planes the humans have traveled to even those parts of the world where traveling was literally, virtually was almost impossible. Current and future Trends and Development in the travel and tourism sector. In the travel and tourism sector with the modern hi-tech technology, faster means of communications, faster means of transportations, modernized approach in every part of the travel and tourism industry from travelling to hospitality to accommodation everything has become faster and more sophisticated. And in the recent years there has been huge rise in the sector. And the future trend is going up as well. Poetry: History And Origins Of Poetry: History And Origins Of Literature is as old as history of the man itself. Over the past few decades, the role of literature in language learning teaching has been subject to variations. However, literature was excluded from language teaching programme owing to many reasons. The common among these was it structural complexity and its unique use of language. As, literature reflects cultural perspective which is difficult to conceptualize by foreign language students, therefore, it is uninteresting for them. Literature is being considered to be an integral part of any language teaching and learning programme. Language and literature are inseparable. The inclusion of literature in language teaching and learning can bring a fresh breeze into the dry and mechanical task of language learning and teaching. Inge (1970) says, Literature flourishes best when it is half trade and half an art. Literature makes language learning enjoyable because it does not only provide a genuine context for communication, but it also gives pleasure by engaging emotions. Therefore, it motivates and stimulates the language learner. Stop ford A. Brooke (1970) says, Literature is something that gives pleasure to the reader. Moreover, literature has different genres like plays, essays, short stories and poetry. The major focus is on the poetry. Before it, here is a definition on literature. Oscar Wilde (1970) says, Literature is something that is to be written not to be read. In early period, conventional blocks were linked together. According to agreed rules, we can observe much in folk song where the old method was never discontinued. Blave argues that by the end of mediaeval period, literature had been written in English for hundreds of years and it was seen that there is no existence of knowledge of previous literature and language. English appeared to be a language without a past and with a literature that was always modern. Hence words could not attract to themselves those associations linked with known literary works or linguistic origins. English words were insubstantial things which had to be given meanings by many devices such as repetition. 2.2. Poetry: Poetry grasps students attention, its format and style is different as compared to the ordinary run of literary texts. Other than this, poetry is one of the most ancient and widespread of the (literary) arts. Poetry is an important genre in English literature. In poetry, we find fantasized, imaginative world. Here are definitions: Eliot (1970) says, Poetry is the imagination that presents its subject with clarity, precision and economy of language. Sidney (1970) says, All the imaginative literature is poetry. Poems are at times better to use in the classroom because they are briefer and more compact than essays or even short stories. Coleridge (1970) says, The best words in the best order Poetry helps the readers to become more intensive reader and most jobs today still call for some close reading and clear writing. Poetry also reflects the culture of a society to a great extent. It also acts as a mirror of the changing times of a country. Taking the poetry of Pakistan for example, we can get clear picture of the changing viewpoints which are going on in Pakistan at that times. Poetry is used all around the world for teaching and learning purpose. Simple English poems are rich in suggestive, colourful and associative word and expressions which speak subtly different messages to different people. Each personal meaning found in the poem is shared, exchanged, negotiated, reinforced, valued, or loosed in the process of interacting freely, safely, funnily with others findings. There are different meanings to understand poetry. But here, the focus is only on the connotative meaning. 2.3. History / Origin of Poetry: Poetry is not very popular these days. This is an obvious fact for poets, teachers of poetry and poetry-lovers. A different kind of poetry is very much alive today in the forms of popular music lyrics and raps and in jingles but for advertisement and for political purposes. These forms are mostly kept in listeners memories due to the commercial pressures. But many of these forms clearly depend on music or on the interaction of words and music,or on the additional qualities of performance in order to succeed because the written texts may be uninteresting and may miss the special points made by the interaction of music and words in performance. In literary poetry, since the beginning of the twentieth century, practice has shifted away from audible rhythm and towards free verse. For a few decades, while the traditions of rhythm were still active in minds of readers, the free verse of Eliot Pound, Williams and H.D. and the syllabic verse of Marianne Moore could be received as experiments in new sorts of rhythm, reactions toward or against conventions of meter, defamiliarizing the real rhythms of spoken word. The notion of meter in written poetry has vanished from the public memory so there is no interest in written poetry for general readership. This shift founds in the history of western poetry towards the effacement of the bodily pleasure that is experienced in the regular, musical rhythm of meter and towards the meaningful poetry as act of communication. Anthony Easthope (1983) has described the history of this trend within the frame work of the ascendancy of bourgeois culture and of individual subjectivity. The argument of Easthope is deep and compelling and Amittai F. Auiram has been as having something of a complementary relation with it. But Easthope emphasizes the revolutionary aspects of modernism in poetry and sees poet like pound as reversing and breaking the trend towards bourgeois subjectivity, Avirain sees pounds abandonment of traditional forms, his insistance on the rhythm of each line representing the sense as only a continuation of that very trend. In short, it is attend away from poetry toward prose, narrative or exposition; away from the rhythmic pleasures of the body and towards its repression in social discourse; away from the runs subjective effect of rhythm and toward individual expression, socially constructed, as in pound, than self begins to reach the limits of its own undoing. The trend from poetry toward pro se should be seen within the context of a theory of poetry but has become especially prominent in modern times as society has shifted what toward the importance of information in its material life. Thing are not valuable for the physical adventures they offer so much a for what they mean in the most reductive sense, for example, how much they cost, what they are worth on the market. For twenty five year T.S Eliot exercised an authority in the literary world not posses by any writer before him for more than a century. Bu the end of 1920s his poetry was an escapable influence on younger poets and his criticism shaped their word and he was pared by many authors. Twenty year later, the waste land was still widely regarded as the most radical and brilliant development of modernist poetry. An important point is that one must have seen the ages of 1940s and 1950s in which Eliots literary terms and judgments were cited frequently and respectfully. Moreover, Christian ideology was unattractive to many scholars in England and the united states. Thus Eliot was seen as a central poet in the future development of poetry and no poet can compete him. Poetry Strategies: Understanding modern poetry requires an understanding of the following: (1) Free Verse Most modern poems are written in free verse. Free verse has no fixed meter and no fixed line length or stanzas. The poet decides where the line should break based on how the poem should look on the page or where a natural break occurs. (2) Literal and Symbolic meanings The literal meaning of modern poetry often reflects everyday life. They everyday scenes are full of symbolic meaning. (3) Diction Modernism is a deliberate break forms that characterized traditional poetry. Whereas traditional verse relied on formal language, modern poetry uses informal, everyday speech. Understanding of Poetry: English language includes numerous words that main virtually the same thing. Each and every word has a slightly different pattern of sound and shade of meaning that will create a certain individual effect on the reader. As a result, the reader has the power of word choice. The sound of a word can be very important to the mood you are establishing in a poem. For example, compare these two separate stanzas. The old man wrenched His sack of guts And hacked a cough The senior detected A murmur In his intestines We should be able to hear how the hard sounds of the first stanza contrast with the softer sounds of the second. The sound also have a great effect on the meaning and the melody of each live. The old man in the first stanza seems to be in a much worse state than the senior in the second stanza. The words hacked and cough echo the hard sound of the mans coughing while the words murmur and intestines in second example reduce the seniors illness to minor discomfort. Connotation: Connotations are ideas that are associated with a word. These associations go beyond the dictionary definition. The word snake for example, may be defined as a member of the reptile family but this word has many associations like someone or something that is dangerous, low down or slimy. In addition to having a connotation, some words have a symbolic significance due to past associations. For example, as a result of the Garden of Eden story, a snake is associated with evil, especially an evil tempter. In western literature and everyday usage, animals and colors have often been used as symbols, as have the reasons of year, times of day, geographic terrain, natural elements and natural and man-made objects. Connotations are the overtones of word, their vibrations good or bad. Connotation is also to denotation as the figurative is to the literal. Connotation represents the things that a person associates with a word. There are different kinds of meaning in English language. But there are two major kind of meaning to understand the poems or stanzas. These are denotative meaning and connotative meaning. Denotative meaning is a primary meaning of a word. For instance, bread is an edible made up of flour, yeast, water and so on. On the other hand, connotative meaning is a secondary meaning of a word as well as symbolic meaning of a word and cultural dimensions. Bread is a word that is used for money and it is the staff of life. It is through a piece of writing that a person discovers the intention of the writer. Tone controls how a person reads a words denotative and connotative values. Connotation refers to the feeling or images a word evokes in the reader. Students are better able to recall any vocabulary term if they can make a personal association with it. Connotation means what may be differentiated from the former as suggested, implicit or intimated meaning. The following term describes the concept of connotation/denotation that was explained by justice Windeyer in the Queen V. commonwealth Conciliation Arbitration Commission; ex parte Professional Engineers Association: In interpreting the Constitution, we must not restrict the denotation of its terms to the things they denoted in 1900. The words denotation becomes enlarged as new things falling with in its connotation comes into existence or becomes known. But the connotation or connotations of its words should remain constant in the interpretation of the constitution. Words would have borne in 1900 so we are not to give word a different meaning from any meaning. Law is to be accommodated to changing facts. It is not to be changed as language changes. The dictionary helps a lot to see a series of meaning that a word has acquire since it inception. These meanings are the words connotations. When words have several connotations, a person must rely upon its context to derive its meaning. For example, the word blue has gathered different connotations. First, blue refers to the color. There are also dress blues, a term referring to a military uniform. Blue can also mean depressed or melancholy and it also means the musical genre. The word blue also appears in the common expression blue in the face and out of the blue. So, a word blue ha quite a lot of meaning packed into it. Many other word carry a list of connotative meanings as well. A port is better able to learn as many connotative meanings as possible by using words with several meanings in his poetry. He can broaden the scope of his work and can also help the reader to reach a more diverse population. 2.7. History of Connotation: In medieval literature, there are two major sources of connotation that are native and foreign. The former refers to potential associations inherent in words due to their Germanic pagan links and the latter to the associations which learned loanwords bring in the train. Alliterative revival which led to a different vocabulary being used in each period, naÃÆ'Â ¯ve connotations for word in Middle English are difficult to detect. So to consider the possibility of native connotation it is better to take the Anglo-Saxon period. It is closer to the Germanic background in time, and it literature seems to spring from a more unified cultural tradition than that from the middle English period. We are left on individual word which may have connotations. Many of the words used in old English poetry are Germanic stock and as such they may have carried pagan heroic connotations with them. In the nineteenth and early twentieth centuries, it was believed that old English poetry was essentially Germanic and heroic in spirit so the words of the poems were interpreted as though they carried pagan connotations. It was seen that pagan connotations for Anglo-Saxon words are replaced by Latin ones. It is easier to prove a Christian Latin association than a pagan heroic one, on one ride because of the nature of Latin language and on other because no pagan Germanic poetry survives. 2.8. Importance of Connotation: The words connotative meanings dont explain themselves for systematic explanation but they are generally work on particular words that surround them. E.g. Everybody knows that good is used to describe the high quality, positive, approved of or appreciated things. But it has also some additional meanings. In an utterance such a shes rally a good person, It connotes someone who is generous, kind, thoughtful, honest and reliable. When we say shes a really good student, the connotation shifts in the direction of brought, motivated, hardworking, organized, cooperative and so on. For describing good story, the word good means interesting or involving. In other words, what makes a person good is not the same set of qualities that makes a student good, or a story good. And of course, good does not mean good at all in a sarcastic tone. A good dictionary can be of some help here. It provides guidance to the teacher as well a extensive and intensive experience with texts. It is finally by seein g and hearing words in actual contexts of use and by assimilating other words. It means that learners will be able to seek their connotative meanings. And hearing is important. Knowledge of a languages sound system is really necessary in speech and is also essential in reading particularly in reading of poetry. Connotations are changing the course of history and of human knowledge. It will point out the relation between connotation and designation. It has seen that if the people behave in a way that makes for fame or infamy, the names acquire decided connotations. And if the names are used very much in contexts the emphasize this connotation than these connotations become so slandered that the proper names can become general terms. Thus the boarder line between connotation and designation is neither sharp nor static. Poetry is the best place to study word connotation. For practical purposes, we should view the advertisements (good or bad) for cruder and simpler examples. For instance, in industrial products, we should keep in mind key word in advertising slogans and note connotation. What is meant by injunction to be a Dawn Girl to have that creamy look to wear a Danto Sweet Smile to develop an English complexion? These terms may designate and it is their connotation. There are good reasons for this. May be that car, hair lotion and whiskey actually does have, not only the characteristics designated but also the characteristics connoted. For a complicated study, it is instructive to look among advertisements for terms with a scientific connotation and this term carry with them on intimation that the product is result of laboratory research or approved by a doctors. The impression that a word gives beyond its defined meaning, refers to connotation. Connotations may be universally understood or may be significant only to a certain group. Both horse and steed denotes the same animal, but steed has a different connotation that it deriving from romantic narratives in which the word was often used. 2nd example about the word home, it means that the place where one lives, but by connotation, it suggests security, family, love and comfort. Consonance occurs is poetry when words appearing at the ends of two or more verses have similar final consonant sounds but have final vowel sound that differ, as with stuff and off words and images that might be used in poems hold meanings, feelings and Connotations which might provoke different clues that people find but it does not mean that a person is exactly saying about a poem. The personal response is important in understanding the literary judgment and close analysis of text. Role of Connotation: Connotation meaning refers to the features of word and it also refers to ones reaction to it, that is its emotional content. For example, A nastier connotation has seen in the word slimy rather than a word silky. The following are described the two line of poetry, one being a denotatively equivalent but connotatively contrasting version of the other. Season of mist and mellow fruitfulness. (Ode to Autumn, Keats) Time of fog and ripe productivity (after, Wallwork, 1969) There is nothing objectively poetic about word like mists or mellow but we have a strong experience of these words. It is difficult to remember that their sweet and pleasant sound qualities are only created by social evaluation. Words can measure and represent their connotative meaning. An idea related to the denotative and connotative meaning of words is category and function shift. This heft occurs when words did not have development previously but now they are used. For example, the word paper began as a noun, it means the sheet of pressed plant fibers you write upon. Then it acquired verb capabilities for use in a sentence e.g., He will paper her mirror with love notes. Paper can also be used as an adjective, such as in the phrase paper plate. The word paper changed categories from noun to verb to adjective without changing spelling. It changed functions too because nouns, verbs and adjectives play different roles in sentences. For romantic poets, poetic meter performs a similar function like the purely formal element of poetry. It can either provide clear, denotative meaning or it can carry follow well known techniques for conveying the connotative meaning. This element follows patterns of compositional practice, convention and deliberate effect and carriers with it patterns of implicit connotation similar to those perceived in absolute music. Wordsworth most famous work on poetics, the Preface to the Lyrical Ballads, demonstrates not only his concerns about these contractual conditions but also his conception of their meaning. He also insisted on writing the theoretical Preface. He felt that his readers might accuse him of breaking the unspoken agreement of comprehensibility between the poet and his readers. His attempt to deflect criticism for Prosaisms, places where poetry becomes too much like prose, demonstrates this anxiety most clearly. Winters describes poetic theory, its concision, lyric but he explains that poetry is the highest linguistic expression, in addition to the denotative aspects of words emphasized in forms of writing, poetry also makes particular use of connotative ones, the two together composing the total content of language. The purpose of poetry is to describe experience as precisely as possible connotation in poetry acquires a moral dimension and to preserve clarity, connotation or feeling must be carefully controlled. Levels of brain to understand connotation: When reading a poem by a person, the brain works on several different levels: It responds to the sounds It responds to the words themselves and their connotations It responds to the emotions It responds to the learning of the world. Poetry becomes a good source of learning through this process. It helps how to read literature in general. All the other genres have elements of poetry within them. Learn how to read poetry in a good way and it is the only way to become a more accomplished reader. Emily Dickinson who claimed that reading a book of poetry (by a poet) made her feel as if they top of {her} head were taken off. Study of Meaning of Context Clues: There are many methods for findings word meaning. The method of studying word meaning which is described under this heading is by using context clues. Context refers to the words and ideas in the text surrounding a word. This text elaborates clues to the meaning of individual words. Context also helps to understand how meaning of the word is being used according to the authors point of view. Meanings of the words may be denotative and connotative. Denotative meaning is often found in dictionary definitions but connotative meaning of the words has both positive and negative effect on the word meaning. Look at the example: the words demure and Prim both have same meaning that is shy. However, Prim has negative connotation of being strict or remote. Demure has positive connotation of being sweet or innocent. It is also found that the additional meaning is part of the words contextual meaning. It appears as a result of the words correlation with others. Connotation is one of the key so the power of words. In a literary text, the most innocent looking word can achieve the most vivid connotations. One of the components of a words meaning is its emotive component. Emotive connotations are rendered by the emotional or expressive counter part of meaning. It is also very important to describe that affective connotations of a word can be within its romantic structure registered in its dictionary meaning. E.g: Fabulous, stunning, smart, terrific and the like have special emotive meaning fixed in dictionaries. E.g: Hes very rich. Hes fabulously rich. Many words hold an emotive meaning only in a definite context. In that case, we say that a word has a contextual emotive meaning. So, we can conclude that affective connotations of a word are peculiar to it either on the pragmatic or systematic level. 2.12. Role of connotation is culture and society: Different words have personal and cultural associations which can be subjective, contribute to their meaning. These additional meanings are known as connotations. We can also talk of affective, emotive, attitudinal or expressive meaning. In this example, we have seen that the word man has denotative meaning that is adult male human being but its connotations are virility, bravery and aggression. The personal and cultural aspects of the wor4d are brought in expressions like thats what I call a man! Or act like a man but the man where refers to after doing brave deed, it means that connotations of word may differ according to the society in which the people use it. For example connotation of the word police means reliability, helpfulness, friendliness and protection while some persons in a society take it as harassment, arrests, aggression, obstruction and injustice etc. it is necessary to define the terms when we translate. The people have different awareness about the political term like labour, depending on the politic of individual. Connotations are difficult to understand than denotation and much more variable and culture bound. For example snow may appear beautiful who have never seen it but the people who live in cold countries where the snow is falling. So the word snow have negative connotation according to this context. The Dog is in western society as a mans best friend but for Arabs and Hindus this animal take as a pet. For the pareses, people take dog as a sacred animal. Words may have the same denotative meaning but the connotative meaning varies from person to person. For instance, woman and lady both denote adult female human being but the word lay has connotation of good breeding and social graces that are absent from women. Some words are always positive like generous, courtesy and masterpiece but others are always negative like rubbish, dirty, thief etc. the one thing is that negative words are not obviously negative but they are marked as derogatory or disparaging in dictionaries. Some words can be both positive and negative according to context. In English, the adjective inquisitive may take as a healthy desire to learn but on the other hand, it takes as an unhealthy or annoying keenness to pry. The word respite is a Spanish word which means on one side respect and on the other hand, it means fear. Translators and language learners should know about the different connotations according to the context 2.13. Connotative meaning through language and culture: Language and culture are deeply interrelated with each other. Language is the vehicle of cultural manifestation. Some words have different motions and cultural values in different languages. That is to say, Many foreign words which appear to have an equivalent basic meaning in the learners L1 are nevertheless different because of their different connotations. (Laufer, 1990, p.582). Lado (1972) defines these words as culturally loaded words Lexical totems which have similar primary meaning but widely different connotations in two languages (p. 285). For example the word old means people are addressed so old in English but in Chinese, this word take as old + surname of surname + old. This is the difficult area of vocabulary acquisition as the tendency of the learner will to transfer the L1 connotation in to L2 (Laufer, 1990, p. 582). English and Chinese are two different languages because these two languages show two distinct culture and ideologies. Chinese culture values harmony, tradition, authority, group solidarity etc while western cultures value individualism, uniqueness, creation, adventure etc. (Jia Yuxin, 1997). Different political and social system through Chinese and western cultures have different understandings of certain political and ideological issues. Moreover, English is neither an official language nor a lingua franca in china. Chinese EFL learners find it difficult to access the cultural aspect of English. They have few chances to communicate with native speaker of English. Liu Zhong (1999) conducted the study of show that certain words have different cultural connotations in Chinese and English. Such as old, propagandas etc. they tested Chinese EFL learners to see whether their judgment on word used in a specific English context is proper or not and their studies pointed out the Chinese learners perception of whether a word is used properly with specific English contexts deviated from that of native speakers of English. 2.14. Emotional meaning of connotation: Connotations also provide emotional power to the word so much that people will fight and die for them. G.K. Ogden and I.A. Richards were the first scholars to consider the misunderstandings that result from the failure of communicators to know that their subjective reactions toward will be a product of their life experience. For example, Mellissas dog dies and she tells Trish about it. Trishs understanding of a massage depends on the feelings of him about pet and death. Mellissa who sees dogs as truly friends, may be intending to communicate her extreme grief. Trish who has never had a pet and doesnt especially care of pets in general or dogs in particular, may miss the emotional meaning that Mellissa has. For this reason, Connotations can be used effectively to increase the emotional appeal to your message. Language also serves as a bridge between human being and the word of sense data. The denotative meaning of the word snake is the perception of the sense data that makes up the sn ake. The connotative meaning of the expression Look! A Snake! is described according to the perception of Mellissa and her grandfather. This expression which they both shared, was a bridge between Mellissas perception and her grandfather. If they did not speak the same natural language then she wouldnt share the connotative meaning of the word snake. Since they do share in the conventional connotative meaning of the expression, she can cross over to he grandfathers perceptual word by using it. Words serve as connotative bridges. Mellissa and her grandfather were unsuccessful in seeking a visual perception of the snake. So words are also denotative bridges. They connect us with real things by means of understanding and processing sense data. 2.15. Connotation in semiotic modes: The term connotation is used in so many ways. John Stuart Mill described words that have different meanings but he focused on two kinds of meaning. For instance, the word white, firstly, denotes the class of white things or as snow or paper or the foam of sea. But its abstract concept has connotative meaning like whiteness, virtue etc. the most importance approach in semiotics has been that of Roland Barites, who was a key player in Paris school structuralist semiotics of the 1690s and 1970s. Barthes argued that different ways of expressing the same concept can have different meanings because the same concept can be expressed in different languages. He developed his approach to denotation and connotation not in relation to language and applied the term connotation to semiotic modes other than language. 2.16. Role of vocabulary in understating connotative meaning: Lexis lexical phrases have come to play a very important role in language teaching learning. Lexis has become more important than structures teacher have noticed that if a person does not know certain words and expression he/she will find it very difficult to express what he/she wishes to say. Many researchers agree that lexis is at least as important as structure, because it is using worng words not wrong grammar that usually breaks down communication. Mistakes in lexis much more often led to misunderstanding may be less generously tolerated outside classroom than mistakes in syntax.(Carter 1987 : 145) Taylor (1990 : 1 ) emphasized the essentiality of vocabulary knowledge. In order to live in the world, we must name it. Names are essential for the