...The Goal of the Firm Ereeka Ortega Managerial Economics September 8, 2015 Dr. McCoskey Abstract Since the Affordable Care Act insurance laws have changed drastically. The question today is do insurance companies make a profit off their customers? In this paper I will discuss Freidman’s goal of the firm. Milton Freidman felt as though the goal of the firm was to keep the shareholders at the front line of their decisions. When an insurance company decides what they are going to do to target their customers they make sure that they are going to have a profit so that the shareholders are happy. Another aspect of this paper is going to be on whether or not the government should have a role in the goal of the firm rights of those involved seem to be taken away. The Goal of the Firm The Friedman goal of the firm is that they take the shareholder into consideration when it comes to a profit. He believes that the sole purpose of the goal is to make sure that profits are maximized so that a portion of that profit can be provided to the shareholders, especially if there is a risk in the investment of the company. Not only does Friedman believe that the goal of the firm is to gain a profit for the shareholder but to not have any social responsibilities. In his book Capitalism and Freedom Friedman talks about totalitarianism, which is where the state has control over all aspects of the public and private...
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...rights to vote, the right of free association and the right of expression that helps individuals determine who the rulers would be and how they will be ruled. Political freedom is best appreciated in countries where those freedoms do not exist or are denied as people have a sense of global awareness. This freedom was prominent in western societies but it amounted to little except how the society will be organized in an order where individuals would be able to pursue their own happiness. This kind of freedom created the prosperity that we as individuals now enjoy. Milton Friedman says, "The preservation of freedom is the protective reason for limiting and decentralising governmental power. But there is also a constructive reason. The great advances of civilisation, whether in architecture, or painting, in science or literature, in industry or agriculture, have never come from centralised government” (Friedman). Freidman does not refer to the...
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...Capitalism and Freedom By: Milton Freidman In Milton Friedman’s book Capitalism and Freedom, Friedman presents his theory, which is the importance of a free economy that is, without government interference. He strongly believes the government should stay out of anything to do with the economy. Friedman is under the impression that any government that is not the most basic government is bad. He thinks that it is important to let the invisible hand do its job and that by interfering with the natural process the system will get messed up. He introduces some radical ideas such as non-licensed doctors and school vouchers. Friedman was under the impression that if doctors were not required to obtain licenses, a better breed of doctors would come along. He thinks that by allowing the modern doctors to dictate whom the future doctors will be the competition for better doctors is impaired. By putting guidelines on who can practice medicine the system is creating the same level of doctor consistency. Friedman disagrees with this process because he sees competition a driving force that makes people to be the best they can be. Therefore, by making want-to-be doctors conform to a certain mold, the cycle of survival of the fittest is ruined. No better doctors or forms of practicing medicine will come along if this process is stunted. Friedman is also for school vouchers. This system of vouchers is the idea of the government giving parents a certain amount of money to spend on their children’s...
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...The aim of this assignment is to consider Coulshed and Mullender’s statement (2001) that “the ultimate test of quality will always be what users and their families think of the services we provide” and then critically discuss the issues involved in seeking feedback on quality. Within this assignment I will draw upon course materials as part of my discussion. I will also draw upon some wider materials to broaden the discussion. In order to conduct the discussion I will first look at what service-user consultation is and how it is undertaken; and then I will look at both the positives and negatives in seeking feedback on the quality of a service. Introduction: Quality matters. Increasingly the idea of quality has impacted on health and social care services. The ever increasing number of quality initiatives being developed by the Government is just one example of how it is having an impact. Another way is the drive towards and focus on gaining service users views of services. And the reason behind it all is simple, the quality of a service impacts on the quality of life for its users and their carers. Service User Consultation: In the opinion of Martin and Henderson (2001) you can’t provide a quality service without knowing what kind of people use your service and what they need from your service. Writers such as Peters believe that the best way to find out these things is to work closely with service users and communicate with them. One way to do this would be to undertake...
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...The article, “Bernanke: Economy Healthy, but...”, posted on CNNMoney.com, discusses how even though there has been a housing slowdown, inflation still looks as though it will not be an issue. Bernanke feels that as the slowdown from housing disappears, the U.S. economy will begin to expand at a more moderate pace during 2007 and into 2008. There are a few factors, however, that Bernanke says could change this outcome. Prices for oils and other commodities such as foreign technology are outside of U.S. control and therefor could have a negative impact on the U.S. economy if things take a turn for the worse. Bernanke says that for the most part this looks doubtful, and as long as foreign trends continue the U.S. economy should do well in the coming quarters. Bernanke also address the Fed’s plans for the coming year, whereas they have stated interest rates at 5.25 percent, which is likely to spark solid growth and slowly decrease core inflation, which is measured by the price index for personal consumption spending minus food and energy. Bernanke did reiterate, however, that if inflation risks do develop the Fed is prepared to take action. From Bernanke’s view that inflation pressures were shrinking, the prices for stocks and government bonds rose, while the value of the dollar fell, as traders thought that the Fed may lower interest rates later in 2007. While many different factors show that the U.S. economy will enjoy healthy and sustained growth, the rate of hiring still may...
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...The Social Responsibility of Business is to Increase Profit What is the social responsibility of a business? Is it to increase profits as American economist Milton Friedman argues? Is it to make decisions that benefit and protect society? According to the Dictionary of Finance and Investment Terms, social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximise profits”. In my view the statement ‘the social responsibility of business is to increase profit’ is true to an extent, however, I believe a corporation’s responsibilities extend beyond just maximising profits. The ‘Narrow View’ argues that profit maximisation is the only objective for a business. Theodore Levitt wrote, “in the end business has only two responsibilities- to obey the elementary canons of face-to-face civility (honesty, good faith and so on) and to seek material gain” Levitt’s opinion could be perceived as realistic to an extent, however, I believe he doesn’t take into account the negative side-effects that business activities can have on society. Friedman strongly rejects any concept of corporate social responsibility that would deter a business’s primary goal of profit maximisation. Furthermore, he argues that only people can have responsibilities, not an artificial being such as a corporation. If an artificial being such as a business was to have responsibilities, however, than I would find it appropriate that it would be inclined to...
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...Play Review Chicago Boys I wen to go see the play “Chicago Boys” at the Goodman Theater. The Goodman Theatre takes a strong stand in supporting the new plays of working playwrights. “Chicago Boys” introduces a fictional story based around economist Milton Friedman during the early 1970’s when Chile found itself in a state of political unrest. The plot follows Joe Nelson (Derek Gaspar), considered to be Friedman’s protégé and during the first moments of the play he truly admires the theories and ideas Friedman has built his economic foundation on. As the play progresses we see how Joe’s original thoughts on Friedman’s motives begin to change as he experiences a country where the economic system is starting to rupture. Joe floats between his own ambitions and representing the great mind of Milton Friedman, who is having problems of his own back in Chicago with protesters. Milton Friedman was a very arguable figure. The economist spent more than thirty years teaching at the University of Chicago, and was even awarded the Nobel Prize for Economics in 1975. During the outlashing in Chile during the mid-70’s, Friedman gave several lectures expressing economic freedom, which lead to civil unrest among citizens in Chicago. “Chicago Boys” is loosely based around the ideas and theories Friedman believed while examining a fictional story through the eyes of a young man. I was not the only one however. You know your show isn’t doing too well when a large portion of your audience...
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...With reference to what you have learnt about City Road, outline some of the differences across time and space on a street that you know. Introduction In this piece of work I am going to describe Lark Lane I aim to compare not only the differences of this lane to City Road but also some similarities as well. Some differences and similarities I will be comparing will be for instance, the kinds of shops, what people live and work on the Lane and City Road and also how they both compare to each other not just through the day but also in the night. Lark Lane Lark Lane can be described as a quaint, Victorian street ,It is a mixture of new and established bars, restaurants, cafes and Boutiques which makes it a very popular place that attracts a mix of young, old, professionals, bohemians and students. There are many people to be found on Lark Lane that have lived there all their lives, that still go the same public house they went to forty years ago. The infrastructure to Lark Lane is very different to City Road. For instance the length of Lark Lane is approximately 500 metres in length; it is used throughout the day as a through road to the park as it links up one major road to another. Which like City Road does become very busy and congested this is especially so during the night time when people are visiting the restaurants and pubs. People Double Park along the lane which can make it difficult to drive along, it has no road markings or traffic signals this can...
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...Topic: The Great Depression, continued Read: In Fed we Trust, chapters 1-4 1. Define the term gold standard. Should we return to it? The gold specie standard arose from the widespread acceptance of gold as currency. No, The gold standard limited central banks from printing money when economies needed central banks to print money, and limited governments from running deficits when economies needed governments to run deficits. It was a devilish device for turning recessions into depressions. The answer is that some people aren't worried about depressions. Some people are worried about inflation. 2. Who was J. Pierpont Morgan? What was his role in stopping the Panic of 1907? John Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation. - The Panic of 1907 was a financial crisis that almost crippled the American economy. Major New York banks were on the verge of bankruptcy and there was no mechanism...
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...English literature is generally seen as beginning with the epic poem Beowulf, that dates from between the 8th to the 11th centuries, the most famous work in Old English, which has achieved national epic status in England, despite being set in Scandinavia. The next important landmark is the works of the poet Geoffrey Chaucer (c. 1343-1400) especially The Canterbury Tales. Then during The Renaissance, especially the late 16th and early 17th centuries, major drama and poetry was written by William Shakespeare, Ben Jonson, John Donne and many others. Another great poet, from later in the 17th century, was John Milton (1608-1674) author of the epic poem Paradise Lost (1667). The late 17th and the early 18th century are particularly associated with satire, especially in the poetry of John Dryden and Alexander Pope, and the prose works of Jonathan Swift. The 18th century also saw the first British novels in the works of Daniel Defoe, Samuel Richardson, and Henry Fielding, while the late 18th and early 19th century was the period of the Romantic poets Wordsworth, Coleridge, Shelley and Keats. It was in the Victorian era (1837–1901) that the novel became the leading literary genre in English,[1] dominated especially by Charles Dickens, but there were many other significant writers, including the Brontë sisters, and then Thomas Hardy, in the final decades of the 19th century.The Americans began to produce major writers in the 19th century, including novelist Herman Melville, author of...
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...Great Depression Causes and Effects Introduction: October 29th, 1929 would be a historical day for United States. It was enter in a new period, which was “The Great Depression” period. Great Depression lasted for 10 years. October 24th is known as the “Black Thursday”, because the amount of selling share stock was tripled. The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture. In the beginning of the Great Depression Hoover was president of U.S. He made a lot of new reforms in order to face the Great Depression, but they were not successful. People were tired with Robert Hoover’s fail. All they needed was a new leader to get them out of that bed situation. Because of these, in the elections of 1929, most of American citizens voted for the Democrat Franklin D. Roosevelt. Roosevelt brought in a lot of changes in economy, politic, social and cultural life of Americans. His major programs were the New Deal (First Hundred Days) and the Second New Deal. These programs were very effective. The number of unemployment rate was lower comparing with...
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...Task 1 What evidence is there in the extract above of the three explanations for Chartism’s support that you have learned about in Block 2, Unit 2. Making sense of history, and which if any, is stressed most strongly by the speaker? Part 1 In no more than 200 words, write a plan for the essay Plan Introduction 1) Explain the background and context of the extract. 2) Discuss the evidence for the Chartism’s support in terms of economic pressure, national political movement and inclusive cultural community. 3) The essay will explore how the three factors were important in the speech for gaining support for Chartism and which proved to be the more dominant factor. Economic Pressure 1) At the time of Chartism, economy was on a downturn, especially in regards to the poorer classes. 2) Use quotes from the speech to demonstrate economic pressures identified. 3) Refer to Asa Briggs secondary Source, who advocates the significance of economic pressure. National Political Movement 1) Explore how political references and terminology was used in the speech. 2) Provide quotes from the speech as evidence of political movement. 3) Quote Gareth Stedman Jones Secondary Source in reference to political movement. Cultural Community 1) Chartism was directed to both men and women, show evidence of this from the speech. 2) Refer to Dorothy Thompson Secondary Source providing evidence that women were involved. Conclusion 1) Discuss...
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...Running head: JOHN MAYNARD KEYNES Intellectual Biography: John Maynard Keynes Shawn Detamore Davenport University Abstract Known as one of the most influential economist of the 20th century, John Maynard Keynes changed the economy by his Keynesian Economics. Not only was it used during the Great Depression, it is continually used in our economy today. Introduction John Maynard Keynes (also known as “1st Baron Keynes) was a British economist that was born in Cambridge, England. His ideas and theories changed the practice of modern macroeconomics. He is well known for the Keynesian economics that made him one of the most influential economist of the 20th century (Keynes, 2014). Since he was so influential, there were many other economist that were influenced by John Maynard Keynes that supported the Keynesian theory. A few of those economists where: James K. Galbraith, James Tobin, Paul Samuelson and Paul Krugman. Keynes also wrote many books related to economics, one well-known one was the General Theory of Employment, Interest, and Money. He also wrote A Treatise on Money, The Economic Consequences of Mr. Churchill, and A Tract on Monetary Reform. Keynes was very influential. In 1999, Time Magazine listed John Maynard Keynes as one of the 100 most important and influential people of the 20th century (Time Magazine, 2014). The Economist also named Keynes as Britain’s most famous 20th-century economist. Keynesian Economics Keynesian Economics is the theory...
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...Milton Friedman started the documentary Free to Choose part-3 Anatomy of a Crisis with the genesis of the Great Depression of 1930. Friedman articulated it was the Wall Street Crash on October 29, 1929 better known as “Black Thursday” that began the trickledown effects on the United States economy. Friedman claimed that bellied up businesses and bank failures in the south and mid-west of the United States contributed to the Great Depression. Friedman believed that it was not deemed a crisis until failures reached New York. One casualty the Bank of the United States in New York, New York was in jeopardy of bank failure. Friedman express that although the Federal Reserve Bank of New York whose primary functions are to prevent and or assist banks from bank failure was unsuccessful regarding the Bank of the United States dilemma. With several attempts Federal Reserve Bank proposed that the Bank of the United States merged with other local banks. By doing so a guarantee fund for depositors would cover the Bank of the United States loss and keep it afloat. Ultimately the Bank of the United States shut down December 10, 1930 due to competition from surrounding banks and racism. Friedman goes on about how the Federal Reserve Bank and their unwillingness to create new money by purchasing government securities at a grand scale. Friedman conveyed that the bank failure of the Bank of the United States would have been handled differently and fitting during that time if a Benjamin Strong...
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...The poem “The Tables Turned” was written by William Wordsworth in 1798. The main theme of the poem is to prove the wisdom and grace of nature. “Up! up! my Friend, and quit your books;” This is the first sentence in the poem. William Wordsworth tried to get a message through his poem, showing that life is way more than just science, art and books. He describes the nature as something pretty and peaceful, and that the nature should be enjoyed. “Books! ’tis a dull and endless strife: Come, hear the woodland linnet” Wordsworth believes that if people would spend more time in the nature and stop overanalyzing everything, they would end up being natural geniuses by letting nature be their own teacher and think with their heart. The poem “The Schoolboy” was written by William Blake in 1794. “I love to rise in a summer morn, When the birds sing on avert tree.” We hear about a boy, who loves nature, and if he could decide by himself, he would prefer to spend the summer outside and play with his friends before the winter arrives. But the boy get a unhappy felling in his stomach, when he thinks about school, he hates going to school, “But to go to school in a summer morn, O! it drives all joy away”. He finds no happiness in reading books, because he is scared to forget his youthfulness. He compares himself with a bird in a cage. Both poem’s themes are the same, just told differently. “The Tabels Turned” and “The Schoolboy” both try to come through with the message that, we do not...
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