the concept, the very idea: of love, is wonderful. for all those who have been in love, and have been loved in return - i'm sure you understand.
because you want to try again (and believe me, i do too), it fills me up with hope. the one and a half years of knowing that i had someone was a whirlwind. i always told myself that i was so lucky to love you. but i couldn't show that in front of you, except for a rare few moments.
we never kissed, but nearly did. do i regret it? almost. i was kind of mad at you during that time, but you looked at me so intently with those longing eyes (boy, was i longing for your lips too), the room was dark and we were all comfy.
but we didn't do it. i miss it so much.
how about the time you kissed my hair when you were leaving the bus? clumsy, but adorable.
you give the best hugs. you have the most gorgeous smell, your chest is big and warm, and never have i felt so safe in them. it's funny how i appreciate all of these only after everything ends.
towards the end, we didn't hug at all. it just fizzled out, and i'm truly sorry.
maybe in a few years, when we grow up and learn about life, we will have lunch and see if the spark is still there.
like what i said today, the only quirky lad i know is you. the only one who is responsible, romantic, geeky and understanding - all at once.
it's really a privilege to love you.
Tuesday 13 December 2016
Wednesday 28 September 2016
if undelivered, please return to: nowhere / please know
to the one who hasn't spoken to me in five months, please know that it felt like years.
i have apologized in the past, please know that it wasn't even my fault back then.
maybe it's me being too cold, please understand that i was raised to replicate what is given to me.
you sleep peacefully, please know that my dreams are often filled with you simply acknowledging me.
it fills me up with hope, please know that everything comes crashing down the moment my eyes open.
our greetings no longer mean anything, please know that both of us are at fault.
we both have big egos, and the wiser one apologizes first, but please know that i'm not doing this again.
when you smile and joke and laugh with her, please know that it kills me inside.
when you are concerned about and proud of her, please know that i'm waiting too.
when i work so hard for your approval and nothing comes in return, please know that i am tired.
we threw seventeen years away like that, please know that i can't believe that anyone would do such a thing.
please know that i don't want to write two birthday cards in a row, full of apologies, begging for forgiveness.
i am your daughter. you said so yourself, the last time i begged for you to talk to me. then why don't you treat me like one? why don't you love me like you love your other daughter? why don't you give me what i crave for? why do you make me dread your return from work? why do you make me give excuses about not being able to go for dinner, because it's the both of us?
why. why, why.
please know that i'm sick of trying. i try to be the best i can be for you, but it's not enough.
please know that you don't even do that.
i have apologized in the past, please know that it wasn't even my fault back then.
maybe it's me being too cold, please understand that i was raised to replicate what is given to me.
you sleep peacefully, please know that my dreams are often filled with you simply acknowledging me.
it fills me up with hope, please know that everything comes crashing down the moment my eyes open.
our greetings no longer mean anything, please know that both of us are at fault.
we both have big egos, and the wiser one apologizes first, but please know that i'm not doing this again.
when you smile and joke and laugh with her, please know that it kills me inside.
when you are concerned about and proud of her, please know that i'm waiting too.
when i work so hard for your approval and nothing comes in return, please know that i am tired.
we threw seventeen years away like that, please know that i can't believe that anyone would do such a thing.
please know that i don't want to write two birthday cards in a row, full of apologies, begging for forgiveness.
i am your daughter. you said so yourself, the last time i begged for you to talk to me. then why don't you treat me like one? why don't you love me like you love your other daughter? why don't you give me what i crave for? why do you make me dread your return from work? why do you make me give excuses about not being able to go for dinner, because it's the both of us?
why. why, why.
please know that i'm sick of trying. i try to be the best i can be for you, but it's not enough.
please know that you don't even do that.
Tuesday 13 September 2016
[Microeconomics] Price Discrimination
PD occurs when a producer sells a specific commodity to different buyers at two or more different prices for reasons not associated with differences in cost.
Conditions to fulfill
1. The firm must operate in an imperfect market, whereby it has some market power and some control over price. This allows the seller to be a price setter.
2. The seller must be able to separate the market and prevent resale, which is to prevent consumers who need to pay a higher price from enjoying a lower price.
3. The seller must be able to separate the market into different consumer goods according to the PED from separate groups of buyers.
Discriminate based on TIME, PLACE, INCOME (3rd Degree PD)
- Seller charges a different price at different times or days.
[Eg. Peak period tickets are pricier than those during non-peak hours.]
- Seller charges a different price at different locations of his consumers.
[Eg. Cheaper train tickets only available at major train stations.]
- Discriminate based on income of the consumers.
How to explain in an essay form?
1. State the degree of PD and discriminate based on ... (for 3rd degree PD)
2. State that consumers can be split into independent markets - name the markets.
Eg. Major stations and smaller stations
3. State the PED value for the different markets + Justification
Eg. Major station - PED>1 because there are many forms of transportation near major stations.
Smaller station - 0<PED<1 because minor stations tend to be located at suburban areas.
4. Explain how the higher price can lead to higher revenue.
5. Prove that the firm operates in an imperfect market.
6. Prove that you can prevent resale.
Conditions to fulfill
1. The firm must operate in an imperfect market, whereby it has some market power and some control over price. This allows the seller to be a price setter.
2. The seller must be able to separate the market and prevent resale, which is to prevent consumers who need to pay a higher price from enjoying a lower price.
3. The seller must be able to separate the market into different consumer goods according to the PED from separate groups of buyers.
Discriminate based on TIME, PLACE, INCOME (3rd Degree PD)
- Seller charges a different price at different times or days.
[Eg. Peak period tickets are pricier than those during non-peak hours.]
- Seller charges a different price at different locations of his consumers.
[Eg. Cheaper train tickets only available at major train stations.]
- Discriminate based on income of the consumers.
How to explain in an essay form?
1. State the degree of PD and discriminate based on ... (for 3rd degree PD)
2. State that consumers can be split into independent markets - name the markets.
Eg. Major stations and smaller stations
3. State the PED value for the different markets + Justification
Eg. Major station - PED>1 because there are many forms of transportation near major stations.
Smaller station - 0<PED<1 because minor stations tend to be located at suburban areas.
4. Explain how the higher price can lead to higher revenue.
5. Prove that the firm operates in an imperfect market.
6. Prove that you can prevent resale.
[Microeconomics] Objectives of a firm
Traditional Objective
- Profit Maximization (MC=MR)
Alternative Objectives
1. To maximize revenue (MR=0)
- Managers and commission-based employees may choose to maximize the firm's total revenue in the short run, as their income is dependent on the total revenue of the firm.
- The manager will then increase the production of [product] up to the output level where MR=0.
- On Figure 1 below, the firm produces a greater output level at Qrm when they revenue maximize and as such, they set a lower price Prm as compared to the profit maximizing quantity of Qpm and price Ppm.
[Figure 1: Supernormal profits market structure diagram. At the spot where MR touches the x-axis, label Qrm. Label Ppm, Cpm, Prm, Crm.]
2. To maximize growth
- The firm may also have the incentive to pursue growth maximization in order to uphold the image of the firm and status of the manager.
- This can be done through internal expansion or merger.
- Managers will have a greater chance of getting promoted in a large firm as new posts are made available, hence they have the incentive to maximize growth.
- In the short run, the firm may choose to pursue growth maximization and would be able to pursue profit maximization in the long run, given the decreased average cost of production.
Positive side-effect of GM: Reap iEOS. But this is NOT the purpose of GM.
3. Gain market dominance
- Driving other firms out of the industry by increasing their market share.
- They can adopt predatory pricing, where they set the price of their products below MC of production.
- Through this method, the firm will undercut the price of products from other firms.
- When price decreases, it will decrease the quantity demanded for products by other firms. This causes P and Q to fall. This goes on until P<AVC for the other firms, causing them to shut down and be driven out of the market.
- The [said large firm] can deal with losses with the short run. After its competitors are driven out the market, they can increase the price of their products.
- Their SR losses can be compensated with their long run profits.
- The exit of other firms will allow the firm to increase their market share and correspondingly, their market power.
4. Entry deterrence
- Emphasize on pricing and non-pricing decisions to deter the entry of new firms and avoid losing market share to new entrants.
- They can engage in extensive product development/branding so as to differentiate its products from that of potential entrants. This makes the demand of the good more price inelastic.
- This increases the market power of the firm, giving it the ability to restrict output to set price.
- It can increase the price of its product to increase revenue, allowing the firm to raise its profitability in the long run.
- Considering that product development and branding have high costs, the long run profits will help to offset these temporary losses.
5. Profit Satisficing
- Produce at a set level of output, even if it hasn't reached profit-maximizing level of output.
- The decision makers, who are the regional managers, can choose to achieve a given level of profits as set by the shareholders. This allows them to enjoy additional benefits of having shorter operating hours and lower levels of stress.
- This is because managers do not have the incentive to profit-maximize as they do not reap the benefits of the firm producing at the profit-maximizing level of output.
- Profit Maximization (MC=MR)
Alternative Objectives
1. To maximize revenue (MR=0)
- Managers and commission-based employees may choose to maximize the firm's total revenue in the short run, as their income is dependent on the total revenue of the firm.
- The manager will then increase the production of [product] up to the output level where MR=0.
- On Figure 1 below, the firm produces a greater output level at Qrm when they revenue maximize and as such, they set a lower price Prm as compared to the profit maximizing quantity of Qpm and price Ppm.
[Figure 1: Supernormal profits market structure diagram. At the spot where MR touches the x-axis, label Qrm. Label Ppm, Cpm, Prm, Crm.]
2. To maximize growth
- The firm may also have the incentive to pursue growth maximization in order to uphold the image of the firm and status of the manager.
- This can be done through internal expansion or merger.
- Managers will have a greater chance of getting promoted in a large firm as new posts are made available, hence they have the incentive to maximize growth.
- In the short run, the firm may choose to pursue growth maximization and would be able to pursue profit maximization in the long run, given the decreased average cost of production.
Positive side-effect of GM: Reap iEOS. But this is NOT the purpose of GM.
3. Gain market dominance
- Driving other firms out of the industry by increasing their market share.
- They can adopt predatory pricing, where they set the price of their products below MC of production.
- Through this method, the firm will undercut the price of products from other firms.
- When price decreases, it will decrease the quantity demanded for products by other firms. This causes P and Q to fall. This goes on until P<AVC for the other firms, causing them to shut down and be driven out of the market.
- The [said large firm] can deal with losses with the short run. After its competitors are driven out the market, they can increase the price of their products.
- Their SR losses can be compensated with their long run profits.
- The exit of other firms will allow the firm to increase their market share and correspondingly, their market power.
4. Entry deterrence
- Emphasize on pricing and non-pricing decisions to deter the entry of new firms and avoid losing market share to new entrants.
- They can engage in extensive product development/branding so as to differentiate its products from that of potential entrants. This makes the demand of the good more price inelastic.
- This increases the market power of the firm, giving it the ability to restrict output to set price.
- It can increase the price of its product to increase revenue, allowing the firm to raise its profitability in the long run.
- Considering that product development and branding have high costs, the long run profits will help to offset these temporary losses.
5. Profit Satisficing
- Produce at a set level of output, even if it hasn't reached profit-maximizing level of output.
- The decision makers, who are the regional managers, can choose to achieve a given level of profits as set by the shareholders. This allows them to enjoy additional benefits of having shorter operating hours and lower levels of stress.
- This is because managers do not have the incentive to profit-maximize as they do not reap the benefits of the firm producing at the profit-maximizing level of output.
Tuesday 6 September 2016
[SEA History] MG was effective at maintaining political control. HFDYA?
hello there. if you have read through the older posts, you would have noticed i've posted some topic sentences for the political structure questions. do note that not all of them have been vetted - they are mostly picked out from notes and sources and advice from my history teacher. i'll be posting practice paragraphs that are mostly written by me, so no guarantees!
AF1
- Maximum governments were effective at maintaining political control through it's ability to monopolize control of state apparatus as a means to ensure the political opposition's inability to revive itself, evident by the maintenance of power within the hands of the ruling elite.
- In the post-colonial period, Southeast Asia was politically diverse and had many political parties jostling for power. Thus, through the leaders' utility of legislative power, it helped to weed out political opponents so as to remove threats to their power.
- In Singapore, Barisan Sosialis was a strong political opponent of the ruling party PAP in the early 1960s. This is evident in how they managed to 25% of the voters during the 1962 Merger Referendum to cast blank votes, showing their immense popularity as an opposition party.
- Under the Internal Security Act, which allowed for detention without trial of suspected dissidents, several BS members were arrested for boycotting the parliament in 1966. Also, Operation Coldstore in 1963 saw the arrests of suspected communists, including BS secretary-general Lim Chin Siong and half of BS's central executive committee. By detaining opposition leaders, who were responsible for advocating an alternative political vision, it eliminated the figures who helped garner mass support for BS. Via the monopoly of power, the incumbent government managed to remove the strong opposition, thus ensuring that leftist support was curbed and directed towards PAP instead. The use of legal power also instilled fear about the harsh treatment one would face if they rose as a strong political opposition of PAP.
- The use of MG structures acted as a deterrent for the rise of any political opposition, thus ensuring that there was no viable political threat to PAP's leadership. This is seen in PAP's dominance in Singapore's political scene for over four decades.
Limitations: PAP's political dominance can be attributed to the fact that BS was weak and not because the MG structures were effective. BS boycotted the 1966 elections, effectively allowing PAP to be the de facto dominant political voice in the government. Their poor strategies eventually resulted in BS's declining popularity, showing that PAP's political dominance can be attributed to the weaknesses of their political opposition, rather than the MG structures they undertook to undermine their opponents.
AF1
- Maximum governments were effective at maintaining political control through it's ability to monopolize control of state apparatus as a means to ensure the political opposition's inability to revive itself, evident by the maintenance of power within the hands of the ruling elite.
- In the post-colonial period, Southeast Asia was politically diverse and had many political parties jostling for power. Thus, through the leaders' utility of legislative power, it helped to weed out political opponents so as to remove threats to their power.
- In Singapore, Barisan Sosialis was a strong political opponent of the ruling party PAP in the early 1960s. This is evident in how they managed to 25% of the voters during the 1962 Merger Referendum to cast blank votes, showing their immense popularity as an opposition party.
- Under the Internal Security Act, which allowed for detention without trial of suspected dissidents, several BS members were arrested for boycotting the parliament in 1966. Also, Operation Coldstore in 1963 saw the arrests of suspected communists, including BS secretary-general Lim Chin Siong and half of BS's central executive committee. By detaining opposition leaders, who were responsible for advocating an alternative political vision, it eliminated the figures who helped garner mass support for BS. Via the monopoly of power, the incumbent government managed to remove the strong opposition, thus ensuring that leftist support was curbed and directed towards PAP instead. The use of legal power also instilled fear about the harsh treatment one would face if they rose as a strong political opposition of PAP.
- The use of MG structures acted as a deterrent for the rise of any political opposition, thus ensuring that there was no viable political threat to PAP's leadership. This is seen in PAP's dominance in Singapore's political scene for over four decades.
Limitations: PAP's political dominance can be attributed to the fact that BS was weak and not because the MG structures were effective. BS boycotted the 1966 elections, effectively allowing PAP to be the de facto dominant political voice in the government. Their poor strategies eventually resulted in BS's declining popularity, showing that PAP's political dominance can be attributed to the weaknesses of their political opposition, rather than the MG structures they undertook to undermine their opponents.
[SEA History] MG Stab/Instab (TS)
TS: Factor + MG Quality - What it did - Causal Significance - Outcome
+ The maximum government's ability to use and monopolize control of state apparatus as a means to ensure opposition inability to revive itself made it possible for the maximum government to sustain political control, as seen in the maintenance of power within the hands of the ruling elite.
+ Through the maximum government's extensive influence over multiple areas of society, it enabled the creation of effective institutions that help develop political goodwill, thus aiding in the cultivation of a supportive electorate, as seen in the maximum government's continued popularity in the political realm.
+ The maximum government's monopoly of power enabled the practicing of political patronage which courted the loyalty of non-government actors, thus removing political threats to the maximum government, resulting in the maintenance of political control by the maximum government.
+ Through the monopoly of power, the maximum government's utility of legislation to suppress opposition drastically reduced the opposition's ability to challenge the incumbent government by isolating its support bases, thus enabling political stability, evident by the absence of a viable political opponent to the incumbent government.
- Declining support for authoritarian regimes as a result of a changing international climate led to the loss of economic aid, causing the maximum government to be unable to cultivate mass support for the regime, thus resulting in the establishment of a civilian government instead.
- The presence of strong political opponents undermined the activities and actions of the maximum government, resulting in the loss of legitimacy for the maximum government.
+ The maximum government's ability to use and monopolize control of state apparatus as a means to ensure opposition inability to revive itself made it possible for the maximum government to sustain political control, as seen in the maintenance of power within the hands of the ruling elite.
+ Through the maximum government's extensive influence over multiple areas of society, it enabled the creation of effective institutions that help develop political goodwill, thus aiding in the cultivation of a supportive electorate, as seen in the maximum government's continued popularity in the political realm.
+ The maximum government's monopoly of power enabled the practicing of political patronage which courted the loyalty of non-government actors, thus removing political threats to the maximum government, resulting in the maintenance of political control by the maximum government.
+ Through the monopoly of power, the maximum government's utility of legislation to suppress opposition drastically reduced the opposition's ability to challenge the incumbent government by isolating its support bases, thus enabling political stability, evident by the absence of a viable political opponent to the incumbent government.
- Declining support for authoritarian regimes as a result of a changing international climate led to the loss of economic aid, causing the maximum government to be unable to cultivate mass support for the regime, thus resulting in the establishment of a civilian government instead.
- The presence of strong political opponents undermined the activities and actions of the maximum government, resulting in the loss of legitimacy for the maximum government.
[SEA History] Adoption of MG (TS)
- The accommodation of minority rights under Parliamentary Democracy resulted in the outbreak of communal riots, inclining governments towards adopting authoritarian structures to maintain political stability. [Necessity]
- The inefficient policy making of the incumbent government saw the gradual loss of their their legitimacy, increasing the willingness of the military to impose maximum governance to restore government efficiency. [Necessity]
- The incompatibility of the democratic system with the local context opened up space for maximum governance to be adopted as an alternative political structure. [Necessity]
- The presence of a politically influential non-government player who was in favour of authoritarian rule opened up the opportunity for maximum governance to take root. [Chance]
- The political ambition of the incumbent leaders weakened their commitment towards democracy, thus inclining them towards a more authoritarian system to retain power. [Choice]
- The inefficient policy making of the incumbent government saw the gradual loss of their their legitimacy, increasing the willingness of the military to impose maximum governance to restore government efficiency. [Necessity]
- The incompatibility of the democratic system with the local context opened up space for maximum governance to be adopted as an alternative political structure. [Necessity]
- The presence of a politically influential non-government player who was in favour of authoritarian rule opened up the opportunity for maximum governance to take root. [Chance]
- The political ambition of the incumbent leaders weakened their commitment towards democracy, thus inclining them towards a more authoritarian system to retain power. [Choice]
Monday 5 September 2016
[GP] Singapore - Content
ECONOMY
- According to the World Economic Forum's Global Competitveness Report 2013, SG is world's 2nd most economically competitive nation.
- SG has the highest concentration of millionaire households - at 17%.
- SG has the 2nd highest income inequality in the world.
- Our economy is growing at 2-3% per year and continues to attract tens of billions of dollars in foreign direct investment a year. Eg. Rolls Royce aircraft engine manufacturing facility and Procter & Gamble's regional R&D centre.
- SG deemed to be an economic miracle - a respected player with an outsized influence on the world stage both diplomatically and economically.
- It is a major oil refining and training hub with a growing liquefied natural gas trading and storing industry. World leaders in oil rig building through Keppel Corporation and Sembcorp Marine.
- Airport and Seaport are the busiest in the world, attracts 3x the resident population of tourists each year. Best airport in the world, voted consecutively.
- SG enjoyed double digit growth annually in it's GDP from 1965 to 1985.
- Very high standard of living, one of the most expensive places in the world to live in, a car is very expensive.
GOVERNMENT
- Clean and capable govt, which has built the security, stability, infrastructure, strong rule of law and open economy that makes SG a great place to invest and do business.
- Non-corrupt government; our leaders are elected based on their ability and not because they are related to the ruling elite. This ensured that the interests of the people were put before that of self-interest, allowing Singapore to flourish as a nation-state.
- Allows for limited freedom of speech so as to ensure that harmony remains. Secular - allows for religious freedom but will also take action if the religion does anything to challenge national interests/the authority. Jehovah's Witness was banned as the people refused to undergo NS (they do not partake in military service). The Marxist Conspiracy saw 20-odd catholics being captured.
PEOPLE (Identity, Lang, Characteristics)
- Singaporeans are fluent in both English and Asian languages, such as Chinese, Malay and Tamil, and thus act as an invaluable bridge between the East and the West. This was due to the bilingualism policy that introduced English as a lingua franca and allowing people to retain their ethnic language as their second language.
- Singapore's national ideology is the Shared Values initiative, which is meant to inculcate Asian Values into Singaporeans, after the 1961 bilingualism policy was criticized as having 'Westernized' Singaporeans with the increased usage of the English Language. However, Singapore has also been criticized as a cultural orphan with no unique identity to itself.
- Singaporeans speak colloquial English, better known as 'Singlish'. It is a jargon unique to Singapore, made up of mostly English but mixed with Chinese, Malay, Tami and Chinese dialects. Many Singaporeans hold it close to them.
HISTORY
- Double-minority status: The Singaporean majority is a regional minority, making them more vulnerable to external pressures or tensions. The government will hence take greater precautionary measures such as capping the number of Malays in the SAF and seeks to establish good bilateral relations with Malaysia and Indonesia.
- Focus on: Pragmatism, Meritocracy, Honesty.
- Many of our ancestors came from China or India, in search of better job opportunities and salary. The values of pragmatism - working hard to reap the fruits of our labour - has been passed down generation after generation. Many Singaporeans aim to attain the 5Cs - Condo, Car, Credit Card, Country Club Membership, Career.
- Singaporeans actively pursue material aim, in terms of job promotions, salary increment.
INFRASTRUCTURE
- Excellent transport system as compared to other countries in the world. Provides access to almost any part of SG via MRT and buses.
SPORTS
- Many Singaporeans lament at the lack of local talent. In the 2008 and 2012 Olympics, the ladies table tennis team comprised of Chinese-born paddlers, who were previously rejected by the Chinese National Team. If we had utilized our local talents, we may never have achieved this monumental feat. While many Singaporeans were extremely proud and happy that the ladies team in 2008 won the silver medal, some were upset that they were not truly Singaporean.
- Joseph Schooling, who won the Republic's first olympic gold medal and broke an olympic record in the 100m butterfly event, had his momentuous victory put down by critics who deemed him as not a true-blue Singaporean. He studied and trained in America since he was in his early teens, and some felt that he did not grow up in Singapore and hence, was considered a foreigner in his origin country.
- Sports in Singapore can bind people too. During football matches, especially at the old national stadium or jalan besar stadium, many Singaporeans will turn up to cheer for the local team, especially when Singapore is playing Malaysia. It is an opportunity for them to don national colours and show the pride for their country. Regardless of race or religion, Singaporeans bond over their common love for 'The Beautiful Game' and the pride they have of their nation.
- SG focuses on STEM: Science, Technology, Engineering and Mathematics. This was to boost the value added per worker in order to compensate for our geographical disadvantages, such as having no strategic hinterland and having no natural resources.
- The focus in our education is to get perfect grades to open up our options in University, so that we can get a prestigious degree to attain our dream job - which is defined to be a career which propels us to the top of the corporate ladder and allowing us to earn several hundred grand per year. Many students focus on getting into prestigious schools and competing with other elite students for the top spots, so as to not 'lose out'.
- Many students simply cram information in examinations to regurgitate what they have memorized in the exams, in order to get top marks. Much focus is placed on the students' ability to retain knowledge and write speedily, as opposed to truly understanding the concepts involved and appreciating the thinking process. Despite this, Singapore has constantly been praised to have one of the best education systems in the world, seeing how Raffles Institution churned out more students who attended Ivy League Schools than any other high schools in the world. In fact, Wall Street Journal dubbed RI as the 'Ivy League Machine'. RI is also the top high school for Oxford in terms of student admission.
- SG topped the PISA problem-solving test in 2012 - it was taken by students from around the world.
- Singapore incorporated a shared history of the different races in the NE curriculum by portraying the forefathers of SG to be of different ethnic groups (eg. LKY, Goh Keng Swee, Toh Chin Chye, Lim Yew Hock?, Yusof Bin Ishak, Rajaratnam).
TOURISM
-
- According to the World Economic Forum's Global Competitveness Report 2013, SG is world's 2nd most economically competitive nation.
- SG has the highest concentration of millionaire households - at 17%.
- SG has the 2nd highest income inequality in the world.
- Our economy is growing at 2-3% per year and continues to attract tens of billions of dollars in foreign direct investment a year. Eg. Rolls Royce aircraft engine manufacturing facility and Procter & Gamble's regional R&D centre.
- SG deemed to be an economic miracle - a respected player with an outsized influence on the world stage both diplomatically and economically.
- It is a major oil refining and training hub with a growing liquefied natural gas trading and storing industry. World leaders in oil rig building through Keppel Corporation and Sembcorp Marine.
- Airport and Seaport are the busiest in the world, attracts 3x the resident population of tourists each year. Best airport in the world, voted consecutively.
- SG enjoyed double digit growth annually in it's GDP from 1965 to 1985.
- Very high standard of living, one of the most expensive places in the world to live in, a car is very expensive.
GOVERNMENT
- Clean and capable govt, which has built the security, stability, infrastructure, strong rule of law and open economy that makes SG a great place to invest and do business.
- Non-corrupt government; our leaders are elected based on their ability and not because they are related to the ruling elite. This ensured that the interests of the people were put before that of self-interest, allowing Singapore to flourish as a nation-state.
- Allows for limited freedom of speech so as to ensure that harmony remains. Secular - allows for religious freedom but will also take action if the religion does anything to challenge national interests/the authority. Jehovah's Witness was banned as the people refused to undergo NS (they do not partake in military service). The Marxist Conspiracy saw 20-odd catholics being captured.
PEOPLE (Identity, Lang, Characteristics)
- Singaporeans are fluent in both English and Asian languages, such as Chinese, Malay and Tamil, and thus act as an invaluable bridge between the East and the West. This was due to the bilingualism policy that introduced English as a lingua franca and allowing people to retain their ethnic language as their second language.
- Singapore's national ideology is the Shared Values initiative, which is meant to inculcate Asian Values into Singaporeans, after the 1961 bilingualism policy was criticized as having 'Westernized' Singaporeans with the increased usage of the English Language. However, Singapore has also been criticized as a cultural orphan with no unique identity to itself.
- Singaporeans speak colloquial English, better known as 'Singlish'. It is a jargon unique to Singapore, made up of mostly English but mixed with Chinese, Malay, Tami and Chinese dialects. Many Singaporeans hold it close to them.
HISTORY
- Double-minority status: The Singaporean majority is a regional minority, making them more vulnerable to external pressures or tensions. The government will hence take greater precautionary measures such as capping the number of Malays in the SAF and seeks to establish good bilateral relations with Malaysia and Indonesia.
- Focus on: Pragmatism, Meritocracy, Honesty.
- Many of our ancestors came from China or India, in search of better job opportunities and salary. The values of pragmatism - working hard to reap the fruits of our labour - has been passed down generation after generation. Many Singaporeans aim to attain the 5Cs - Condo, Car, Credit Card, Country Club Membership, Career.
- Singaporeans actively pursue material aim, in terms of job promotions, salary increment.
INFRASTRUCTURE
- Excellent transport system as compared to other countries in the world. Provides access to almost any part of SG via MRT and buses.
SPORTS
- Many Singaporeans lament at the lack of local talent. In the 2008 and 2012 Olympics, the ladies table tennis team comprised of Chinese-born paddlers, who were previously rejected by the Chinese National Team. If we had utilized our local talents, we may never have achieved this monumental feat. While many Singaporeans were extremely proud and happy that the ladies team in 2008 won the silver medal, some were upset that they were not truly Singaporean.
- Joseph Schooling, who won the Republic's first olympic gold medal and broke an olympic record in the 100m butterfly event, had his momentuous victory put down by critics who deemed him as not a true-blue Singaporean. He studied and trained in America since he was in his early teens, and some felt that he did not grow up in Singapore and hence, was considered a foreigner in his origin country.
- Sports in Singapore can bind people too. During football matches, especially at the old national stadium or jalan besar stadium, many Singaporeans will turn up to cheer for the local team, especially when Singapore is playing Malaysia. It is an opportunity for them to don national colours and show the pride for their country. Regardless of race or religion, Singaporeans bond over their common love for 'The Beautiful Game' and the pride they have of their nation.
EDUCATION
- SG focuses on STEM: Science, Technology, Engineering and Mathematics. This was to boost the value added per worker in order to compensate for our geographical disadvantages, such as having no strategic hinterland and having no natural resources.
- The focus in our education is to get perfect grades to open up our options in University, so that we can get a prestigious degree to attain our dream job - which is defined to be a career which propels us to the top of the corporate ladder and allowing us to earn several hundred grand per year. Many students focus on getting into prestigious schools and competing with other elite students for the top spots, so as to not 'lose out'.
- Many students simply cram information in examinations to regurgitate what they have memorized in the exams, in order to get top marks. Much focus is placed on the students' ability to retain knowledge and write speedily, as opposed to truly understanding the concepts involved and appreciating the thinking process. Despite this, Singapore has constantly been praised to have one of the best education systems in the world, seeing how Raffles Institution churned out more students who attended Ivy League Schools than any other high schools in the world. In fact, Wall Street Journal dubbed RI as the 'Ivy League Machine'. RI is also the top high school for Oxford in terms of student admission.
- SG topped the PISA problem-solving test in 2012 - it was taken by students from around the world.
- Singapore incorporated a shared history of the different races in the NE curriculum by portraying the forefathers of SG to be of different ethnic groups (eg. LKY, Goh Keng Swee, Toh Chin Chye, Lim Yew Hock?, Yusof Bin Ishak, Rajaratnam).
TOURISM
-
Sunday 4 September 2016
[SEA History] PD Stab/Instab (TS)
PD Means - What it did - Outcome (Indicator)
+ PD governments successfully prevented the eruption of large sale or violent labour unrest via the skilful cultivation of union-government relationships and dialogues, thus preserving the overall social order.
+ The accommodation for a variety of views helped in the management of diverse interests, thereby preventing racial tensions from disrupting social stability.
- The allowance of political competition opened up space for diverse political actors to exist, with divergent political interests resulting in constant changes in the composition of leadership.
- PD governments lacked the will to forcibly suppress political opposition, thereby paving the way for increased military intervention in politics, ultimately culminating into military takeovers of the government.
- The accommodation of minority interests under PD fuelled anger from the majority and culminated into ethnic riots, which resulted in structural changes of the political system to restore political stability.
+ PD governments successfully prevented the eruption of large sale or violent labour unrest via the skilful cultivation of union-government relationships and dialogues, thus preserving the overall social order.
+ The accommodation for a variety of views helped in the management of diverse interests, thereby preventing racial tensions from disrupting social stability.
- The allowance of political competition opened up space for diverse political actors to exist, with divergent political interests resulting in constant changes in the composition of leadership.
- PD governments lacked the will to forcibly suppress political opposition, thereby paving the way for increased military intervention in politics, ultimately culminating into military takeovers of the government.
- The accommodation of minority interests under PD fuelled anger from the majority and culminated into ethnic riots, which resulted in structural changes of the political system to restore political stability.
[SEA History] Adoption of PD (TS)
Colonial Legacy: Plural Society, Western Edu, Early intro of demo structures
JO: Turn towards mass politics, harsh rule
Colonial Interests: Fear of communism, Decol Plans
Decol: Nationalist strategies of local leaders, CP's decol plans
Factor - What it did - Causal Significance - Outcome
- The creation of a plural society during colonial rule saw the rise of diverse communities, fuelling desire for the adoption of democracy which accommodated a diversity of interests.
- Western Education equipped local leaders with the knowledge of the workings of democracy, enhancing their ability to adopt it as a political system upon independence.
- The turn towards mass politics during the Japanese Occupation saw the emergence of diverse political players, thus making the government more inclined towards adopting democracy as a political system to accommodate the varying interests.
- The harsh rule of the Japanese Occupation turned locals away from authoritarian rule, making them inclined towards democracy as an alternative political structure to be adopted upon independence.
- The colonial power's fear of communism saw the introduction of democratic structures in their decolonization plans, laying the foundation of democracy to be adopted as the default political system at the point of independence.
- Nationalist strategies for decolonization saw local leaders aligning themselves with democracy to convince the colonial powers of their legitimacy to rule, in order to gain colonial acknowledgement of their independence movement, and thus democracy was the de facto political system at the point of independence.
- Given the international bipolar divide after WW2, local leaders adopted democracy as a strategy to gain colonial and international acknowledgement of their independence movement.
btw, none of these have been checked by a teacher. i just needed to write them down somewhere before i lose my notes again. it may be wrong for all you know, but im gonna use them for now.
[Microeconomics] Price Floor
How it works
- Minimum legislated market price set and allowed by the government.
- It is set above the market equilibrium at Pmin.
- It is meant to protect income of suppliers.
Presence of surplus
- Rise in price leads to a decreases in QD an increase in QS, ceteris paribus. There will be a surplus of QDQS units of [good].
- Demand elasticity explanation.
- Supply elasticity explanation.
Eg. DD elastic, SS inelastic.
- As such, the increase in P is likely to cause a more than proportionate decrease in QD. There will be a severe surplus. The government should asses between the price and degree of surplus. the higher the price floor, the more severe the surplus.
DWL
- Before the implementation of a price floor, the consumer surplus is Area DE0P0 and producer surplus is Area DE0O. Consumers enjoy larger Q but higher P. Consumer surplus decreases to Area XXX and producer surplus increases to Area YYY, incurring a DWL of Area ZZZ.
Evasion of PF
- Firms will surplus may have incentive to evade PF and sell goods below legislated price. This is especially true for firms which sell products with price elastic demands. When they decrease the price of their good, there will a more than prop decrease in QD, allowing the firm to earn a higher revenue.
Buy up surplus
- To ensure that revenue of law-abiding producers do not fall, the government can buy up the surplus. However, this is financially costly, with the expenditure denoted by Area ABCD.
- If goods are perishable, they cannot be stored. If they are non-perishable, they will incur high storage costs.
- Selling the surplus in the international market will depress world price even further due to increase in world supply as most surpluses are offloaded into the world market.
Quota
- Artificially lower SS restricts producers to quota.
- By lowering Q transacted, it causes market price to increase, rendering price control unnecessary. However, the loss of consumption due to the disruption of market forces will lower economic welfare.
Cushion inefficiency
- The price floor enable profits to be protected as they are set higher than the free market equilibrium price.
- There may be less need for producers to find more efficient production methods and cut cost. This cushions inefficiency.
Alternative Goods
- High price may discourage firms from producing alternative goods which they could produce more efficiently or are in higher demand, but have a lower market price.
[Microeconomics] Price Ceiling
How it works
- A price ceiling is the maximum legal market price set and allowed by the government.
- It is set at Pmax, below the free market equilibrium price P0.
- The market price is not allowed to rise above the maximum legislated price, thus ensuring greater affordability for consumers who previously may not be bale to fford it.
What to consider?
Presence of Shortage
- The fall in price will lead to an increase in QD and decrease in QS, ceteris paribus. This results in a shortage of QSQD units of [good/service].
- The demand for good is relatively price [elastic/inelastic] as [give 1-2 reasons.]
Eg. Medicine; Inelastic; High degree of necessity to patients and it is unlikely that there are close substitutes to medicine as remedies of illnesses.
- The supply is likely to be relatively price [elastic/inelastic] as [give 1-2 reasons.]
Eg. Elastic; Proportion of marginal cost of providing medicine is very small and modern technology is likely to manufacture medicine easily in a short period of time.
- As such, the fall in price will cause a more than proportionate decrease in QS, ceteris paribus.
- This results in a severe shortage of medicine with the implementation of a price ceiling. The government has to assess between the price and degree of shortage. The lower the price ceiling, the larger the shortage.
Black Market
- Given that medicine has a high degree of necessity to those that need them, they are likely to be willing to pay more than the legislated price to obtain the good. This causes a black market to emerge.
- Assuming that black market dealers are able to buy up all the available quantity (QS units) at Price Pmax, and have access to customers who are willing to purchase the medicine at a higher price and are unable to purchase medicine at the legal price, the black market dealers will be able to sell the medicine at price Pb.
- With the emergence of black markets, the government's objective of achieving a fairer distribution of medicine to ensure affordability will not be achieved.
DWL
- Before the implementation of the price ceiling, there is a consumer surplus of Area AP0E0 and producer surplus of Area FE0P0. With the implementation of a price ceiling, consumers enjoy a lower market price but have access to a smaller quantity of medicine. Their consumer surplus increases to Area PmaxBP, while producer surplus decreases to PmaxDF. Society thus incurs a DWL of Area DBE0.
Closure
- According to the law of supply, the fall in price will lead to a fall in QS, ceteris paribus. Given that revenue is a product of price and quantity, the price ceiling will cause a fall in revenue.
- If the fall in revenue results in subnormal profits in the LR and the price ceiling is below LRAC, there will be closure of medicine providers.
No equity
- The price ceiling may not necessarily lead to an equitable outcome. Those who need the medicine most may not be the ones who are first in line to gain access to the medicine.
- For example, firms may prioritize their regular customers in terms of who can obtain their goods first.
Cost of implementation
- The government is likely to conduct rationing through the use of coupons to achieve a more equitable outcome of the price ceiling. This however, is administrative expensive as mean testing will have to be conducted to assess which consumers are likely to be able to purchase the medicine.
- Given that India is a large country and has lack of accessibility in some area, admin costs will be very high.
Opportunity Cost
- While price is lowered, allocation of good is still on a first come first serve basis. This is likely to lead to queues developing or firms adopting waiting lists.
- Consumers incur additional OPP cost of spending more time searching for and waiting for the good or service.
Severity
- The government should consider whether a price ceiling is necessary. If the rising price of medicine is due to a sudden shock in supply which can be rectified in the SR, then there is no need to implement price ceiling. If the SS of medicine can be increased significantly in the LR, there will be a surplus of medicine at the current equilibrium price, putting downward pressure on price. This allays the rising prices.
- The government should consider the proportion of people who affected by the rising price of medicine. If it's a small group of people, they should provide direct subsidy to those who need it, so as to not negatively affect those who do not need price ceiling.
- The government can consider the average income and distribution of income in India. If a majority of Indians have low incomes, medicine may be considered to be unaffordable, hence price ceiling is necessary.
- A price ceiling is the maximum legal market price set and allowed by the government.
- It is set at Pmax, below the free market equilibrium price P0.
- The market price is not allowed to rise above the maximum legislated price, thus ensuring greater affordability for consumers who previously may not be bale to fford it.
What to consider?
Presence of Shortage
- The fall in price will lead to an increase in QD and decrease in QS, ceteris paribus. This results in a shortage of QSQD units of [good/service].
- The demand for good is relatively price [elastic/inelastic] as [give 1-2 reasons.]
Eg. Medicine; Inelastic; High degree of necessity to patients and it is unlikely that there are close substitutes to medicine as remedies of illnesses.
- The supply is likely to be relatively price [elastic/inelastic] as [give 1-2 reasons.]
Eg. Elastic; Proportion of marginal cost of providing medicine is very small and modern technology is likely to manufacture medicine easily in a short period of time.
- As such, the fall in price will cause a more than proportionate decrease in QS, ceteris paribus.
- This results in a severe shortage of medicine with the implementation of a price ceiling. The government has to assess between the price and degree of shortage. The lower the price ceiling, the larger the shortage.
Black Market
- Given that medicine has a high degree of necessity to those that need them, they are likely to be willing to pay more than the legislated price to obtain the good. This causes a black market to emerge.
- Assuming that black market dealers are able to buy up all the available quantity (QS units) at Price Pmax, and have access to customers who are willing to purchase the medicine at a higher price and are unable to purchase medicine at the legal price, the black market dealers will be able to sell the medicine at price Pb.
- With the emergence of black markets, the government's objective of achieving a fairer distribution of medicine to ensure affordability will not be achieved.
DWL
- Before the implementation of the price ceiling, there is a consumer surplus of Area AP0E0 and producer surplus of Area FE0P0. With the implementation of a price ceiling, consumers enjoy a lower market price but have access to a smaller quantity of medicine. Their consumer surplus increases to Area PmaxBP, while producer surplus decreases to PmaxDF. Society thus incurs a DWL of Area DBE0.
Closure
- According to the law of supply, the fall in price will lead to a fall in QS, ceteris paribus. Given that revenue is a product of price and quantity, the price ceiling will cause a fall in revenue.
- If the fall in revenue results in subnormal profits in the LR and the price ceiling is below LRAC, there will be closure of medicine providers.
No equity
- The price ceiling may not necessarily lead to an equitable outcome. Those who need the medicine most may not be the ones who are first in line to gain access to the medicine.
- For example, firms may prioritize their regular customers in terms of who can obtain their goods first.
Cost of implementation
- The government is likely to conduct rationing through the use of coupons to achieve a more equitable outcome of the price ceiling. This however, is administrative expensive as mean testing will have to be conducted to assess which consumers are likely to be able to purchase the medicine.
- Given that India is a large country and has lack of accessibility in some area, admin costs will be very high.
Opportunity Cost
- While price is lowered, allocation of good is still on a first come first serve basis. This is likely to lead to queues developing or firms adopting waiting lists.
- Consumers incur additional OPP cost of spending more time searching for and waiting for the good or service.
Severity
- The government should consider whether a price ceiling is necessary. If the rising price of medicine is due to a sudden shock in supply which can be rectified in the SR, then there is no need to implement price ceiling. If the SS of medicine can be increased significantly in the LR, there will be a surplus of medicine at the current equilibrium price, putting downward pressure on price. This allays the rising prices.
- The government should consider the proportion of people who affected by the rising price of medicine. If it's a small group of people, they should provide direct subsidy to those who need it, so as to not negatively affect those who do not need price ceiling.
- The government can consider the average income and distribution of income in India. If a majority of Indians have low incomes, medicine may be considered to be unaffordable, hence price ceiling is necessary.
Friday 2 September 2016
[Literature Paper 1] Law and Justice - All My Sons
Guilt: Feeling responsibility
Culpability: Responsibility for a fault; blame
Justice is manipulated and Law is malleable.
Moral Dilemma: If Joe hadn't been that 'helpful', he wouldn't have taken the risk and gave in to personal & family pride.
- Keller now faces the consequences placing the Personal above the Social. To get back social order, justice has to be served.
Crimes committed in the play
Keller - Approved the shipping of cracked cylinder heads, pinned the blame of Steve, caused Larry's death
Mother - Complicit in Keller's crime by lying on behalf of him
Chris - Did not act on his 'suspicion'
Ann and George - Too quick to condemn Steve; Ann hid the truth about Larry
Steve - Followed Keller's instructions to send out cracked cylinder heads, despite knowing that they may endanger lives
Neighbours - Inaction despite their belief that Keller did commit the crime
Instances of Law and Justice
- Joe & Bert (The jail, policemen, detective)
- Neighbours' view on the shop incident
- George as a lawyer and his faith in Chris
- Mother's attempt to patch things up
- Keller explaining the incident to the various characters
Joe and Bert
- Bert: Represents innocence; the only character in the play which demands for truth (ref: he asks to see the jail)
- Joe: Hoodwinked many kids into believing that he is the detective/policeman, aka the 'good guy'. Chris was manipulated to some extent as well. They believed in the reality of his game.
- The Justice System is inherently flawed as one cannot be held responsible without proof (consider: no way to proof the phone call between steve and joe). This allows Joe to assume/parade his innocence.
The Neighbours
Who is he to ruin a man's life? Everybody knows Joe pulled a fast one to get out of jail.
- Revelation about neighbours opinions on the incident and how they pretend that nothing's wrong
Then why don't you go out and talk to people? Go on, talk to them. There's not a person on the block who doesn't know the truth.
- Their moral world view is not about the truth of the incident, but the fact that the Law has not proven Joe wrong.
- The nieghbours realise that Law is ineffectual but they allow it to determine their moral & legal standard. Because Joe escapes, they do not condemn him, which reinforces his belief that he's innocent. (consider: is this their crime?)
People come here all the time for cards
- Poker: A game which requires putting up fronts.
They give him credit for being smart
- The neighbours do not believe that Joe is innocent but they give him credit for his success (i.e. getting away with what he did). Their relationships with the Kellers are facades in which they keep up.
To Frank, Law has no grey areas. You either immediately execute the guy or release him, there's no in between.
George & Chris
Outside there doesn't seem to be much of a law
I decided to look like a lawyer, anyway
- Deals with issues of right and wrong
- Returned to have justice served
I can't prove a phone call
- Not proven = not true. All Kellers subscribe to this belief.
- In this scenario, the Law is ineffective and Justice is forfeited. The Deevers are victims of a gross miscarriage.
The court did not know him, Annie!
The court record was good enough for you all these years, why isn't it good now?
- George used to believe and trust in the judicial system, to the point that he rejected his father based on what the court deemed to the truth.
I believed everything, because I thought you did
- Chris is the embodiment of truth to many characters, including George. He believed in Chris's affirmation of the truth, over his own father's.
- Shows that George does not understand law as he has to look to another person to determine right and wrong.
I'm yellow.
- Chris questions the value of any kind of justice if the world is tainted by war profiteering.
Mother
- Mother believes that Joe is no longer culpable after he owns up. This flawed thinking is premised on the fact that Mother's primary crime is deceit.
- Here, she ignores the fact that crime faces REAL consequences under the law and that Steve was held culpable all these years.
- She has no right to determine that Joe would have paid his dues after owning up (consider: does she have the right to tell chris to live?)
Consider...
Final Considerations...
Culpability: Responsibility for a fault; blame
Justice is manipulated and Law is malleable.
Moral Dilemma: If Joe hadn't been that 'helpful', he wouldn't have taken the risk and gave in to personal & family pride.
- Keller now faces the consequences placing the Personal above the Social. To get back social order, justice has to be served.
Crimes committed in the play
Keller - Approved the shipping of cracked cylinder heads, pinned the blame of Steve, caused Larry's death
Mother - Complicit in Keller's crime by lying on behalf of him
Chris - Did not act on his 'suspicion'
Ann and George - Too quick to condemn Steve; Ann hid the truth about Larry
Steve - Followed Keller's instructions to send out cracked cylinder heads, despite knowing that they may endanger lives
Neighbours - Inaction despite their belief that Keller did commit the crime
Instances of Law and Justice
- Joe & Bert (The jail, policemen, detective)
- Neighbours' view on the shop incident
- George as a lawyer and his faith in Chris
- Mother's attempt to patch things up
- Keller explaining the incident to the various characters
Joe and Bert
- Bert: Represents innocence; the only character in the play which demands for truth (ref: he asks to see the jail)
- Joe: Hoodwinked many kids into believing that he is the detective/policeman, aka the 'good guy'. Chris was manipulated to some extent as well. They believed in the reality of his game.
- The Justice System is inherently flawed as one cannot be held responsible without proof (consider: no way to proof the phone call between steve and joe). This allows Joe to assume/parade his innocence.
The Neighbours
Who is he to ruin a man's life? Everybody knows Joe pulled a fast one to get out of jail.
- Revelation about neighbours opinions on the incident and how they pretend that nothing's wrong
Then why don't you go out and talk to people? Go on, talk to them. There's not a person on the block who doesn't know the truth.
- Their moral world view is not about the truth of the incident, but the fact that the Law has not proven Joe wrong.
- The nieghbours realise that Law is ineffectual but they allow it to determine their moral & legal standard. Because Joe escapes, they do not condemn him, which reinforces his belief that he's innocent. (consider: is this their crime?)
People come here all the time for cards
- Poker: A game which requires putting up fronts.
They give him credit for being smart
- The neighbours do not believe that Joe is innocent but they give him credit for his success (i.e. getting away with what he did). Their relationships with the Kellers are facades in which they keep up.
To Frank, Law has no grey areas. You either immediately execute the guy or release him, there's no in between.
George & Chris
Outside there doesn't seem to be much of a law
I decided to look like a lawyer, anyway
- Deals with issues of right and wrong
- Returned to have justice served
I can't prove a phone call
- Not proven = not true. All Kellers subscribe to this belief.
- In this scenario, the Law is ineffective and Justice is forfeited. The Deevers are victims of a gross miscarriage.
The court did not know him, Annie!
The court record was good enough for you all these years, why isn't it good now?
- George used to believe and trust in the judicial system, to the point that he rejected his father based on what the court deemed to the truth.
I believed everything, because I thought you did
- Chris is the embodiment of truth to many characters, including George. He believed in Chris's affirmation of the truth, over his own father's.
- Shows that George does not understand law as he has to look to another person to determine right and wrong.
I'm yellow.
- Chris questions the value of any kind of justice if the world is tainted by war profiteering.
Mother
- Mother believes that Joe is no longer culpable after he owns up. This flawed thinking is premised on the fact that Mother's primary crime is deceit.
- Here, she ignores the fact that crime faces REAL consequences under the law and that Steve was held culpable all these years.
- She has no right to determine that Joe would have paid his dues after owning up (consider: does she have the right to tell chris to live?)
Consider...
- Is there a need to accept culpability and blame, even if the law DOESN'T recognize it?
- Court Papers: No punishment (consider: does this mean NO guilt/blame?)
- How do the different characters view Law and Justice?
Keller
- To Keller, Steve is culpable because his family accepted the rule of law and allowed him to be perceived as guilty. However, because Steve and Joe did not intend for the crime, Steve should not be considered a criminal.
Final Considerations...
- What is forgiveness? What is necessary for forgiveness?
- Has justice been served? Can justice serve in a world so unjust?
- Have the characters paid their dues?
[Literature Paper 1] The Slip of Tongue - All My Sons
Kate's Revelation
- Due to indulgent pride of Joe's health after George's compliment on her youth
- The character who is the most worried about George's arrival makes the fatal mistake.
George's Response
- Immediate and Challenging
Frank's Arrival
- Confirms Joe's role in the shop incident (which means Larry is 'dead')
Irony: Larry is alive --> Effect: creates a profound anti-climax and leaves them on tenderhooks.
- Frank is no longer necessary as it's meant to uphold Joe's innocence. With Joe's guilt exposed, Kate believes that Larry being alive is redundant.
Packing Ann's Bag
- To Mother, the marriage means that Joe is a murderer because it acknowledges that Larry is dead.
- Now, we understand Mother's subtle dislike for Ann
Response of the Keller Family
If your brother's alive, darling, because if he's dead, your father killed him... God does not let a son be killed by his father. (btw this scene really struck a chord in me)
- Mother's ideal: A Perfect Family. --> Her reality and denial is shaped by her notion of family.
- Her belief in this ideal leads her to deny the reality of the crime, guilt and deceit.
(slight digression: consider how mother makes an indirect connection between joe's crime and larry's discipline - she insists that larry's blood is on joe's hands. later on, we find out that joe had DIRECTLY caused larry's death because larry felt culpable for joe's crime. we'll touch more on this in 'law and justice')
Denial (1): Joe questions Kate's sanity several times.
Denial (2): Joe bases the seriousness of his crime on the fact that Larry was not involved in the shop incident, as he didn't fly a P-40. As Larry was not killed as a result of Joe's actions, his actions are forgivable. (consider: if larry was directly killed because of joe, what will happen?)
Denial (3) How could I kill anyone? - Joe was doing it for his livelihood and family. He implies that his actions were necessary and justifies it by the situation he was put in.
Denial (4) He did not have the opportunity to make amends due to the media catching hold of what happened. (consider: why doesn't joe read the news section of the newspapers?)
Chris's battered response: Moral responsibility, beyond the personal/family, they were his brothers/Joe's sons
Consider: Father and Son conflict is between Social and Personal. Where do their allegiance lie?
(with burning fury)
- Violent and animalistic response (untypical of Chris?)
For me! Where do you live, where have your come from? For me! - I was dying every day and you were killing my boys and you did it for me? What the hell do you think I was thinking of, the goddamn business? What is that, the world - the business? What the hell do you mean, you did it for me? Don't you have a country? Don't you live in the world? What the hell are you? You're not even an animal, no animal kills his own, what are you?
- Shows Chris's belief that humanity must be good.
- Keller is barbaric and inhumane, which shocks Chris, especially because he loves and respects his father.
- Chris is shocked at Joe's selfishness, lack of patriotism, lack of humanity.
- He is most provoked by Joe's profession that he did it for Chris. Chris is horrified at being tarred with the taint of Joe's crimes and he refuses to be Joe's unwitting accomplice.
- Chris cannot comprehend the reality of Joe's world.
What must I do to you? I ought to tear the tongue out of your mouth, what must I do?
- It's not just the act of murder that shocks Chris. It's also Joe's deceit and lying.
- I's not just Joe's morality or train of thought, but the entire reality of the wartime business seems to upset Chris (who understood firsthand what was going on).
(With his fist he pounds down upon his father's shoulder. He stumbles away, covering his face as he weeps.)
- This is the second occurrence of physical violence in the play. Chris hitting Joe is indicative of his rejection of his father, but by hitting him on the shoulder (and not on the face) may suggest that Chris cannot totally abandon Joe, because they are after all 'Father and Son'. (consider: does chris prioritize family?)
What must I do, Jesus God, what must I do?
- Repetition of 'what must I do' shows that the idealist tends to feel the burden of the world on themselves.
- Being the messianic figure in the play, Chris's idealism forces him to reckon with whether he can truly hold onto his ideals in the face of reality.
Thursday 1 September 2016
you learn a new thing every day
i guess it's always great to live by this line. i daresay i do it every day. even if it's just a passing comment about a little-known fact or trivia about someone.
today, i went out with a loved one. lots of things that i wanted to say but it's not the right time. i hate bugging people down with problems.
in lit, they talk about social responsibility. the thing is, to what extent are you responsible for the things that occur in the outside world? they teach us that we all have a part in causing all these shit. but how much exactly?
i need to know how much in order to live. honestly, there's so much i've dreamed of - far from this place but far from the people i love so goddamn much. i don't show it much, not at all, even. ever since a while ago, i have disconnected from the outside world. but i never did stop loving them.
i miss the days when i told everyone that hearts had infinite capacity. i believed in love and goodness so much that i preached it. i was positive. i miss that.
it's been a hard year of judging faces, endless competition, late nights and bottling all up. not healthy, but i'll make do like i always do. for the future, for the people.
i hope that's what social work advocates.
fight hard kiddo. you're gonna be just fine.
[Literature Paper 1] George Deever's Arrival - All My Sons
Questions to consider
- Why did George come back?
- How do the other characters attempt to pacify him?
- Who is George representing?
- What are his views?
He starts for the driveway, but is brought up short by George, who enters there. George is Chris's age, but a paler man, now on the edge of his self-restraint. He speaks quietly, as though afraid to find himself screaming. An instant's hesitation and Chris steps up to him, hand extended.
Reasons for returning:
1) Making amends for not contacting Steve
- We did a terrible thing (to Ann)
- Emergence of guilty conscience (Consider: does this emerge for other characters?)
- Atonement; righting wrongs
2) Seek justice for Steve
- Donning Steve's hat as a physical representation of his missing father; donning his values.
- Look like a lawyer
- Deals with issue of right and wrong; returns to have justice served
(consider: what does he understand about justice?)
3) Saving Ann
- But she's one item he's not going to grab
- You're coming with me (x2)
- Prevent one more loved one from being tainted by the Kellers
4) Intentions are directed towards removing Steve's guilt than blaming Joe for what has happened
- Did not tell the neighbours about how he felt
- Did not incarcerate Kellers
5) His intentions are larger than revenge
- Returned to cut ties with Kellers (ties=Ann)
- Prevent history from reoccuring (you shouldn't try to do it twice)
The trees got thick, didn't they?
- Suggests that Joe is hiding something and that George is (vaguely) aware of it.
Chris: George, you don't want to be the voice of God, do you?
- God: Higher moral authority, has the final say
- Mocking George about being a higher moral authority
- By letting George be "God", it gives him the power to judge, which Chris disallows, as Joe's good name would be ruined.
- Chris cannot let George have the 'final say' as doesn't want Ann to be convinced to leave with her brother.
Things to which George is susceptible to
1) Gives in to Mother's charm/sentiment/nostalgia
- Georgie - a form of endearment
- None of us changed, Georgie. We all love you. - Irony: They still do not repent.
- Kate's appeal to old friendships
- Grape juice - Food that accompanies festivity (to lighten up spirit and mood of characters)
2) Acknowledges Steve's weaknesses (frightened mouse, little man)
- Both George and Ann are candid and fully acceptable of Steve's shortcomings
3) Joe's warm welcome
- Offers Steve a job when he leaves jail
The sense of familiarity and relaxation eased George's agitation.
- Why did George come back?
- How do the other characters attempt to pacify him?
- Who is George representing?
- What are his views?
He starts for the driveway, but is brought up short by George, who enters there. George is Chris's age, but a paler man, now on the edge of his self-restraint. He speaks quietly, as though afraid to find himself screaming. An instant's hesitation and Chris steps up to him, hand extended.
Reasons for returning:
1) Making amends for not contacting Steve
- We did a terrible thing (to Ann)
- Emergence of guilty conscience (Consider: does this emerge for other characters?)
- Atonement; righting wrongs
2) Seek justice for Steve
- Donning Steve's hat as a physical representation of his missing father; donning his values.
- Look like a lawyer
- Deals with issue of right and wrong; returns to have justice served
(consider: what does he understand about justice?)
3) Saving Ann
- But she's one item he's not going to grab
- You're coming with me (x2)
- Prevent one more loved one from being tainted by the Kellers
4) Intentions are directed towards removing Steve's guilt than blaming Joe for what has happened
- Did not tell the neighbours about how he felt
- Did not incarcerate Kellers
5) His intentions are larger than revenge
- Returned to cut ties with Kellers (ties=Ann)
- Prevent history from reoccuring (you shouldn't try to do it twice)
The trees got thick, didn't they?
- Suggests that Joe is hiding something and that George is (vaguely) aware of it.
Chris: George, you don't want to be the voice of God, do you?
- God: Higher moral authority, has the final say
- Mocking George about being a higher moral authority
- By letting George be "God", it gives him the power to judge, which Chris disallows, as Joe's good name would be ruined.
- Chris cannot let George have the 'final say' as doesn't want Ann to be convinced to leave with her brother.
Things to which George is susceptible to
1) Gives in to Mother's charm/sentiment/nostalgia
- Georgie - a form of endearment
- None of us changed, Georgie. We all love you. - Irony: They still do not repent.
- Kate's appeal to old friendships
- Grape juice - Food that accompanies festivity (to lighten up spirit and mood of characters)
2) Acknowledges Steve's weaknesses (frightened mouse, little man)
- Both George and Ann are candid and fully acceptable of Steve's shortcomings
3) Joe's warm welcome
- Offers Steve a job when he leaves jail
The sense of familiarity and relaxation eased George's agitation.
Monday 29 August 2016
[Literature Paper 1] An Introduction to All My Sons, by Arthur Miller
the pointers written below are a mix of my lecture notetaking and personal opinions. i believe there are many ways to interpret the events of the play and the intentions of the characters. this is not absolute, so take it with a pinch of salt. i hope that this is a worthy supplement to your revision. literature is a killer for me as it's an alien discipline. but it doesn't stop me from loving what i study. all the best with your lit journey :-)
Covering...
- General Outline
- Major Themes + General Claims
- Character Outlines
- Significant Scenes/Quotes
Time Frame: 1947, 2 years after WW2
August: High point of Summer, before the arrival of FALL; demise of Keller
Physical Setting:
Act I - Sunday Morning
Act II - Sunday Evening
Act III - Monday 2am
Sunday: A rest day. (consider: sunday christians - claim to be religious but act immorally)
- The progressive physical directions in ominous, signalling downfall.
Themes
- The Personal against The Universal
The Family against All + Humanity (consider: is Keller interested in protecting Family or Humanity?)
- Self Interest against Social Responsibility (consider: do they coexist or can they exist independently?)
- Materialism against Morality/Virtue (consider: sue/joe vs chris/larry)
- Capitalism (consider: what does war advocate?)
- Practicality against Naivete/Idealism (consider: between which characters?)
- Pragmatism (consider: who exhibits it and in what form?)
- Law and Justice (consider: culpability vs responsibility, has justice been served?, what is necessary for forgiveness?)
Nomenclature:
Keller Family as The Holy Family
Joe Keller - Joseph, Jesus's Earthly Father OR Average Joe
Kate Keller/Mother - Mother Mary
Chris Keller - Christ (does chris really exhibit christlike values? do people think he exhibits them?)
Characters
Joe Keller - Comes across as likeable and friendly (consider: how to the neighbours really feel about it), willing to threaten/bully others to get his way (consider: what/who is he doing things for?), greedy and selfish, pragmatist (prioritizes money and family), lacks an understanding of his responsibility to the society.
Kate Keller/Mother - Ruling power of the family, manipulative/calculative, controlling, motherly side (consider: how she treats george), delusional/superstitious
Chris Keller - Believes in social responsibility, desires for a larger life outside of the Keller business (consider: does he take into account the practical side to 'having a good life'), has a sense of ethical righteousness, idealistic, uncertain about Joe's role in the shop incident
Ann Deever - Principle overrules familial relations (consider: opposite of joe?), places greater value on her own life than a principled concept of justice, idealistic without using brains, naive (yet she has an idea of what she wants = a life with Chris), lacks individuality or is she independent, staunch believer in Chris, holds the truth, non-confrontational
George Deever - prioritizes saving Ann over revenge at Joe, scarred by war (more than Chris), believer in Chris, easy manipulated/distracted, impulsive
Sue Bayliss - pragmatic (prioritizes financial gain), little emphasis on caring for family, has a COMPLETE grip on reality, insecure, confrontational (consider: does she always actively seek the truth?), aware of Joe's guilt
Jim Bayliss - has ideals but abandons them for family (consider: he has the same choices as chris. do they compromise the same things?), repressed, cynical (consider: possibly due to his failed idealism) inadequate (consider: this is thrown into sharper focus in the way he views chris as a war hero/man of noble principles), treats wealthy patients (consider: he is similar to joe in the way that he puts familial responsibility before social responsibility), aware of Joe's guilt
Lydia Lubey - laughs easily (consider: is her laughter a veneer?), longtime girlfriend of George (consider: what do they remind each other of? has she settled for less than the ideal - frank?)
Frank Lubey - idealist/naive, superstitious (consider: significance of a character that believes in fate & stars), convinced that Larry may be alive
Covering...
- General Outline
- Major Themes + General Claims
- Character Outlines
- Significant Scenes/Quotes
Time Frame: 1947, 2 years after WW2
August: High point of Summer, before the arrival of FALL; demise of Keller
Physical Setting:
Act I - Sunday Morning
Act II - Sunday Evening
Act III - Monday 2am
Sunday: A rest day. (consider: sunday christians - claim to be religious but act immorally)
- The progressive physical directions in ominous, signalling downfall.
Themes
- The Personal against The Universal
The Family against All + Humanity (consider: is Keller interested in protecting Family or Humanity?)
- Self Interest against Social Responsibility (consider: do they coexist or can they exist independently?)
- Materialism against Morality/Virtue (consider: sue/joe vs chris/larry)
- Capitalism (consider: what does war advocate?)
- Practicality against Naivete/Idealism (consider: between which characters?)
- Pragmatism (consider: who exhibits it and in what form?)
- Law and Justice (consider: culpability vs responsibility, has justice been served?, what is necessary for forgiveness?)
Nomenclature:
Keller Family as The Holy Family
Joe Keller - Joseph, Jesus's Earthly Father OR Average Joe
Kate Keller/Mother - Mother Mary
Chris Keller - Christ (does chris really exhibit christlike values? do people think he exhibits them?)
Characters
Joe Keller - Comes across as likeable and friendly (consider: how to the neighbours really feel about it), willing to threaten/bully others to get his way (consider: what/who is he doing things for?), greedy and selfish, pragmatist (prioritizes money and family), lacks an understanding of his responsibility to the society.
Kate Keller/Mother - Ruling power of the family, manipulative/calculative, controlling, motherly side (consider: how she treats george), delusional/superstitious
Chris Keller - Believes in social responsibility, desires for a larger life outside of the Keller business (consider: does he take into account the practical side to 'having a good life'), has a sense of ethical righteousness, idealistic, uncertain about Joe's role in the shop incident
Ann Deever - Principle overrules familial relations (consider: opposite of joe?), places greater value on her own life than a principled concept of justice, idealistic without using brains, naive (yet she has an idea of what she wants = a life with Chris), lacks individuality or is she independent, staunch believer in Chris, holds the truth, non-confrontational
George Deever - prioritizes saving Ann over revenge at Joe, scarred by war (more than Chris), believer in Chris, easy manipulated/distracted, impulsive
Sue Bayliss - pragmatic (prioritizes financial gain), little emphasis on caring for family, has a COMPLETE grip on reality, insecure, confrontational (consider: does she always actively seek the truth?), aware of Joe's guilt
Jim Bayliss - has ideals but abandons them for family (consider: he has the same choices as chris. do they compromise the same things?), repressed, cynical (consider: possibly due to his failed idealism) inadequate (consider: this is thrown into sharper focus in the way he views chris as a war hero/man of noble principles), treats wealthy patients (consider: he is similar to joe in the way that he puts familial responsibility before social responsibility), aware of Joe's guilt
Lydia Lubey - laughs easily (consider: is her laughter a veneer?), longtime girlfriend of George (consider: what do they remind each other of? has she settled for less than the ideal - frank?)
Frank Lubey - idealist/naive, superstitious (consider: significance of a character that believes in fate & stars), convinced that Larry may be alive
[Literature Paper 1] Opening of Act I - All My Sons
my head is pretty muddled up from the confusing lectures and messy notes (of my own) on this piece of fine work by arthur miller. all credit for the notes below goes to my lit lecturers.
before we begin, just some general notes on the beginning of this incredible, tear-jerking play.
- The 'idyllic' suburban American neighbourhood presents the venue of an ordinary, normal, peaceful family life.
The back yard of the Keller home in the outskirts of an American town.
before we begin, just some general notes on the beginning of this incredible, tear-jerking play.
- The 'idyllic' suburban American neighbourhood presents the venue of an ordinary, normal, peaceful family life.
The back yard of the Keller home in the outskirts of an American town.
- Half-public, half-private environment which establishes the family unit as a microcosm of society.
At the right, beside the house, the entrance of the driveway can be seen, but the poplars cut off view of its continuation downstage.
Garden chairs and a table are scattered about.
On the rise: It is early Sunday morning.
A man among men.
August of our era.
- Referring to the crucial event (selling of cracked cylinder heads) that sparked the moral issue central to the unfolding drama.
The stage is hedged on right and left by tall, closely planted poplars which lend the yard a secluded atmosphere.
- Seems to suggest the anti-social act committed by Keller
The stage is hedged on right and left by tall, closely planted poplars which lend the yard a secluded atmosphere.
- Seems to suggest the anti-social act committed by Keller
- However, one cannot escape into the family from social consequences of one's actions.
Upstage is filled with the back of the house and its open, unroofed porch which extends into the yard some six feet. The house is two stories high and has seven rooms.
Upstage is filled with the back of the house and its open, unroofed porch which extends into the yard some six feet. The house is two stories high and has seven rooms.
- Relatively affluent middle-class family
It would have cost perhaps fifteen thousand in the early twenties when it was built.
- Importance of Money is foregrounded into the description of the Keller home.
It would have cost perhaps fifteen thousand in the early twenties when it was built.
- Importance of Money is foregrounded into the description of the Keller home.
- Makes reference to Keller's monetary gain in spite of the war; no illicit consequences of his actions.
Now it is nicely painted, looks tight and comfortable, and the yard is green with sod,
Now it is nicely painted, looks tight and comfortable, and the yard is green with sod,
- Speaks of a facade (you may consider who puts them up in the play)
- Superficial exterior of attractiveness
Here and there plants whose season is gone.
Here and there plants whose season is gone.
- Pass their prime --> Reference to the idea that Keller's glory days are long past him.
At the right, beside the house, the entrance of the driveway can be seen, but the poplars cut off view of its continuation downstage.
- Refers to Keller's myopia and dissociation from the rest of the society.
In the left corner, downstage, stands the four-foot high stump of a slender apple tree whose upper trunk and branches lie toppled beside it, fruit still clinging to it branches.
In the left corner, downstage, stands the four-foot high stump of a slender apple tree whose upper trunk and branches lie toppled beside it, fruit still clinging to it branches.
- Reflects a sense of dogged persistence in clinging on to the past.
- Slender: It's not an old tree. If Larry hadn't died, he would have married Ann and bore children. (consider: premature death)
- Stump: In memory of Larry; not allowed to be officially dead, in Mother's eyes.
- Fall of the tree is a result of a storm // The storm that rips apart the family when Keller's crimes and Larry's letter come to light. It is the winds of change with alter the fortunes of the Keller family; the wind that brings about revelations and downfalls.
Downstage right is a small, trellised arbor, shaped like a sea shell, with a decorative bulb hanging from its forward-curving roof.
Downstage right is a small, trellised arbor, shaped like a sea shell, with a decorative bulb hanging from its forward-curving roof.
- An enclosure/cocoon; speaks off a false sense of protection and shelter
Garden chairs and a table are scattered about.
- Messy (degree of disorder); foreshadows problems in the midst of seemingly neatness and protection.
A garbage pail on the ground next to the porch steps, a wire leaf burner near it.
A garbage pail on the ground next to the porch steps, a wire leaf burner near it.
- Joe's disposal of potatoes: His sense of order and tidiness is about to be disrupted and ruptured.
- Part of everyday domestic life
- Symbol of decay that is linked with consumerism/materialism
On the rise: It is early Sunday morning.
- Image of complete relaxation as Keller basks in the sun
Joe Keller is sitting in the sun reading the want ads of the Sunday paper, the other sections of which lie neatly on the ground beside him.
Joe Keller is sitting in the sun reading the want ads of the Sunday paper, the other sections of which lie neatly on the ground beside him.
- Keen to be updated on economic transactions/market front
- Keller does not seem to be lacking anything as he is fulfilling the American Dream (family & money)
Behind his back, inside the arbor, Doctor Jim Bayliss is reading part of the paper at the table.
Keller is nearing sixty.
A heavy man of stolid mind and build, a business man these many years but with the imprint of the machine-shop worker and boss still upon him.
When he reads, when he speaks, when he listens, it is with the terrible concentration of the uneducated man for whom there is still wonder in many commonly known things,
Behind his back, inside the arbor, Doctor Jim Bayliss is reading part of the paper at the table.
Keller is nearing sixty.
A heavy man of stolid mind and build, a business man these many years but with the imprint of the machine-shop worker and boss still upon him.
When he reads, when he speaks, when he listens, it is with the terrible concentration of the uneducated man for whom there is still wonder in many commonly known things,
A man whose judgments must be dredged out of experience and a peasant-like common-sense.
- Joe's knowledge of the world comes from experience of the things bout him (consider: is he beholden to society's expectations?)
- Joe's knowledge of the world comes from experience of the things bout him (consider: is he beholden to society's expectations?)
A man among men.
[Microeconomics] Policies to address Market Failure in SG private transport industry
NJC Promotional Examinations 2012 - Case Study
Discuss the view that 'cuts in COE quotas" may not be the best solution to address the market failure in the private transport industry. [10]
Question Requirement
- 3 Specific Policies to address Market Failure
- How does each Policy work?
- Pros & Cons of each Policy
- Final Evaluation
Policy 1: Cuts in COE Quotas
Ref Fig 1 (Negative Externality Diagram)
- Current consumption level of cars: Qp, where MPB=MPC
- However, we did not consider MEC (congestion). There is convergence between MPB and MSB.
- The full opportunity cost to society is denoted by MSC, which lies above the MPC curve by the amount of additional external cost. Assuming MEB=0, MSB=MPB.
- The socially optimal level of output is Qs, where MSC=MSB.
*This part has already been explained in an earlier CS Question.
- There is a presence of negative externality in consumption.
- Overconsumption of QsQp units.
- There is misallocation of resources.
- This results in Market Failure, which gives rise to a DWL (Area AE0E1). Thus, there is allocative inefficiency.
Ref Fig 2 (Price Inelastic Demand, Perfectly Price Inelastic Supply)
- When there are cuts in COE quota, the supply curve for COE shifts leftwards from S0 to S1. This drives the price up from P0 to P1.
- When the price of COE increases, the MPC of owning cars will increase. (bc you must pay more!!)
- The MPC curve shifts upwards from MPC0 to MPC1=MPC0 + COE Price.
- Consumers thus consume at output Qs.
Pros
- From the sales of COE, you can gain welfare ITO increased revenue. (why so? later, you'll see that the 'demand curve' aka MPB=MSB is relatively price inelastic, so driving the price up will result in a less than proportionate decreases in quantity of COE, thus revenue increases!)
Cons
- Regressive in nature: This penalises the lower-income groups as compared to the higher-income groups. --> Not equitable
- It controls ownership, not car usage. Considering that the price of COE is driven up, drivers are incentivised to drive more often so as to ensure that the COE was 'worth it'. When consumption increases, it decreases the AFC for the consumer. This may lead to worsened congestion. (think of it as a buffet: after you pay your lump sum of $80 at the line, you will definitely want to eat to your heart's content, right? just so that your money is spent really well, aka spread across as large an output as possible!)
Policy 2: Improvement in Public Transport
- When public transport is improved (i.e. shorter waiting time, lesser train breakdowns), taste and preferences of consumers will change favourably towards public transport.
- Demand for public transport will increase. Considering that public transport and private transport are substitutes in consumption, demand for private transport will decrease.
- MPB Curve shifts leftwards.
Pros
- Sustainable
- Can have additional benefits such as an improved transport network and possible economic growth.
Cons
- Very costly to improve Public Transport
- Takes a long time to implement
- May be ineffective if consumers don't find it substitutable
Policy 3: ERP
- It increases the MPC of using a particular road.
Pros
- It directly addresses the issue of car usage --> discourages car usage.
- It's a flexible policy as the government can change ERP rate.
Cons
- It is difficult to measure the monetary value of MEC at Qs.
➡ If the MEC at Qs is overestimated, ERP charges will be too high, causing MEC to shift up too much. This results in underconsumption of the road.
- Ineffective as the PED value for road usage is low (remember what was said earlier on cuts in coe quota = increase revenue?)
- Possible diversion of congestion to other roads
Evaluation
Use ERP as a ST policy as it is not viable in the LR (consider the disadvantages of erp!) The tax revenue from ERP can be utilized to improve public transport, where it is sustainable and has many added benefits.
Sunday 28 August 2016
josef
and so, my bible was spotted today. i thought that hiding it in plain sight would deter questions, as compared to placing it in the depths of a cupboard drawer.
while history is unbelievably tedious, i find myself loving it more and more each day. especially southeast asian history. the sub-theme on national unity made me think - is singapore really that good? or are other regions simply that unstable?
i do love my family, in spite of many things i say. i love the way i get to eat as much as i like, to the point that i overlook the fact that i'm constantly advised to eat more 料 and less 饭. i (sometimes) love their compliments, especially on a bad day. i love how we speak chinese because it's who we are.
yet, it's so difficult to know about the harsh views they hold about many things around us.
on an unrelated note, i was thinking of what i'm going to do after a levels.
- find a job
- search up on scholarships
- services
- compile files and notes
- tidy the house
- tuition for the kids
- read
- library trips
- salvage whatever i have left in my social circle
- sleep
- grad trip
- keep fit
- you.
also, uni plans. will i selfishly leave and deplete my parents' retirement fund or will i sacrifice the most exciting and free experience of my life?
unrelated, once more. i wrote a poem a few days ago. there weren't any heads nor tails. typical.
while history is unbelievably tedious, i find myself loving it more and more each day. especially southeast asian history. the sub-theme on national unity made me think - is singapore really that good? or are other regions simply that unstable?
i do love my family, in spite of many things i say. i love the way i get to eat as much as i like, to the point that i overlook the fact that i'm constantly advised to eat more 料 and less 饭. i (sometimes) love their compliments, especially on a bad day. i love how we speak chinese because it's who we are.
yet, it's so difficult to know about the harsh views they hold about many things around us.
on an unrelated note, i was thinking of what i'm going to do after a levels.
- find a job
- search up on scholarships
- services
- compile files and notes
- tidy the house
- tuition for the kids
- read
- library trips
- salvage whatever i have left in my social circle
- sleep
- grad trip
- keep fit
- you.
also, uni plans. will i selfishly leave and deplete my parents' retirement fund or will i sacrifice the most exciting and free experience of my life?
unrelated, once more. i wrote a poem a few days ago. there weren't any heads nor tails. typical.
[Microeconomics] Merit Good
Libraries are considered merit goods as they generate positive externalities when consumed.
Eg. Develop an attitude for lifelong learning through books and media items provided at Libraries. The society is likely to become more civilized and sophisticated, leading to greater understanding among people with differing points of view. With increased literacy and education level, Singapore will be more competitive.
- Private bookstores such as Popular and Kinokuniya provide books for the public to purchase. If the Book Market is left to the private sector only, people will be forced to purchase books just so that they can read.
- These private bookstores have significant market power. The provision of Libraries will be a good substitute to private bookstores and curb their market power.
- The public has Imperfect Information on the benefits of Libraries. (example as stated above in orange)
Eg. Develop an attitude for lifelong learning through books and media items provided at Libraries. The society is likely to become more civilized and sophisticated, leading to greater understanding among people with differing points of view. With increased literacy and education level, Singapore will be more competitive.
- Private bookstores such as Popular and Kinokuniya provide books for the public to purchase. If the Book Market is left to the private sector only, people will be forced to purchase books just so that they can read.
- These private bookstores have significant market power. The provision of Libraries will be a good substitute to private bookstores and curb their market power.
- The public has Imperfect Information on the benefits of Libraries. (example as stated above in orange)
Assume that the cost of reading is given by MPC = MSC, where there is no marginal external cost.
MPC: Cost of travelling to bookstore, cost of buying books
MPB: Improved vocabulary, reduced stress
- Consumers maximize their satisfaction by consuming at the point where MPC=MPB, at Equilibrium N and Output Qmkt.
- The benefits of having access to info through Libraries are also enjoyed by third parties (positive externality!), thus there is existence of MEB, as indicated by the divergence between MSB and MPB.
- The socially optimal level of output is Qpf (tbh i cant even read it), where MSB=MSC, at equilibrium M.
- There is an underconsumption of book-reading by QmktQpf Units.
- Private households and firms have failed to internalise the MEB, leading to allocative efficiency, as represented by the deadweight loss of Area LMN. The DWL incurred is due to the potential gain for societal welfare with the increased consumption of book-reading.
- The potential benefit gained (Area LMQpfQmkt) is greater than the potential cost incurred (Area NMQpfQmkt), thus incurring a welfare loss of Area LMN.
carattere
i saw this word on a random lady's bag on the train. i'm on my way to meet my family for dinner, just like any other sunday evening of 2016.
seems like jc is the period for everyone to really live life. what the hell am i doing? whenever i'm free from the greatest commitment, there's always something that needs to be revised, new notes to print, planners to organize. i want to bake, go to the zoo, read the books collecting dust on my shelf, top up my indie-folk playlist, catch up on naps, eat buffets without a care in the world, stalk larry conspiracy theories and above all, go out with you. i miss you and the times we made an effort for each other, when we hid our flaws as a compromise. i miss the days when we hug as we part, that was always always always my favourite part - there was no other place where i felt so safe in. i miss that so much to the point that i almost regret telling you what i did that fateful day. because from then on, from that very moment i pushed you away, so many others seem so charmed by you. i watched the smile fall from your face as you turn away from her towards me. like i am a mere obligation, like i'm no longer interesting to you anymore. did i throw away the biggest opportunity of my life?
ask me to sing for you, any day, i will. where is our young love.
[Literature Paper 3] An introduction to Individual and Society
Individual and Society - Relationship and Interaction between Individual and Society
Study of Man in relation to community/people/constructs/institution/etc. (Relationship and Significance)
➡ Is the individual dependent on society?
➡ Is society dependent on the individual?
➡ How important is this relationship in life?
Nature of Interaction
➡ How is the interaction between Individual and Society regarded?
➡ What are the dynamics of this interaction? [Power struggle]
Individual – Identity, role, purpose, place
➡ Is identity, role, purpose, place defined by society?
➡ How do they become defined and developed?
Limitations and/or possibilities an individual faces
➡ To what extent does society influence these limitations and possibilities?
➡ To what extent are they influenced by an individual’s decisions?
Conflicts, or lack thereof, between individual and environment
➡ Influencing factors, Nature of Resolution, Outcomes, Significance of literary presentation
Man against Man/Nature/Technology/Supernatural/Self/Fate/Society
Individual – Societal expectations/Social roles shape and define individuals
➡ Gender, class, race, ideology, values, tradition, history, community
➡ Environment
➡ Culture – Practices, meaning, language, symbols
➡ Power – hierarchy, relations, structure
➡ Who has power over who?
➡ Does Man go with the flow?
Individual is in a state of displacement, alienation, isolation and stasis.
Awakening on the Individual’s consciousness
➡ Realization of role/purpose/expectation in society
➡ Something more to their identity
➡ Different Individuals have different reactions, thus there may be conflict with external forces
Individual on a journey (metaphor) of transformation & change
➡ Do they find themselves?
➡ Can they live in Society?
Conflict
➡ Within self
➡ With other characters
➡ With external forces
➡ Real or Imagined conflicts
Conflict between Individual and Society
➡ Individual have choices but Society has expectations
➡ Individuals have expectations in which the society cannot conform to
Concepts relating to Individual and Society
Displacement and Rootedness
Isolation and Assimilation
Conformity and Difference
➡ If you are part of Society, do you lose yourself?
➡ What makes you different?
Duty and Desire
➡ Can an Individual have his own choices?
➡ Or is the Individual bound to societal expectations?
Stasis and Change
➡ Are you stuck in the same thing?
➡ Is there assimilation to Society?
Appearance and Reality
➡ Are they part of Society as an appearance?
➡ Or are they truly in Society?
Private and Public
➡ How does the private individual function in the public sphere?
➡ Does he have to put up with lots of appearances to do so?
CONCEPT OF SOCIETY – What is the societal view in the text/theme?
Society (particular): New Orleans, Elysian Fields Neighbourhood, Belle Reve
Society (general): People, Place, Era (20th Century America), Behaviour, Ideas, Beliefs
American Dream – no matter who you are, you can make it big
Company – beauracratic (negative impact on indiv), hierarchical, organized ➡ characterizes a society!
Societal characteristics: Patriarchal, judgemental, energetic, volatile [NOT EXHAUSTIVE]
- Do Stanley and Mitch express some of these views? Note that Stan is not representative of the society.
- Does a character express societal views?
Society can ‘act’: Welcome, Accept, Judge, Expect, Alienate
➡ This can be evaluated in relation to theme.
➡ What does Society have to say about: Love, Marriage, Aging
Examples:
The Society of New Orleans is lively and joyful. / The neighbourhod is of working class.
Society frowns upon promiscuity, espsecially women. / Society is patriarchal.
Concept of Individual
Individual (Particular): Blanche
Individual (General): An Indiv
An Indiv (in relation to Society) can:
- Support/Agree
- Be indifferent
- Avoid/Hide
- Disagree/Oppose
- Change
- Try to fit in
Study of Man in relation to community/people/constructs/institution/etc. (Relationship and Significance)
➡ Is the individual dependent on society?
➡ Is society dependent on the individual?
➡ How important is this relationship in life?
Nature of Interaction
➡ How is the interaction between Individual and Society regarded?
➡ What are the dynamics of this interaction? [Power struggle]
Individual – Identity, role, purpose, place
➡ Is identity, role, purpose, place defined by society?
➡ How do they become defined and developed?
Limitations and/or possibilities an individual faces
➡ To what extent does society influence these limitations and possibilities?
➡ To what extent are they influenced by an individual’s decisions?
Conflicts, or lack thereof, between individual and environment
➡ Influencing factors, Nature of Resolution, Outcomes, Significance of literary presentation
Man against Man/Nature/Technology/Supernatural/Self/Fate/Society
Individual – Societal expectations/Social roles shape and define individuals
➡ Gender, class, race, ideology, values, tradition, history, community
➡ Environment
➡ Culture – Practices, meaning, language, symbols
➡ Power – hierarchy, relations, structure
➡ Who has power over who?
➡ Does Man go with the flow?
Individual is in a state of displacement, alienation, isolation and stasis.
Awakening on the Individual’s consciousness
➡ Realization of role/purpose/expectation in society
➡ Something more to their identity
➡ Different Individuals have different reactions, thus there may be conflict with external forces
Individual on a journey (metaphor) of transformation & change
➡ Do they find themselves?
➡ Can they live in Society?
Conflict
➡ Within self
➡ With other characters
➡ With external forces
➡ Real or Imagined conflicts
Conflict between Individual and Society
➡ Individual have choices but Society has expectations
➡ Individuals have expectations in which the society cannot conform to
Concepts relating to Individual and Society
Displacement and Rootedness
Isolation and Assimilation
Conformity and Difference
➡ If you are part of Society, do you lose yourself?
➡ What makes you different?
Duty and Desire
➡ Can an Individual have his own choices?
➡ Or is the Individual bound to societal expectations?
Stasis and Change
➡ Are you stuck in the same thing?
➡ Is there assimilation to Society?
Appearance and Reality
➡ Are they part of Society as an appearance?
➡ Or are they truly in Society?
Private and Public
➡ How does the private individual function in the public sphere?
➡ Does he have to put up with lots of appearances to do so?
CONCEPT OF SOCIETY – What is the societal view in the text/theme?
Society (particular): New Orleans, Elysian Fields Neighbourhood, Belle Reve
Society (general): People, Place, Era (20th Century America), Behaviour, Ideas, Beliefs
American Dream – no matter who you are, you can make it big
Company – beauracratic (negative impact on indiv), hierarchical, organized ➡ characterizes a society!
Societal characteristics: Patriarchal, judgemental, energetic, volatile [NOT EXHAUSTIVE]
- Do Stanley and Mitch express some of these views? Note that Stan is not representative of the society.
- Does a character express societal views?
Society can ‘act’: Welcome, Accept, Judge, Expect, Alienate
➡ This can be evaluated in relation to theme.
➡ What does Society have to say about: Love, Marriage, Aging
Examples:
The Society of New Orleans is lively and joyful. / The neighbourhod is of working class.
Society frowns upon promiscuity, espsecially women. / Society is patriarchal.
Concept of Individual
Individual (Particular): Blanche
Individual (General): An Indiv
An Indiv (in relation to Society) can:
- Support/Agree
- Be indifferent
- Avoid/Hide
- Disagree/Oppose
- Change
- Try to fit in
[Microeconomics] Economies of Scale
Internal Economies of Scale
Technical EOS: Indivisibilities
- Machines have fixed capacity.
- Regardless of amount of output produced by firm, the firm still has to utilize these machines.
- For firms with smaller output, there may be under-utilization of the capital.
- Larger firms are more able to spread the cost across a higher output level, thereby lowering LRAC.
Eg. Supermarket chains such as NTUC and Giant can invest in technology that improves stock control. It is not cost efficient/viable for smaller provision shops to purchase such a technology.
Technical EOS: Specialization of Labour
- In a large [state nature of firm] firm which has different stages of production/roles - [state the stages of production/roles] - it allows workers with specific skills to be deployed to different stages/roles of [state what the firm does].
- By performing and focusing on the same task, the specialized labour can become very skilled and perform the task with speed and efficiency.
- Less training time required, less time wasted by workers transferring from one task to another, raising the productivity of the inputs used.
- Increasing Returns-to-scale (RTS), where an increase in input leads to a more than proportionate increase in output of the firm. This lowers LRAC.
Eg. Bicycle manufacturing firm has several stages of production: bike frame manufacture, assembly of bicycle, safety testing
Eg. Yoga studio has several roles: Yoga instructors, administrative staff (liaise with instructors/students, settle school fees, manage advertising)
Financial EOS
- Larger firms have more physical assets to offer as collateral.
- In the event that the borrower defaults the loan, the bank can receive the collateral as payment, hence deem large firms as low risk borrowers.
- As banks are more willing to lend them money at lower interest rates, the firm's cost of borrowing will decrease. Subsequently, LRAC decreases.
*Small firms, such as GP, will find it inefficient to specialize labour resources. It is inefficient to have doctors specializing in different illnesses.
Marketing EOS
- Large firms can capitalize on its bargaining power to bulk buy its equipment at favourable rates, which can substantially reduce the cost of each unit purchased. LRAC decreases as output increases.
Eg. Bike firm buys steel from steelmakers. GP clinic cannot bulk buy as they need a small quantity of materials.
-Large firms can afford national advertising campaigns to gain publicity. They can spread the high advertising costs over a large output, thereby lowering LRAC.
Eg. Bike firms can advertise and promote their bikes through sponsorship of world events.
Organisational EOS
- Cost savings may be enjoyed when the employment of the best managers is spread out across a larger output, increasing efficiency and decreasing the cost per unit of output.
Eg. Centralised administration of the firm: HR department can administer all the wages. In a merger, only 1 finance department is needed.
Managerial EOS
- As a firm grows, there is greater potential for managers to specialize in particular tasks. Large scale manufacturers employ specialists to supervise production systems. With better management, productivity increases, lowering LRAC.
Risk-Bearing EOS
- Large firms can diversify its risks more efficiently due to its larger scale of operation and thus is more likely to have enough resources to deal with potential contingencies.
- For firms that operate in several markets, losses in one market can be overcome by gains in another market. This reduces LRAC associated with uncertainty.
Eg. When DD in one market falls, excess stocks can be sold in another market to cut back on storage costs.
Economies of Scope
- Large firms often produce a range of products. Each individual product is being produced more cheaply than if it was produced in a single-product firm.
- EOSc allows various overhead costs, M/F/O economies to be shared among the various products.
Eg. A firm that produces a whole range of CD players, amplifiers and tuners can benefit from the bulk purchase of electronic components. By sharing marketing and distribution costs, LRAC decreases.
Eg. Large yoga studios offer a range of services. Overhead costs such as rental can be shared among many services offered, thus lowering LRAC.
Internal Diseconomies of Scale
Loss of Control
- Difficult to manage performance of employees in large firm.
- Loss of morale may lead to decreased productivity and lowers the quality of products produced. This increases LRAC.
Eg. When yoga instructors feel unmotivated, they may turn up for classes late. Customers may be dissatisfied with the service provided and quit the yoga classes. Inefficiency and decreased productivity will lead to an increase in LRAC.
Eg. It is difficult to monitor the use of factor inputs, such as malt barley, a key ingredient in the brewing of beer. The lack of supervision may cause these factor inputs to not be effectively utilised, thereby increasing wastage and increasing LRAC.
Lack of communication
- Larger firms have longer lines of communication and a more complex bureaucratic structure, thus the task of coordinating their activities becomes increasingly difficult.
- It's difficult to ensure that all employees get the necessary information.
- Delays in one part of production will have greater repercussions [state examples] as compared to smaller firms. This leads to inefficiency and higher LRAC.
External Economies of Scale
Economies of Concentration: Trained workforce
- As the industry expands, the DD for labour with the necessary skillsets increase.
- Training schools may be set up to provide training and education, which means that a pool of skilled workers is readily available.
- Hence, individual firms do not need to provide additional training as the manpower they hire already acquire the requisite skills, reducing training and search costs for the firm, thereby lowering it's LRAC.
Economies of Concentration: Better Industry Infrastructure
- Due to concentration of industry, facilities such as better transport, baking and telecommunication systems may be set up to serve the needs of the industry.
- Greater access to clusters of supply goods can help to lower operating costs.
- Also, when different firms in the industry share usage of special equipment instead of buying their own, they are able to reduce logistics costs, thus helping them to lower their LRAC.
Eg. Firms in the biomedical hub Biopolis can share facilities. Nearby educational institutes such as SP and NUS can provide specialized education and training to meet the needs of the biomedical industry,
Economies of Information
- Firms are able to get info from other firms or external vendors, such as trade associations or central research centres.
- They can obtain up-to-date info on production cheaply by sharing the costs of research instead of spending heavily on costly independent research.
Technical EOS: Indivisibilities
- Machines have fixed capacity.
- Regardless of amount of output produced by firm, the firm still has to utilize these machines.
- For firms with smaller output, there may be under-utilization of the capital.
- Larger firms are more able to spread the cost across a higher output level, thereby lowering LRAC.
Eg. Supermarket chains such as NTUC and Giant can invest in technology that improves stock control. It is not cost efficient/viable for smaller provision shops to purchase such a technology.
Technical EOS: Specialization of Labour
- In a large [state nature of firm] firm which has different stages of production/roles - [state the stages of production/roles] - it allows workers with specific skills to be deployed to different stages/roles of [state what the firm does].
- By performing and focusing on the same task, the specialized labour can become very skilled and perform the task with speed and efficiency.
- Less training time required, less time wasted by workers transferring from one task to another, raising the productivity of the inputs used.
- Increasing Returns-to-scale (RTS), where an increase in input leads to a more than proportionate increase in output of the firm. This lowers LRAC.
Eg. Bicycle manufacturing firm has several stages of production: bike frame manufacture, assembly of bicycle, safety testing
Eg. Yoga studio has several roles: Yoga instructors, administrative staff (liaise with instructors/students, settle school fees, manage advertising)
Financial EOS
- Larger firms have more physical assets to offer as collateral.
- In the event that the borrower defaults the loan, the bank can receive the collateral as payment, hence deem large firms as low risk borrowers.
- As banks are more willing to lend them money at lower interest rates, the firm's cost of borrowing will decrease. Subsequently, LRAC decreases.
*Small firms, such as GP, will find it inefficient to specialize labour resources. It is inefficient to have doctors specializing in different illnesses.
Marketing EOS
- Large firms can capitalize on its bargaining power to bulk buy its equipment at favourable rates, which can substantially reduce the cost of each unit purchased. LRAC decreases as output increases.
Eg. Bike firm buys steel from steelmakers. GP clinic cannot bulk buy as they need a small quantity of materials.
-Large firms can afford national advertising campaigns to gain publicity. They can spread the high advertising costs over a large output, thereby lowering LRAC.
Eg. Bike firms can advertise and promote their bikes through sponsorship of world events.
Organisational EOS
- Cost savings may be enjoyed when the employment of the best managers is spread out across a larger output, increasing efficiency and decreasing the cost per unit of output.
Eg. Centralised administration of the firm: HR department can administer all the wages. In a merger, only 1 finance department is needed.
Managerial EOS
- As a firm grows, there is greater potential for managers to specialize in particular tasks. Large scale manufacturers employ specialists to supervise production systems. With better management, productivity increases, lowering LRAC.
Risk-Bearing EOS
- Large firms can diversify its risks more efficiently due to its larger scale of operation and thus is more likely to have enough resources to deal with potential contingencies.
- For firms that operate in several markets, losses in one market can be overcome by gains in another market. This reduces LRAC associated with uncertainty.
Eg. When DD in one market falls, excess stocks can be sold in another market to cut back on storage costs.
Economies of Scope
- Large firms often produce a range of products. Each individual product is being produced more cheaply than if it was produced in a single-product firm.
- EOSc allows various overhead costs, M/F/O economies to be shared among the various products.
Eg. A firm that produces a whole range of CD players, amplifiers and tuners can benefit from the bulk purchase of electronic components. By sharing marketing and distribution costs, LRAC decreases.
Eg. Large yoga studios offer a range of services. Overhead costs such as rental can be shared among many services offered, thus lowering LRAC.
Internal Diseconomies of Scale
Loss of Control
- Difficult to manage performance of employees in large firm.
- Loss of morale may lead to decreased productivity and lowers the quality of products produced. This increases LRAC.
Eg. When yoga instructors feel unmotivated, they may turn up for classes late. Customers may be dissatisfied with the service provided and quit the yoga classes. Inefficiency and decreased productivity will lead to an increase in LRAC.
Eg. It is difficult to monitor the use of factor inputs, such as malt barley, a key ingredient in the brewing of beer. The lack of supervision may cause these factor inputs to not be effectively utilised, thereby increasing wastage and increasing LRAC.
Lack of communication
- Larger firms have longer lines of communication and a more complex bureaucratic structure, thus the task of coordinating their activities becomes increasingly difficult.
- It's difficult to ensure that all employees get the necessary information.
- Delays in one part of production will have greater repercussions [state examples] as compared to smaller firms. This leads to inefficiency and higher LRAC.
External Economies of Scale
Economies of Concentration: Trained workforce
- As the industry expands, the DD for labour with the necessary skillsets increase.
- Training schools may be set up to provide training and education, which means that a pool of skilled workers is readily available.
- Hence, individual firms do not need to provide additional training as the manpower they hire already acquire the requisite skills, reducing training and search costs for the firm, thereby lowering it's LRAC.
Economies of Concentration: Better Industry Infrastructure
- Due to concentration of industry, facilities such as better transport, baking and telecommunication systems may be set up to serve the needs of the industry.
- Greater access to clusters of supply goods can help to lower operating costs.
- Also, when different firms in the industry share usage of special equipment instead of buying their own, they are able to reduce logistics costs, thus helping them to lower their LRAC.
Eg. Firms in the biomedical hub Biopolis can share facilities. Nearby educational institutes such as SP and NUS can provide specialized education and training to meet the needs of the biomedical industry,
Economies of Information
- Firms are able to get info from other firms or external vendors, such as trade associations or central research centres.
- They can obtain up-to-date info on production cheaply by sharing the costs of research instead of spending heavily on costly independent research.
Saturday 27 August 2016
[Microeconomics] Vulnerability to closure in a recession
"Recessions put weak firms out of business whilst strong firms use a recession to become more efficient."
Discuss the extent to which firms faced by high levels of competition are more vulnerable to closure in a recession than firms in less competitive industries. [15]
Intro
Firms facing high levels of competition: PC, MC, non-collusive Oligopoly
Firms facing low levels of competition: Collusive Oligopoly, Monopoly
When a firm is more vulnerable to closure, it is more likely to attain the shut down conditions of P<AVC in the short run and P<AC in the long run.
Body
- During a recession, the average consumer's income will fall.
- Due to the decreased purchasing power of the consumer, it makes him less willing and able to purchase normal goods (YED>0). This causes the demand for normal goods to fall.
- However, a recession would increase the willingness of consumers to purchase inferior goods (YED<0), hence the demand for inferior goods will increase.
- In this scenario, a firm which sells inferior goods, such as home-brand products, will face a rightward shift in its AR Curve, regardless of the level of competition it faces.
- The output produced by the firm will increase and the price paid for by the consumer will increase as well.
- More competitive firms who initially earn normal profits will now reap supernormal profits, while less competitive firms continue to retain their supernormal profits in the long run.
- However, should a firm sell normal goods, it will result in a leftward shift of its AR curve, as shown in Figure 1 below.
- For firms facing a higher level of competition, the profit-maximizing output level (MC=MR) will fall from Q0 to Q1, and the price will fall as well. In the short run, the resulting price is lower than SRAC. If P remains below AC in the long run, the firm will shut down.
- On the other hand, for firms facing a lower level of competition, they initially earn supernormal profits in the long run. When the demand for their good decreases, their AR curve will shift leftwards, as illustrated, as illustrated on Figure 2 below. If AR0 shifts to AR1, the resulting price P1 is equal to AC1, the new average cost at the new profit maximizing level of output. The firm will not shut down as it is making normal profits in the long run.
However, should the AR curve shift leftwards by a larger extent than AR1, the firm will definitely make subnormal profits and shut down in the long run. Therefore, for firms facing a lower level of competition, it depends on the extent of fall in demand to determine if they will shut down. Because there is a possibility for firms facing lower competition to not shut down when faced with a fall in demand, they are less vulnerable to closure.
[Fig 1: Rev/Cost/Price Diagram for imperfect market. After leftward shift of AR/MR, P<AC.]
[Fig 2: Rev/Cost/Price Diagram for imperfect market. After leftward shift of AR/MR, P=AC. That means AR1=MR0, AC1=P1.]
- To determine a firm's vulnerability to closure, we can also consider its ability and incentive to innovate.
- Assuming that they produce normal goods and face a fall in demand, engaging in innovation will allows firms to lessen the impact of the fall in demand, or even increase the demand of the normal good.
- PC firms produce homogeneous products and have perfect information. Should they engage in innovation, other PC firms will follow suit as they have the same information on innovation. Thus, PC firms have no incentive to innovate.
- Also, because there are many sellers in a PC industry, super normal profits earned in the short run will be eroded away in the long run when new firms enter and capture a portion of the market share. Ultimately, PC firms can only earn normal profits in the long run, making them unable to engage in innovation, which is costly and unaffordable.
- While MC firms produce differentiated products and have the incentive to make their product more distinctive to increase demand or make the demand more price inelastic, it can only earn normal profits in the long run, and thus only has a low ability to innovate.
- We can then conclude that firms facing higher levels of competition are relatively unable to cushion the fall in demand to increase revenue.
- However, for oligopolies, they are competing with several other dominant firms and hence will seek to capture a larger proportion of the total market share. This provides them with the incentive to innovate.
- Considering that an oligopoly has high entry barriers, there will not be sufficient new firms entering the market to erode the supernormal profits reaped by the oligopolist, in the long run. This gives the oligopolist the ability to engage in innovation as it can bear the high costs of product differentiation.
- Likewise, for monopolies, they may engage in innovation if they feel that their dominant position is being threatened by a potential entrant.
- Also, because they capture the entire market share, they can earn supernormal profits in the long run and thus have sufficient capital to engage in innovation.
- Clearly, firms facing lesser competition have the incentive and ability to innovate, making them more able to improve their products and increase the demand for their products, which will drive the price up. Therefore, they are less vulnerable to closure than firms faced with higher competition.
- We can also consider the size of the firms to determine if they are in a good position to reap internal economies of scale (iEOS).
- For MC and PC firms, they tend to be small and will not capture a large portion of the total market share. On the other hand, oligopolies and monopolies are dominant firms in their industries and they produce a very significant portion of the total market supply.
- Here, we can see that less competitive firms tend to be larger and thus, are in a better position to enjoy iEOS.
- For example, they can reap financial economies. Larger firms have more valuable assets to offer collateral, and in the event that they default the bank loan, the bank can take the collateral as payment. This deems larger firms as low-risk borrowers and the bank will be more willing to offer them loans at lower interest rates, thereby decreasing their cost of borrowing. This puts less competitive firms in a better position to lower their LRAC, making them less likely to meet the long-run shut down condition of P<AC, as compared to smaller firms, who are less able to reap significant cost advantages.
- Hence, firms facing lower levels of competition are less vulnerable to closure than firms facing higher competition.
- However, we have to consider the possibility that firms facing lower competition may suffer from increased average costs due to x-inefficiency.
- This is especially so for monopolies. As they are the sole seller in the industry, they may feel that there is no threat of competition.
- Also, because they reap supernormal profits in the long run, they feel that their market share will not be eroded. As a result, they become complacent and have a lax in cost control. At the profit maximizing output level of Q0 on Figure 3, the firm is supposed to incur a LRAC of AC0, but they end up incurring a higher than necessary cost of AC1 instead.
- The firm thus suffers from x-inefficiency as it does not produce on the LRAC, causing them to suffer from productive inefficiency.
[Fig 3: Regular x-inefficiency diagram]
- In the above scenario, the less competitive firm will only shut down if the LRAC increases significantly, to the point that it is higher than P0.
While a firm can be complacent, it is unlikely that it will be so lax on cost- controls to the point that they need to shut down in the long run.
Conclusion
- Considering that more competitive firms are in a worse position than less competitive firms to increase the demand for their product or to lessen the impact of the fall in AR, they will be more likely to reach the shutdown conditions of P<AC.
- Also, because they are less able to reduce LRAC, it makes them more vulnerable to closure during a recession.
- The only way that less competitive firms are more more likely to shut down during a recession is that PC and MC firms produce inferior goods and the oligopolies and monopolies produce normal goods.
Discuss the extent to which firms faced by high levels of competition are more vulnerable to closure in a recession than firms in less competitive industries. [15]
Intro
Firms facing high levels of competition: PC, MC, non-collusive Oligopoly
Firms facing low levels of competition: Collusive Oligopoly, Monopoly
When a firm is more vulnerable to closure, it is more likely to attain the shut down conditions of P<AVC in the short run and P<AC in the long run.
Body
- During a recession, the average consumer's income will fall.
- Due to the decreased purchasing power of the consumer, it makes him less willing and able to purchase normal goods (YED>0). This causes the demand for normal goods to fall.
- However, a recession would increase the willingness of consumers to purchase inferior goods (YED<0), hence the demand for inferior goods will increase.
- In this scenario, a firm which sells inferior goods, such as home-brand products, will face a rightward shift in its AR Curve, regardless of the level of competition it faces.
- The output produced by the firm will increase and the price paid for by the consumer will increase as well.
- More competitive firms who initially earn normal profits will now reap supernormal profits, while less competitive firms continue to retain their supernormal profits in the long run.
- However, should a firm sell normal goods, it will result in a leftward shift of its AR curve, as shown in Figure 1 below.
- For firms facing a higher level of competition, the profit-maximizing output level (MC=MR) will fall from Q0 to Q1, and the price will fall as well. In the short run, the resulting price is lower than SRAC. If P remains below AC in the long run, the firm will shut down.
- On the other hand, for firms facing a lower level of competition, they initially earn supernormal profits in the long run. When the demand for their good decreases, their AR curve will shift leftwards, as illustrated, as illustrated on Figure 2 below. If AR0 shifts to AR1, the resulting price P1 is equal to AC1, the new average cost at the new profit maximizing level of output. The firm will not shut down as it is making normal profits in the long run.
However, should the AR curve shift leftwards by a larger extent than AR1, the firm will definitely make subnormal profits and shut down in the long run. Therefore, for firms facing a lower level of competition, it depends on the extent of fall in demand to determine if they will shut down. Because there is a possibility for firms facing lower competition to not shut down when faced with a fall in demand, they are less vulnerable to closure.
[Fig 1: Rev/Cost/Price Diagram for imperfect market. After leftward shift of AR/MR, P<AC.]
[Fig 2: Rev/Cost/Price Diagram for imperfect market. After leftward shift of AR/MR, P=AC. That means AR1=MR0, AC1=P1.]
- To determine a firm's vulnerability to closure, we can also consider its ability and incentive to innovate.
- Assuming that they produce normal goods and face a fall in demand, engaging in innovation will allows firms to lessen the impact of the fall in demand, or even increase the demand of the normal good.
- PC firms produce homogeneous products and have perfect information. Should they engage in innovation, other PC firms will follow suit as they have the same information on innovation. Thus, PC firms have no incentive to innovate.
- Also, because there are many sellers in a PC industry, super normal profits earned in the short run will be eroded away in the long run when new firms enter and capture a portion of the market share. Ultimately, PC firms can only earn normal profits in the long run, making them unable to engage in innovation, which is costly and unaffordable.
- While MC firms produce differentiated products and have the incentive to make their product more distinctive to increase demand or make the demand more price inelastic, it can only earn normal profits in the long run, and thus only has a low ability to innovate.
- We can then conclude that firms facing higher levels of competition are relatively unable to cushion the fall in demand to increase revenue.
- However, for oligopolies, they are competing with several other dominant firms and hence will seek to capture a larger proportion of the total market share. This provides them with the incentive to innovate.
- Considering that an oligopoly has high entry barriers, there will not be sufficient new firms entering the market to erode the supernormal profits reaped by the oligopolist, in the long run. This gives the oligopolist the ability to engage in innovation as it can bear the high costs of product differentiation.
- Likewise, for monopolies, they may engage in innovation if they feel that their dominant position is being threatened by a potential entrant.
- Also, because they capture the entire market share, they can earn supernormal profits in the long run and thus have sufficient capital to engage in innovation.
- Clearly, firms facing lesser competition have the incentive and ability to innovate, making them more able to improve their products and increase the demand for their products, which will drive the price up. Therefore, they are less vulnerable to closure than firms faced with higher competition.
- We can also consider the size of the firms to determine if they are in a good position to reap internal economies of scale (iEOS).
- For MC and PC firms, they tend to be small and will not capture a large portion of the total market share. On the other hand, oligopolies and monopolies are dominant firms in their industries and they produce a very significant portion of the total market supply.
- Here, we can see that less competitive firms tend to be larger and thus, are in a better position to enjoy iEOS.
- For example, they can reap financial economies. Larger firms have more valuable assets to offer collateral, and in the event that they default the bank loan, the bank can take the collateral as payment. This deems larger firms as low-risk borrowers and the bank will be more willing to offer them loans at lower interest rates, thereby decreasing their cost of borrowing. This puts less competitive firms in a better position to lower their LRAC, making them less likely to meet the long-run shut down condition of P<AC, as compared to smaller firms, who are less able to reap significant cost advantages.
- Hence, firms facing lower levels of competition are less vulnerable to closure than firms facing higher competition.
Anti-thesis
- However, we have to consider the possibility that firms facing lower competition may suffer from increased average costs due to x-inefficiency.
- This is especially so for monopolies. As they are the sole seller in the industry, they may feel that there is no threat of competition.
- Also, because they reap supernormal profits in the long run, they feel that their market share will not be eroded. As a result, they become complacent and have a lax in cost control. At the profit maximizing output level of Q0 on Figure 3, the firm is supposed to incur a LRAC of AC0, but they end up incurring a higher than necessary cost of AC1 instead.
- The firm thus suffers from x-inefficiency as it does not produce on the LRAC, causing them to suffer from productive inefficiency.
[Fig 3: Regular x-inefficiency diagram]
- In the above scenario, the less competitive firm will only shut down if the LRAC increases significantly, to the point that it is higher than P0.
While a firm can be complacent, it is unlikely that it will be so lax on cost- controls to the point that they need to shut down in the long run.
Conclusion
- Considering that more competitive firms are in a worse position than less competitive firms to increase the demand for their product or to lessen the impact of the fall in AR, they will be more likely to reach the shutdown conditions of P<AC.
- Also, because they are less able to reduce LRAC, it makes them more vulnerable to closure during a recession.
- The only way that less competitive firms are more more likely to shut down during a recession is that PC and MC firms produce inferior goods and the oligopolies and monopolies produce normal goods.
Subscribe to:
Posts (Atom)