Tourism in Sri Lanka Essay

Tourism in Sri Lanka Essay Sri Lanka is one of the most sorts for tourist destinations in the world. It is advantageously situated between West Asia and South East Asia has been a significant stop on the silk route. To express the richness, beauty and the intensity of affection: the visitors addressed the country as Serendib, Ceylon, Teardrop of India, Resplendent Isle, Island of Dharma, and Pearl of the Orient.(Lanka Facts, 2012). Today, visitors are welcomed to Sri Lanka to experience the nations glittering tapestry of culture, and the rich abundance of nature, so handsomely bestowed, and to give credence to the old adage that good things come in small packages. Its landscape orientation especially the Warm Sun kissed Beaches creates mix of opportunities which lead to the final holiday destination. The diversity of temperatures, vegetation and scenery grab a large sense towards Srilanka. It is a most demanding country for lovers of nature and wild life because tourism offers safaris, Treks, Nature walks and Camping that could be a marvelous experience for them. The entire island is swarming with birds and animals. And the animals like elephants and leopards are not scarce. Though foods are not much expensive: they are tasty and the people of the country are very friendly and helpful.This colourful collection act as an indicator of its richness. All requirements are equipped in the country and it is to be one of the best tourist destinations with absolute peace, political stability and the climatic changes can be seen through beautiful waterfalls, rivers, sceneries, tea estates and many other attractive places. Sri Lanka is owned for a rich heritage and it has a recorded history of more than 2500 years and archaeological sites over 250,000.There are 8 world heritage sites within the country that was approved by the UNESCO and they are the hill capital kandy, the sacred city of Anuradapura, The Dutch fort of Galle, The ancient city of Polonnaruwa, The rock fortress of Sigiriya, The golden rock temple of Dambulla, the beautiful Horton plains and the Singharaja rain forest (Sri Lanka Tourism Development Authority, 2011). So, without a doubt a land like Sri lanka cannot be found because it has something to offer for everyone. The increase of tourism occurred in 2011 and is expected to climb further in the coming years. Colombo the capital city, the Cultural Triangle (Dambulla, Polonnaruwa and Anuradhapura), the cities like Kandy and Galle, and most of the southern beach towns which are equipped with good tourist facilities, the roads connecting many of those destinations are improving. The pro of Sri Lanka as a tourism destination is threefold. Firstly, it is a real tourism destination. Secondly, a tourist can travel the whole compact island within few days because it consists only 65,610 square km.Thirdly, it has unparalleled diversity of tourism product. For the ease of communicating the diversity of Sri Lanka in 2010, 8 different products namely; heritage, beaches, wildlife, mind and body wellness, scenic beauty festivals, Essence and sports and adventure are started to position around the country by the tourism authorities. (Sri Lanka Tourism Development Authority, 2011). Art and culture, spices, tea, gems, handy crafts and its people are the unique features of Srilanka which are also known as the essence of the country. From the ancient time the travellers and the traders have attracted to Sri Lanka and it is a languorous tropical island of deep spirituality and serenity. Sri Lanka grabbed the Western imagination as the Tahiti of the East. 5.2.1 Institutional structure of tourism industry in Sri Lanka Tourism industry is under the Ministry of Tourism. Four sections of it are; Sri Lanka Tourism Development Authority (formed in 2005 by replacing Sri Lanka Tourist Board which was established in 1966), Sri Lanka Tourism Promotion Bureau, Sri Lanka Institute of Hotel Management and Sri Lanka Convention Bureau. While Sri Lanka Tourism Development Authority is responsible for all the tourism development activities, the responsibility of all the marketing and promotional work goes to the Tourism promotion Bureau. 5. 2.1 History of tourism industry in Sri Lanka Marco Polo mentioned the Sri Lanka as the finest isle in the whole world as a well-known explorer of the 12th century. For European Travellers it had been a immense tourism destination. (Lanka Facts, 2012). However, the year 1966 was a landmark for international tourism in Sri Lanka, with the enactment of the Ceylon Tourist Board Act No. 10 of 1966. The Act provided permission for the establishment of a public authority known as the Ceylon Tourist Board for encouragement, promotion and development of tourist travel to Sri Lanka (Deheragoda 1980). According to this Act, the Board objectives are numerous: establishment of an institute to control the tourist industry, to encourage people to provide an efficient, attractive and adequate service, the encouraging, promotion and development of the travel trade (Deheragoda 1980; Zoysa 1978). After the establishment of the Ceylon Tourist Board, the Sri Lankan tourist industry has systematically developed drawing much foreign exchange into the country (Handaragama, 2010). From 1966 onwards, the tourist industry gradually inherited results of many mentioned implemented programs for the development of the industry. In 1977 the tourist industry had full attention and support of the government with the introduction of open economic policies and liberalization of the economy, because it was quite a suitable field for the operationalisation of the open economic policies. The tourist industry is gradually developing and reached a milestone in 1983 with ethnic problem with its manifestations particularly in the forms of conflicts in the North and East and bomb explosions in Colombo, threatening the safety of the tourists (Bandara, 2003). According to ADB (1998), until the early 1980s 76 percent of tourism accommodation in the country is owned and forced by the Hotel Corporation (a semi-privatized formerly state owned body).During this era (between mid-1960s and early 1980s) as a result of the state investments, the tourism accommodation facilities expanded. However, with the introduction of liberalized economic policies in 1977, significant amounts of national and international investments were made to construct the accommodation of tourism, mainly in Colombo and the Southwest coast which ultimately lead to control the large part of the inbound tourist market by the private sector. (Sri Lanka, Tourist Boar d, 2003). Growth of the tourism industry got stagnated because of the 30 year long internal conflict and terrorism which caused a negative impact on tourism. With the end of the conflict in 2009, created a lot of opportunities through tourism industry. (Agency for Technical Cooperation and Development, 2011). Sri Lanka had an expansion of 46% in tourism arrivals in 2010 just after the end of the war. The tourism arrivals got doubled from 2009 to 2011 with the number of arrivals attaining 855,975 as at end 2011(Figure 5.2). In 2012, Sri Lanka was named as the best valued destination for holidays by the post office worldwide holiday costs barometer. 5.2.2 Present situation of Sri Lankan tourism United Nations World Tourism Organization (UNWTO) lists Sri Lanka with a 50 percent growth in tourist arrivals among 77 countries that have reported international arrivals data. So that, the year 2011 has been a significant year for tourism industry as the arrival target was over 750,000. Sri Lanka recorded 856,000 tourist arrivals with a 30 percent annual growth at the end of 2011and also expects 30 percent growth as well in this year because the country has performed well compared to the world tourism industry. The sector envisaged 30 percent growth for 2011 with revenue of US $ 839 million (Ref). The hotel occupancy rate has increased up to 77 percent and it has created employment for about 125,000 persons. Compared to other industries it has the fastest growth prospects. Though Sri Lanka is predominantly a beach destination, it could offer culture, nature, agro, community, religious and spiritual attractions by now. Thirty year ethnic conflict of the country has been negatively affected for the growth and the development of the tourism industry (Ganegodage and Rambaldi, 2012). Sri Lankan government is now organizing several events and is in the process of developing the industry in order to make Sri Lanka a top tourism destination in the world. The Sri Lanka Tourism Development Authority will do their best to develop unique, quality and diverse tourism products and services that would globally make Sri Lanka as a unique destination. Identifying and developing tourist specific unique products and services, formulating and implementing Tourism Development Guidelines, facilitating and implementing the legal and administrative process for new product and service development are some activities done by the authority. (Sri Lanka Tourism Development Authority, 2011). Main markets of tourism in Sri Lanka Table 5.2 and Figure 5.4 shows a detailed account of the source of foreign visitors to the top 10 source nations the top ten source markets for tourism to Sri Lanka within the years 2010 and 2011. Sri Lanka relies greatly on Western European markets, especially the United Kingdom and Germany who rotate between second and third place as key source nations. However, India became the largest single source of arrivals in Sri Lanka. During this period, France, Maldives, Australia, Canada USA, the Netherlands and Russia also have become strong source markets. (Sri Lanka Tourism Development Authority, 2011). When tourist arrivals are analyzed by regions, in 2010 and 2011, most of the tourists are from Asia and the Western Europe. Next highest number is coming from Middle East followed by Eastern Europe and North America (Figure 5.4). Thus, these are the important markets of tourism of the country. Main tourist attractions of Sri Lanka Sri Lanka has a large number of tourist attractions for different types of visitors. Bentota, Beruwala, Hikkaduwa, Galle, Negombo and Trincomalee are the dominant beaches in Sri Lanka and they are famous for relaxing, sun bathing and surfing. The living heritage of Sri Lanka of 2500 years was discovered by the culture heritage. It was founded in the 5th century BC, when the Buddhism was first introduced to the island. Anuradhapura can be recognized as the capital city of Buddhism. The oldest living tree in documented history is the sacred Bo tree, grown from a sapling of the tree under which the Buddha attained enlightment.(Lanka Facts, 2012). Sigiriya the 8th Wonder of the World. Veddhas also known as aborigines of Sri Lanka.They are the Sri Lankas indigenous people.Wildlife is a vital assert. Animals such as Elephants, Leopards, Black Bears and many more can meet face to face with Jungle wildlife sanctuaries. Nature Witness the unmatched bio-diversity of Sri Lanka is waterfalls, misty hills, breezy mountains and Sinharaja Rain Forest. Sinharaja is a world heritage named by United Nations. The World Tourism Organization describes that Sri Lanka has the advantage of having 49 sites classified as unique attractions, 91 as rare attractions, and 7 world heritage sites, and 6 of the 300 ancient monuments in the world. (Asia-planet.net, 2012). Purposes of visiting the country by tourists The main purpose of visiting the country by tourists is to have pleasure. During vacations, most of the tourists come to the country to engage in various entertaining activities such as visiting beaches for swimming surfing, boating, fishing, jungle tracking for rock climbing, hiking, wild life seeing , bird watching, and so on. Therefore, it is very important to provide facilities for these activities at the best level. However, tourist coming for business, visiting friends and relations, religious and cultural activities are comparatively lower (Table 5.2). 5.2.3 Future development of the sector There are 2 stages of the future tourism development in Sri Lanka. First stage is to be reached in 2016 and the second is in 2020. The main goal of the first stage is to attract 2.5 Million high spending foreign tourists by the year 2016 (Figure 5.5) and the main target of the second stage is to get 4 million tourists to the country (Figure 5.6). Tourism targets during 2010-2016 The five year master plan prepared by the Department of National Planning for the period of 2011 2016 tackle a range of issues related to Sri Lanka Tourism Strategy including environmental, economic, social, cultural, institutional and promotional aspects together with their mutual relations with the National Development agenda, in order to create a favourable environment to achieve expected tourist proceeds by 2016 (Department of National Planning, 2010). The key objectives to be achieved by the 5 year strategy are  ®Increase tourist arrivals from 650,000 in 2010 to 2.5 Million by 2016.  ®Attract USD 3,000 Million with 5 years of time as Foreign Direct Investment (FDI) to the country.  ® Tourism related employment increase by125, 000 in 2010 to 500,000 by 2016 and island widely expand tourism based industry and service.  ® Integrate tourism to the real economy by distributing the economic benefits of tourism to a larger cross section of the society.  ® Increase Foreign exchange earnings from USD 500 Million in 2010 to USD 2.75 Billion by 2016.  ®Contribute towards getting better global trade and economic linkages of Sri Lanka.  ® Position Sri Lanka as the worlds most precious island for tourism. (Department of National Planning, 2010) Tourism targets during 2010-2020 The vision of the government is to change the Sri Lankan tourism sector, by 2020, to be the biggest foreign exchange earner in the economy and to position Sri Lanka as the worlds most treasured and Greenest isle and draw high spending tourists while protecting the cultural values, natural habitats and environment of the country. Tourism development in the country: provincial level Provinces are the first level administrative division in Sri Lanka. In 1833, they were firstly established by British rulers of Ceylon. Then in the next century most of the administrative functions were transferred to the second level administrative division which is known as districts. Because of increasing demand for decentralization, in 1987 this change was done. In 1978 Provincial councils were established by the Constitution of Sri Lanka (Mongabay.com, 2012). Presently the nine provinces are named as Central, North Central Eastern, North Western, Northern, Sabaragamuwa, Uva and Western Southern (Figure 5). Ministry of tourism develop and manage tourism activities in each and every province because of the decentralization of the power. In line with the tourism development of the national government, provincial councils have development tourism master plans and implemented them during 2010-2016. Most of the tourism development programs of these provinces are mainly focused on rural tourism and niche markets such as nature tourism, ecotourism, culture tourism, agritourism in a sustainable way. Main aim of these tourism development programs is community empowerment and rural development. Motivation of local tourists Government expects to increase demand from domestic tourists, while planning to make additional foreign income to the country by providing facilities for foreign tourists to make additional foreign income to the country. Countrys total population is 21,283,913 (2011 estimated) and 0.934% is its growth rate is (2011 estimated). 14%from the total population is owned by the urban population (2010) and the annual urbanization changing rate is 1.1% (2010-15 estimated). Furthermore, age structure of the country is 0-14 years: 24.9%, 15-64 years: 67.2% and 65 years and over: 7.9% (2011 estimated) (Sri Lanka Demographics Profile, 2012. A positive background will be created in many ways in future because quantitatively and qualitatively local demand for tourism is rising. By using the print and electronic media government is trying to promote the less attractive places and grab the awareness which will help to fulfil the purpose of establishing a good culture among Sri Lankan travellers. (Dep artment of National Planning, 2012). When focusing the evolution of tourism industry in the country, there had been a flourishing period in the past. But, due to some bad experiences such as few youth unrest situations and revolutions, 1989-1992 a huge tsunami in 2004 and severe ethnic way during 2008-2009: the performance had gone down in the near past. However, recently, it is booming and the national government and the provincial councils have implemented lots of plans to get the optimum benefits of tourism in future.

Midterm 2 with Solutions Econ311

Intermediate Macroeconomics 311 (Professor Gordon) Final Examination Fall, 2009 YOUR NAME:________________________________ INSTRUCTIONS 1. The exam lasts 2 hours. 2. The exam is worth 120 points in total: 30 points for the multiple choice questions, 60 points for the analytical questions, and 30 points for the essays. 3. Write your answers to Part A (the multiple choice section) in the blanks on page 1.You won’t get credit for circled answers in the multiple choice section. 4. Place all of your answers for part B in the space provided. 5. You must show your work for part B questions. 6. Write your essays with a pen. Write clearly! 7. Good Luck and Happy Holidays! PART A (45 points) Choose the ONE alternative that BEST completes the statement or answers the question. Your answers must be in the space provided below. USE CAPITAL LETTERS. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | PART B (45 points) Please show your wor k and write down the formulas you use for partial credit. Question 1 (5 points) (a) What monthly rate of inflation causes the price level to increase by a factor of 5 (500 percentage points) over a year? (2 points) (HINT: Use the LN and EXP formulas from Chapter 9, Problem 2, further examples of which were presented in lecture on November 11). Using the log formula: p = 100*log(5)/12 = 13. 4%. b) If the rate of monthly inflation is 25%, by what factor would prices have risen over a year? (3 points) Let’s call the initial price level P0 and the price level at the end of the year P12 25 = 100*log(P12/P0)/12 P12/P0 = exp(25*12/100) = 20. Question 2 (10 points) Consider an economy where inflation expectations are given by the equation pet = . 4 pt-1 + . 6 pet-1 . Also assume that when the log of the output ratio increases by 1 points, inflation increases by 4 points. a) Write down the SP equation, both its general form and its specific form with these particular parameter assumpt ions inserted. (2 points) pt = pet + gYt-1 + zt = . 4pt-1 + . 6pet-1 + 4Yt-1 + zt ) Write down the DG equation (no need to derive anything, just write it down). (1 point) Y = Y-1 + [pic] – p c) Combine the SP and DG equations to express p as a function of pt-1, pet-1, Yt-1,[pic]t, and zt. (2 points) (HINT: Your answer must have p on the left side of the equation and terms not including current p on the right side, with all the relevant parameters inserted and solved out. ) p = 0. 4p-1 + 0. 6pe-1 + 4Y + z = 0. 4p-1 + 0. 6pe-1 + 4(Y-1 + [pic] – p) + z 5p = 0. 4p-1 + 0. 6pe-1 + 4Y-1 + 4[pic] + z p = 0. 08p-1 + 0. 12pe-1 + 0. 8Y-1 + 0. 8[pic] + z For the remainder of the problem, assume that in period t=1 the economy has values given by: p0 = 3pe0 = 3Y0 = 0 ) Suppose there is no supply shock in period 1 (z1 = 0) and that [pic]1 = 5. Solve for period 1 values p1 and Y1. (2 points) p1 = 0. 08(3) + 0. 12(3) + 0. 8(0) + 0. 8(5) + 0 = 4. 6 Y1 = 0 + 5 – 4. 6 = 0. 4 e) Sup pose instead that there is a period 1 supply shock that increases the value of z from 0 in period 0 to 1 in period 1. Find the period 1 values p1,[pic]1 and Y1 as well as the expected period 2 inflation, pe2, if the government adopts an accommodating policy. (3 points) Accommodating Policy means Y1 = 0, so from the DG equation p1 =[pic]1 and from the SP equation: p1 = . 4(3) + . 6(3) + 4(0) + 1 = 4 = [pic]1 pe2 = . 4(4) + . 6(3) = 3. 4 Question 3 (15 points)Consider a country whose Central Bank issued 100$ of High-Powered Money (H). Citizens' cash holdings (dollar bills) amount to 10% (. 1) of their deposits while each commercial bank has to have reserves for 15% (. 15) of the volume of deposits. a) What is the level of deposits? (2 points) D = H/(c+e) = 100/(. 1+. 15) = 400 b) What is the level of the Money Supply defined as dollar bills and deposits? (3 points) M = (1+c)D = 1. 1*400 = 440 c) Suppose the Central Bank wants to increase Money Supply to 528. How many extra units of Hi gh-Powered Money do they have to circulate? (4 points) M = (1+c) H / (c+e) 528 = 1. 1 H / . 25 H = 120 So they should print 20 extra units of H ) Assume now that the Central Bank still wants to set the Money Supply to 528 but the Government forbids them from printing High-Powered Money. What option is left to the Central Bank? (Hint: restrict your attention to this simplified model where there is nothing like direct lending or any other exotic policy) (2 points) Change the reserve requirement e) Given your suggested policy, which of the parameters of the model would they be changing? To which new value? (Remember that here H=100 and cannot be changed by assumption and M=528) (4 points) M=(1+c) H / (c+e) 528=1. 1 * 100 / (. 1 + e) e=. 1083 = 10. 8% Question 4 (15 points) Consider two nations, Richland and Poorland.Both nations have the same Cobb-Douglass production function, Y=AKbN(1-b). Let Poorland have an economy with technology level A=18, capital elasticity of production b=(1/3) , population growth rate n=. 13, capital depreciation rate d=. 07, and savings rate s=. 3 a) Rewrite the production function as a function relating Y/N and K/N. (2 points) Y/N = A(K/N)b = 2(K/N)(1/3) b) Solve for the steady state values of the capital-labor ratio (K/N) and per-capita GDP (Y/N). (6 points) s(Y/N) = (n+d)(K/N) sA(K/N)b = (n+d)(K/N) (K/N) = [sA/(n+d)]1/(1-b) (K/N) = [. 1*18 /(. 2)]3/2=27 (Y/N) = (n+d)(K/N)/s (Y/N) = (. 2)(27)/. 1=54 c) Richland has a per-capita GDP that is triple that of Poorland. Given hat Richland has the same production function as Poorland, the capital-labor ratio in Richland is what multiple of the capital-labor ratio in Poorland? (In other words, if Poorland has a capital-labor ratio of K/N= x and Richland has a ratio of K/N= y, what is y/x? ). (3 points) [pic] d) Compute the marginal products of capital in the two nations. (3 points) MPK = b(Y/N)/(K/N) MPKA = (1/3)(54)/(27)=2/3=. 6667 MPKb = (1/3)(162)/(729)=2/81=. 0247 e) Judging from your answ er in part (d), does the Solow model predict that poor countries have a higher or lower rate of return on capital? (1 point) The Solow model predicts a higher rate of return for poor countries.This is one of the critiques of the Solow growth model. PART C (30 points) WRITE YOUR NAME AND ID NUMBER ON YOUR BLUE BOOK. As stated on the syllabus (p. 3) and in numerous in-class and e-mailed reminders, you must write your answers in pen not pencil. This is a single multi-part essay question. You should write in your blue book for 30 minutes. 1. Write a coherent essay on the causes of the 2008-09 recession and on the policy responses to this event. Your essay should cover the following specific points a. First, establish the facts. What were similarities in the duration and magnitude of the 2001 recession and subsequent recovery as compared to the 2008-09 recession and recovery so far?Include comments on GDP, the GDP gap, labor market variables, and any other distinguishing features of thes e two episodes. b. What were the most important causes of the 2008-09 recession? Include comments on which causes were the same as in the 2001 recession, and which were different. c. In what sense, if any, did monetary or fiscal policy partially contribute to the causes of the 2008-09 recession? d. Evaluate the response of monetary policy since early 2008. What were the similarities and differences between this response and the monetary policy response to postwar recessions in 2001 and earlier? What aspects would you praise or criticize? e.Evaluate the response of fiscal policy since early 2008. What aspects would you praise or criticize? Multiple Choice Questions Make sure to write you answers on the blanks on page 1! 1. The current account includes all of the following except: A) net exports B) net income from abroad C) net unilateral transfers D) foreign direct investment 2. In what way was the international economy cited as a source of the U. S. housing bubble in 2003-06? A) che aper prices of imported building materials B) support of dollar by foreign central banks C) immigration of skilled foreign construction workers D) high pay of top executives of foreign investment banks 3.Which of the following were not cited in the course as a reason for France and other European nations to be reluctant to endorse an Obama-like fiscal stimulus for their own countries? A) high unemployment in Europe B) low fiscal multipliers C) social welfare system D) unemployment insurance system 4. Suppose we have an economy in which G = 1100, t = 0. 26, Y = 3800, and YN = 4000. At Y the difference between the actual deficit and structural deficit is A) 60. B) 112. C) -172. D) -112. E) 52. 5. The failure of U. S. net exports to improve dramatically in the mid 1980? s despite the weakening of the dollar suggests that A) U. S. industries supply of competitive goods was inelastic over the period.B) LDC debt repayment schedules and lack of financing kept U. S. exports low. C) NCIs mai ntained fixed exchange rates vis a vis the dollar and U. S. exports low. D) All of the above. 6. In the reading period assignments from the Economist, the United States is faulted relative to Europe and Japan for each of the following reasons except: A) labor and capital markets B) primary and secondary education C) personal saving rate D) infrastructure 7. In the reading period article about France, the French are praised for each of the following reasons except A) infrastructure B) household debt C) output growth rate D) medical care system 8. The mechanism of ? international crowding-out? s that a government budget deficit ________ the domestic interest rate, which makes the dollar ________ expensive for foreigners, which then ________ net exports. A) raises, less, lowers B) raises, less, raises C) raises, more, lowers D) lowers, less, lowers E) lowers, more, raises 9. Which of the following effects takes place as a result of automatic stabilization? A) extra tax revenues are gen erated in a boom. B) tax revenues remain constant during a recession. C) leakages increase during a recession, helping to stimulate the economy. D) Both A and C are correct. 10. If the Federal Reserve intervenes in the foreign-exchange markets and buys foreign currencies A) the U. S. oney supply rises and foreign currencies depreciate. B) the U. S. money supply falls and foreign currencies depreciate. C) the U. S. money supply rises and foreign currencies appreciate. D) the U. S. money supply falls and foreign currencies appreciate. 11. Activists-believe that AD is unstable because A) business and consumer attitudes and expectations shift. B) monetary policy is variable. C) fiscal policy effects are unpredictable. D) Both B and C are correct. 12. Assuming constant wages implies that A) an increase in the price of goods raises profits and SAS is vertical. B) a decrease in the price of goods lowers profits and SAS is horizontal.C) an increase in the price of goods lowers profits and S AS is vertical. D) an increase in the price of goods raises profits and SAS is positively sloped. [pic] 13. Consider the above figure with equilibrium initially at E0. If the money supply is increased and prices are flexible, in the short run prices and output will ___. In the long run output and prices will ___. A) be as at E2; return to E0. B) be as at E1; be as at E2. C) be as at E2; be as at E3 D) be as at E2; be as at E1. E) be as at E1; be as at E3. 14. According to the readings, a common feature of the Great Depression and the recent economic crisis was A) mortgage credit B) deposit insurance C) unemployment rate D) monetary policy 15.The sources of the current problems of running monetary policy are often cited as A) Quantitative easing B) Zero lower bound C) Excess bank reserves D) A) and B) E) B) and C) 16. An acceleration of nominal GDP growth from, say 4% to 6% will A) permanently raise the rate of inflation. B) temporarily lower the rate of inflation. C) leave real GDP unaffected in the long run. D) Both A and C. 17. The short-run Phillips Curve gives A) the actual short-run level of real GDP and inflation. B) all possible combinations of real GDP and inflation, for a given set of expectations. C) all possible combinations of real GDP and inflation, for fully adjusted expectations. D) the response of real GDP and inflation to supply shocks. 18.The Fed is criticized for the â€Å"one-way option† regarding asset bubbles. The criticism is that the Fed __________ when asset prices increase and __________ when asset prices decrease A) raises interest rates; lowers interest rates B) leaves interest rates unchanged; leaves interest rates unchanged C) raises interest rates; leaves interest rates unchanged D) leaves interest rates unchanged; lowers interest rates E) lowers interest rates; raises interest rates 19. Which of the following was not a source of the Great Moderation, according to the textbook? A) growth rate rule for money supply B) finan cial deregulation in late 1970s, early 1980sC) magnitude of supply shocks after early 1980s D) government military spending 20. In the short-run, the impact of an adverse supply shock is to A) reduce real GDP and leave the inflation rate unchanged if the growth of nominal GDP remains the same. B) reduce real GDP and leave the inflation rate unchanged if the growth of nominal GDP is reduced enough. C) maintain the same level of real GDP and reduce the inflation rate if the growth if nominal GDP is increased enough. D) All of the above. 21. According to the textbook, the main losers due to the redistributive effect of the postwar inflation in the United States were A) households. B) corporations. C) government. D) A) and B) 22. Disgruntled? workers who quit their jobs to find ? a more reasonable boss? are experiencing A) involuntary unemployment. B) mismatch unemployment. C) cyclical unemployment. D) turnover unemployment. 23. Policy solutions to mismatch unemployment include A) fisca l policies to raise the AD curve B) monetary policies to raise the AD curve C) policies other than fiscal and monetary policies D) accommodative policies to deal with supply shocks 24. Over a year, the money supply in a nation grew by 6 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent. A) 5 B) 11 C) 1D) 7 25. The the Fed’s quantitative easing after mid-2008 is not described by A) increased open-market purchases of Treasury securities B) increased open-market purchases of private securities C) increased open-market purchases of corporate stock D) A) and B) E) A) and C) 26. Which of the following increased by the largest percentage between mid-2007 and mid-2009? A) excess bank reserves B) M2 C) high-powered money D) total bank reserves E) M1 [pic] 27. Initially, the economy is at point G in the figure above. An increase in per capita savings from s0 to s1 will in the short run result in ____ ____ and in the long run result in ________.A) excess per capita saving; more rapid growth in per capita output B) excess per capita saving; less rapid growth in per capita output C) more rapid growth in per capita output; more rapid growth in per capita output D) more rapid growth in per capita output; no change in the long run rate of growth in per capita output 28. Which of the following will not affect steady state per capita income in the Solow growth theory? A) The savings rate. B) The initial capital stock. C) The population growth rate. D) The production function. 29. The Solow growth model predicts that nations that are initially poor should have A) slower growth rates than nations that are rich. B) faster growth rates than nations that are rich. C) growth rates equal to those of nations that are rich. D) negative growth rates. 30.Two readings in the course packet for Chapter 11 cite a particular technological innovation for improved economic growth in poor tropical countri es. This is: A) television B) internet C) mobile phones D) new drugs to fight malaria 31. Several structural changes that occurred over the past two decades were a theme of lectures. Which of the following was not one of these changes? A) greater importance of structural unemployment and less importance of frictional unemployment B) smaller response of core inflation to oil price shocks C) larger decline of employment to declines in output in recessions D) larger increase of productivity to increase in output in recoveries E) More reliance on wage flexibility rather than layoffs in 2008-09 recession 32.In the Cobb-Douglas production function Y=AKbL1-b, the variable A has several different names. Which of the following is not one of them? A) autonomous growth factor. B) infrastructure. C) multifactor productivity. D) residual. 33. The formula for the growth rate of multifactor productivity is: A) a = y + bk + (1 – b)n. B) y = a + bk + bn. C) a = y – bk – (1 †“ b)n. D) y = a – b/k(1 – b)n. 34. Which of the following does not affect multifactor productivity? A) a tax on low-efficiency firms B) a higher saving rate C) Environmental regulation. D) Technological progress. 35. Relative growth rates of the standard of living in the United States and Europe indicate that workers in ________ have chosen to ? spend? _______ of their higher productivity on leisure rather than on consumption of market goods and services. A) Europe, a significant part B) the United States, a significant part C) Europe, almost none D) the United States, almost all 36. Which of the following would cause labor? s share of national income to decrease? A) Labor productivity increases less rapidly than the real wage rate. B) Labor productivity increases more rapidly than the real wage rate. C) Labor productivity has increased at the same rate as the real wage rate. D) Labor? s share of national income is not affected by the relative growth rates of labor p roductivity and the real wage rate. 37.Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to A) choose the overall level of interest rates, with a high budget surplus implying a high level of interest rates. B) choose the overall level of interest rates, with a high budget deficit implying a high level of interest rates. C) control the rate of inflation, with a high budget surplus implying a faster rate of inflation. D) control the rate of inflation, with a high budget deficit implying a faster rate of inflation. 38. A major side-effect of a stimulative fiscal policy is that it will A) discriminate in favor of housing. B) crowd out private expenditures.C) increase the natural rate of unemployment. D) permanently raise the rate of inflation. 39. Which of the following was a policy of Roosevelt’s New Deal which is not a part of the Obama stimulus package? A) tax reductions B) infrastructure improvements C) Direct interventi on to stop financial institutions from failing D) Federal government direct hiring of the unemployed 40. The Barro-Ricardo Equivalence Theorem assumes all of the following except: A) Individuals value the welfare of their heirs as much as their own welfare. B) Interest rates will remain constant. C) All individuals have children D) Markets for consumer housing and durable goods are perfect. 41.Which of the following will cause the date that the Social Security trust fund runs out of money to be pushed further into the future? A) A decrease in the rate of real GDP growth. B) An increase in the population growth rate. C) A decrease in the growth of the real wage. D) All of the above. 42. A fixed money-supply rule will have the greatest stabilizing effect on output when A) money demand is unstable and commodity demand is stable. B) both money and commodity demand are unstable. C) both money demand and commodity demand are stable. D) the velocity of money is unstable. 43. M1 is a defini tion of money largely confined to which function(s) of money? A) unit of account B) store of valueC) medium of exchange D) B and C. 44. In the empirical validation of the theory of the political business cycle discussed in lecture, which of the following variables measured over the year before the election has been the best predictor of the outcomes of presidential elections? A) the unemployment rate B) the inflation rate C) the growth rate of per capita real GDP D) the level of the federal government fiscal deficit 45. In the empirical validation of the theory of the political business cycle discussed in lecture, which of the following elections is a clear outlier as violating that empirical evidence? A) 1932 B) 1936 C) 1972 D) 1992 E) 2000

How Nikola Tesla Impacted the World Essay - 1249 Words

How Nikola Tesla impacted the world Have you ever relaxed on the beach while sitting back and listening to the radio? If you have, then you were using a device created by the renowned scientist Nikola Tesla. Nikola Tesla was a Croatian scientist of the late 1800s who worked closely with Thomas Edison and who, regardless of his lack of education, created over seven hundred different inventions throughout his life. Tesla was born in the Croatian Military Frontier, currently known as Croatia, on July 10, 1858. Tesla went to college for engineering at a Austrian polytechnic school. Although tesla did not finish college and dropped out of two universities without completing a single year he was still an avid reader and he is thought to have†¦show more content†¦During his research in the company Tesla found something called an alternating current. This finding led to the â€Å"war of currents† which was between Edison and Tesla. The battle was between alternating currents and direct currents, it was a argument between edison who owned the direct current and tesla who owned the alternating current. In the end the most favorable current was alternating current, which is still used in today’s world, it is what powers house and leads the electricity from power plants to houses. Teslas research and inventions are very impacting on society today. Everyday we use radios, televisions, lights, electricity. Tesla was a man dedicated in the science of electricity. Nikola invented a coil called the Tesla Coil which converted low power electricity into high power; It allows wireless energy. What sent him to make this coil was the thought of wireless communication. The coil is used in televisions, radios and air conditioning. In the 1890s Tesla created a basic design for a radio. Tesla invented the fluorescent light and neon lights. Teslas goal was to create the same amount of frequency that the sun gives off. The amount of Teslas Inventions is unknown b ut he is believed to have had made more than 700 inventions. In the 1900s Teslas work started moving towards x-rays, and electromagnetic energy. Tesla wrote â€Å"Ere many generations pass, our machinery will be driven by a power obtainable atShow MoreRelatedTesla s Invention Of The Second Industrial Revolution1677 Words   |  7 Pages Nikola Tesla, an important inventor and contributor to America, once said, â€Å"I don t care that they stole my idea . . I care that they don t have any of their own.† Tesla spent his whole life having ideas stolen away from him by other inventors, but he ignored this and continued to work on his own. He was such an important contributor to American inventions that many people today call his inventions the majority of the Second Industrial Revolution. His inventions were used not only around the timeRead MoreAnalysis Of Mark Twain s The Gilded Age1671 Words   |  7 PagesTwain would be the one to know of the wonders and friction of ideas and people. His friend Nikola Tesla, the eccentric Serbian scientist, had major involvement in the peaks and troughs of this era. In fact, Nikola’s dilemma with another great contemporary of his even has its own name: the War of the Currents. The War of the Currents is a distinct series of events that occurred during the Gilded Age. Nikola Tesla battled Thomas Edison’s scientific and entrepreneurial ideas. Their ambitions led to wondersRead MoreThe Great Men And Women893 Words   |  4 Pages Of those great men and women to contribute to the progression of the human species, many have stressed the importance of thinking for one’s self. These giants understood how easy it is to succumb to a herd mentality and also realized that it is just as possible for only one person to be right as it is for a population, sometimes even more so. I consider this oft lonely position to carry with it a sort of intellectual bravery; this person understands the difficulty and temporal cost of taking upRead Moremen who built america1112 Words   |  5 Pagesproblems having an attempt of his own life. The three key things I found in this video is about how J.P. Morgan grew up his objectives that he grew up on, like the way his dad had treated him why he was growing up. Another key point I found was how Morgan had decided to work with Thomas Edison and the benefits of working with him. The last key point I found was how Thomas Edison had turn down Nikola Tesla, then Tesla could be bette r than Edison. J.P. Morgan was I like to say mistreated during his childhoodRead MoreEffect Of Smartphones On Advertising1241 Words   |  5 Pagesdramatically changed the way consumers are approached by advertising companies. Before we can understand how smartphones have changed the advertising industry, we must first recognize that advertising and smartphones were not always related. By answering the following two question, it will further examine the effect of smartphones on advertising. How have smartphones impacted the advertising industry? How effective advertising on smartphones is? Background of advertising Before I can explain the effectsRead MoreSector Briefing : Dtl Power Corporation7811 Words   |  32 Pagesor can easily be replenished, such sources are solar, wind and water to name a few. Commercial electric generation came about in the late 19th century and was driven by industry. The demand for electricity was significantly increased in the post- World War II era (Smithsonian Institution, 2002 . With this demand came private companies that had created independent systems soon realized that interconnecting their systems with each other resulted in a more efficient system (Institute for Energy Research

Middle School And High School - 1742 Words

Middle school and high school were very different for me. Both schools lack diversity and consisted of people just like me, but in middle school everyone’s identity were practically the same. I attended Catholic school until high school and had all white classes until then too. Throughout middle school I was a rather mischievous student who did not place academics too highly on my list of priorities, so I was often making the teacher’s job much harder than it needed to be. If not for how involved my family and I were with the church and the school my in class experience would not have been as pleasant. The only way that we ever learned about our own identity was through religion classes and through church so the fact that the entire school probably had less than five students of ethnicity in a school with grade 3-8 in it was never addressed. In middle school almost everyone was middle class or at least were not struggling like some of the families in more urban areas. I f a family did begin to struggle enough financially they simply went to another school because the cost of Catholic school was no longer a luxury that they could afford. So the school not only consisted of people with the same race but also eliminated people that were not from the same economic background. In high school the majority of students were white as that is 92% of the student body and I was not a minority in anyways but it was much different due to how extreme my middle school experience was inShow MoreRelatedThe High School Of Middle School Essay1179 Words   |  5 Pagesbelieve â€Å"ignorance is bliss† while others believe it is better to know everything. If I had continued the last month of my seventh grade year in ignorance, I would of been better off. Seventh grade, the middle of middle school. Some people did not like middle school at all, personally I loved middle school, especially seventh grade. The reason seventh grade was this magical year is simple a b oy was talking to me. Not just any boy, a boy with beautiful amber brown eyes, fluffy brown hair and one of theRead MoreHigh School And Middle School1458 Words   |  6 PagesThe junior high school and middle school is basically the same thing. Today we still have junior high schools but the mostly named that way because of the historically context. Looking at my notes taken from this year, middle schools span from 6 th to 8 th grade, the schedule is flexible and block depending on the class. Teachers have interdisciplinary teams and they work together as a grade level instead of working on common classes they teach. Lastly in the middle school, everyone is a teamRead MoreHigh School And Middle School Essay1614 Words   |  7 PagesAs you enter freshmen year you will immediately notice the differences between high school and middle school. Change will be inevitable. With a new building to explore, new faces in the halls, and a new schedule to memorize nothing will be the same. Most importantly, the biggest change you will notice will be the change within yourself. Transitioning from middle school to high school means growing, it means taking risks and stepping outside of your comfort zone. How you change will depend on yourRead MoreThe Middle School And High School Essay1060 Words   |  5 PagesAlmost all people have gone through it and know the difficulties and challenges of being a freshman in high school. Not only do freshman skills and attitudes grow before your eyes, but their bodies also morph so quickly that you barely even recognize your students by the end of the year (Donegan, 2008). The review of literature has shown that the transition from middle school to high school is extremely difficult in all facets of a teenager’s life. Freshman students are challenged academicallyRead MoreMiddle School And High School881 Words   |  4 Pagesin 5th grade because the teachers thought it was best for me to get all the help I needed now ins tead of struggling in the future. When middle school and high school arrived, I remember being excited to see what what different books we were going to read each year or what exciting things we were going to be writing about. My all-time favorite book from high school was, and still is, Joseph Conrad’s, Heart of Darkness. Now that I’m in college I recognized that I loved my English classes because I lovedRead MoreGraduation Speech : School, Middle School And High School870 Words   |  4 PagesGrammar school, middle school, and most high schools share one thing in common; they offer the same basic history, math, English, science, and social science course. By the time high school comes around students have already learned the same things again but only this time it is harder and more in depth. College becomes a time that a student really begins to learn about what they want to do with the rest of their lives. When applying to college, applicants don’t apply to learn math, English, historyRead MoreDrug Testing For High Schools And Middle Schools1301 Words   |  6 PagesPersuading kids to not do drugs is a tough subject to approach as parents and teachers. When it comes to kids being unhappy, they will more than likely hear that drugs bring happiness to them. With drug testing involved in high schools and middle schools. The students should see that it is no longer an option to do drugs in order for their own self happiness. Students can result to other options that are more acceptable to society, and not to mention activities that are legal. Although these kidsRead MoreHigh School / Middle School Science Teacher862 Words   |  4 PagesI want to be a high school/middle school science teacher. I want to teach kids, to show them that the world is their playground. That they can do anything and everything they put their little, bright, energetic minds too. Education is the world I’m putting myself into. I’ve known since I wa s four that wanted to work with kids, so teaching was the. I get to show them a whole new world full of advantage, and excitement. I get to see them make connections, to make that jump from the norm, inside theRead MoreThe Transition Through Middle School And High School890 Words   |  4 Pagesunexpectedly as it does. The transition through middle school and high school has changed me thoroughly. I’ve learned that high school has made me smarter for who to trust and judge people more than I usually do. High school gave me more options, viewpoints, and ideas. I mature in almost every way, and learn more about myself for what I’m good at. There will be hard times but eventually get through them. It started when I was a freshman in high school. It was a 10-minute walk from my house. I gotRead MoreThe Transition between Middle School and High School1748 Words   |  7 Pagestransition between middle and high school; many make it through this transition. I apparently, wasn’t good enough for that transition, and I didn’t get in. I also didn’t even apply for the spot, so this not getting in thing made no sense to me on the first day. However, later on, I discovered that it mattered a lot more than I had first thought. Mostly because it basically sealed my fate for the rest of my life. Suffice to say, I am the single unluckiest person in this whole school. Unrivaled by anyone