Microeconomics Coursework Example | Topics and Well Written Essays - 2250 words

Microeconomics - Coursework Example Keeping the cash will mean there will be no gain, but one enjoys a high liquidity preference of their cash. However, the future of the market performance is oblique. In the event inflation hit the economy, the money will have greatly lost its value and one would have wished making an earlier investment on either stock or bonds could have been a better option. Investing their money in either stock or bonds is always dilemmatic. An individual is ever sure of safety of money value invested in government bonds than in corporate stock. The value of government bonds depends on the performance of GDP; it could either decrease or increase annually. Assuming a GDP of 7%, the value of the bond that year would be similar to GDP. In such cases, the stock value is always higher than that of bond by 1% or 2%. A person who decided to invest in corporate stock that year will enjoy accrued savings of their investment at either 8% or 9% while one who invested in bonds will only enjoy 7%. The differenc e of the two becomes the risk premium. Risky situations have a high attached risk premium. There are many mechanisms an individual can explore to minimize risk. To begin with, one can just say no. For example, uncertain luxurious investments to improve one’s status in the society can be avoided. One may have a strong desire to purchase the most coveted natural Cornflower Blue Sapphire.There are two possible outcomes: purchasing a genuine sapphire or duped with a copy. Bearing in mind that one lacks the capacity to distinguish between a genuine and a counterfeit, there are two underlying benefits of varied proportions. If one goes ahead and it is a genuine one, he becomes $ 120 rich otherwise, $10 richer. In such scenario, saying no would avert possible looming risk. Secondly, one can obtain factual information before making a decision. An investor who is interested in a particular corporate stock and lacks information or have scanty facts regarding the stock performance can i nquire before putting life savings into it. Information gathered in light of the corporate stock performance in the past few years or quarters may lead one to make informed decisions. A clear indication of a possible decline in the stock value that particular period would deter one from investing because at the end of the day everyone wants to see the value of their assets rising and with great stability. When one obtains information about something whether it has monetary value or not, the decision made will ultimately avert risk associated with it. Thirdly, an individual can diversify the risk. This can be done when the two events are perfectly negatively correlated (Perloff, 2011). A perfectly negatively correlated event according to Perloff refers to an event where one of the two possible outcomes must happen with great certainty. Assuming the government wants to give the tender to either IBM or Apple to supply its various departments with computers and other accessories during the next financial year. There are two possible outcomes: a win and a loss. It is absolutely clear one company must win the tender. When an individual purchase the shares of the winning company, each share value is $50 otherwise $10. One may then decide to purchase an equal share of each company just to be at the fair edge. Assuming a purchase of 5 shares, the total

City of God Essay Example | Topics and Well Written Essays - 1250 words

City of God - Essay Example Among the emergent themes in the movie are urban crime, social network, education, urban slums, the lack of economic and social mobility, and the global city. These themes are presented through the lives of Rocket and Jose ‘Lil Ze’ who are in opposite paths in their lives’ but are both shackled to the city of their childhood. The torn down buildings and the dirty streets serve as the backdrop of the film’s storyline and the object of Rocket’s gritting photographs. In the Broken Window Principle, the idea is that one broken window will lead to many broken windows. In an experiment, the pristine condition of windows deters the commission of voluntarily shattering them. James Wilson and George Kelling write that the police play an important role in reclaiming their own authorities in streets that have been overrun by gang-related violence. This is further strengthened when the people see them as a partner in driving out those who commit organized crimes to return their communities to a peaceful state. â€Å"The process we call urban decay has occurred for centuries in every city... Earlier crime waves had a kind of built-in self-correcting mechanism: the determination of a neighborhood or community to reassert control over its turf† (4). Sadly, this was not shown in the film as corruption was a rampant attribute of the local police force. Zukin’s Whose Culture, Whose City? (75) with its setting in New York, reveals that public space is continually being privatized by corporate entitles, resulting in a cultural war within its streets. In this regard, it is equally important to look at the cultural relevance of urban decay with respect to education. It not only functions to develop the individual but the nation at large. For developing nations, education has a pivotal developmental role. In this movie, education in the developing Rio de Janeiro, is quite accessible but an extensive portion of the populace remained ignorant.