Summarising for tomorrow's test...

Maybe someone will find this useful:

0.National Output = National Expenditure (Aggregate Demand) = National Income

1.GDP (expenditure method) =C+I+G+(X-M)


2.GDP (by factor income) =Income from people employment and in self-employment +Profits of private sector companies +Rent income from land

exclude:
Transfer payments
Private transfers of money
Income that is not registered with the Inland Revenue or Customs and Excise.

3.GDP (output method) = the value of output produced by each of the productive sectors in the economy using the concept of value added.

Value added = increase in the value of a product at each successive stage of the production process.

4.GNP = GDP + Net property income from abroad (NPIA)


adopted from tutor2u

Recession benefits

Who gained from the recession?

1. Employers gain as there are less vacancies on the job market, it is easy to get a high-skilled and experienced employee.

2.Employees gain in a way that their real wages are rising as prices are falling sharply.

3.Supermarkets ( as people are less likely to eat out during the recession and their spending in supermarket increases)

4. Second-hand stores, 1-pound stores etc. (as the demand for the infreior goods rises)

inequalities

Why are there inequalities among children?

Well, everyone is an individual and each social group contains inequality within it. Inequalities among children occur for several reasons:

1. Income.
It's not a rule for everyone, but people tend to get on better with people with the same income. It is even more noticeable among children: they sometimes judge each other by clothes, mobile phones etc. Moreover, children with higher income have wider access to leisure activities such as cinemas, cafes etc and therefore tend to spend time together.
2. Health.
Disabled people or people with different health problems (e.g. obesity) are often excluded from different societies/groups.
3. Appearance
Children are often criticised for their appearance by other children and may be even discriminated by teachers.

4. Educational skills
That is also not a 'rule' for everyone, but some children may dislike pupils which get better marks than they do.
5. Subcultures
Children often form a group with people of the same subculture such as emo, goths, skinheads etc. Therefore, children which are not a part of this subculture have difficulties in communicating with such groups, which can even be aggressive to other subcultures.

6.New kid
A kid which is new to the class/town may suffer from lack of communication: people that have already divided themselves in several groups by interests may not want to invite any 'strangers' into group.

The disapperance of childhood

According to Neil Postman (1994) childhood has disappeared. Why?


Firstly, to understand why childhood has disappeared we need to find out how it actually appeared. Childhood is rather a social concept than a biological (e.g. we often define children as a group of people below certain age). Neil Postman relates the apperance of childhood to the printing press invention. It sounds strange for the first time, but let me explain how this things are connected.

In the Middle Ages ( i guess it was before 15 century), a person became 'adult' as soon as he learnt how to speak, so that there was no actual difference about children (biologically) and adults treatment.

Printing press invention allowed to distinguish children from adults and create a 'barrier' : a person needed to be literate in order to be counted as an adult. And, actually, that was a beginning of 'childhood' concept development. Then, with the appearance of schools etc, a clear picture of how a child should behave, think, communicate, dress was created. An this picture has been developed and expanded until our days.

But, according to Neil Postman, the transforming power of television makes this 'childhood model' disappear. That happens because TV programmes do not actually differ a lot ( even though they are 'targeted' at a certain age group) and people do not need any special skills to watch television, so that televesion is available for each of us (assuming it is affordable for each of us).
Moreover, there are several aspects of our life that we do not usually want our children to know before they reach a certain age, but television provides information on this topics to everyone. Children become involved in the 'adult world' and that makes the gap between childhood and adult life disappear. That transforms the way we dress, behave, communicate. For example, Mc'Donalds that was mainly a teenage restaurant before, now is full of people of all age groups. Elder people are starting to wear their children's clother, listen to modern music, while some of the teenagers tend to dress up as adults and find a job.

Neil Postman concludes his writing on childhood disapperance with the statement about 'the culture of narcisssim' (Christopher Lasch): he sees our new generation as people stuck between 20 and 30 years, without life aims, without children, without future.

Nature vs Nurture

In fact, there are two theories of what determines the human behaviour: "nature" theory and 'nurture' theory. The first one states that human behaviour is determined by the genetic predispositions while the second one says that people behave in a certain way because of their environment and the way they were brought up.

My opinion is that at the beginning of our lives when we have little experience of social interactions and every social event is kind of 'new' to us ( e.g. making a best friend for the first time or going to school for the first time) we tend to behave in a way our genom 'tells' us to do. Of course, some of our actions are controlled by parents and social norms which we are taught from the earliest childhood. Then, after gaining some experience from our socialising, our 'genom' model of behaviour overlaps with the 'gained' model. After gaining some social models of behaviour we just use them depending on what the situation is.
As for qualities such as sense of humour, kindness, loyalty i think they are mostly determined by the genom but however can be modified by our environment ( but NOT a lot). This point is argueable: many men, many minds. That is just a thought that comes from my life experience: i mostly have the same qualities as my father does. And with my social behaviour changing from time to time, i find my qualities remaining the same throughout my life.

So, that's it. I am still a bit confused with this question.

Sociology

Sociology can be defined as a study of human behaviour or a study of people's interactions.
A sociological perspective is a way of seeing the world that helps to understand the social realities which make up the field of Sociology.
This video tells about the principles of the sociology and about sociological paradigms.

Basically, there are 3 Paradigms of Sociology: Structure Functionalism, Marxism and Symbolic interactionism

1. Structure Functionalists beleive that society exists as a whole system and each part of the system has its own function. All parts work interdependently for the benefit of the whole system. Society is looked at as an 'organism', where all organs work together to mantain the live of the organism.

2. Marxism (or Conflict Theory) states that conflict is unavoidable part of the society. Marxists beleive that society is represented by inequal parts (dominant and secondary segments) which compete with each other for scarce resources rather than cooperate for the benefit of the society.

3.Symbolic Interactionism investigates the interaction of different social groups and individuals as the means of recreating the society. It belives that society is a product of the interaction of our values, morals, symbolic meanings etc.

recession

In order to fight recession government should combine a proper usage of all three policies: monetary, fiscal and supply-side.

As an example of monetary policy, interest rates have recently been cut to 1.5%, the lowest level for 314 years. In theory that should encourage people to borrow and increase domestic demand.
Here is a diagram illustrating the effect of interest rate cut on the inflation rate ( which also fell to 1.1% in December):




Some economists even argue that interest rate paid on our savings could go negative.


As for fiscal policy, there has been a VAT cut recently from 17.5% to 15%. The main aim was to encourage people spending, but this cut hasn't had much effect yet as it says here


As for supply-side policies, encouraging migration may be useful in order to fight recession:
Migrant workers are essential in delivering the key construction projects that will help to boost local economies.'

Some actions are to be done to persuade consumers to keep spending and borrowing and businesses to keep investing.
For example, setting affordable borrowing schemes or set up a scheme for businesses that minimises losses like Chapter 11 in the USA.
' companies that fail because of debt issues can survive in a downsized and restructured form are given the time to generate a compelling proposal that seeks to maximise the payments to creditors, and to save at least some of the business '

What is also going to be done by UK government:

- Planned increases in child benefit will be brought forward and child tax credits will be increased.
- Pensioners will get a £60 one-off Christmas bonus payment.
- increase road tax for millions of cars already on the roads.

exam technique

'It's quite simple really.
When you are doing the 12 mark question at the end, you have to make sure you pass through all the levels (1 to 4).
Generally this means:
Level 1 - Define all the terms in the question, and give some basic facts
Level 2 - Apply these facts to the question
Level 3 - Analyse critically the effects of this in relation to the question
Level 4 - Evaluate "to what extent" the statement in the question is true

Maybe that wasn't the best way of explaining it, so if we take 2883 January 2005 as an example.

Question (e) is:
"Discuss the effectiveness of supply-side policies in reducing unemployment." [12]

Using the above:
Level 1
- Define supply-side policies: any policy designed to affect aggregate supply in an economy
- Define unemployment: where people do not have a job, but are able to work and are looking for work
- Give some examples of supply-side policies: education and training, reducing the power of trade unions, increasing the incentives to work, making a more flexible workforce, privatisation, etc.
Level 2
- Explain how (in theory) supply-side policies reduces unemployment
- Draw a macroeconomic graph showing an outward shift in LRAS (long-run aggregate supply)
Level 3
- Choose a few supply-side policies to go through in detail, about a paragraph each
- Possibly draw the trade union wage rate labour market graph
- Analyse how the specific policies will (or will not) reduce unemployment; there really needs to be two sides to the discussion
Level 4
- Bring all this together in summary as an answer to the question; for example: "Overall, supply-side policies would appear to be very effective in reducing unemployment in the long run, especially through education and training. However, it is important that the spending in training is in the sectors of industry that require more trained workers (not declining sectors)..."
Make sure you talk about the "effectiveness", in other questions this would be "the extent" to which the policy would be successful.
- Consider and comment on other factors: short-run / long-run effects, other policy objects and possible trade-offs, the type of unemployment (if it is just cyclical or if it is structural), etc.
- A final conclusion that takes all of this into account (the "bottom-line"

Obviously it doesn't have to be as rigid as the above; many of the points would be better expanded to cover more than one level, but some level 4 points should be explicit to the examiner.'


from the student room

back to work?)

1.What are the consequences of sustained deflation?
First of all, we should understand the difference between 'bad deflation' and 'good deflation'
Good deflation means that the producers remain able to produce goods at lower prices by cutting the production costs, increase the productive efficiency. When the deflation becomes 'bad' it means that the businesses are no longer able to keep up with cost reductions.

So what are the consequences of this deflation?
It affect consumers behaviour. It may increase the consumers' purchasing power, as prices are falling.
But if the consumers expect even greater fall in prices later, it will stop them from buying goods = decrease their purchasing power. With the decline of aggregate demand, less goods will be produced which may also lead to unemployment in the long run.


How does deflation affect wealth?
The value of the householders' assets goes down, so householders' wealth decreases.



How does deflation affect debt?
Deflation increases all types of debt causing firm with large borrowings to fail.