This website uses cookies to ensure you have the best experience. Learn more

Economic Evaluation Essay

1197 words - 5 pages

Economic coursework-
Question 1:The price of tickets for a major tennis tournament is fixed by the organising body. At the set price, many more people wish to attend the tournament than there are seats available. Use relevant diagrams to illustrate this situation and examine the likely consequences of such an intervention.

As the blossoming of tennis in the past ten years, more and more people are crazy about buying tickets to watch major tennis tournaments. According to the statistics, the seats in major competition such as wimbledon were all occupied by fans. At the set price, many more people wish to attend the tournament than there are seats available. This essay will illustrate the ...view middle of the document...

The fixed price is positive for government to control the average price thus expects to report a certain level of output in the market. In addition, buyers are willing to afford a relative low price. However, it would lead to illegal transactions in black market. Because the system of first comes first serve can give black marketers a leak to go there early and buy many tickets to sell in black market with a high price. According to the investigation of the tennis competition in London Olympic Games, the average price of tickets in black market is $379.12 which is $273.76 higher than the original price, which is negative for the society as a whole. Firstly, it will lead to an underestimation of the actual national income and GDP. For instance, the expected output is Q1Pc, but the tickets are offered at a higher price (say P2), then the real output will be Q1P2 which is lower than Q1Pc. Therefore, the government cannot indentify correctly the real economic status of the country and established proper policies to raise citizen’s living standard. Secondly, the transaction in black market will make government overestimate the unemployment rate. Because some people who are supposed to be unemployed may actually work in underground market. So government may waste many resources to provide jobs according to the fake unemployment data. Thirdly, it would lead to the emergence of tax problem. Government cannot know the income revenue of black market, so the tax will be failed to be collected. At this moment, government may increase tax rate to offset the losses. Some of the people who are tax payers may want to evade tax or they may lower the quality of goods to compensate the higher tax payment. In general, black market affects people’s living standard as well as welfare in terms of external cost on the society.
Regarding to the non-monetary consequences, nepotism will firstly be thought of. This means the workers who related to tickets selling may keep tickets for relatives, friends or regular customers, which result in an unfair phenomenon to other people. Secondly, as the relative low price with rationing attracts many people in waiting queue, and first come, first served system will develop the queue, which increases their opportunity cost by sacrificing time doing something else. In addition, low price means low profit, which cannot motivate suppliers to work hard and provide good service. Therefore, the quality of service and playing field may be deteriorated with time.
In order to solve these problems, we can divide the possible solutions into...

Other Papers Like Economic Evaluation

Scenario Evaluation Plan Essay

871 words - 4 pages they do compare to each other. According to the reading it states that “When planned carefully, these two set of activities can be integrated into an organized set of ongoing operations that promote and support each other” (Mika, 1996, p. 6). “Program planning and evaluation are both the process and the product of the political and economic environments” (Yuen & Terao, 2003). So from what can be understood they both are a process, but they

Program Planning and Evaluation Paper

968 words - 4 pages viable outputs. These components together equal organizational success by proof of positive client outcomes. Without these components as part of the organization’s program and evaluation plan they elude necessary means to continue serving and meeting the overall needs of its client population and the community. Program planning and program evaluation are continuously evolving and moving in a spiral fashion as the products of social, economic


1040 words - 5 pages , weaknesses, opportunities or threats are created by this factor * anything else you feel is relevant. D2 Task 5 To achieve D2, you need to demonstrate clear evaluation skills of the work produced so far. To achieve D2, you must show your evaluation skills. This should be done in a presentation format, which must show justified recommendations for the development of the business activities in the two different economic environments. You

Asahi Glass Eva

585 words - 3 pages structure and corporate culture in order to create a truly international enterprise. He reformed in corporate governance and the new management system for resource allocation and performance measurement is based on economic value added (EVA). 2) Problems & Causes (in 2002) a. The effect of Main bank (Tokyo-Mitsubishi bank) Main bank is a cross shareholder, so they can interfere on company’s operation, performance and financial. For


4759 words - 20 pages sociology, whereas external factors include the social, economic and political aspects that shape curriculum design. Two curriculum models, namely the rational and the dynamic models will then be compared and contrasted and applied to my teaching practice. Thirdly, the positive and negative consequences of different forms of evaluation for students, teachers and the government will be discussed. 1.2 Factors influencing curriculum design. 1.2.1

Performance Appraisal and Job Evaluation Process

3426 words - 14 pages Performance Appraisal and Job Evaluation Process A case study on “Dada Corporation” Introduction Page# a) History of the organization 2 b) Objective of the organization 3 c) Function of the organization 3 d) Role of the organization in the Economic Development of Bangladesh 5 e) Organizational Structure 7 f) Mission of the organization 9 g) Vision of the organization 9 Research Methodology a

Fin 534 Student Guide

1252 words - 6 pages | 20300 | 10 | Preparation * Reading(s) * Chapter 17: Multinational Financial Management * Scenario (See Faculty Notes for more details) * e-Activity * Use the Internet to research the economic activity of Brazil and Switzerland. Be prepared to discuss.Activities * Discussions Evaluation * Homework * Homework Set #5 can be found in the course shell | 20100 | 11 | Preparation * Reading(s): None Activities

Development of a Project

624 words - 3 pages group. TO WHOM? Addressees of the service. HOW? Methodology, activities, methods and tools. WHEN? Activity chronogram, estimated time WITH WHAT? Human, material, economic resources. Viability. WITH WHO? Possible alliances with other actors, organizations, communitarian or official organization. Fundaments Is it necessary to do this project? Objectives What do we propose (suggest) ourselves? What for are we doing this project

Apllied Business

686 words - 3 pages break even revenue Extra work – identify margin of safety (predicted sales volume (minus) break-even) 21. An explanation of the likely changes (legal, economic, political, technical and environmental) and their impact onthe finance of the business, that will take place over three years. Feasibility and Evaluation(21 marks) 22. Projection of the business position by the end of year three Analysis of changes in sales revenue (base this

Case Study : Rob Parson

1312 words - 6 pages Rob had been successful in bringing Morgan Stanley into this Market. However, it seemed that he has created some animosity among his peers. Morgan Stanley instituted a 360 degree performance evaluation system that allows an employee to be evaluated by superiors, subordinates, and peers. After Rob’s last performance evaluation, it seemed that he might be having trouble adjusting to the Morgan Stanley Culture. The evaluation was negative and


633 words - 3 pages Bette Smith's marketing plan is about a Chiropractic Center in Fremont, Nebraska. The plan outlines market analysis, recommendations, strategies and evaluation controls to establish Chiropractic business for the client. The plan submitted is poor in nature and has some specific problems and improvements in the designated marketing strategy areas. Lot of sections mismatched or misplaced and there are many problems in the case analysis. We have

Related Essays

Economic Evaluation Of Investment Essay


Program Evaluation Overview Essay

2263 words - 10 pages a program on tract; achieving objectives in an allotted period. They evaluate “…the extent to which programs are meeting predetermined goals or objectives (Management Help, 2013). 4) Cost-Benefit Analysis: Considered an economic evaluation, a cost-benefit evaluation measures the monetary cost of the program and the value of the benefits and impacts on the stakeholders. The question it asks is “Does the value or benefit of your program’s outcomes

Program Planning Essay

814 words - 4 pages planning incorporated program evaluation that did continuous performance assessment. Evidence of interrelation is seen through this aspects noted. Differences between program planning with program evaluation According to the article Peace Domestic Violence Agency, political and economic variables deter the progressive task of planning and evaluation (Dunham, 2008). This is because they are both products of political and economic environs. There

Overview Of R&D Evaluation Accounting Essay

1155 words - 5 pages . – Market and cost data is used to estimate the cumulative net benefit of the program. 4/27/2015 19 Overview of Selected Research evaluation..contd • Benefit Cost Case study – Used to assess and quantify economic and other benefits and costs to a possible extent depending on the type of project. – Used to evaluate applied research with well defined goals . • Econometric methods – Uses a number of mathematical and statistical