Concept of Consumption and Saving - Free Essay Example

THE CONCEPT OF CONSUMPTION AND SAVING. Consumption and savings  are opposite by nature. The term consumption denotes expenditure and by savings we understand the act of preserving money for the future needs. Most of us are in the habit of meeting the present needs from our income. After that, if there remains anything, then only savings can be done. But in the long run, it is the savings that matters most. CONCEPT OF SAVING The concept of saving is important in the context of economics and finance. In general application, saving usually stands for depositing money separately for a particular purpose, for instance investment in retirement plan or depositing cash in the bank. In other words, savings means the reducing of expenditure and the act to avoid wastage. According to personal finance concept, saving means keeping or conserving money to be used in the future. Whereby usually the money is deposited, instead of investing it, where a risk factor is always involved. Saving is done with some pre-determined investment objectives. In other words, saving is the act of conserving cash for any purpose or for future usage. On the other hand, savings means the cash saved to that very moment. Examples of saving are: 1) Mr. Lim has been saving 20% of his earnings just because he is aiming to increase his savings so that it would be enough to purchase a car. 2) Miss Camille has been saving 35% of her earnings just because she wants to get her fiancee a nice wallet for his birthday. Examples of savings are: 1) Mr. Jamal saved RM2100 to buy new clothes for his newly born son. 2) Patrick has RM 50,000 in his savings account. Of late, the terms saving and investment has been have been contradicting. Although both saving and investment are means of achieving financial security for the present as well as the future, they are not actually the same thing. The big difference between savings and investment is the present of the risk factor. In savings, the risk factor is almost nil but in investments, the risk of losing money is always taken into serious consideration. Basically in order to start a savings account, all it takes is a visit to the bank. While in the case of investments, it can take form in many ways. Buying a shop lot in a town and letting it out for rent is also considered investing. Buying shares in the stock market is also another form of investment. Savings can be considered as the cash that is kept in the bank or any other financial organization that provides the facility. This saving is done for a long time but the growth rate of the cash is very low. On the contrary, investment provides the growth opportunity to the cash. CONCEPT OF CONSUMPTION Ever since Adam Smith’s celebrated dictum that consumption is the sole end and purpose of production, the consumption concept has played a significant role in economic theory. Consumption is the total opposite of the term saving. Consumption is basically the spending of cash in order to obtain or receive satisfaction. Consumption is a fairly common concept in economics, and it gives rise to derived concepts such as consumer debt. As a whole, consumption is presumed to be the opposite of production. This assumption is pretty obvious because of the fact that production means the process to manufacture while consumption will be at the end of the cycle. Still, the precise definition for the term consumption may vary because different groups of economists define production quite differently. But, referring to the mainstream economists, only the final purchase of goods and services by individuals constitutes consumption, while other types of expenditure such as fixed investment or government spending (taxes and fines), are placed in a different category, apart from consumption. Meanwhile, there are also economist who defines consumption in a much broader scope. Whereby they say that consumption aggregates all economic activities that does not entail the design, production and marketing of goods and services. For example, the selection, adoption, use, disposal and recycling of goods and services. Moreover, consumption can also be measured in a variety of different metrics such as energy and energy in economics. John Maynard Keynes developed a function, known as the consumption function. This function is a mathematical function which is used to calculate the total consumer spending in an economy. John Maynard Keynes’s theory merely expresses consumption as a function of the aggregate disposable income. Basically this metric essentially defines consumption as the part of income that is disposable and does not go into  saving. But disposable income in turn can be defined in a number of ways – for example, to include borrowed funds or expenditures from savings. Traditionally, consumption was seen as rather unimportant compared to production, and the political and economic issues surrounding it. With the development of a consumer society, increasing consumer power in the market place, the growth in marketing, advertising, sophisticated consumers, ethical consumption etc, it is recognised as central to modern life. People in different position in respect to  income  have systematically different structures of consumption. The rich spend more for each chapter  in absolute terms, but they spend a lower percentage in income for food and other basic needs. The percentage values of an aggregation over all the households in a country can thus be used for  judging income distribution  and the  development level  of the society. The rich have both higher levels of consumption and savings. In  differentiated product markets, the rich can usually buy better goods than the poor. This happens also because they tend to use different  decision making rules. In other words, consumption depends on  social groups  and their behaviours, as well as their proneness to  advertising.

Learning Log # 2 Bram Stoker s Dracula - 1692 Words

Learning Log #2: Dracula by Bram Stoker ---------------------------------------------------------------------------------------------------------------------------- Quotes Analysis ---------------------------------------------------------------------------------------------------------------------------- Chapter 1 - 7 ---------------------------------------------------------------------------------------------------------------------------- Chapter 1 - â€Å"I read that every known superstition in the world is gathered into the horseshoe of the Carpathians, as if it were the centre of some sort of imaginary whirlpool; if so my stay may be very interesting.† PG. 2 In the first chapter, we are introduced to Jonathan Harker, who is writing†¦show more content†¦After waking up Harker finds he’s surrounded by 3 women. In this quote, Harker notices their beauty and at the same time their disturbing aura, noting that he wants to kiss them, and the pain it would cause his fiancee if she ever found out. Chapter 4 - â€Å"I am alone in the castle with those awful women. Faugh! Mina is a woman, and there is nought in common. They are devils of the Pit!† In chapter 4, Harker is told by the Count to send three letters, all three with different dates. From this, Harker determines that he must have 3 weeks to live. In the quote, Harker remembers the women who almost killed him earlier, and notices the contrast between his fiance and the three lustful women. Chapter 5 - â€Å"Why can’t they let a girl marry three men, or as many as want her, and save all this trouble? But this is heresy, and I must not say it.† In chapter 5, the perspective changes from Johnathan Harker, to his fiancee, Mina, who discusses how much she misses him to one of her close friends, Lucy. In the quote, Lucy writes about going against society’s norms, a contrast to the reserved Mina. Chapter 6 - â€Å"Oh, I do hope he is not ill. He surely would have written. I look at that last letter of his, but somehow it does not satisfy me. It does not read like him, and yet it is his writing. â€Å" PG. 74 In this chapter, Mina becomes increasingly more worried for Johnathan and his safety. In the quote, she receives a letter from

The Minimum Drinking Age A Rite Of Passage For The...

Consuming alcohol is considered a rite of passage for the average young individual. The minimum drinking age required to legally consume alcohol varies in each country, ranging from it always being legal to drinking being illegal at any age, but most countries have set the age at 18-19. In the United States, as of 1988, the MLDA is 21 throughout its entire territory, while the age of majority starts at 18. This paper analyzes the arguments to lower the minimum drinking age and unify it with the age of majority. The factors discussed are alcohol-related traffic accidents, encouragement of unsafe drinking habits, and inconsistency between the perception of adulthood and the MLDA. In the United States, the minimum age required to legally consume alcohol is twenty-one years, being allowed in some states for young people under the minimum drinking age to consume alcohol under specific controlled circumstances. This particular age is controversial as it does not correspond to the age of ma jority of 18 years embraced by 47 states, which entitles the individual to vote, get married and join the army, among other decisions inherent to adulthood. It is thus seen as contradictory to consider a young person mature enough to take decisions of this nature, but not mature enough to drink alcohol. The minimum legal drinking age (MLDA) has propelled national debates on the subject, primarily promoted by university students, who argument that implementing the MLDA at 21 encouragesShow MoreRelatedAlcohol Marketing and Advertising25059 Words   |  101 Pageswith the industry standard that at least 50% of the advertisement’s audience consists of adults age 21 and over. Nevertheless, the 50% placement standard in effect in 2001 and 2002 permitted the ads to reach a substantial youth audience. This is particularly significant where the products and some ad themes may be attractive to minors. 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Recruitment Process-Free-Samples for Students-Myassignmenthelp

Questions: 1. Review at least two Recruitment Strategies (e.g. external recruitment consultant, LinkedIn, Facebook) and discuss the advantages and disadvantages of each. 2. Provide additional Comments on the Privacy Issues relating to the Methods chosen above. Answers: 1.In todays world two major types of recruitment process can be seen Traditional external consultancy Social media recruitment ( Facebook, Linkedin, and other websites) The merits and demerits of these recruitment processes are discussed below. External consultancy Merits In this process, competition between three applicants is much higher. Consultancies find innovative ideas to test applicants as they invest more time. Demerits The process of recruiting through external consultancy is often time consuming, as initially a company upload an advertisement for vacancy and hen the consultancy firms gather the required information and publish another advertisement for applicants. The whole process is pretty much time consuming. Cost is another issue in this process, as the companies and the applicants both need to pay the consultancy and the consultancies play the role of a broker to be exact. Social media Merits Social media and other websites provide a bigger space for people to post about their achievements and important assignments they completed, to attract attention of the recruiters (Kluemper 2013). HR Managers can look into the profiles of the people and see their backgrounds and their mindsets viewing their posts because the Curriculum Vitae provide a small window for the recruiters to judge a person. Demerits Nowadays social media sites often get hacked for several reasons, so the posts on which recruiters depend; there is a chance that they might go through a fake post. If a manager only depends on the social media to recruit worker, people who do not have accounts in social media, they lag behind. 2.Recruitment via social media sites bring in problems like privacy issues, where the details of a person can be revealed and this can potentially harm a person (Mello 2012). The recruiters and the governing bodies of these sites should stress upon the privacy policies to ensure the security of the people. On the other hand, recruitment through External consultancy firms does not cause such issues. References Kluemper, D.H., 2013. Social network screening: pitfalls, possibilities, and parallels in employment selection. InSocial media in human resources management(pp. 1-21). Emerald Group Publishing Limited. Mello, J.A., 2012. Social media, employee privacy and concerted activity: Brave new world or big brother?.Labor Law Journal,63(3), p.165.