Human Development Theories Essay - 1649 Words

Human Development Theories In addition to Freud’s psychodynamic theory there are four other human development philosophies; biological, cognitive, behavioral and systems model. Even though these theories differ they all contain the same basic assumptions. People will continue to grow. People exhibit both stability and flux as they pass through life. People are holistic, of mind body and spirit. Lastly, individual people must be understood in the context of relationships and setting (Cash White, 2012). There are three main concepts in the theory of Biological human development. Gesell’s maturation theory is that a child will develop according to a predetermined biological schedule. â€Å"There is an inner timetable that determines the†¦show more content†¦As a result of Darwin’s studies other ethnologist began making discoveries. Lorenz’s imprinting studies on goslings concluded there’s an early critical period in which imprinting occurs. Social attachments are formed impart by the imprinting process. According to Bowlby, a six month old baby will have narrowed their attachment to just a few people with one in particular and will become afraid of strangers (Crain, 2011). Additionally, Ainsworth discovered three different forms of attachment among individual babies. Depending on how secure or insecure a child feels patterns of attachment are formed. Consequently, both Bowlby and Ainsworth’s position was the same as Gesell’s,  "evolution has provided infants with signals and gestures that promote healthy development and it is wisest to respond to them† (Crain, 2011, p. 66). Piaget â€Å"forged the single most comprehensive and compelling theory of intellectual development† (Crain, 2011, p. 118), a theory of psychology that attempts to explain human behavior by trying to understand the thought process behind why people do what they do. In Piaget’s cognitive development theory he suggested that child think differently than adults do and from this he developed a stage theory of development. As one of the first theorists to state that children are actively gaining their own knowledge of the world and that theyShow MoreRelatedThe Theories Of Human Development774 Words   |  4 PagesTheories of Human development are relevant and matter in the â€Å"real world†. In my clinical practice as a psychologist-in-training, I have found human development theories to be very useful in conceptualizing and understanding my client’s distress. I used theoretical frameworks that are based on theories of human development to guide my interventio ns in therapy. For example, as a brief psychodynamic clinician, I look to Freud’s theory of anxiety to understand how distress was developed for my clientsRead MoreThe Theory Of Human Development Theory1642 Words   |  7 PagesHuman development theories are theories intended to account for how and why people become, as they are. These theories provide the framework to clarify and organize existing observations and to try to explain and predict human behavior. It is important to recognize the complexity of human development and the theories that explain human development. (Berger, pg. 23). The three theories that have influenced by development are Jean Piaget’s Cognitive Theory, Abraham Maslow’s Humanism and Erik Erikson’sRead MoreTheories And Theories Of Human Development1337 Words   |  6 Pages10/11/17 Principles of Human Development Paper #1 The concepts and theories of human development are important for a school counselor to have knowledge on. Knowledge on these topics can aid the counselor in better understanding the circumstances of their students. There are three main developmental sections which will be discussed in this paper. Those three include physical development, cognitive development, and social development. Each section contains multiple theories and concepts that wouldRead MoreThe Theory Of Human Development1196 Words   |  5 PagesAssociation 2009 define biopsychosocial as â€Å"the systematic integration of the biological, psychological and social approaches of the study of mental health and specific mental disorders (p.48).† The human lifespan is primary base of the human grow process that start with the reproduction, the process of the human body, the brain and internal organs that are developing during the pregnancy, birth, early, middle, and late childhood, adolescence, early, middle, and l ate adulthood until the end of life. AdditionallyRead MoreThe Theory Of Human Development2064 Words   |  9 PagesThe life span theories is about four different theories; the psychoanalytic, behaviourism, cognitive and humanistic. Erikson has some similarities with Freud however it is extremely different in other ways. Rather than Erikson focusing on sexual interest as a driving force in development, he believed that social interaction and experience played a decisive role. Erikson has an eight stage theory of human development which describes the process from birth to death and the crisis of each stage bringsRead MoreHuman Development And The Lifespan Theory1246 Words   |  5 PagesWhile growing up my family impacted my behavior and human develop based on the major domains of the Human Development and the Lifespan Theory. The major domains of the human developments are Physical/Biological System, Cognitive System, Emotional System, and Social Systems. Each domain s focus on things which shapes an individual life. Physical/biological system domain focuses on the genetical foundation of a person. For example, the changes in body weight or appearance; however, this could affectRead MoreTheories Of Development And Development Influence Human Intelligence1676 Words   |  7 Pageslearning and development. Some major theorists that are incorporated with theories of development include Jean Piaget, Lev Vygotsky, and Erik Erikson. Along with the theories of development, there are theories of learning. The four main theories include cognitive, constructivism, social cognitive, and situative. First and foremost, Jean Piaget can be considered a pioneer in psychology. His theory is considered one of the most influential and comprehensive theories of cognitive development. This theoryRead More Cognitive Theories of Human Development Essay1183 Words   |  5 PagesCognitive Theories of Human Development Jean Piaget, known as the most important theorist; started the most comprehensive theory of intellectual development. Piaget was born in 1896, in Neuchatel Switzerland, and lived a full and significant life, he passed away at age 84. His father was a medieval historian, and his mother was a homemaker; she was highly emotional and her behavior disrupted the normalcy of their home. Piaget married Valentine Chatenay, and they soon welcomed three girls;Read MoreThe Psychoanalytic Theory Of Human Development Research1074 Words   |  5 Pagesstudies topics like the theoretical perspective theories that are used in human development research. The Psychoanalytic perspective theory focuses on the emotional and social development, Piaget’s Cognitive-Developmental theory accents the changes in thinking, while the Behaviorism and Social Learning and the Lifespan perspective discuss many aspects on human functioning (p. 21). These theories allow for a different point of view on dev elopment while regarding relative influence of nature andRead MoreDiscuss Major Theories Of Human Development And Learning Essay1617 Words   |  7 PagesDiscuss major theories of human development and learning, including MÄ ori and Pasifika perspectives. This essay will discuss Jean Piaget, Lev Vygotsky and their theories as well as critical points from their theories and explain how they relate back to each theory. It will discuss how both of these theories can be applied to work in relation to a role in the Early Childhood sector. It will include Dr. Rangimarie Pere’s studies in education and how they compare to those of Piaget and Vygotsky. This

Research Paper on Video Game Violence - 1483 Words

Kendal Hill Mrs. Van Fleet Block 3 10 December 2011 Video games and Violent Behavior True or False: Violent videogames cause children to become more aggressive. Sorry, that was a trick question. Despite much bandying of statistics and loud talking by critics on both sides of the argument, the real answer is that there is no real answer—at least not one that’s been proved scientifically (Zipp). Video games are an appealing target for a public figure in search of a crusade. Movies and music have energetic advocates, but it’s hard to find anyone who will defend games for their artistic value, or even on the grounds of freedom of expression. Usually the strongest argument made for games is that they are harmless fun (Koffler).†¦show more content†¦That may be because videogames are such an important part of socializing for that age, Kutner and Olson say, that these boys are, by definition, â€Å"abnormal† (Zipp). However, Kutner and Olson are careful to point out that their study does not prove causali ty: It may be that more aggressive children are drawn to more violent videogames and not that the games themselves are to blame. Researchers just don’t know yet (Zipp). Kutner and Olson also say that playing the games with your child is an excellent idea, for many reasons. For one, 12-year-olds love being able to trounce their parents at something. For another, parent and child will be able to have meaningful conversation while playing whether about videogames or not. (Children at that age find it much easier to talk to parents if they aren’t facing them.) And if a parent finds something that concerns them in a game, a child may listen more thoughtfully than if the parent just issues a blanket refusal to allow future playing, Olson says. † But for those parents who simply won’t let their children have video games at home, Olson says â€Å"total denial doesn’t work,† there’s a good chance the child will just find somewhere else to play them.† Here again Kutner points out there is no proof of causality (Zipp). One of the major factors keeping violence in video games is the fact that it would be considered unconstitutional. States however continuously try to make laws that restrictShow MoreRelatedThe Effects of Violent Video Games on the Behavior of Adolescents and Young People792 Words   |  3 Pagesï » ¿Violent Video Games Introduction The debate about violent video games and whether or not those games influence the behavior of young people in particular, young boys has been going on for many years. There is no doubt that video games are very popular among pre-adolescents and adolescents. In fact, recent research in the New Hampshire Business Review (June, 2012) shows that 42% of the 300 boys that participated in a survey indicated they would rather play video games than play sports with otherRead MoreViolent Video Games Do Not Cause Violence And Aggression1527 Words   |  7 PagesViolent Video Games Over the past few years, the United States has seen violence that has come from the inside of the country. Various high schools, have had shootings inside of them from some of the high school students that go to that specific school. Some experts blame the shootings by categorizing the students as someone who has been tormented and bullied basically most of life, while other experts believe the shootings were caused by the violence in video games. There has been a lot of nation-wideRead MoreEssay on Video Games and Violence1481 Words   |  6 Pages Gun violence in the past years throughout the United States had been increased rapid. Examples of this are Virginia Tech incident, the shooting of congresswomen from Arizona Gabby Gifford, The Sandy Hook Shooting, etc. Most of these violence incidents had one thing in common and that is each of the suspect had psychological issues there were facing and they didn’t have support the system most of us have. Another fact is that most of the suspects were nonsocial individual who spend of their timeRead MoreVideo Games Call Of Duty881 Words   |  4 Pagesplay violent video games. Many people often assume that these intense games have a direct correlation to becoming a violent person. While many people agree with this, the research is not 100% accurate. This makes it very hard to find proof that a violent video game is one of the leading causes of a violent person. We are often blaming these games for a more internal complex problem. One of the leading video games Call Of Duty focuses on killing people in order to win the game. This game has over 40Read More Negative Effects of Violent Video Games on Teenagers Essay1280 Words   |  6 Pages Video games have been available to consumers for the last 30 years. They are a unique form of entertainment, because they encourage players to become a part of the games script. Todays sophisticated video games require players to pay constant attention to the game, rather than passively watching a movie. My working thesis is â€Å" Although there are other factors that can lead to violent behaviors such as inner stress, playing violent video games are one of the main factors that can lead to violentRead MoreAnnotated Bibliography - 5905 Words   |  4 PagesA. et al (2004). The effects of violent video game habits on adolescent hostility, aggressive behaviors, and school performance. Retrieved October 4, 2010, from pdfcast.org: http://pdfcast.org/pdf/the-effects-of-violent -video-game-habits-on-adolescent-hostility-aggressive-behaviors-and-school-performance Dr Douglas A. Gentile is a researcher who studies the effects of media on children and adults, may it be positive or negative. He has a Media Research Lab at Iowa State University where he conductsRead MoreDo Violent Video Games Cause Aggressive Behavior?1383 Words   |  6 Pages Do Violent Video Games Cause Aggressive Behavior? Samantha Remesz Saginaw Valley State University Abstract This paper explores violent video games and their affects on people’s behavior and emotions. An experimental study was done by Smith, Lachlan, and Tamborini and is investigated further. The researchers wanted to examine people’s behavior after playing violent video games as well as nonviolent video games and compare the differences of the two. The study observes boys and girlsRead MoreSynopsis Of Storytelling Games 1720 Words   |  7 PagesThesis: Storytelling in games gives the gamers the opportunity to be involved in the game, experience the characters, stimulate feelings like fear and excitement and let the player know they make situations happen and the choices they make affect the outcome as well as motivate them to continue on. Background: After reading parts of The Storytelling Animal, it was clear that storytelling is in everything. As an avid videogame player it was evident that many of the games that people play, like BattlefieldRead MoreThe Negative Effects of Violent Video Games Essays1274 Words   |  6 Pagesethical questions arise because of cloning and stem cell research, the education of society in addition with the advancement in technology have allowed these negative advancements to be achieved. This being said, it can be proven that advancements come with positive and negative effects. The video games of twenty-five years ago have evolved into something different and in some cases something dark. Research has shown in many cases that video games have negative effects such as: increased aggressiveRead MoreNegative Effects Of Video Games1613 Words   |  7 Pagesthey think about video games? Most people think of fun they have while playing. Or it could be the cost of the new game or the device to go with it. It could also be the violence a game offers or the rating given to the game. Many people play and enjoy video games today, people don’t necessarily have to play video games at home anymore either. Games can be downloaded to devices such as cell phones or tablets that can be taken on the go. When taking a step back to look at the games that are played

Economics and Quantitative Analysis Income Elasticity of Demand

Question: Discuss about theEconomics and Quantitative Analysisfor Income Elasticity of Demand. Answer: Introduction According to mid- point method of calculating price elasticity, the elasticity is calculated as an average for changes in two variables. This formula uses the percentage changes calculated, which is based on the average of the initial and ending values of each variable, rather than initial values (Browning and Zupan 2014). The midpoint elasticity formula can be used to analyse the price elasticity of demand, income elasticity of demand, price elasticity of supply and cross elasticity if demand. The formula for calculating the mid-point method of price elasticity is written below : Mid-Point Elasticity = ((B2 B1)/ (B2+B1)/2 )/ ((A2-A1)/(A2+A1)/2) Where, A1 and A2 are the initial and final values f changes in price and B1 and B2 are the initial and final values of quantity demanded. There are four methods to calculate the price elasticity of demand, which could be listed as follows: Percentage Method: percentage methods calculate the percentage change in quantity demanded with respect to percentage change in price (Blau, Ferber and Winkler 2013). Point Method: according to the point or geometric method, the price elasticity is measured at a point on the demand curve. Arc Method: any two points on a demand curve make an arc. According to the arc method, the elasticity between the two points on the curve is calculated. Total Outlay Method: according to the total outlay method, price elasticity is calculated as the change in the total expenditure (Perloff 2016). The midpoint methods of calculating the price elasticity of demand is quite accurate in framing the exact approximations when the changes involved in between the initial and final quantity demanded and price of the product is quite small. Price elasticity of demand has for determinants, which can be stated as follows: Product Necessity : the greater the necessity associated with the product, the lesser is the elasticity of the product. This could be explained as, consumers tend to buy the necessity products regardless the price. Luxury goods on the other hand, tend to have a higher elasticity. Hence, it could be stated that goods that are necessary goods are inelastic in nature. Substitutes: depending upon the availability of substitutes in the market of the particular product, the elasticity of the product increases. When the product has a close substitute, it gets easier for the consumer to switch the products from one commodity to another. hence, the demand for the good becomes elastic (Eaton, Allen and Eaton 2012). Conversely, when the substitutes if the product are quite less, it does not provide an option for the consumer to change their demand for the good, hence it becomes inelastic in nature. Brand loyalty : when a consumer has an attached brand loyalty towards the product, it gets very difficult for the person to change their tastes and preferences to some other product. Hence, it can be said, that brand loyalty makes the product inelastic in nature. Price change duration: goods that are non-durable tend to be more elastic in nature in the long run, than in the short run. During short run, the span of time is quite else, hence, it gets difficult for the consumers to find substitutes for the product and thereby elasticity is comparatively low. Among the above mentioned determinants of price elasticity of demand, most important determinant is the availability of substitutes. When two goods are substitutes of each other, there is a positive relation between the price changes of one product to the quantity demanded of the other. It creates a positive elasticity between the two goods. According to the scenario of the case provided with regards to the market for cds, the price elasticity of demand could be stated as : Price elasticity = (% change in quantity demanded ) / (% change in price) In the particular case, the two goods are downloaded music and cds. Hence, it could be stated as , Price elasticity = (% change in quantity demanded of cds) / (% change in price of cds) = (30)/ ((15-21)/21) = 30/20.3 = -1.48 The value related to the elasticity, which is attained, is more than 1 and negative. The negative sign shows the negative relation that exists between the price of the good and the quantity demanded by the commodity, whereas, the value shows that the goods are relatively elastic in nature. Hence, with a slight change in price, the quantity demanded for CDs is much greater, in accordance with the law of demand. As CDS are relatively elastic in nature, it could be stated that the effectiveness if the change in price of the product is more for the consumers. Hence, it would be beneficial for the organization, universal music, to reduce the price of their products more, so that the quantity demanded increases largely. According to Rader (2014), law of demand, with the rise in price of a particular product, its quantity demanded decreases, whereas, with the fall in the price of the product, the quantity demanded increases, other thing remaining constant. This shows a negative relation between the demand and the price of a particular product. The degree of responsiveness of the change in quantity demanded due to the change in price can be measured by the price elasticity of demand. In the following case study, for the iTunes introducing 33 songs, it can be stated as the price elasticity of demand: Price Elasticity Of Demand = (% change in quantity demanded ) / (% change in price) = (-35) / ((4257-3267)/3267) = - 35 / 0.3 = -116.66 Here, the Price Elasticity of Demand is for these 33 songs is -116.66. The value related to the elasticity, which is attained, is more than 1 and negative. The negative sign shows the negative relation that exists between the price of the good and the quantity demanded by the commodity, whereas, the value shows that the goods are relatively elastic in nature. Hence, with a slight change in price, the quantity demanded for those 33 songs is much greater, in accordance with the law of demand. According to the law of demand, with the rise in price of a particular product, its quantity demanded decreases, whereas, with the fall in the price of the product, the quantity demanded increases, other thing remaining constant. This shows a negative relation between the demand and the price of a particular product. The degree of responsiveness of the change in quantity demanded due to the change in price can be measured by the price elasticity of demand (Norman et al. 2013). In the following case provided, in order to find out the price elasticity of demand, the formula could be written as: Price Elasticity Of Demand = (% change in quantity demanded ) / (% change in price) = 10/5 =2 Hence, it could be stated that chocolate is relatively elastic in nature, where the proportion of quantity demanded of chocolate sauce is greater than the proportion of price change of the product. With the change in the quantity demanded for chocolate sauce, there is a change in the quantity demanded for ice cream. To measure the relation between these two goods, cross price elasticity is conducted. cross price elasticity = (%change in quantity demanded for ice cream)/(% change in price for chocolate sauce) = (15)/(-5) = -3 Teh value for teh cross elasticity of the two goods is negative, which shows that with the fall in the price of one good, there is a rise quantity demanded of the other. Hence, there is a negative relation between the two products (Case, Fair and Oster 2014). This thereby, proves that the two goods, i.e., chocolate sauce and ice cream are substitutes to each other. Reference Blau, F.D., Ferber, M.A. and Winkler, A.E., 2013.The economics of women, men and work. Pearson Higher Ed. Browning, E.K. and Zupan, M.A., 2014.Microeconomics: Theory and Applications. Wiley Global Education. Case, K.E., Fair, R.C. and Oster, S., 2014.Principles of Microeconomics. Pearson Higher Ed. Eaton, B.C., Allen, D.W. and Eaton, D.F., 2012.Microeconomics: theory with applications. Pearson Canada. Norman, S., Schlaudraff, J., White, K. and Wills, D., 2013. Deriving the dividend discount model in the intermediate microeconomics class.The Journal of Economic Education,44(1), pp.58-63. Perloff, J.M., 2016.Microeconomics: Theory and Applications with Calculus. Pearson. Rader, T., 2014.Theory of microeconomics. Academic Press.

Market Economy Government Regulation and Intervention

Question: Discuss about the Market Economy for Government Regulation and Intervention. Answer: A: Adam Smith is concerned about the market economy. According to him, invisible hand works in the course of market economy and for the efficient functioning of the market there would be no need for the government regulation and intervention. However if we want to look at the market economy, we need to understand the inherent market structure and market structure differs depending on the goods and services the market is trading. There are four types of market structure perfect competition, monopoly, monopolistic competition and oligopoly. These four market structures have different characteristics and on the basis of these features we can differentiate among different types of market. In the real world scenario, perfect competition and monopoly are the two extremes and we rarely can see such market structures. However monopolistic competitive and oligopolistic market structures are common in the economy. Perfect Competition: We will start with the perfectly competitive market. Perfectly competitive market has certain features like there are larger number of buyers and sellers in this market. Buyers and sellers have complete information regarding commodity and prices. The large number of buyers and sellers signify that single buyer or seller is very insignificant in the market and each seller has very small amount of market share. This aspect of market structure denotes that a single seller does not have any influence on market price and he cannot change the market price to attain higher market share or to earn higher profit. Another aspect behind the given market price is that each seller produces standardised product and for reason it is impossible for each seller to influence the market price. Each seller has to accept the market price that is determined by the interaction of market supply and market demand. Hence each seller and buyer is price taker.Hence H Another feature of perfectly competitive mar ket is that there is no barrier to entry or exit into the market that means there is free entry and exit facility for each firm into the market. Example of perfectly competitive market: One of the most important example of perfectly competitive market is wheat and corn market. In this market the farmers cannot differentiate in terms of product quality and for this reason final product is standardised. There are large number of farmers and buyers in the agricultural market and for this reason one single farmer or consumer is unable to affect the price of product. Hence each farmer is price taker and he has to sell its product at the market price. The farmers have the option of free exit and entry from the corn or wheat market depending on the profit or loss. If in the short run they incur profit, in the long run there will be entry of other firms while in case of short run losses, there will be exit of farmers in the long run. As the farmers are price taker, they have to sell their product at market determined price and for this reason corn or wheat market has horizontal or perfectly elastic demand curve. As there is large number of option for corn or wheat, the cons umers have good number of substitutes (as each farmer sell same corn or wheat) and for this reason the demand curve of each firm is perfectly elastic. Monopoly: Monopoly is a market structure where we can see the emergence of single seller in the industry. Hence in case of monopoly market supply and the supply of firm is same as the industry consists of the single firm. Monopoly firm is given the government protection. The government considers that it would be cost efficient for on single firm to serve the entire market and the government also considers that the large monopoly firm will be able to secure economies of scale (larger production will reduce average cost of production) eventually and they will also undertake research and development activities. Considering all these aspects the government provides monopoly status to a firm so that efficiency of the market can be attained and consumers can be benefited from lower prices and good quality product or service. For this reason government gives tax exemption and regulate the monopoly market so that no competitor can enter into the market. Hence in case of monopoly market structure there is strict barriers to entry and without any competition the monopoly firm can serve the market to earn higher level of profit. However most of the time it can be seen that the monopoly firm is not fulfilling its commitment to the society and produce lower output and charge higher prices to satisfy its profit maximization criteria. Hence the monopoly firm faces downward sloping demand curve. Example of monopoly firm: One good example of monopoly firm is US postal services. According to 19th century law it is illegal for any other company of firm to deliver letters and the sole authority of delivering letters had been given to US postal services. However it can be seen that US postal service deliver letters at a minimum price of $3 and it can be said that if private companies and competitors will be present in the market, the consumers can deliver letters at much lower cost. US postal services have been exempted from state and federal taxes and there are a numbers of government regulations so that US postal service can be competitors free. However in 2002 it can be seen that fiscal deficit of the postal service is of $4.5 billion and that lead the government to consider imposing some regulations on postal department to improve its efficiency ("US Postal Service: A Government Protected Monopoly | Capitalism Magazine", 2016). Monopolistic competition: The other market structure is monopolistically competitive market. In this market structure we can see that there are large numbers of small sized firms. One of the important aspect of this market structure is that each firm tries to bring certain differentiation in its product so that on the basis of this product differentiation it can charge some different price and can improve its market share and profit in the industry. The product differentiation and ability to influence the market price lead to downward sloping demand curve for these firms. The firm adopts advertisement campaign to increase their market share and profit. This industry has low barriers to entry and exit into the industry and depending upon profit and loss entry and exit can happen in the long run. Example of monopolistically competitive firm: Starbucks and McDonald are under monopolistically competitive industry. In fact the fast food industry belongs to this monopolistically competitive market structure. There are larger number of firms in this fast food industry like star buck, McDonald, KFC, Pizza Hut, Burger King and others. They acquire small market share and produces and sells similar product. However these firms have adopted different strategies to bring product differentiation so that with it, they can attract larger customer base. Like McDonald have recently adopted special breakfast menus to bring some fresh look into its menu. This strategy has been advertised largely so that its market share can improve. In this fast food industry we can see firms can enter and exit into the market easily and there is no such strict barriers for entry and exit ("Starbucks or McDonald's? - Econlife", 2010). Oligopoly: Another market structure is oligopolistic market. In this market structure we can see that there are few firms in the industry and they acquire larger market share. As there is few large firms and each firm incur high cost of production to remain in the industry, barrier to entry in the industry is high and new firm has to face significant barrier to entry into the industry. The product that the market serves in standardised and unique in nature. The most crucial aspect that we can observe in this industry is that interdependence among existing firms. As there are few large firms, one firms pricing or quantity strategy affect other firms. We can say that if one firm reduces its price, other firms also reduces their price; however rise in price will not be matched by other firms as in this case price rise will result to lower amount of profit. However in this oligopolistic industry, existing firms can enjoy monopoly profit if they decide to collude that means if they collectively deci de how much output to produce and what price to charge for their product. Example of oligopolistic market: US airline industry is an example of oligopolistic market. Boeing and Airbus are two popular airline firms in the US airline industry. These two firms face stiff competition for decades as they supply fixed output in terms of number of airservices and infrequent aircraft orders. This competition also depends upon their strategic behaviour on deciding price and quantity and quality of service. They secure large market share and earn higher profit. Huge initial and ongoing investment by these two firms lead new entrants to deter their entry into the industry (Cook, 2008). b: Externality arises when the action of somebody has some effects on the welfare of third person (who is not associated with the action). Negative externality arises when the action of one party imposes cost on the welfare of other party. During the phase of negative externality we can see that social cost is greater than private cost and without any government intervention the party who creates negative externality does not compensate the society for the social cost. Hence in the presence of negative externality we can see that the externality is not internalised and market output is greater than socially efficient level of output. In the above figure we can see example of negative externality. In the economy market equilibrium level of output gets equal to social efficient level of output when the when there is no externality and marginal social benefit equal to marginal social cost. However when negative externality arises into the economy, marginal social cost is higher than marginal private cost as there is external cost and in this case if there will be no government regulation the market output will be Q and negative externality generating firm charges P price. This is the market output whereas the socially optimum output should be Q1 (where marginal social cost equal to marginal social benefit) and the firm should charge higher prices at P1. In the above example we can see without any government regulation in the presence of negative externality the economy produces higher output and charge lower price which is not socially optimum combination. Hence government regulation is required. The government can regulates with the help of two measures imposing tax on negative externality generating firm and creating tradable permits. Imposition of tax: First method is imposition of tax on pollution (as pollution is considered as negative externality). When the government imposes tax on pollution generating firm, the supply curve shifts leftward (in the above diagram it can be represented as leftward shift of marginal private cost curve to marginal social cost curve) and for this reason the pollution generating firm will produce Q1 output and charge P1 price ("Pollution Permits | Economics Help", 2016). Advantages of imposition of tax on pollution generating firm: In this manner social efficiency is reached as the firm continues to produce where marginal social cost equalises to marginal social benefit ("Pollution Permits | Economics Help", 2016). In this manner the government can earn tax revenue and that can be utilised in productive sectors like health and education ("Pollution Permits | Economics Help", 2016). Disadvantages of imposition of tax on pollution generating firm: It is very difficult to measure the amount of pollution and tax accordingly ("Pollution Permits | Economics Help", 2016). Tax can create inequality. If the demand for the good is inelastic, imposition of tax will not reduce its demand and will not reduce pollution as well ("Pollution Permits | Economics Help", 2016). Tradable pollution permit: In this kind of pollution control strategy the government determine certain level of pollution unit that the entire industry can generate and on the basis of it, the market players can trade (buy and sell0 those pollution permits. This is considered as the most efficient way of reducing pollution in certain industry ("The Pros and Cons of Cap and Trade | Steve Richey", 2016). Advantages of tradable permits: In this way the firms which require low cost to reduce pollution can sell their pollution permit to those firms which require high cost to reduce their pollution level. In this manner, total pollution unit in the industry will remain in its pre determined form and the society can reduce pollution at cost efficient manner. In this manner the firms that have the prospect for development do not need to compromise on the ground of reducing pollution units ("The Pros and Cons of Cap and Trade | Steve Richey", 2016). The government can auction the pollution permit and can generate revenue out of it ("The Pros and Cons of Cap and Trade | Steve Richey", 2016). Disadvantages of tradable permits: The major disadvantage of tradable pollution permit is that firms that emit coal, gas and carbon-di-oxide in higher percentage will continue to emit that amount and that will degrade environmental quality ("The Pros and Cons of Cap and Trade | Steve Richey", 2016). There is a higher chance that the firms engage in this kind of trading involve in cheating and that can hamper overall, efficiency of the market economy ("The Pros and Cons of Cap and Trade | Steve Richey", 2016). Real example of negative externality and reduction: Many economies now engage in pollution reduction strategies as pollution or more specifically emission of green house gases degrade the quality of our environment. Hence many economies and countries like Singapore is engaging itself to reduce carbon emission and they have been initiating Kyoto protocol. This has been one of the popular means of reducing pollution and with the help of it, the countries can trade their pollution permit. Auction of this permit happen and amount of permit is decided on the basis of historical record of demand and number of available auctions. The countries bid their prices for the permit and according to it final trade (buy and sell) of pollution permits are finalised (NorregaardRepalin Hill, 2000). C: The US economy has witnessed the growing level of negative externality that has been generated by the tobacco companies and these tobacco companies are imposing higher health hazards to the entire economy. These tobacco companies are marketing, lobbying tobacco practices and for this reason larger proportion of population become smokers. This smoking habit is considered as one of the most deadly habits and this actually degrade overall health of the economy. As these tobacco companies increases their advertisement, marketing and sale of tobacco products, number of smokers in the economy is going to increase and this imposes serious threat to the entire market economy (Biglan, 2016). Generally young people and students are more prone to such habits and for this reason entire economy will be going to suffer. As healthy individuals are considered as the important human capital of the economy, increase in smoking habits degrade human capital and further the growth prospect of the economy, Smoking is going to create negative externality as smoking do not adversely impact the welfare of the direct smokers but also degrade the health condition of passive smokers and finally the entire economy. Hence human capital of the economy gets adversely affected. In the above figure we can see that how smoking generates negative externality in an economy and how it adversely impact the well being of the entire society. When people smokes negative externality generates, but without government intervention the tobacco producing companies do not need to pay taxes or any compensation. For this reason they continue to produce Q output and charges P price. However if negative externality is internalised and government regulates the market properly, socially optimum level of output is generated. Socially optimum or efficient level of output is generated when marginal social benefit curve equals to marginal social cost curve and the firm produces Q1 level of output and charges P1 market price. With the absence of any government regulation negative externality creates deadweighted loss which occurs due to the difference between market output and socially optimum level of output. In the above figure dead weighted loss is denoted by the shaded region (t raiangle) (Biglan, 2016). In the year of 1950, significant action against the use of tobacco has been raised in the US economy when empirical researchers found that smoking causes large amount of health hazards including cancers. Due to this empirical findings large proportion of people and organizations had started their campaign and awareness programs against the use of cigarettes. They showed that from the beginning of adolescence large proportion of young people starts smoking and that actually disrupts the growth prospect of an economy. The tobacco control program by different organizations has been specifically meant to increased number of awareness programs (Biglan, 2016). Large number of evaluating strategies for reducing smoking had been emerged these days. These include media campaign, school based preventive measures, ban on advertisement on tobacco products, claim for clean indoor environment and tax on cigarettes. All these are expected to reduce the demand for and that will finally result to lesser occurrence of smoking incidence (Biglan, 2016). During that period advocacy programs were found out to be very effective. They initiated large number of media campaigns and they demanded clean indoor air. That time a number of organizations like American Cancer Society, American Lung Association and American Heart Association formed a number of campaigns and there increased the society for American for non-smokers right and Tobacco free kid. They media campaign attacked the lobbying and marketing procedure of tobacco companies and that finally reduced demanded for tobacco (Biglan, 2016). During that period a large number of surveillance incidents happened and that monitored the smoking habits of adults and adolescents. References US Postal Service: A Government Protected Monopoly | Capitalism Magazine. (2016). Capitalismmagazine.com. Retrieved 26 August 2016, from https://capitalismmagazine.com/2003/09/us-postal-service-a-government-protected-monopoly/ Cook, A. (2008). B OEING V ERSUS A IRBUS : AN ECONOMIC ANALYSIS. Miami University. Starbucks or McDonald's? - Econlife. (2010). Econlife. Retrieved 26 August 2016, from https://econlife.com/2010/06/starbucks-or-mcdonalds/ (2016). Retrieved 26 August 2016, from https://www.colorado.edu/economics/morey/2010/2010BookChapters/KW_Chapter9/KWCh_09_Perfect_Competition_Edward.pdf Pollution Permits | Economics Help. (2016). Economicshelp.org. Retrieved 26 August 2016, from https://www.economicshelp.org/micro-economic-essays/marketfailure/pollution-permits/ The Pros and Cons of Cap and Trade | Steve Richey. (2016). Steverichey.com. Retrieved 26 August 2016, from https://www.steverichey.com/writing-samples/climate-change/the-pros-and-cons-of-cap-and-trade/ Norregaard, J. Repalin Hill, V. (2000). Taxes and Tradable Permits as instrument for controlling pollution: Theory and Practice. International Monetray Fund. Biglan, A. (2016). Corporate Externalities: A Challenge to the Further Success of Prevention Science.