Circular Flow Model and Relationship between Economic Development and Women Rights - Assignment Example

Question Definitions: a) ECONOMICS: Economics in general is defined as the study of social science that gives knowledge about how individuals, groups, firms, nations etc make decisions or choices in terms of allocating scarce resources to satisfy their needs (infinite). Economics can further be classified in two parts. Macro economics and micro economics. The former deals with the overall economy issues and later deals with issues related to individuals or consumers. b) Opportunity cost: The action of passing cost for the next best choice when planning or taking a decision. In other words, if one chooses alternate over other, then the cost of choosing that particular alternate is the opportunity cost. It is one way or the other the benefit which an individual loses in terms of choosing one particular product over other. c) Basic economics questions: The three basic economic questions are: 1). What to produce? 2).How to produce? 3).Who uses it i.e. to decide about the production, factor of productions, and the end user of the product. d) Economic efficiency: It is normally a situation where every single resource is assigned (optimally) to individuals so that wastage and inefficiency can be minimized. e) Comparative advantage: It generally refers to the ability of an individual, group, country etc to produce goods, services or products at a lower opportunity cost than its rival (competitors). Usually it is useful in terms of determining what should be acquired and what should be produced through trade. f) Absolute advantage: It deals with the ability or potential of an individual, group or an organization to carry out economic operations more effectively and efficiently than to its competitors using the same available resources. g) Labor force participation rate: It measures the active labor force in the total population. This includes people who are either already working (employed) or are actively searching for job. However those people who are not currently looking for work are excluded. h) Bargaining power: It is the ability of negotiation to take edge or dominate other party using power, influence, status, size, or by using different techniques (persuasion). i) Cyclical unemployment: Unemployment that has been created because of the changes in the cyclical trends of the business cycle. Whenever the business cycle is experiencing boom, cyclical unemployment would be low and when the economy would be going through recession then it would be experiencing higher cyclical unemployment. j) Induced unemployment: Unemployment created because of government regulations and laws. For instance, government imposing laws on minimum wage rate can lead to higher unemployment. Question 3 Circular flow Model: Circular flow model is a simple economic model that describes the flow of goods and services through the economy. In other words, it is a model which describes how money moves throughout the economy. In this model firms are the overall producers which supplies goods and services. However households are consumers who basically consume these products and services. Moreover if it is analyzed deeply then land resources, labor resources and capital resources are supplied to firms by households which later are converted into finished products and are ready for consumption for consumers (households). Question 4: Comparison men and women: Hunting and gathering: Since evolution human beings are searching and devising ways in order to fulfill their basic needs. History has shown us that men and women work side by side in performing different functions of life. In terms of searching for food, men always use to hunt and women worked as a facilitator and their purpose was to gather and serve food. However this trend is very much changing as today many women are also actively hunting. For instance, in U.S. many women are seen hunting in the North West. Horticulture: In terms of horticulture, the role of men and women were a bit different. As man always tends to be the stronger amongst the two in terms of physical strength therefore the role played by man was to clear fields or grounds or to prepare land for this purpose. However women were responsible for planting, harvesting and tending the crops. Agriculture: Although different societies have different perception regarding agriculture and the role played by men and women in this regard. However it is clear that men used to sow and prepare land for agriculture purposes and women used to harvest and gather food. Though if the quantity of the food is massive then again men were asked to help and accommodate women in this regard as well. Early industrialization: Industrialization one way or the other redefined the role of women. As previously they were supposed to work at home but since the world was going through the phase of industrialization more human resources were needed so women stepped ahead. Working in factories and also earning their livelihoods which were previously considered to be the duty of man. Today: Today men and women are considered to be equal. Women are also playing their part in almost all the walks of life and are effectively proving themselves to be competent. Though in terms of military, only few countries have women in their military (fighting wing) which are working side by side with men. Some examples include countries like U.S., Britain etc. Question 5: Relationship between economic development and women rights: 1) Economic development one way or other leads towards countless opportunities in terms of education (especially for women) and it also helps in relaxing the grip of poverty. As women are well treated in societies where poverty is less and where families are able to get their basic needs with ease. 2) Economic development also results in generation of more jobs. As a result of this increased creation of job they have higher bargaining power and they are also able to have their say in the matter related to house. As a result of this, women receive equal treatment or better treatment from the previous mode. 3) After getting jobs women have also improved their financial stability. This has helped women in giving equal rights of women or better rights which have been one of the issues over the years. 4) Economic development results in women empowerment which has further given women independency as women can now easily afford their own needs and are not dependent upon male members. So naturally their stance for looking into matter has changed now. 5) Economic development also tends to provide opportunities for women in terms of working with men in the fields which previously have not any share for women. Answer 6: Families are increasingly moving away from the traditional division of labor and they are moving towards specialization and exchange. It has been identified by families that they need to comprehend each other and support each other. Comparative advantage of both man and women has to be identified and then they need to allocate the working hours at home or at office accordingly. Both man and woman need to identify the amount of work they need to perform at home and at job in order to have the maximum advantage. If both man and women comprehend and support each other then this leads to higher productivity and more value at the end of the day rather than allowing man to do the job and woman to handle the house. Answer 7: Women have comparative advantage in the housework and over the years women have been working at their homes. Five important economic factors that justify this point are below: One of the economic factors is that women are discriminated at the labor market against men. Education level and training given to men are different from women as women and men are raised with different expectations. As the skills increase with more experience, therefore men are likely to improve their skills with experience whereas women with lower opportunities and less experience would be less productive and thus they would get fewer opportunities for jobs. Women particularly married women are supposed to work at home and if they go for a job then still they have to take care of their children and do other housework which leads to lower energy level and this then reduces their productivity level and they are not able to give the same level of input in comparison to men and thus, employers would not be retaining such employees for a longer period of time and it is better for women to work at home. Women are paid less wage rate than men therefore it is better for women to manage the household work and let the man do the job and earn money. ANSWER #9 Five economic reasons behind women’s eagerness to increase their participation in labor market are as follows: Increased control over resources and income. More benefit at the opportunity cost of having children. Less dependent on others for their old age and adverse economic condition. Earlier having children were source to achieve this security. Increased level of women employment raises investment on educating girls and women mainly, and hence it improves the attitude of society towards women for their early marriage. The return and satisfaction from economic activity is much higher than return and satisfaction from raising more and more children. On the counter part, men are reluctant for their participation in house work for the following reasons: Man is mainly considered as breadwinner and sharing house work does not provide bread winning opportunity. Men are expected to be economically strong to meet family needs. Working at homes does not provide sense of ownership and power as women hold right of ownership of all house jobs and does not share it. Female jobs pay lower wages to man and even women so opportunity cost for men working is high. Economic reward and satisfaction from working home is much less than working outside. ANSWER #10 The bargaining model of decision making is one where in decision making is concerned with trade-off of the competing interests and agendas of the parties involved. This decision making gives voice to either party. It is an exploration of the common interest and mutual benefits with both parties agree with some concessions. It is beneficial as it accommodates the voice and perspective of involved parties. However, disadvantage lies as it does not always ensure the selection of the best alternative to the situation. However, benefits with equitable division of power that may not be present are there in contested decision. Bargaining model of decision making is better than neo-classical decision making as it allows the trade-off of competing agendas and interests in the agreeable interest of all. Neo classical model, on the other hand is more concerned with utility or benefit maximization. This maximum benefit can only be achieved by compromising one’s benefit for the other therefore, against the main idea of bargaining model of decision making. ANSWER #11 Factors that would improve the bargaining power of married women are as follows: An educated married woman would enjoy more bargaining power based on her understanding and knowledge than an un-educated woman. Control over resource (either through employment as well inheritance) would improve the bargaining power of women. Control over house hold job would also improve bargaining power of married women. Attractive incentive from job as an opportunity cost of having children adds to the bargaining power of women. Children are also the greatest source of bargaining power for married women, especially son. ANSWER #12 a- Size of labor Force: Number Of Unemployed + Number Of Employed = 60,000+3,000 = 63,000. b- Labor Force Participation Rate= [Labor Force/ Civilian Non-Institutional Population (Age 16 and over)] * 100 = [63000/ (60000+3000+37000)] * 100 = 63% c- Unemployment Rate : Unemployed / labor force = 3,000/ 63,000 = 4.76 % EXAMPLES OF THOSE NOT CLASSIFIED IN THE LABOR FORCE : Staying home parents, retired officer, school going children, unemployed young man/women not even looking for job since last 12 months and a paralysis patient for treatment in hospital are all examples of those not classified in the labor force. ANSWER #13 Man’s labor force participation rate has declined for the following reason: Major reason behind this is the increasing rate of women participating in the labor force at a time where number of jobs in economy is shrinking. Decline in economy and cyclical impact that has reduced the level of participation from man due to decline in sector such as industrial job etc. Men are less prone to low productive jobs such as farms or small firms. Men are more prone to jobs of position unlike women, therefore, they cut down some jobs and this would reduce their opportunities hence, it would result in decline of participation of man. Economy being diverted to more 24/7 flexible as well and informal job types have also reduced the level of men’s participation in labor force. Factors mentioned above and many other such factors have become the reason of men’s declining participation. On the other hand, women have increased participation in the labor force. For instance, less formal, less productive and more flexible jobs are accepted by women. Such jobs are easier for women to manage. ANSWER #14 The economic reason for women from all ethnicity has been increasingly eager to move in the man dominated occupations for the following reasons: Satisfaction function derived from being part of more productive jobs than doing less productive that have been stereotyped for women. Economic benefit of receiving compensation equal to men. Women in fields such as military receive greater benefits than from fields dominated by women themselves. Increased financial security that is main characteristics of occupations dominated by men such as chartered accountant etc. To reduce the level of economic parity in compensation and discrimination. In the recent times, men are moving to occupations that have been considered for women such as public school teaching, dentist’s assistant etc due to worsened conditions of economy. However, this adoption of women dominated occupations has been with the least enthusiasm. It is so for the reason that occupations associated with women are considered less productive, requiring less physical strength, and usually less paid etc. Also, with the increased debate on equality this inequality has risen. Man also face similar stereotypes when working in women oriented occupations such as women facing glass ceiling in jobs that had been dominated by men. ANSWER #15 Economic incentives that have motivated women from all ethnicity to join labor force are as follows: Control Over Resources: An earning woman has more control over resources such as income to meet her needs, financial contribution to family and thus raising her decision making capacity. Increased Independency: Women with resource are less dependent than being informal contributor to economy by doing house-work and remaining dependent. This independency increases the security of women in old age as well as in worsened economic condition than being dependent on children. Increased Bargaining Power: Working women enjoy more bargaining power than non working women based on the exposure to realities of the world beyond her own house. Also her financial strength adds to her bargaining capacity in decision with men due to her contribution in family expenditures. Increased Financial Security: Earlier women were dependent on bread earner for the financial security .Participating in labor force adds to her financial status and hence security especially in old age and bad economic conditions. Higher Reward And Satisfaction: Material reward from being part of labor force is much higher than negative material reward in raising children. It also provides higher level of satisfaction. Read More