ملخصات مهمه ومفيده للاختبار النهائي [الأرشيف] - منتديات سما لطلاب الجامعة العربية المفتوحة

محمد

07-21-2011, 09:44 AM

Household
CHAPTER 1
Page 1-36
CONSUMER SOVEREIGNTY

(1) Consumer Sovereignty ( ( سيادة المستهلك
Consumer Sovereignty holds when consumers have the power to dictate what is produced in the economy.
تحدث عندما يملك المستهلك القوه ليملي ماذا يجب إن ينتج في الاقتصاد
· The individual’s preferences provide the basis for choosing between different goods and services. مايفضله الافراد يحدد أساسيات الاختيار بين السلع والخدمات
· Preferences drive the demand and hence provide the signal in the marketplace as to what prices can be charged.التفصيلات تقود الطلب وبالتالي تعطي اشاره للسوق ماهي الأسعار ألمرتفعه
· Neoclassical assumes that individuals have preferences which they use to rank the possible alternatives.
· When preferences produce a ranked ordering, they can be said to be ordinal.
· Neoclassical assume that consumer rankings are consistent ملائم

(2) The Neoclassical consumption
- (2.1) Indifference map
Indifference curve: represents all bundles of commodities which are ranked equally by the consumer. How such curve is used?
Indifference Curves منحنيات السواء
هو أداة التحليل الرئيسية التي يعتمد عليها المنهج الحديث و تعرف منحنيات السواء ( هي تمثيل بياني لكل المجموعات من السلع و الخدمات التي تعطي المستهلك، نفس القدر من الإشباع، أي أنها المجموعات التي يعتبرها المستهلك متساوية أو سواء من ناحية المنفعة ) ( هذا الـ تعريف أوضح من خارج الكتاب )

Marginal Rate of Substitution ( MRS ) : The slope of the curve measures the rate at which a consumer is willing to give up one good in order to consume more of another. Example:
المعدل الحدي للأحلال : ميل المنحنى يقيس المعدل الذي يكون عنده المستهلك جاهز للتخلي عن عن سلعه لكي يستهلك سلعه اخرى

What are the assumptions underlying the Indifference Curve? ماهي الافتراضات التي يقوم عليها ( منحى السواء ) ؟
· MRS diminishes. تقليل الـ( معدل الهامش للاحلال )
· Indifference curves bow in towards the origin. ينحني نحو الاصل

افضل شرح في اليوتيوب على هذا الرابط
http://www.youtube.com/watch?v=XFQ5LC5LK4w&NR=1 (http://www.youtube.com/watch?v=XFQ5LC5LK4w&NR=1)

There are 4 basic assumptions for indifference curve

1. Analysis is restricted to goods that yield positive marginal هامش العائد ايجابي utility, or simply, more is better.

2.Marginal rate of substitution, MUx/MUy, or the ratio at which a household is willing to substitute Y for X. As you consume more of X and less of Y, X becomes less valuable in units of Y

3. Consumer have the ability to choose among the combination of goods and services available.

4. Consumer choices are consistent with a simple postulate of rationality. if A consumer prefer A to B and B to C , then when confronted consumer will prefer A to C as well.

(2.2) The Consumers Feasible Set And Budget Constraint
Consumer can't buy everything , only certain bundles (حزمه محدده) of consumer goods can be affords
There are two main constrain قيود on the consumer pursuing utility maximization
· Income
· The price of the goods to be purchased

Feasible Consumption Set : ( حد الاستهلاك الذي يمكن تنفيذه )
the set of all consumption bundles that can be afforded at current prices with the consumer's income.
جميع الحزم التي يمكن استهلاكها وشرائها بالسعر الحالي من دخل المستهلك ( يعني بالعربي وش تقدر تشتري براتبك الين يخلص )

Budget Constraint ( قيود على ألميزانيه )
The Budget constraint is the frontier of the feasible consumption set. It represents the consumption bundles that can be afforded if all the consumer’s income is spent.

Budget Constraint ( تعريف ثاني اوضح )
A budget constraint is an accounting identity that describes the consumption options available to an agent with a limited to allocate among various goods.
It is important to understand that the budget constraint is an accounting identity, not a behavioral relationship. An agent may well determine his behavior by considering his budget constraint, but his budget constraint is a given element of the problem he faces.
Example:

3 – The Structure Of The Demand Curve
3.1 - Income and substitution effects :
Changes in price can have two main impacts on the behavior of consumers :
( التغير في السعر يمكن أن يحدث نوعان من التأثير في سلوك المستهلك )
· Substitution effect measures the amount by which a consumer substitutes one good for another, maintaining the same level utility.
· Income effect measures the impact on the amount of the good consumed as a result of the consequent change in real income.

http://www.youtube.com/watch?v=lptapz6miqs (http://www.youtube.com/watch?v=lptapz6miqs)

Giffen Goods: A good for which demand falls (rises) when its price falls (rise).
In economics and consumer theory, a Giffen good is one which people paradoxically consume more of as the price rises, violating the law of demand. In normal situations, as the price of a good rises, the substitution effect causes consumers to purchase less of it and more of substitute goods. In the Giffen good situation the income effect dominates, leading people to buy more of the good, even as its price rises.
Evidence for the existence of Giffen goods is limited, but microeconomic mathematical models explain how such a thing could exist. Giffen goods are named after Scottish economist Sir Robert Giffen, who was attributed as the author of this idea by Alfred Marshallin his book Principles of Economics. Giffen first proposed the paradox from his observations of the purchasing habits of the Victorian era poor.

Normal good: A commodity is defined as normal if its consumption increases as income increase and, conversely, its consumption falls when income is reduced.
تعرف السلع كالمعتاد – يزيد الاستهلاك بزيادة الدخل والعكس .. يقل الاستهلاك بتقليل الدخل

Inferior good: A commodity is defined as inferior if its consumption falls as income is increased and, conversely, its consumption increases when income is reduced.
تعرف السلع الهابطه – يقل استهلاكها اذا زاد الدخل .. والعكس اذا قل الدخل زاد استهلاكها ( محلات ابو ريالين )
Lexicographic preferences: A system for ranking preferences in which the individual gives priority to particular items of consumption. نظام تصنيف الافضليات والتي يعطي فيها الفرد اولاوية لاشياء معينه للاستهلاك
سلع التفاخر أو المباهاة مثل الجواهر والتحف الغالية الثمن، وهي التي يشتريها الأغنياء بهدف التفاخر أو إظهار معالم الثراء ومن ثم يزداد شراء هذه السلع كلما ارتفع سعرها.

Compensating variation: Following a change in price, the compensating variation measures the amount of real income that would have to be given to the consumer to ensure the same level of utility.
اختلاف التفضيل / السلع التي يحكم المستهلكون على مدى جودتها بمستوى سعرها، فإذا لم يتمكن المستهلكين من الحكم المباشر على جودة السلعة فإنهم يستخدمون السعر كمؤشر للجودة، وفي هذه الحالة فإن انخفاض السعر يعني انخفاض جودة السلعة وبالتالي يمكن أن يؤدي إلى انكماش الطلب بدلاً من زيادته.

Revealed preference: by purchasing a particular bundle of goods, an individual reveals that this bundle is preferred to all other affordable bundles.

Experimental economics: Where economic theory is tested using laboratory conditions which simulate real life economic situations.

CHAPTER 2
Page 39-67
CONSUMER DEPENDENCY

The important in my perspective:
1- Read all definitions.
2- Page 41 last line ( Veblen identifies two main ways-----to the end).
3- Page 50 understand the Figure 202.
4- Page 52 understand the Figure 2.3(the forth line in the same page: The derivation has two ------to end page).
5- Page 61 understand the Figure 2.5.
6- Page 61 understand the Figure 2.6 (in the middle of page Figure 2.6 summarizes these two ways).
7- Page 67 understand the Figure 2.7 read the lines below the figure.

Section1: Introduction:

· The Economist VEBLEN asks why are the aristocracy driven to devote so much of their time and energy to wasteful activities?
بتسال لماذا الارستقراطيون يندفعون لتكريس وقتهم وطاقاتهم في نشاطات البذخ

· Veblen developed a theory of the consumption behavior of the upper classes. He explained how people from other social classes seek to emulate rich people.
طور فيبلين نظرية سلوك الاستهلاك في الطبقه العليا . ولقد شرح كيف الناس في طبقات المجتمع الاخرى تسعى لمحاكاة الاغنياء .

· According to, Veblen-inspired approach, in which consumption is seen as a class phenomenon, this chapter provides the main idea of the consumer dependency.

· This approach provides a critique of the concept of consumer sovereignty developed in the previous chapter (The behavior is not sovereign but dependent on outside factors. هذا النهج يعطي نقد لمفهوم سيادة المستهلك ( السلوك ليس سيادي وإنما يعتمد على عوامل خارجية )

· John Kenneth Galbraith, consumer tastes can be argued to be dependent on the advertising and marketing strategies of firms.

2. Conspicuous Consumption : الاستهلاك المظهري (الاستهلاك التفاخري والتظاهري والبذخي )

· The emergence of a leisure class, which is not required to work and consumes the goods produced by members of lower classes, can only happen if the lower classes produce more than their subsistence level of consumption.

· Leisure class evolves تطورت because goods are produced more than are required. So, It becomes indispensable to accumulate, to acquire property, in order to get one's good name'. A hierarchy develops in which some people own property and others do not.

· Those who do work produce a surplus which is appropriated by the ruling class. Each chief can enjoy their class position only by living off the surplus produced by the lower classes.

· Veblen says that leisure class enjoys its status because they do not have to work. The ownership of property is not enough to give an individual status. For Veblen, status derives from social performance: from the judgments which other people make of an individual's position in society'.

· To gain status an individual must display wealth to others.

· Veblen identifies two ways in displaying wealth: يعرف فيبلين نوعين من عرض الثراوت
(a) Leisure activities. الانشطه الترفيهيه
(b) Expenditure on consumption goods الانفاق على السلع الاستهلاكيه

· These are wistful activities, it is a waste of time and effort, and also waste of goods.

· Veblen argues that as the population becomes more mobile, communities become less close-knit. (less informed about leisure activities, they tend to display wealth through consumption of goods. So, Conspicuous consumption is the most important factor in determining consumer behavior.

· People always try to acquire new consumption goods in order to distinguish themselves from others.
يسعى الناس لكسب المزيد من السلع من اجل تميز انفسهم عن الغير
3- The Luxury Goods Trade.
· It illustrate Veblen’s critique of neoclassical theory.
· Veblen's argument was that as wealth spreads, what drives consumers' behaviour is increasingly the attainment of 'the esteem and envy of fellow men'.
· Veblen argued that since the reasons for buying such goods are pecuniary emulation and invidious comparison, their utility actually rises as their prices go up.
· The spread of wealth to the newly rich has meant that to display their wealth through conspicuous consumption.
· An important insight given by this case study is that the tastes and preferences of individual consumers can actually vary as the price changes. The more expensive a designer good, the more utility an individual may receive from its consumption.
· This attitude to cultural endeavors extends to the consumption of goods and services in general.
· Bourdieu places great emphasis on the level of economic capital in order to distinguish between the tastes of individuals.

4. Implications For Neoclassical Theory
· In the neoclassical theory of consumption the preferences of each individual determine what firms should produce in the market place.
· Veblen's approach represents a direct challenge to this separation of the preference and price spheres. The two case studies above have shown that the preferences and decisions of consumers can be dependent upon the price level.
· On the Veblen demand curve (Dv) each reduction in the price level of good results in a reduction of the amount demanded.
· This derivation has two important implications for the neoclassical theory of consumption:
· First, it opens up the possibility that consumers are not sovereign in a market economy. Instead of their tastes and preferences determining the price level. On the contrary: the price level determines the consumers' tastes and preferences.
· Second, if the market’s demand curve is upward sloping, the demand and supply analysis, becomes problematic. If market demand curves are upward sloping, there may be multiple equilibrium.

5. Problems with conspicuous consumption:
· While neoclassical economists concede that some luxury goods may have Veblen demand curves, they would still hold, however, that in general the demand decisions of consumers are determined by their own tastes and preferences.
· A possible problem with Veblen's approach is that it plays down the role of working-class values in influencing consumption, emphasizing the trickle down of consumption patterns from the rich to the poor when often it is the trickle up which may be important.
· Veblen's theory of conspicuous consumption does not represent a general critique of the neoclassical theory of consumption - it cannot be applied to all goods and to the behavior of all social classes.
· There are limitations of the theory, it is impossible to generalize such examples of conspicuous consumption to the economy as a whole such as the consumption of coal.

6. The theory of 'distinction'
• Bourdieu views consumption behaviour as an evolutionary phenomenon. A consumer's tastes are not a given or fixed entity.

• Cultural capital refers to an individual's accumulated stock of knowledge about the products of artistic and intellectual traditions.

• Tastes do not come from inside; they are driven by the need for distinction - the need to distinguish one's tastes from that which is popular.

• In the same way that those higher up the social hierarchy will tend to distinguish themselves from those at the bottom, and also Bourdieu assured that those at the bottom have their own values and tastes.

• The shape of the social hierarchy, in terms of which people end up where, depends, in part, on the cultural decisions of its participants, HOW?, there are two parts:
1. Individuals invest in cultural capital in order to obtain a position in the social hierarchy.
2. The way tastes and preferences depend on membership of social classes.

· The tastes and preferences of individuals depend on their position in the social hierarchy, as shown by the right-hand arrow.
· on the other hand, the tastes and preferences that individuals cultivate help to determine their position in the social hierarchy (as shown by the left-hand arrow).
· In the neoclassical approach, consumers have their own independent tastes and preferences; nobody else influences these preferences. For Bourdieu, however, tastes and preferences are determined socially by the way in which each individual relates to their (current or desired) position in the social hierarchy.
· What are the problems with the theory of 'Distinction‘? Limit of generalization!

CHAPTER 3
Page 71-112
DATA ANALYSIS IN CONSUMER THEORY

it talk about kishjis point on hoe cang in price of cereals can effect poor indian people read page 73+74
modiling data
is about dependemt and independent variable
A= B+C+D
A is dependent ( can be effected by B,C.D)
when one variable is dependent on another this is called regression

role you should memorize it
Dm = α0 + α1(Pc/pm) + α 2.(Y/pm) + error term

ü This chapter shows you how can we study the impact of one variable on another in isolation from other factors which are also deemed to be important?
ندرس في هذا القسم تاثير متغير وما تغير اخر بمعزل عن العوامل الاخرى والتي تعتبر مؤثره
ü Economists use a technique called Regression Analysis.

Regression analysis is two types,
· simple regression : which looks at the statistical relationship between two variables, one dependent on another.
· multiple regression : there is a relation between one dependent variable and many independent variables.

Theoretical explorations
1. We will use an example based on research done by the Indian economist and statistician Krishnaji (1992).

2. On this example we will estimate the effect of (the relation between) changes in the price of cereals (basic food items such as wheat) as independent variable on (and) the demand for basic manufactured consumer goods (clothing, and so on) as dependent variable. We will estimate this relationship through studying the effects of income and substitutions of the goods.

Income and substitution effects on the consumption:

We assume that the price of cereals run up, in such case there are two possible effects of a rise in the price of cereals :

1. A substitution effect : as cereals become expensive relative to other goods, consumers will switch their consumption to other goods.

2. An income effect : as a result of the price rise, consumers will have less real income to spend.
If cereals are a normal good, the consumption of cereals will fall as a result.
If cereals are an inferior good, the income effect of a rise in the price will increase cereals consumption.

Figure 3.1 the role of the income effect
• A rise in the price of cereals has shifted the budget constraint from ZS to ZT.
• The substitution effect is shown in the shift from A to A', which is established by drawing the additional line RP, which is parallel to ZT.
• The two combined effects will depend on the direction of the income effect, and the relative size of the income and substitution effect. Bundles B, C, D and E are all possible outcomes.
• At B and C, cereals are a normal good. Here, the income and substitution effects work in the same direction - a rise in the price of cereals unambiguously causes a fall in their consumption. At D, cereals are an inferior good with the reduction in income resulting in an increase in cereal consumption (from A’ to D). The income effect counteracts the substitution effect but does not wipe it out, so that the demand for cereals still falls. At E, the income effect is so strong that it dominates the substitution effect and the demand for cereals rises. So the net effect of a rise on the price of cereals depends on the direction of the income effect and the relative strength of the income and substitution effects.

Q: For the rich and the poor, what do you think will be the size and direction of:
1. The substitution effect 2- The income effect.
of a rise in the price of cereals on the demand for manufactured consumer goods?

Each of these effects can be considered in turn.

1-The substitution effect depends on whether manufactured consumer goods are substituted for cereals. For the poor, who are concerned primarily with getting enough to eat, manufactured consumer goods will not be substituted for cereals and we can assume that the substitution effect will be effectively non-existent.
For the rich, however, there will be more possibilities of spending their incomes on other items of consumption which have become relatively cheaper as the price of cereals have risen.

2. The size of the income effect for manufactured goods will, as before, depend on the share of expenditure on cereals in total household income.
This means that there will be a much larger income effect for the poor, who spend a larger proportion of their income on cereals, than for the rich. Although both rich and poor are likely to reduce their consumption of manufactured goods in response to the fall in income, the reduction for the poor should be more pronounced.

Putting these two effects together we can see that FOR THE POOR, a weak substitution effect is likely to be outweighed by a strong income effect . So the Net Effect Of A Rise In The Price Of Cereals Is: a fall in the demand for manufactured consumer goods, and we might expect the total effect to be quite strong.
For the rich, however, the relative strengths of the two effects may be reversed. The income effect will be smaller and the substitution effect larger, therefore the effect of the price of cereals is more likely to be a (possibly small) rise in the consumption of manufactured consumer goods.
So in India, where the poor vastly outnumber the rich, consumer theory can be used to give theoretical support to Krishnaji's hypothesis that if the price of cereals increases, then, other things being equal, the demand for manufactures will fall as poor consumers are forced to reduce their consumption of manufactures.

اصطلاحاً: هوالأثر الذي يترتب على تغير سعر سلعة ما بالنسبة إلى الدخل الحقيقي للمستهلك وبالتالي على طلب المستهلك لهذه السلعة . إن انخفاض سعر إحدى السلع التي يستهلكها المستهلك يعني أنه يستطيع شراء نفس الكمية السابقة منها ويتوفر لديه بعض النقود من دخله لينفقها على شراء سلع أكثر . هذا التغير يعني أن الدخل الحقيقي (أي القدرة الشرائية لهذا المستهلك) قد ارتفع بالرغم من أن دخله النقدي لم يتغير فإذا قرر المستهلك إنفاق بعض النقود التي توفرت لديه على شراء كمية أكثر من نفس السلعة، يكون التغير فى الدخل الحقيقي قد ساهم فى تغير الكمية المشتراة من السلعة كنتيجة غير مباشرة لتغير سعرها، أما إذا لم ترد الكمية المشتراة من السلعة نتيجة تغير الدخل الحقيقي يكون التغير فى طلبها ناتجاً عن أن السلعة أصبحت أرخص نسبيًا بالمقارنة مع السلع البديلة لها (Substitutes) ولذلك يعمل المستهلك على إحلالها محل هذه السلع فى إشباع حاجته أي رغبته التي يمكن أن تشبعها هذه السلع جميعاً (وفى هذه الحالة يكون التغير فى طلب السلعة نتيجة تغير سعرها ناتج عن أثر الإحلال (Substitution effect of the price change)

إذا ترتب على أثر الدخل أن نقص الطلب على السلعة بالرغم من انخفاض ثمنها (مع ثبات جميع العوامل الأخرى) تكون السلعة من السلع الدنيا (inferior goods) وفى هذه الحالة يتغلب أثر الدخل على أثر الإحلال . لهذا يكون التغير فى الطلب على أي سلعة هو محصلة هذين الأثرين، وفى الغالب يعمل الأثران فى اتجاه واحد حيث يؤدي انخفاض السعر إلى تزايد الطلب، وارتفاع السعر إلى تناقص الطلب . إلا أنه بالنسبة للسلع الدنيا يعمل الأثران فى اتجاه معاكس فإذا كانت المحصلة زيادة طفيفة فى الطلب تكون السلعة نوعًا ما تنتمي إلى السلع الدنيا، أما إذا كانت المحصلة نقصا فى الطلب تكون السلعة من السلع الدنيا ورديئة إلى درجة منخفضة جدًا . هذه الحالة هي التي أشار إليها جيفن، وهي لذلك تسمى بسلعة جيفن (Giffen good) .
وتحليل أثر الدخل مفهوم علمي للدراسة الاقتصادية، لا مانع منه في إطار تحليل اقتصادي إسلامي، لأنه أداة معقولة وممكنة واقعيًا، بافتراض تشابه الناس في غرائزهم ورغباتهم، لوجود رابط مشترك بينهم، فلا بأس من استخدام تحليل أثر الدخل في الاقتصاد الإسلامي .

3.1 - Modeling data
The variables in play
ü DEPENDENT VARIABLE: variable is dependent because we are looking at how it is determined by other variables (its value depend on other variables )

ü INDEPENDENT VARIABLE (explanatory) it is used to explain the difference in the dependent variable like here the price of cereals. But, obviously, the price of cereals is not the only explanatory variable that matters. At the very least we should also take account of two additional explanatory variables, namely, personal disposable income and the price of manufactured consumer goods.

• Therefore, here in the example, we will have four variables: one dependent variable and three explanatory variables as following:

THE DATA:
Dm The Demand for manufactured consumer goods
Px A the price of manufactured goods
Pc The price of cereals
y personal disposable income