Home HL2 Internal Assessment--list of students The concern illustrated in the article entitled “Strategic Perspective” from the Philippians’ newspaper Business World, is the high cost of medication for the nation’s poor citizens. Writer Dr. Rene B. Azurin believes that to solve the crises of high costs, the Philippians should “aggressively undertake the ‘parallel importation’ of (profit driven multinational pharmaceutical companies) branded medicines from countries like India and Pakistan where they are sold far more cheaply and accelerate development of local generic drugs manufacturing industry” (Strategic Perspective). The pharmaceutical industry is in the oligopoly market structure. Its main characteristic with this particular market structure is that there are few firms with high barriers of entry. The firms in an oligopoly are rivals and consider reactions of other firms in terms of many of their decisions, similarly to the pharmaceutical industry. Because of this classification, pharmaceutical firms may not be the most efficient and can have higher prices, which is a major concern for the Philippines.
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On April 2008, Republic Act 9502 was passed intensifying the problem felt by many Philippine citizens. The quintessential purpose of the bill was to amend the “intellectual property code of the Philippines’ so as to essentially limit the rights of patent holders to the first sale” (Strategic Perspective). This is a way of increasing competition in the production of medication, improving efficiency. A negative externality, or an effect of consumption or production which is not taken into account by the consumer or the producer and which affects the utility or costs of other consumer or producers, emerged due to this act. The pharmaceutical firm would have their products bought by a buyer in one nation, who would resell the products at a presumably higher price in another nation. This increase in price occurs because of the initial price discrimination of the original medication. Price discrimination is the practice of charging a higher price to some customers than to others for an identical good or service. Firms price discriminate exploit elasticity, a measure of the responsiveness of a product to a change in price, in the market in which they are selling. For example, pharmaceutical companies may sell their products in India and Pakistan for a cheaper price because a slight increase in price can greatly affect the demand for an item. On the contrary pharmaceutical firms can charge nations like the Philippians more because consumers in that nation will still demand the item even if a higher price is issued, making them more inelastic. Price discrimination is a tactic that allows for a maximizing profits overall.
In this article Azurin criticizes government corruption as a source of inefficiency in the Philippians economy. A short run solution ,or a solution in which at least one factor of production is fixed, to the medication problems in the Philippians is for the government to import “quantities of cheap essential drugs from India or Pakistan and distribute these nationwide through the public hospitals” (Strategic Perspective). In the opinion of Azurin, the government was unable to achieve this short run price deduction because the administration was distracted by other non-essential issues such as charter change. She believes the Philippians is “cursed with virtue-scarce leadership” (Strategic Perspective) and because of this, the economy is suffering. Another short term option available to benefit the public would be a price ceiling on medication. Price ceilings impose a maximum price for producers to sell their goods. This price will always be below the equilibrium in a market, helping the poorer consumers. Price ceilings reduce the supply of a good and cause a higher demand for an item. For this reason fewer people are helped due to a price ceiling because now the demand is much higher than the supply and is not a practical strategy to solve the problem.
A long term solution, or a period in time in which there is no fixed factors of production, to the medication crises requires the development of generic drug manufacturing industry in the Philippians. The necessary tools to establish the industry such as; “tax incentives, directed purchasing power of both central and local governments, and the procedural privileges are already in place” (Strategic Perspective). Decisions to abolish Republic Act 9502 ending price discrimination, renouncing corrupt governing, establish price ceilings, or find a long term solution must be made to end the problem in the Philippians. One thing is certain, the problem of unaffordable medication must be addressed. People should not have to die of a curable disease simply because of price, preserving human life is far more important.
Matthew, I used the rubric as a metric to assess how well you are meeting the criteria. CRITERION A: You have not included textual evidence from the extract (article) to support your analysis.
Criterion B: Requires the commentary be clearly written HUGE improvement. Where are the diagrams?--the rubric requires: the diagrams (graphs) are varied, properly labeled and effectively integrated in text.
Matt your article is about the United States and it is on MACRO topics! The focus should be a world view and MICRO. You have not included textual evidence from the extract (article) to support your analysis. Focus on three main ideas-- as is your ideas are not developed well. Read the Internal Assessment directions and note that the commentary must cite the extract with proper internal citations and a works cited. You have no diagrams note that they must be titled or integrated into the text. You need a diagram for every theory or concept that you use.You need to use three economic concepts in your analysis, what are they?
Criterion C: Economic terminology used consistently, throughout extract; Accurate definitions included in text or in endnotes when necessary; No terms are defined.You have not defined any economic terms.
Criterion D: Two or three relevant theories must identified, applied, analyzed consistently, throughout the portfolio. Analyze the source of the current problem. Remember this is a micro commentary. If you stick with taxes you must focus on the burden, equity issues and efficiency. Avoid going macro--focus on the firms or consumers.
Criterion E: With development the payroll tax may work.
The article titled “Target the Tax Relief” in the San Francisco Chronicle tells of America’s need for taxation to help decrease the ever expanding deficit. The deficit is government spending that is excess of tax revenues. The article criticizes the Bush administration’s decision of tax cuts even before the 2008 financial crises and amidst two wars. The article blames Bush for the high deficit and the present need to fix his mistake. The article goes on to inform the reader of Obama’s plan to cope with such a soaring deficit and his fiscal policy ,policy aimed to promote investment, in regard to taxation. Despite the US economy remaining in a trough nearing of the Business cycle and the recession is still being felt by many Americans taxes are needed to halt the ever increasing deficit.
Obama suggests that extending the cuts for the 98 percent of households with combined incomes of less than 250,000 dollars and letting the cuts to expire for the top 2 percent. “Obama argues that the $180 billion in targeted business tax cuts he’s suggested in a new infrastructure package will have a better impact on the economy then a broad based tax cut for the wealthy.” The nonpartisan Congressional Budget office found that “extending the tax cuts for higher earners would be the least effective way to reduce unemployment and increase economic growth.” The reasoning behind this contradiction is that the wealthy have the tendency to save money from a temporary fund like a tax cut. Convincing evidence indicates that the money saved in Bush tax cuts over the last decade have been invested in foreign companies rather then circulating in the American economy. To the contrary, low and middle income earners are much less likely to save their tax cuts. Poorer families have less disposable income and less access to credit, so they spend much of the money they earn or save. Money saved by these families goes to necessary items bought primarily in local stores, thus keeping investment where it is designated, the United States circular flow. Moreover, money spent in America is subjected to the multiplier effect, increasing the GDP in the United States. With added demand in American companies, production of goods increases opening more jobs lowering unemployment in the work force. Research and development in these companies can lead to more efficient production, passing savings back to the buyers. Tax cuts to lower and middle income families can also lower inequality between the rich and the poor improving distribution of income ,the way income is distributed among the population, through out the United States. Having more money for necessary purchases plus still reeking the benefits of government programs will improve quality of life for many poorer families.
The suggestion presented in this article is a break in the payroll tax. The article states “A break in the payroll tax would benefit both businesses and employees at all income levels. As a welcomed benefit, it would probably help people who are on the lower and middle portions of the income spectrum, who tend to depend on their wages more than the wealthy do. And lower – and middle income people, as stated above, actually spend the money that they receive in tax breaks.” This would force the Obama administration to be concerned with distributed the income taking away from such programs such as Social Security and Medicare. This decisions represented by a production possibilities frontier would have to be carefully planned for money lost in tax cuts would be money not available for important programs. For this reason, Obama has pursued other taxation options. These decisions highlighted in “Target the Tax Relief” are dispiritedly needed for the deficit crises. Despite citizen’s unrest about taxes, something is needed to be done before the deficit in the United States gets too far out of hand.
The Graphs used in the analysis of this evaluation, Criterion E, of this commentary will show. The business cycle and the United States positioning in the trough but close to the recovery section. A slightly inward shift of the aggregate demand curve because of the marginal loss of investment from the top 2% of the economy. Finally a graph of the PPF will display Obama’s decision effect on the distribution of money.
HL2 Internal Assessment--list of students
The concern illustrated in the article entitled “Strategic Perspective” from the Philippians’ newspaper Business World, is the high cost of medication for the nation’s poor citizens. Writer Dr. Rene B. Azurin believes that to solve the crises of high costs, the Philippians should “aggressively undertake the ‘parallel importation’ of (profit driven multinational pharmaceutical companies) branded medicines from countries like India and Pakistan where they are sold far more cheaply and accelerate development of local generic drugs manufacturing industry” (Strategic Perspective). The pharmaceutical industry is in the oligopoly market structure. Its main characteristic with this particular market structure is that there are few firms with high barriers of entry. The firms in an oligopoly are rivals and consider reactions of other firms in terms of many of their decisions, similarly to the pharmaceutical industry. Because of this classification, pharmaceutical firms may not be the most efficient and can have higher prices, which is a major concern for the Philippines.
On April 2008, Republic Act 9502 was passed intensifying the problem felt by many Philippine citizens. The quintessential purpose of the bill was to amend the “intellectual property code of the Philippines’ so as to essentially limit the rights of patent holders to the first sale” (Strategic Perspective). This is a way of increasing competition in the production of medication, improving efficiency. A negative externality, or an effect of consumption or production which is not taken into account by the consumer or the producer and which affects the utility or costs of other consumer or producers, emerged due to this act. The pharmaceutical firm would have their products bought by a buyer in one nation, who would resell the products at a presumably higher price in another nation. This increase in price occurs because of the initial price discrimination of the original medication. Price discrimination is the practice of charging a higher price to some customers than to others for an identical good or service. Firms price discriminate exploit elasticity, a measure of the responsiveness of a product to a change in price, in the market in which they are selling. For example, pharmaceutical companies may sell their products in India and Pakistan for a cheaper price because a slight increase in price can greatly affect the demand for an item. On the contrary pharmaceutical firms can charge nations like the Philippians more because consumers in that nation will still demand the item even if a higher price is issued, making them more inelastic. Price discrimination is a tactic that allows for a maximizing profits overall.
In this article Azurin criticizes government corruption as a source of inefficiency in the Philippians economy. A short run solution ,or a solution in which at least one factor of production is fixed, to the medication problems in the Philippians is for the government to import “quantities of cheap essential drugs from India or Pakistan and distribute these nationwide through the public hospitals” (Strategic Perspective). In the opinion of Azurin, the government was unable to achieve this short run price deduction because the administration was distracted by other non-essential issues such as charter change. She believes the Philippians is “cursed with virtue-scarce leadership” (Strategic Perspective) and because of this, the economy is suffering. Another short term option available to benefit the public would be a price ceiling on medication. Price ceilings impose a maximum price for producers to sell their goods. This price will always be below the equilibrium in a market, helping the poorer consumers. Price ceilings reduce the supply of a good and cause a higher demand for an item. For this reason fewer people are helped due to a price ceiling because now the demand is much higher than the supply and is not a practical strategy to solve the problem.
A long term solution, or a period in time in which there is no fixed factors of production, to the medication crises requires the development of generic drug manufacturing industry in the Philippians. The necessary tools to establish the industry such as; “tax incentives, directed purchasing power of both central and local governments, and the procedural privileges are already in place” (Strategic Perspective). Decisions to abolish Republic Act 9502 ending price discrimination, renouncing corrupt governing, establish price ceilings, or find a long term solution must be made to end the problem in the Philippians. One thing is certain, the problem of unaffordable medication must be addressed. People should not have to die of a curable disease simply because of price, preserving human life is far more important.
Matthew,
I used the rubric as a metric to assess how well you are meeting the criteria.
CRITERION A: You have not included textual evidence from the extract (article) to support your analysis.
Criterion B: Requires the commentary be clearly written HUGE improvement.
Where are the diagrams?--the rubric requires: the diagrams (graphs) are varied, properly labeled and effectively integrated in text.
Matt your article is about the United States and it is on MACRO topics! The focus should be a world view and MICRO. You have not included textual evidence from the extract (article) to support your analysis.
Focus on three main ideas-- as is your ideas are not developed well. Read the Internal Assessment directions and note that the commentary must cite the extract with proper internal citations and a works cited. You have no diagrams note that they must be titled or integrated into the text. You need a diagram for every theory or concept that you use.You need to use three economic concepts in your analysis, what are they?
Criterion C: Economic terminology used consistently, throughout extract; Accurate definitions included in text or in endnotes when necessary;
No terms are defined.You have not defined any economic terms.
Criterion D: Two or three relevant theories must identified, applied, analyzed consistently, throughout the portfolio.
Analyze the source of the current problem. Remember this is a micro commentary. If you stick with taxes you must focus on the burden, equity issues and efficiency. Avoid going macro--focus on the firms or consumers.
Criterion E: With development the payroll tax may work.
The article titled “Target the Tax Relief” in the San Francisco Chronicle tells of America’s need for taxation to help decrease the ever expanding deficit. The deficit is government spending that is excess of tax revenues. The article criticizes the Bush administration’s decision of tax cuts even before the 2008 financial crises and amidst two wars. The article blames Bush for the high deficit and the present need to fix his mistake. The article goes on to inform the reader of Obama’s plan to cope with such a soaring deficit and his fiscal policy ,policy aimed to promote investment, in regard to taxation. Despite the US economy remaining in a trough nearing of the Business cycle and the recession is still being felt by many Americans taxes are needed to halt the ever increasing deficit.
Obama suggests that extending the cuts for the 98 percent of households with combined incomes of less than 250,000 dollars and letting the cuts to expire for the top 2 percent. “Obama argues that the $180 billion in targeted business tax cuts he’s suggested in a new infrastructure package will have a better impact on the economy then a broad based tax cut for the wealthy.” The nonpartisan Congressional Budget office found that “extending the tax cuts for higher earners would be the least effective way to reduce unemployment and increase economic growth.” The reasoning behind this contradiction is that the wealthy have the tendency to save money from a temporary fund like a tax cut. Convincing evidence indicates that the money saved in Bush tax cuts over the last decade have been invested in foreign companies rather then circulating in the American economy.
To the contrary, low and middle income earners are much less likely to save their tax cuts. Poorer families have less disposable income and less access to credit, so they spend much of the money they earn or save. Money saved by these families goes to necessary items bought primarily in local stores, thus keeping investment where it is designated, the United States circular flow. Moreover, money spent in America is subjected to the multiplier effect, increasing the GDP in the United States. With added demand in American companies, production of goods increases opening more jobs lowering unemployment in the work force. Research and development in these companies can lead to more efficient production, passing savings back to the buyers. Tax cuts to lower and middle income families can also lower inequality between the rich and the poor improving distribution of income ,the way income is distributed among the population, through out the United States. Having more money for necessary purchases plus still reeking the benefits of government programs will improve quality of life for many poorer families.
The suggestion presented in this article is a break in the payroll tax. The article states “A break in the payroll tax would benefit both businesses and employees at all income levels. As a welcomed benefit, it would probably help people who are on the lower and middle portions of the income spectrum, who tend to depend on their wages more than the wealthy do. And lower – and middle income people, as stated above, actually spend the money that they receive in tax breaks.” This would force the Obama administration to be concerned with distributed the income taking away from such programs such as Social Security and Medicare. This decisions represented by a production possibilities frontier would have to be carefully planned for money lost in tax cuts would be money not available for important programs. For this reason, Obama has pursued other taxation options.
These decisions highlighted in “Target the Tax Relief” are dispiritedly needed for the deficit crises. Despite citizen’s unrest about taxes, something is needed to be done before the deficit in the United States gets too far out of hand.
The Graphs used in the analysis of this evaluation, Criterion E, of this commentary will show. The business cycle and the United States positioning in the trough but close to the recovery section. A slightly inward shift of the aggregate demand curve because of the marginal loss of investment from the top 2% of the economy. Finally a graph of the PPF will display Obama’s decision effect on the distribution of money.