Saturday, February 15, 2020

Deficiency in the Neo-Classical Labour Market Model and Possible Essay

Deficiency in the Neo-Classical Labour Market Model and Possible Solution - Essay Example Neo-Classical theorists argue that households are suppliers of labour, and that they are rational in seeking to maximize their usefulness in return for payment. In the Neo-Classical model this usefulness are determined by the choice of workers between work and leisure, which is also constrained by the available hours per day. The graph below gives indication of a workers choice of allocating time between work and leisure. Point A in graph 1 gives an indication of what a worker's usefulness may be with the choice he makes between work and leisure. However, this graph will be influenced by other variables as well, such as the wage rate and the cost of living. If for example the wage rate rises, workers will forgo more of their leisure time and increase working hours to earn more. On the graph point W1 shift to W2 when wages increase, and this leisure time decrease to point L2, as less time is available due to more time being spend at work. The marginal revenue product of labour can be used as the demand for labour curve for this firm in the short run. In competitive markets, a firm faces a perfectly elastic supply of labour which corresponds with the wage rate and the marginal resource cost of labour. In a inperfect market this curve will have to be adjusted to reflect the wage rate divided by marginal costs. Graph 3: Labour Market Demand Curve In a perfect world the supply and demand curve would have adjusted to the optimal equilibrium point through market influences alone. The amount of workers in the market would compete on the same level for the available jobs and the wages firms will be willing to pay for labour. But due to facts such as unions, automation, economical sentiment, the actual productivity of workers and continuous unemployment rate the Neo-Classical method is insufficient to predict how the labour market behaves in reality. Theorist argues that one of the reasons the Neo-Classical method is not working is due to the fact that employees already in the market are protected and those that is outside the market, the unemployed or those looking for alternative work cannot compete on the same level with the employed. This is called the inside/outside theory, and according to Blanchard and Summers (1986, 1987) when an employment shock takes place, and workers loose their jobs, they not only become un-employed but loose their protection from the real market, such as their union membership.1 This prevents the labour market's rapid return to pre-shock employment levels. This theory is supported by Lindbeck and Snower (1988, 2001) as they argue that the cost to Firms in replacing their employees with un-employed will dramatically increase their turn-over cost. Turn-over cost includes hiring, training and firing cost, making it unprofitable for firms to employ outsiders. They also continue by arguing that newly employed workers have to go through several stages before they are accepted as insiders. Layard et al (1991), identified that workers that became unemployed and stayed unemployed for long will

Sunday, February 2, 2020

Enzymes Essay Example | Topics and Well Written Essays - 1500 words

Enzymes - Essay Example The amino acid chain carries a unique shape which is tailor made to help the chemical reaction necessary for the amino acid to perform a specific action. Enzymes can therefore be considered to be catalysts for specific actions or reactions such as in the case of food digestion. These enzyme reactions are chemical processes that happen quite fast an are actually unnoticeable. In human beings, Digestive Enzymes are highly important in the process of breaking down digested food and its transformation into energy proteins. An enzyme is basically a part of the human DNA chain. The DNA of a person serves as the instruction manual of the biological system in the production of protein cells, which, for the basis of this research, we will call enzymes. Therefore, the Human Gene, which is a part of the DNA serves as the template of the human body in forming an enzyme. These enzymes are stored within cells which are molded and shaped for easy chemical recognition and reaction. This chemical pro cess will be discussed further within this paper. Scientists have been studying the importance of enzymes to the human anatomy for well over a century. The earliest enzyme studies date all the way back to 1835 when Swedish biochemist Jon Jakob Berzelius first recognized and named the actions he observed within the enzymes as catalytic. But it was not until 1926 when Cornell University's James B. Sumner was able to extract an enzyme in its purest form from a jack bean which he was able to successfully isolate and crystallize. He won the Noble Peace Prize in 1947 for this remarkable accomplishment. However, he shared this honor with two other people, John H. Northtrop and Wendell M. Stanley of the Rockefeller Institute for Medical Research. They developed a precipitation technique which was used to crystallize several enzymes (Introduction to Enzymes, 2). Enzymes all come into existence because of proteins. These particular proteins have high molecular weight compounds ranging from 10 ,000 - 2,000,000 and are composed of amino acids linked by peptide bonds (Introduction to Enzymes, 2). Enzymes cannot be taken for granted in the daily function of the human body. It is the most vital chemical component of our system because our heart, lungs, liver, eyes, skin, basically all our major and minor organs are dependent upon enzymes in order to keep our body in running condition. Without these enzymes, our body will not be able to prevent degenerative diseases, we will are at a rapid pace, and our energy will not be able to sustain our daily physical functions. Think of the enzymes as the monetary currency of our body. When we eat, we put a deposit into our enzyme bank where it is broken down by digestive enzymes and completely digested in order to insure the absorption of nutrients which our body can draw upon whenever our energy level runs low. If our body is deprived of enzymes, it will cease to function and will eventually die out. One must bear in mind however that since enzymes comprise different chemical needs of the human system, these chemical reactions that are necessary in order to sustain human life only occur when necessary. In actuality, the enzymes inside the cell direct which particular chemical will be triggered and created in order to sustain the energy level of a person. In order to reach this equilibrium state at the fastest possible time, enzymes lower the activation energy needed for a chemical reaction. This biochemical reaction numbers about 4,000 but the enzyme that serves as the catalyst is not consumed by the reactions which is why there is no alteration in the equilibrium and metabolic pathway of these reactions. These metabolic pathways are created by several enzymes working