Essay on The Influence of Television on Society - 1089 Words

The Influence of Television on Society In the year of 1926 a man called John Lougie Baird had invented something that has become part of the day-to-day lifestyle of nearly everyone. He had successfully tested it in a laboratory in late 1925 and unveiled with much fanfare in London in early 1926, and later mechanical television was quickly usurped by electronical television. Over the years television has developed greatly, going from black and white to coloured and ranging greatly in size. From portable and hand held televisions to widescreen and flat widescreen televisions, there is a choice to suit everyone. The most recent additions to this can vary from VCRs to DVDs to play stations and other†¦show more content†¦Kaiser Family Foundation, showed that only three percent of sitcoms discussed any of the risks and responsibilities associated with sex drugs and violence. Do they also know that foul language has increased on these shows and words absent on television ten years ago are now cropping up in more comm only in the scripts of characters on soaps and on every network? Would you want your children to grow up using bad language as part of their everyday speech? No definitely not I would ponder, If you ask my opinion, I would say that yes, television does teach children to be creative, but not in a good sense. With television progressing at this rate and filling up with more violence, sex and strong language which is easily accessed, these circumstances can be avoided by ensuring that children take part in more sports such as football, swimming, running, cycling and lots of others and watch less television. Also do you think that a, elderly person would watch a film happily that consists of a lot of violence and strong language? Television could that very strong impact on the elderly if maybe they watch too much of it. It could deprive them of their social life and watching too much television could lead an old woman or manShow MoreRelatedThe Influence of Television and Technology in S ociety Essay834 Words   |  4 Pagesbetter but to what effect to human society? There appears to be a concern of moral and spiritual affect of what, and how we as society got to this point! Television has conveyed numerous adjustments to the way many people squander their leisure time. Some changes are beneficial; while others may be more poisonous to the mind. Television is so much more powerful because it is able to reach more people at one time. Society also reflects what is publicized on television in various areas, as well as waysRead MoreThe Influence of Television on American Society and Politics1709 Words   |  7 Pagesnewspapers, televisions and the internet, has any media had enough of an impact to alter the conclusion of a war. 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I chose this specific topic for various reasons. One reason why I decided to discuss the television subject because for one, it truly has a massive effect on the masses of people, especially when it comes to certain cultures. For instance, the black communities. Reality TV shows such as Love and Hip Hop and Basketball Wives, for example, has a huge affect on black guys and girls alike, especially black femalesRead MoreMedia and Its Affects1514 Words   |  7 Pagesthe nations that there is a greater influence of entertainment on the younger generation. The effects of entertainment on the younger generation in America can be said to be both positive and negative. The influence is mostly on entertainment media such as television, radio, and the Internet. The influence on the upcoming generation has affected their expression and views on the culture of America. The influence is on how they talk, dress, and act on the society. Th e social media pressure that isRead More Television and Society Essay763 Words   |  4 PagesTelevision and Society In Marie Winn’s Essay â€Å"Television: The Plug In Drug,† she states, â€Å"Television’s contribution to family life has been an equivocal one.† Winn focuses on the issue of televisions influence in the lives of American families. Her emphasis is on the mediums influence on children. Although she makes a strong case for the negative influence of television, she fails to consider all of the benefits television has brought to American families. On its own, the television is neitherRead MoreThe Impact of Reality Tv on the Teenagers1732 Words   |  7 PagesKamat : Prof. Jenny Benoy Abstract Reality-based television programming has become a dominant force in television over the past seven years and a staple of most networks’ primetime lineups. This relatively quick change in the television landscape and the sudden increase in viewers’ consumption of reality television necessitate an investigation into the impact these shows are having on their viewers. This proposal attempts to exploreRead MoreViolence And Sex On Television898 Words   |  4 Pages Violence and Sex on Television: Effects on the Younger Audience In today’s society, the media is used greatly for communication, advertisement, information, and for numerous other reasons. The world has evolved by technological advances as well as by the type of content that is put out on the internet, radio, and especially on television. In particular, violence and sex are two of the most controversial content types that have been recently used loosely in the present as compared to theRead More Media and Society Essay519 Words   |  3 Pages Media and Society Does society influence media or does media influence society? In a modern world, dependent on continuous communication this is a very important question. If the world were not dependent on communication over large distances, schooling on a mass basis would not be possible or necessary. Most knowledge in traditional cultures was local knowledge, (Geertz 1983) traditions that were passed on through a local community, a very slow and long drawn out

The Flaws Of Human Nature - 1717 Words

The flaws of human nature are many, but one of the biggest is the gullibility, especially in the presence of the supernatural. It is often easy to think that the thoughts or actions of an individual are of their own doing. It is even easier to assume that the range of the mind falls between good and evil. But society is not quite clear and even in fiction, there is always something motivating an action that lingers in the back of the mind of any character. The supernatural in particular is known for its ability to push people to extremes and alter their perception drastically. In Shakespeare’s Macbeth, it is easy to assume the blind ambition that brews within Macbeth and his wife or the guilt that plagues them following their actions is the biggest motivator. But that is just the surface of the complexity interlaced into this tragedy. Dig further, and it becomes clear that these emotions were not always prevalent in the characters, but were instead prompted by a force so power ful, it toyed with fate and provoked deception until the end; it was the supernatural that fueled the emotions and actions that take up much of the play. The themes of ambition, insecurity and the power of the ego are prevalent not just in current society, but also in Scotland during the period in which this play is set. Macbeth’s own interpretation of these emotions, provoked since the first encounter with the witches, is what makes him commit ruthless and immoral actions. The supernatural provokesShow MoreRelatedThe Flaws Of Human Nature1901 Words   |  8 PagesThe flaws of human nature are many but one of the biggest is the gullibility of humans, especially in the presence of the supernatural. It is often easy to think that the thoughts or actions of an individual are of their own doing. 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Commercial Banking Risk Management †Free Samples to Students

Question: Discuss about the Commercial Banking Risk Management. Answer: Introduction The purpose of this study is to identify the potential risk areas of a public company. This particular project identifies the qualitative and quantitative risks associated with the auditing of the financial statements of the public company. The Royal Bank of Canada has been chosen for the purpose of the study. The Royal Bank of Canada is a listed company on the Toronto Stock Exchange and is a multinational Canadian financial services company. It is the second largest bank in Canada. The bank covers more than fifteen million clients online and employs 80000 people worldwide. The bank has its headquarters in Montreal, Quebec and was founded in 1864 in Halifax. The qualitative and the quantitative risks associated with the financial operations of Royal Bank of Canada has been supported by the annual reports, management disclosures and other financial analysis that has been carried out in order to state the findings with enough evidence (Cooper, Kingyens, Paradi, 2014). Though the mathe matical figures represent a strong foundation for the proposed ideas, there are certain limitations to these figures. For instance, the fall in the net income incurred by the company in a certain financial year may be due to a particular crisis or financial event. Therefore, the huge loss incurred by the company may offset the total average financial performance of the company indicating that the company is not doing well. Here comes the role of the auditor who intends to critically scrutinize the financial statements and the performance of the company and then recommend accurate steps in order to address those issues (Mohsni Otchere, 2015). The Royal Bank of Canada has been the largest Canadian bank based on the market capital. The bank has been paying consistent or increasing dividends every year since its foundation. The company also accrues a dividend yield of 4.1% and a price to earnings ratio of 12. The financial performance of the company has also followed an upward increasing trend. In the year of 2015 the net income increased by $531 million and the net income further increased by $178 million. The total revenue also increased by 4%. In spite of such figures, there are certain risks that are faced by the company. These risks have been identified and also have been mentioned in the annual report of the company (Otchere Mohsni, 2014). The last quarter of the financial year of 2016 marked a slow phase in terms of the growth of the Royal Bank of Canada. The bank has been doing well but there have been certain risk factors that pose a threat to the company. The major or primary quantitative risk that is face by every company is the risk associated with material misstatement in the accounting statements or fraud committed in the accounting statements in order to fulfill the personal interest of the employee, committing the fraud (Embrechts Hofert, 2014). As disclosed by the annual report of the company for the financial year of 2016, there are certain areas where the probability of occurring material misstatement is high. The term material misstatement refers to the act of understatement or over statement of a particular account either by mistake or by purpose in order to commit fraud or manipulation of the books of accounts. Misstatements may also occur when certain transactions have not been recorded or they have not been entered in the books of accounts. As evident from the annual report of the company for the financial year of 2016, the non-interest income of the Royal Bank of Canada should be checked thoroughly (Smales, 2016). This means that all the transactions related to interest income should be traced back to the payments. The suppliers or the entities obligated to the bank for the payment of interest income should be interviewed and the dockets or vouchers of payments should be checked in order to ensure that the recorded and the actual amount that has been transacted is same. This will surely mitigate the occurrence of misstatement in the books of account. To be more precise, the others head under the net interest income fluctuates a bit too much. This means that other sources from whom the company has gained the interest income should be checked. An amount of $685 in the financial year of 2014, $900 in 2015 and $773 in 2016 indicates the probability of a certain anomaly in the books of accounts. Therefore, the auditor should make it a point to trace back all the transactions. Another important auditing procedure in order to handle the quantitative risk of material misstatement is calculation of the materiality for a particular financial year. Materiality refers to the permissible amount of misstatement. This means that the auditor should develop a rational method for determining the amount of materiality. If the total amount of misstatement exceeds this amount of materiality then it would be forwar ded to the upper level management or the Board of Directors (Rbc.com. Retrieved 22 November 2017, from https://www.rbc.com/investorrelations/pdf/ar_2016_e.pdf). Management Assertion The management of the Royal Bank of Canada takes enough initiative in order to mitigate the risks such as credit risk or market risk. However, the quantitative risk of material misstatement should be given prior importance. The auditor may develop the amount of materiality by assigning a rate of five percent over the net income of the financial year whose books are being audited. Therefore, the management should make it a point to review the compliance of these established standards. Surprise internal audits will also help to mitigate this risk (Tian, 2016). The next potential quantitative risk that the Royal Bank of Canada is facing is the imminent threat of cyber risk. The security related to information and other important data in the financial services sector should be high. With the technological leap that the entire banking sector has undertaken the protection of client and other relevant data has become highly important. Recent instances of cyber attacks have proved that the financial sectors or the IT departments of the respective organizations are not competent enough to save the crucial organization information from the hackers (McNeil, Frey Embrechts, 2015). The potential intangible assets that are affected by these cyber attacks are financial data, client information, goodwill of the company, trade secrets and other software related data. The Royal Bank of Canada has been facing this threat. This is requires a quantitative analysis as because this particular risk cannot be mitigated without assigning proper valuation to the assets under threat. The auditor must find out the value of these intangible assets with the help of the fair market valuation system (Cohen, Krishnamoorthy Wright, 2017). The auditor may utilize the cost approach or the income approach in order to find out the value of these intellectual assets. Thus after the valuation of the intangible assets the growth or deterioration of these assets can be measured. This can clearly indicate the effect and result of the cyber attacks or other security threats that is faced by the Royal Bank of Canada. The particular question that the auditing team needs to ask the management o f the Royal Bank of Canada is that whether they have been taking proper initiative in order to maintain the informational or client security of the bank. There should be proper application of passwords and portal codes with restricted access in order to maintain the privacy. Competent backing up processes and storage devices with enough protection should be available. Moreover, the backing up of files containing important information should be made a periodic activity by the management (Rbc.com. Retrieved 22 November 2017, from https://www.rbc.com/investorrelations/pdf/ar_2016_e.pdf). Management Assertion The management of the Royal Bank of Canada should strictly adhere to the above mentioned recommendations. The Royal Bank of Canada being a part of the financial services sector is more vulnerable to the cyber attacks. Therefore, the management in addition to the already implemented steps should be active in revaluing the intangible assets and find out the quantitative effect that the potential threat of cyber attacks has on the bank. The Royal Bank of Canada has taken enough interest in protecting the information of its clients or customers but as mentioned in the annual report, the bank still faces the looming risk of cyber attack. Therefore, the needful steps should be undertaken in order to mitigate the risk (Benoit, Hurlin Prignon, 2017). The third quantitative risk that has come up from the calculation of the significant ratios of the Royal Bank of Canada is that the bank has been facing a diminishing asset turnover ratio for the past three years. This poses a real risk which if goes unnoticed may turn out to become a potential threat for the bank. Analyses of the significant ratios have helped in arriving at such a decision. There are certain limitations of the significant ratios like economic disasters or seasonal fluctuations may tamper the accurate forecasts of these ratios. Therefore, in order to minimize the effect of such events the financial ratios have been prepared at a stretch for three consecutive financial years. In order to find out the exact quantitative risk that the bank is facing the auditor needs to appropriately calculate the financial ratios of the bank. This must be done accurately. The auditor must make sure that the figures obtained for the calculation of the financial ratios are authentic and genuine, that is, they have been traced back to point of generation and has been matched with the figures that have been recorded in the financial statements. Now, the asset turnover ratio of the Royal Bank of Canada shows a diminishing figure in the current financial year of 2016 that is 0.03. The bank has been maintaining a stable asset turnover ratio of 0.04 for the past few financial years. But the current year of 2016 show a drop in asset turnover ratio. Now the asset turnover ratio refers to the ability of an organization to utilize its assets in order to generate revenue. The more efficiently an organization deploys its assets in the generation of company revenue, the more is the asset turnover ratio. This particular ratio being constant may also be a reason of concern for the bank. A constant ratio poses that the bank is not being able to improve the efficiency of its assets for increasing the revenue generation incurred by the bank (Chu, 2015). The question that the auditor should ask the management is that what internal controls have been implemented in order to increase the efficiency of the utilization of the assets. The potential procedures that might be adopted by the bank in order to increase its asset turnover ratio is that the bank may look after the collections from its debtors, that is, increase in the collections or the accounts receivables will increase the asset turnover ratio. More importantly, increase in efficiency of utilization of the assets of the bank and implementation of technology in order to properly record the internal proceeding would help to increase the asset turnover ratio of the Royal Bank of Canada (Rbc.com. Retrieved 22 November 2017, from https://www.rbc.com/investorrelations/pdf/ar_2016_e.pdf). Management Assertion The management of the Royal Bank of Canada has implemented enough measures to overcome the credit risks. However, the consistent asset turnover ratio should have been a reason of concern. In addition to it the current value of the ratio has dropped, the management at the Royal Bank of Canada must look into this. The management for increasing the asset turnover ratio of the bank should consider the recommended steps by the auditor. The primary qualitative risk that is faced by the Royal Bank of Canada is the dangerous real estate market in Canada that poses a looming threat over the financial condition of the bank. The major reason for the downfall of the real estate market is the Great Recession that affected the real estate industry all over the world. The downfall of the real estate market in Canada has been posing a threat to the Royal Bank of Canada. The Condos in the largest cities of Canada are the most overpriced. The Condo mortgages make up 2.7% of the Royal Bank of Canadas total loan portfolio and 9.8% of the total residential mortgage portfolio. Given the financial stability and the liquidity of the Royal bank of Canada, the bank is less likely to hugely suffer due to the housing crisis in Canada. However, the auditor must ensure that the precautions from the looming crisis have been prepared before hand by the management of the Royal Bank of Canada. The housing crisis would most probably affect the short term earnings of the bank, therefore enough retained earnings or a good liquidity position of the company will be enough precaution in order to handle the impending threat ("Royal Bank of Canada: Minor Risks, Major Returns, Mean Reversion - Sure Dividend", 2017). The management of the Royal Bank of Canada should be well aware of the economic situation in which the bank is operating. Thus, the auditing question that the management needs to answer is that whether it has done enough preparation to meet the risk that may arise in the future. Thus, the management should implement enough risk control in order to mitigate the effect of such an impending crisis. The second qualitative risk that the bank is facing is the risk of low oil prices in the market of Canada. The Royal Bank of Canada has already showed signs of delayed growth due to the unprecedented fall in the oil prices in Canada. The increased rate of growth that the bank was subjected to has faced a steep obstacle due to the decrease in the oil prices. The Royal bank of Canada already has taken a hit to its earnings which may evidently lead to loss of potential customer base and corporate portfolios. The credit department of the bank received the major blow. The first quarter of the financial year of 2016 saw the bank incur a credit loss of $298 million. The only recommendation for the management by the auditor is to lower the rate of extension of credit until the bank surpasses the crisis situation ("Royal Bank of Canada: Minor Risks, Major Returns, Mean Reversion - Sure Dividend", 2017). The management of the Royal bank of Canada has been competent enough to handle the situation of low oil prices in Canada. However, the particular auditor recommendation in the above discussion may prove to be advantageous for the bank. Conclusion Therefore, as it can be understood from the above discussion Royal Bank of Canada has been in a good financial condition. However, there are certain quantitative and qualitative risks that either the bank has been facing currently or will be facing in the future. The recommendations provided after proper conducting of the auditing review may not be completely accurate as there are certain limitations of the auditing procedures carried out by the auditor. The limitation may be human error, use of judgment in assuming estimates for reporting purposes or multiple possibilities of a single accounting interpretation. However, the auditor should make sure to mitigate the occurrence of error as much as possible. References Benoit, S., Hurlin, C., Prignon, C. (2017). Pitfalls in Systemic-Risk Scoring (No. hal-01485644). Chu, K. H. (2015). Bank consolidation and stability: The Canadian experience, 18671935. Journal of Financial Stability, 21, 46-60. Cite a Website - Cite This For Me. (2017). Annualreport.cibc.com. Retrieved 26 November 2017, from https://annualreport.cibc.com/pdf/cibc-ar-16-en.pdf Cite a Website - Cite This For Me. (2017). Annualreports.com. Retrieved 26 November 2017, from https://www.annualreports.com/HostedData/AnnualReports/PDF/TSX_TD_2016_86cbf54df7744ce788695b431ddac93c.pdf Cite a Website - Cite This For Me. (2017). Rbc.com. Retrieved 22 November 2017, from https://www.rbc.com/investorrelations/pdf/ar_2016_e.pdf Cohen, J., Krishnamoorthy, G., Wright, A. (2017). Enterprise risk management and the financial reporting process: The experiences of audit committee members, CFOs, and external auditors. Contemporary Accounting Research, 34(2), 1178-1209. Cooper, W. W., Kingyens, A. T., Paradi, J. C. (2014). Two-stage financial risk tolerance assessment using data envelopment analysis. European Journal of Operational Research, 233(1), 273-280. Embrechts, P., Hofert, M. (2014). Statistics and quantitative risk management for banking and insurance. Annual Review of Statistics and Its Application, 1, 493-514. McNeil, A. J., Frey, R., Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press. Mohsni, S., Otchere, I. (2015). Financial crisis, liquidity infusion and risk-taking: The case of Canadian banks. Journal of Banking Regulation, 16(2), 146-167. Otchere, I. K., Mohsni, S. (2014). Financial Crisis, Liquidity Infusion and Risk-Taking: The Case of Canadian Banks. Royal Bank of Canada: Minor Risks, Major Returns, Mean Reversion - Sure Dividend. (2017). Sure Dividend. Retrieved 22 November 2017, from https://www.suredividend.com/ry/ Smales, L. A. (2016). News sentiment and bank credit risk. Journal of Empirical Finance, 38, 37-61. Tian, W. (Ed.). (2016). Commercial Banking Risk Management: Regulation in the Wake of the Financial Crisis. Springer.

Labor-Leisure Model in the Everyday Life free essay sample

I like many other college students am not currently seeking work in the labor force. As a student athlete playing golf I am constantly juggling my time between my studies as a senior Economics major, and maximizing my golfing potential and chasing my ultimate dream of becoming a professional golfer. Throughout this paper I will explain how I maximize my utility in different circumstances using the labor-leisure model. As I am not actively looking for work in the labor market my indifference curve is so steep there are no tangencies to my reservation wage, which is defined as the â€Å"lowest wage rate at which a worker is willing to accept a job. † By dedicating all my time to studying and practise, and none to the labor force my indifference curve has no tangency to my constraint. As a rational person who wants to maximize utility; the current wage rate is not high enough for me to substitute work for things I prefer to do in my free time, such as playing golf or studying for a test. We will write a custom essay sample on Labor-Leisure Model in the Everyday Life or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I am fortunate enough that my parents have the opportunity to help me financially during my time at college, so I have a source of â€Å"unearned income† that I receive for working zero hours in the labor market. This â€Å"unearned income† is shown by the spike in figure 1 below. As mentioned above because of my high regard for leisure and the modest wages I am offered as a student with some college experience; my indifference curve has no tangencies to my constraint. Figure 1 depicts where utility is maximized at point A. As a utility maximizer it suits my personal preferences to accept the unearned income given to me by my parents and consume more leisure time. â€Å"Point [A] represents the highest utility that can be reached by [myself], given the budget constraint. † The labor-leisure model makes the assumption that leisure is a desirable product, which in my case it is. Furthermore, substituting three or four hours in the labor force for more hours of leisure time is an easy decision for a utility maximizer to make. The government faces similar problems with modern day welfare. Because of the modest wages offered to unskilled workers, and size of recent welfare packages many people maximize utility by removing themselves from the labor force, and accept benefits offered by the government whilst consuming more leisure time. As mentioned above, during school I am constantly dividing my time between practising for golf, and studying my current classes. Using the Production Possibilities frontier (shown in Figure 2 below) I can graphically show the choices I make in a variety of scenarios as a utility maximizer. Like most economic models it is a simplification of reality that represents â€Å"economic processes by a set of variables and a set of logical quantitative relationships between them. † To maintain the simplicity of the model I am assuming my average day consists of 16 hours, of which I divide my time between either practising golf or studying. I rarely dedicate all my waking hours to specifically golf or studying, but for the consistency of this model that assumption will be made. Figure 2 shows my personal production possibilities frontier, which â€Å"shows the alternative outputs of [golf practise] and [studying] that can be produced† by myself in any given day. â€Å"The production possibility curve clearly exhibits the notion of technical efficiency. † Any point inside the curve is considered inefficient, and any point outside the curve is unachievable. The production possibility frontier clearly shows that depending on how I allocate my time directly affects my productivity in both areas. For example, if I dedicate a disproportionate amount of time to studying my golf performance will decline as my grades increase, and vice-versa. As shown in Figure 2 there are many different combinations of golf practise and studying. Maximizing utility in this model is my selection of the most appropriate combination of studying and golf practise for the circumstances of that day. One of the biggest advantages of playing an individual sport is having the ability to design a schedule that suits my day to day activity. Points A, B, C, D and E all represent possible utility maximizing schedules on my production possibilities frontier. There are many factors that could affect my everyday schedule. For example, If I have a particularly important tournament coming up I may find it utility maximizing to substitute some hours studying for some hours practising at the golf course. This schedule would make my indifference curve steeper than usual, like the indifference curve U4 in figure 2. My grades may suffer at this schedule; however, performing well in tournaments also just as important so the schedule is still utility maximizing. I will maximize utility at a completely different point on my production possibilities frontier during finals week. I will be more likely to substitute hours practising golf for time studying during finals week. As time spent studying becomes more valuable my indifference curve will become much flatter than on an ordinary day, like the indifference curve U2 in figure 2. As mentioned above, there are obvious flaws to this production possibilities frontier. However, an economic model is a simplification of reality that represents â€Å"economic processes by a set of variables and a set of logical quantitative relationships between them. I have never spent an entire day where I dedicated all my waking hours to either studying or practising golf. So despite point F on figure 2 not statistically being utility maximizing it is where I normally operate. Normal daily activities like eating, talking with friends and other general errands are not considered in this model. The shaded area in f igure 2 represents time I spend doing activities that are unaccounted for by golf practise and studying. I plan to graduate in May 2013 with a Bachelors of Science degree in Economics. My degree is a sign to potential employers that I have been trained in the field of economics. According to the â€Å"Investment model of education† I will move from a male with â€Å"some college† experience to a male â€Å"college graduate. † The investment model of education suggests that college graduates are more likely to receive additional training in their early years of employment; resulting in higher wages. The potential for a higher wage could have a notable affect on my post-college labor-leisure model. The higher wage creates a steeper constraint, as seen below in Figure 3. Figure 3: Post-College Labor-Leisure Model If offered a wage high enough, the new constraint could become steep enough to where my indifference curve would have a point of tangency with my reservation wage, as seen above. As a result of the additional training I have received (a college education) my constraint has moved from the line AD to line AE. The severe increase in wage has increased my cost of consuming leisure considerably. My utility is now maximized by joining the labor force, as seen in the move from U1 to U2 on figure 3. The radical change to my labor-leisure model has not taken place without a huge substitution and income effect. The new wage greatly increased my costs of consuming leisure, so much so I substituted some hours of leisure for hours of work. This is known as the substitution effect, and can be seen graphically between points B and C. An income effect is also present. After graduation my parents will not continue to hand me money for nothing in return, so the unearned income at point F is no longer achievable. This decrease in income reduces my purchasing power of leisure and will increase my demand for labor hours. This income effect is shown graphically between points A and B. The total effect can be seen graphically between points A and C. The substitution and income effect usually move an individual’s preferences in opposite directions, but because I was choosing to work zero hours the presence of either effect could only increase my demand for work. In conclusion, I can portray how I make everyday decisions using the labor-leisure model and production possibilities frontier frameworks. As with most economic models, it drastically simplifies reality. The simplification however is necessary, due to the complex nature of economic variables; simplicity aids clarity. For an economic model to be successful two appropriate variables must be chosen. In my personal instance the relationship between practising golf and studying for classes are directly related. By simplifying and selecting applicable variables complex economic information can be expressed logically, as shown above.