Path loss determination using Hata model

Path loss determination using Hata model CHAPTER-1 INTRODUCTION Path loss is the degradation in received power of an Electromagnetic signal when it propagates through space. Path loss is due to several effects such as free space path loss, refraction, diffraction, reflection, coupling and cable loss, and absorption. Path loss depends on several factors such as type of propagation environments, distance between transmitter and receiver, height and location of antennas. Also the signal from the transmitting antenna may take multiple paths (multipath) to reach the receiving side, which results in either increase or decrease of received signal level depending on the constructive or destructive interference of the multipath waves. Path loss is usually expressed in decibels (db), as this method gives us an easy and consistent method to compare the signal levels at various points. Where Lp is the path loss i.e. the ratio of power of received signal to that of transmitted. Propagation models are used extensively in network planning, particularly for conducting feasibility studies and during initial deployment. They are also very useful for performing interference studies as the deployment proceeds. Numerous Experiments have been carried out all around the world, for checking the applicability of suitable path loss models in mobile communications specific scenario. In those experiments radio engineers carried out signal strength measurement for a specific area and compared the observed output with that of predicted outputs from different widely accepted propagation models so as to find out which model best predict the path loss for the given scenario. Also, some fine tuning for that model are done based on the difference. Many propagation models are available for path loss predictions. Deterministic models are based on the laws of electromagnetic wave propagation and produce accurate predictions of the path loss, however they take high computational effort and require detailed and accurate description of all objects in the propagation path .Free space Model, and Plane Earth model, are easier deterministic propagation methods. Empirical models are based on extensive collection of data for specific case. They are not accurate but predict the most likely behavior the link may exhibit under specific conditions. Okumura carried out a lot of field strength measurements in Tokyo, Japan with varying terrain, frequency antenna height and transmitted power. It states that, the signal strength decreases at much greater rate with distance than that predicted by free space loss .An empirical formula based on Okumuras results has been developed by Hata in order to make the propagation loss prediction easy to apply .Hata gave no of path loss models for urban, suburban and open areas, often called Okamura-Hata model. The European Co-operative for Scientific and Technical Research (COST) extended the Hata model to be valid for PCS(personal communication System) Operating at 1800- 2000 MHz, which is named COST 231 Hata model .The European research group also developed an another model taking Diffraction effect into consideration, which is COST 231 Walfish Ikegami model. Actually, this model is a semi-deterministic model as the path loss calculations is made by combining empirical models with deterministi c techniques [4].wave propagation models for planning of mobile communication network. Theres a North American model called Lees model named after W.C.Y. Lee, which is characterized by two parameters, power at a mile and path loss exponent. Kathmandu is the capital city of our country Nepal with more than 1 million inhabitants. GSM Mobile launched by Nepal Telecom reached almost a decade now with total 3.5 million subscribers, and 1.5 million solely in Kathmandu. With such increase in no. of subscribers, the no of BTS has gone up to 1500 in whole Nepal. Operating with both the frequency 900 and 1800 MHz, there are nearly 500 BTS (BS) in Kathmandu only. With such increase in the no. of Bs in Kathmandu valley due to the growth in No of subscribers, proper planning methods are needed for placing BTS for acceptable field strength and Interference level in the coverage area. Also the Coverage holes are needed to be filled with proper planning. This Planning Requires appropriate propagation models that best predicts the path loss for our specific environment. In this project, the feasibility analysis and fine tuning of Hata and Cost 231 Hata model has been done for propagation environments in Kathmandu. Taking three different areas of Kathmandu namely: Core city area, Ring-road area and Remote areas and five locations are selected for each of the terrain types and Field Strength Measurements offers a better means to understand what path loss model to use in certain propagation environments. Field strength measurements were conducted on the existing GSM 900 MHz Network of Nepal Telecom on the locations of interest. MOTIVATION The demand for increasing mobile subscribers needs efficient extension of a cellular network. For GSM like technology, there is additional complexity in making efficient Allocation of Base Stations and frequency planning. For this, proper path loss models should be used for coverage prediction and interference analysis. Much of the popular path loss models by renowned RF engineers are based on the observation data taken on their own country. So there is need of fine tuning of such model for applicability in our area. To my knowledge, there has not been any published work regarding such models feasibility analysis and modifications.This provides the impetus for this project to make an analysis of the observed data and necessary modification in Hata and Cost 231 Hata model for Kathmandu. Also, the proposed re-farming of 900 MHz frequency spectrum for Future Generation of Mobile Communications provides another drive for this project. It is obvious that use of less frequency yields large coverage area than higher frequencies. Hence, for future generation mobile, Scientist have conceived of making use of 900 MHz spectrum and together with use of newer technologies, they could make efficient utilization of this spectrum. APPLICATIONS This project can be used in realistic planning of GSM networks, with the predicted path loss in Kathmandu. For capacity enhancements of the network, GSM Engineers can use the path loss prediction models for intelligent placement of BTSs with certain antenna height and power. Path loss also facilitates Link budget analysis and Design in a telecommunication system. In a GSM like Cellular network, Path loss is used for Frequency Re-use distance estimates so as to properly space the channels in Base stations (BS). Actual Frequency assignment plans for the Base Stations are also facilitated by the use of path loss. Better Coverage predictions and interference reduction is what planning engineers get by using better path loss model. CHAPTER-2 PATH LOSS MODELS In this chapter, description of various Path Loss model will be discussed. The model characteristics, along with mathematical formulae, will be shown that is useful for further calculations, analysis in this project. In addition, three kinds of dependency factors of path loss will be noted that will be analyzed later. FREE SPACE PATH LOSS This model is the most simple and primitive path loss model where the influence of all objects and obstacles in the propagation environment is ignored. Here, the Received signal is inversely proportional to the square of distance between the transmitter and receiver. So, the free space Path loss is given by As Decibel (db) method gives us easy and consistent method to observe and analyze the signal levels at various points, the free space path loss can also be expressed in logarithmic format as OKAMURA MODEL This model is a RF propagation model that was developed based on the data collected in the Tokyo city, Japan. The model served as a base for all other empirical propagation models. In this model, the propagation area is divided into terrain categories: open area, suburban area, and urban area. Urban area is used as a reference area and Correction factors are applied in it to calculate the path loss for other terrains. HATA MODEL It is also known as the Okumura-Hata model for being a advanced version of the Okumura Model, is the most widely used model in radio frequency propagation for predicting the behavior of cellular transmissions in city outskirts and other rural areas. This model incorporates the graphical information from Okumura model and develops it further to better suit the need . Hata Model predicts the total path loss along a link of terrestrial microwave or other type of cellular communications. Operating frequency, Base Station Antenna height. This model is suited for both point-to-point and broadcast transmissions. COST 231 HATA MODEL It is also called the Hata Model DCS Extension, which is a RF propagation model that extends the Hata Model to cover a more range of frequencies. Also, this model is applicable to Open, Suburban and Urban Areas . PATH LOSS DEPENDENCY FACTORS Path loss usually depends on operating frequency, Base station Antenna Height, and distance of the Mobile stations (MS) from the Base Station (BS). For each of the popular empirical models discussed above, those dependency factors are observed separately and lastly combined together to give a formula for that path loss model. PATH LOSS EXPONENT We know that received signal at a distance from a BS or a transmitter is inversely proportional to some power of the distance, i.e. farther we go from the BS or transmitter, the received level will degrade by some factor. CHAPTER-3 For empirical models, Field strength measurements gives an easy and better way for feasibility analysis and fine tuning of the models for certain propagation environments. In our case, I intend to check the applicability and the modification of Hata and Cost 231 Hata model for propagation environments in Kathmandu. Three different terrains are taken into consideration, namely: Core city area, Ring-Road area, and remote area. Field strength measurements are carried out in fifteen different locations, where five of them belong to one terrain types. Location of BS, Transmitted power, antenna height is taken for the areas of interest in Kathmandu. Field strength measurements were conducted on the existing GSM network of Nepal Telecom and the receiver used was TEMS tool with a mobile set. DRIVE TESTING USING TEMS TEMS is an air interface test tool for real time diagnostic of different parameters for RF optimization. Also, all the data can be saved for later analysis. It consists of a laptop with TEMS software, a mobile set with a connector, GPS for location, and a hardware lock key. As for this project, only the received level is concerned, so the received level is noted as we drive farther from a BS. Above Figure shows the trail of the drive test path through a vehicle, in the location of interest. Here, the distance of a sample point in the trail can easily be noted using a scale in the map. Before performing drive test in all of those sites, proper Information regarding Site locations, their Carrier Frequencies, BS antenna Height, power transmitted from the BS are taken and used in the data collection and Calculations part. ASSUMPTIONS In this project, several assumptions are considered to ease data collection and analysis phase, which are listed as: Though the signal strength measurements are done for different BS with different Carriers (ARFCN), operating frequency is taken to be fixed at 900MHz. The effective power radiated from the BS is taken to be fixed at 50 dbm. Also height of mobile () taken to be fixed at 1.5 meters as the data is measured through TEMS inside a vehicle. Core city area, Ring-road Area and Remote areas in Kathmandu are assumed to be Urban, Sub-urban and Rural area respectively for simplification in analysis and comparison. If that assumption gives different result, then it can be rectified easily based on the integrated analysis of the path loss plot vs distance. MEASURED PATH LOSS For each of the propagation environments which have been selected and drive tested for data collection, the path loss can easily be calculated using the formula: So, Path loss can easily be observed from the collected data, to be increasing as we go farther from the BS. Data Collected for Fifteen different Locations can also be shown in tabular format as: PATH LOSS FROM MODELS After the observation of measured path loss in the propagation environments in Kathmandu, we need to calculate the path loss from the formula for the two models Hata and COST 231 Hata Model, with the distance d of MS from Bs in km, Frequency f in MHz, BS height hb in meters, Antenna height in meters taken from the actual scenario. Calculations are done using Excel sheet and the data are shown as: PATH LOSS PLOTS: As we get all the measured data and predicted data from the two models, the average data of path loss as shown in the table below are plotted with the increasing distance d of MS from BS as shown in the graph below for each propagation environments. COMPARISION AND ANALYSIS From the above plot for each propagation environments, comparing the average path loss values with that of Hata and COST 231 Hata model plot gives the result that Hata model best fits the propagation characteristics in Core city area and Ring-road area whereas the COST 231 model best predicts the propagation characteristics in Remote area. Also the Minimum Square Error (MSE)calculated for each of the model is within acceptable limits, which can be calculated using the formula: From the MSE analysis also, I find that Hata model best fits the Kathmandu Core city area and is also suitable for Kathmandu Ring-road Area. Whereas in the case of Kathmandu Remote Area, Cost 231 Hata model best predicts the path loss characteristics. FINE TUNING OF THE BEST FIT MODEL Due to the least and acceptable MSE in both Ring road area and remote area, the best fit models need not be modified for such propagation environments in Kathmandu. Solely based on the Minimum Square Error in path loss, the Best fit model for Core city area in Kathmandu i.e. Hata model can be modified accordingly. This formula is the modified version of the Path loss in urban area as given by Hata model for application in Kathmandu. CHAPTER-4 RESULTS By the comparison of the actual path loss with that of the predicted path loss from the two models Hata and COST 231 Hata model, and integrated analysis of all the plots, the feasibility analysis of the two models for three different propagation environments in Kathmandu is done. From which we get, Hata model is not feasible for the application in remote area due to much high minimum square error. Also the Hata model best fits the core city area in Kathmandu with MSE slightly greater than the acceptable limits as given by [6]. So the new modified Hata model is given based on the MSE. And for Ring-road area both model is applicable but the COST 231 Hata Model best fits it due to least MSE. CONCLUSION In this project, the popular empirical path loss models for mobile communications are studied. Among them two models, Hata and COST 231 Hata model is compared with actual path loss in three different propagation environments in Kathmandu, for applicability in macro-cellular Base Stations (BS). Comparison and Analysis of the integrated plot of the path loss from two models and actual path loss in those environments, along with mathematical calculations gave us the result. And the best fit model based on MSE calculations is either modified or left as it is, for those three propagation environments in Kathmandu. Also the assumptions for the three areas are consistent with the actual model which made the analysis and comparison easy. The choice of which model to use actually depends on the terrain type and the surrounding environments and objects around it, the selection of that model in planning a mobile communication network will give the best result and better network is what will be the output. So, Service providers must use efficient planning tools to better model their propagation environments along with the best predicted path loss. Hence, this project is useful for such realistic planning for GSM 900 MHz in Kathmandu. Further enhancements in this project can yield similar results for future mobile technologies and other spectrum too. PROBLEMS / LIMITATIONS: The receiver used for this project is a mobile set which has a sensitivity of -105 dbm. Hence, during field strength measurement, I can only measure signals up to 600m from the Base station in core city area. If there was separate equipment for signal measurement, it would have yield much better result, maybe thats the reason why there is much difference between the measured and predicted value due to lesser no of sample points. Also, Effective power radiated from the antenna is assumed to be 50 dbm, (same for all BS) due to unavaibility of measuring actual power radiated from the antenna and the losses in the RF cables and connectors. Also the antenna azimuth and down tilt not taken into consideration and sometimes, the measurement of received signal is done in locations that may be outside of the main lobe of the antenna radiation, i.e. outside of the half-power beam width (HPBW). FUTURE WORK: This work can be extended to apply for other mobile technologies in other frequency spectrum such as 1800 MHz DCS, 2100 MHz WCDMA. Also high sensitive field strength measurements tools can be used for future generation Mobile technologies for better result. As this project only dealt with the selection and modification of Path loss models for applicability in Kathmandu areas, the result of this project can be used for interference estimation and frequency assignment planning for new network or extension of existing network. REFERENCES Z. Nadir, N. Elfadhil, F. Touati, Pathloss Determination Using Okumura-Hata Model And Spline Interpolation For MissingData For Oman, Proceedings of the World Congress on Engineering 2008 Vol I WCE 2008, July 2 4, 2008, London, U.K. Popescu, I.et al., Applications of neural networks to the prediction of propagationpath loss for mobile communications systems, Applied Electromagnetism, 2000. Proceedings of the Second International Symposium of Trans Black Sea Region, 2000. K.Ayyappan et. al., Propagation Model for highway in Mobile Communication System, from http://www.ubicc.org/files/pdf/Highway_249.pdf F.M. Landstorfer, Wave Propagation Model for the Planning of Mobile Communication Network, from http://amsacta.cib.unibo.it/1427/1 /GAAS_99_065.pdf J. Wu and D. Yuan, Propagation Measurements and Modeling in Jinan City, IEEE International Symposium on Personal, Indoor and Mobile Radio Communications, Boston, MA, USA, Vol. 3. M. Hata, Empirical Formula for Propagation Loss in Land Mobile Radio Services, IEEE Transactions on Vehicular Technology, Vol, VT-29, No, 3, 1980. http://en.wikipedia.org/wiki/Free-space_path_loss P K DALELA, et al., A New Method of Realistic GSM Network planning for Rural Indian Terrains, IJCSNS International 370 Journal of Computer Science and Network Security, VOL.8 No.8, August 2008 V.S. Abhayawardhana, et al., Comparison of Empirical Propagation Path Loss Models for Fixed Wireless Access Systems, from http://www.cl.cam.ac.uk/ research/dtg/lce-pub/public/vsa23/VTC05_Empirical.pdf http://www.google.com.np/#hl=neq=+++++L%3D+FSL%2BAM-HMG-HBG+median+path+lossaq=foq=+++++L%3D+FSL%2BAM-HMG-HBG+median+path+lossfp=80b8cfa680f5dc97.

Research Proposal Same Sex Marriage Essay

Same sex marriage has been one of the many recent political â€Å"hot† topics. It is a popular subject in political debate, national newspapers, and media coverage. These debates, articles, and reports are often focusing on rights outlined in constitutional laws, amendments and Bill of Rights as a source of the right of same sex couples to marry. Some states have addressed the issue of such rights in court cases throughout the United States with varying outcomes. This research paper is concerned with the proposed Federal Marriage Amendment defining marriage as between a man and a woman. It will examine the Fourteenth Amendment and the equal protection clause. It will also examine previous court cases and the outcomes. It will further demonstrate possible economic concerns of legalized same sex marriage. Research Question What issues and possible constitutional infringements surround the proposed Federal Marriage Amendment? References National Tax Journal, Vol. 53, Issue 2, June 2000 Lesbian Couples, National Center for Lesbian Rights, www.ncirights.org Legal Marriage, Court Cases, Partners Task Force for Gay and Lesbian Task Force, http://www.buddybuddy.com/t-line-1-html Policy.com Gay Marriage, Civil Liberties Union, http://www.aclu.org/library/aagaymarriage.html

What is Truly Going on with Holocaust Essay Topics

What is Truly Going on with Holocaust Essay Topics The War Against Holocaust Essay Topics You are interested in being certain you can select something which will supply you with plenty to discuss in your essay based on how much time it should be. You may wish to write on a subject that is intriguing and educational for your reader. The word is still utilized in its other senses. These aren't the words of someone who respects my people's history. Regarding holocaust essay topics, one of the most crucial elements that needs to be taken into consideration ought to be the simple psyche of the initiators of the genocide. Millions of descendants of people involved with the Holocaust are still acutely mindful of the tragedy. There's much information that can be found about Hitler, which makes it feasible to select from several unique topics about his involvement in the Holocaust. It was just a dim symptom of what the future held for European Jews. It also needs to tackle politics and military elements. It's this outrage we want to stay alive in our everyday life and apply it to all scenarios, whether they involve Jews or non-Jews. The student who chooses to write about the holocaust will realize that there are lots of diverse topics which they can pick from to create an essay that may have both historic and humanitarian focus. Concentrate on the outcome of the Holocaust for each nation in addition to pay your focus to the outcomes for the mankind. Ideas, Formulas and Shortcuts for Holocaust Essay Topics The aim is that the digital memoryscape could be obtained via an app or website allowing people any place in the world to see a Holocaust memorial site or be utilized on the ground, creating a trip to the sites a more effective experience. Though there is loads of information concerning the Holocaust, writing an essay on this topic could be quite a challenging undertaking. This is likely to make your research and data co llection simpler. There are many examples, suggestions and stories online that may be used for research. A lot of historical data can be investigated so as to study the Holocaust. Citation, quotation, list of references is a significant element of a myriad of academic writings. It is going to only take an overall search engine procedure to find many web pages. This isn't an instance of the work generated by our essay writing service. The Nuiances of Holocaust Essay Topics Choosing our service, you will realize that studying can be simple if you gain from the help of capable experts. History has a method of repeating itselfbut only as long as you let it. Students lead busy lives and frequently forget about a coming deadline. Using the Dissecting the Prompt strategy, they can take apart and analyze the prompt, identifying the historical topics they need to learn more about in the rest of the unit to be able to fully answer the question. Although it's been over seventy decades, what happened at Auschwitz is still among the worst genocidal events that we've ever witnessed as humans . Both of us get prepared to meet and get death. Auschwitz was a huge camp and well-known for its brutality. It included camp sites a few miles away from the main complex. What Does Holocaust Essay Topics Mean? The Holocaust was a horrific event in our history and it's one that won't ever be forgotten, especially given the simple fact that the effect of the event can nevertheless be felt worldwide. History is all about far more than facts, but they're necessary so as to understand the causes and consequences of events. It is simple for a student to understand that Holocaust is an unacceptable crime that has an impact updated. The mission there's not merely to teach history, yet to teach the now. Moreover, their assistance is fast, effective and you don't will need to depart from your room. You may also get different discounts on our site which will help you to save some more money for future orders or anything you want to spend them on. Our customer support will gladly t ell you whether there are any special offers at the present time, and make sure you are getting the very best service our business can deliver. The project will make a prototype virtual memoryscape' for Bergen-Belsen and Neuengamme and then the team will make an application for additional funding to come up with a fully functional system which might be used for any website. Holocaust Essay Topics Ideas Don't become comfy as you reside in a reliably blue state. Reiser's work reveals one particular tefahwhile concealing two, in some instances, quite literally. No women were executed in america sector. I think it is incredible that this kind of loss of human life might have occurred in a period of just 12 decades. Several of these individuals died as a consequence of incarceration and maltreatment. They'll go up and down through the years. Studying the Holocaust is among the most crucial issues that's included into the educational programs not just in the United Stated but also in different countries of the planet. This was among the many lies told. The generals were also very concerned regarding the prospect of partisan war, in other words, war behind the lines in the territories they were planning to conquer. At the close of the war, numerous high-ranking members of the Nazi party fled Germany to likewise escape the outcome of their actions.

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My Journey Through High School Essay - 1284 Words

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Barbie, If Looks Could Kill Free Essays

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Some would argue that Barbie’s thin, but busty and hippy figure, instill in young woman an idea of the perfect body, desired by men and envied by other women, Mekeel Pg 2 ll the while, completely unattainable. â€Å"If Barbie were an actual woman, she would be 5’9†³ tall, have a 39†³ bust, an 18†³ waist, 33†³ hips and a size 3 shoe,† Slayen wrote in the Huffington . â€Å"She likely would not menstruate†¦ she’d have to walk on all fours due to her proportions. † (Ka tz). Many women admit they started worrying about their weight when they were between the age of 4 and six years old, and many of the girls who have or had an eating disorder admitted that Barbie played a huge role in influencing their attitudes toward their bodies. Barbie led young girls to believe, if you want Barbie’s fabulous life, you have to also look â€Å"fabulous†. During the formative ages of 4-6, right about the time young girls receive their first Barbie, they really begin to absorb the social standards around them, and the 1961 gem, â€Å"Slumber Party Barbie†, could not have been a positive influence on young girls. â€Å"Slumber Party Barbie† came equipped with a book titled How to Lose Weight , which offered advice like â€Å"don’t eat,† and a bathroom scale permanently set at 110 lbs. Slumber Party Barbie† is something no good parent would expose their young, impressionable daughter to, and something Mattel wouldn’t even attempt 40 years later. Mattel has had its missteps in the last 20 years, putting feminist across the country up in arms with the 1992 flop â€Å"Teen Talk Barbie†, who famously proclaims that â€Å"math class is tough†. Sure, math class is tou gh, but shouldn’t Barbie be reiterating to girls that math is essential, especially if you want to be just like Barbie and grow up to be a doctor, scientist, astronaut, or whatever you want. Mattel wasted no time silencing their quintessential bimbo following the backlash. Borger). Another major flaw in Barbie portrayed values is her desire for material wealth. Barbie has everything, but it wasn’t always that way. Barbie came from humble beginnings, dressed like Mekeel Pg 3 a typical white, middle-class female of the 1960’s. She continued to evolve into mod Barbie, disco Barbie, and by the 1980s â€Å"she had the taste of a lottery winner,† says M. G. Lord, author of Forever Barbie. â€Å"At the core of this change is class. † (Borger). Barbie suddenly had a dreamhouse mansion, a convertible sports car, and in more recent years, began wearing designer duds from the likes of Ralph Lauren, Christian Dior, and Bob Mackie. Barbie advocates stress that the problem doesn’t lay in Barbie’s appearance, or even her values, but with our perceptions of a doll. After all, Barbie is an inanimate object, something that living women shouldn’t compare themselves to. If Barbie were real she would likely be divorced from Ken and in debt up to her eyes after remortgaging her dreamhouse, but she’s not real. She is a fantasy, which little boys and girls can use when flexing their imaginations to develop a whole world and life for Barbie, as they would see it. It’s the ability to make Barbie into anything they want that makes her so appealing to children. We are in danger of looking at a child’s toy through an adult’s microscope and, of course, seeing all the wrong things. To a child she.. never says she can’t play with you, always smiles, will accompany her owner everywhere, and never shouts. Onto her can be projected wishes and dreams. †(Russel) Barbie has also taken the form of many positively influential female role models like Jackie Onassis Kennedy or Olympic athletes. Having experienced first-hand, amongst girls my age, the damages of low self-esteem and a poor body image, I find it hard to believe that Barbie has played no role in damaging females. Though a six year old might not process the impact at the time, subconsciously she carries the effects of Barbie’s image with her for the rest of her life, affecting the way she sees Mekeel Pg 4 herself and women around her. Sure, Barbie encourages young girl to be whatever they want to be, but only if you’re beautiful. With doll collecting being the second most popular hobby, to stamp collecting, and Barbie being a $1. 5 billion dollar industry, she’s not going anywhere soon. It is a parent’s responsibility to choose their children’s toys wisely, considering how it might impact them. If nothing else, parents should be present in their daughters’ lives contextualizing all these images they encounter in the public and in pop culture, and reinforcing a positive body imagine and self-esteem. Mattel continues to make efforts to bring Barbie to a place of more positive realism, but until woman are accurately represented and positive portrayed by gender specific toys, Barbie could be a serious danger to a young girls psyche, giving a new meaning to the phrase â€Å"if looks could kill. † How to cite Barbie, If Looks Could Kill, Essay examples

Microeconomics Samuelson free essay sample

Explain how the cool head might provide the essential positive economic analysis to implement the normative value judgments of the warm heart. Do you agree with Marshall’s view of the role of the teacher? Do you accept his challenge? In order to achieve the ultimate goal of economic science which is to â€Å"improve the living conditions of people in their everyday lives† (*) a cool head attitude has the knowledge and wisdom acquired through a lifetime relation to the economic momentum. Balancing this with a warm heart compassion vision, and a willingness to improve society, is the most appropriate way to use certain economic models in order to acquire economic sustainability with social improvement. We agree with Marshall’s view which was conceived through a social corporate responsibility. We, as leaders, accept his challenge through developing projects which should be not only profitable but also socially accepted and with respect to the environment. Also, we should use our cool heads to objectively take challenges and make difficult decisions that will lead us to a prosperous society with a sustainable economic growth. *) Economics – Samuelson Nordhaus 18th edition, pg. 6 2. Question 7 . Some scientists believe that we are rapidly depleting our natural resources. Assume that there have only two inputs (labor and natural resources) producing two goods (concerts and gasoline) with no improvements in society’s technology over time. A. Show what would happen to the PPF over time as natural resources are exhausted. B. How would invention and technological improvement modify your answer? On the basis of this example, explain why it is said that â€Å"economic growth is a race between depletion and invention. It is said that economic growth is a race between depletion and invention because the continuous use of the natural resources of a country will tend to deplete them, over a long period of time but in the contrary, the invention of new technologies can extend a country PPF – making a race between them, since both things usually happens at the same time. Chapter 2 1. Question 1 . What determines the composition of national output? In some cases, we say th at there is â€Å"consumer sovereignty† meaning that consumers decide how to spend their income on the basis of taste and market prices. In other cases, decisions are made by political choices of legislatures. Consider the following examples: transportation, education, police, energy efficiency of appliances, health-care coverage, television advertising. For each, describe whether the allocation is by consumer sovereignty or by political decision. Would you change the method of allocation for any of these goods? National Output includes the total amount of goods and services that a country is capable to produce in a certain period of time. It is also known as the country? s GDP = C+I+G+(X-M). A country has the responsibility to decide what outputs to produce and in what quantity, how to produce them and for whom should they be produced. In a market society, the national output is influenced by consumer tastes and the resources and technology available in the country. On the other hand, governments may intervene to compensate for market failures that usually occurs inside a country, or to fund social programs. Here there are some examples that show mixed economies between consumer sovereignty and government interventions. Transportation Generally speaking transportation means are controlled by the private sector through companies that provide transportation services such as airlines, company taxis, trains, etc. Inside a country, there also exists public transportation for those people who can not afford the private one. In Peru, specially for the ground transportation, the government plays a fundamental role regulating tariffs, taxes and making sure we have a safe an organized transportation system in the country for the society. Education In a country generally exists public and private education. Usually, private schools tend to have a higher price but also delivering high quality and it is market driven. There are different private schools with different prices in the market. On the other hand, public education is provided by the government to lower socio economic levels in order to make education accessible to the whole population. Government applies procedures in order to maximize its quality. In Peru for example the government is trying to break the poverty cycle incentivizing the rural population to attend school through monetary allowances. There are also regulations in terms of the requirements asked for being a public teacher, the education syllabus of the country, etc. Police Police is a government regulated service to the population which is part of the arm forces of a country. Its function is to assure security to the population. However, in some countries where there is scarce resources allocated to this public entity, private police petrol are created. In Peru even in rural areas where police is not present, communities organize themselves to fight against crime. Energy efficiency of appliances Energy is a strategic scarce resource for a country. Therefore, the importance of having government regulations to control it, its tariffs while having private companies supplying the service in order to assure this service on the long term to the community. Health care coverage Health care is a private and public good also. Government provides health care services to the majority of the population by building public hospitals and providing insurance coverage programs. Usually private health care provides a higher quality service and is accessible to higher socio-economic levels of the population. Television advertising It is a consumer sovereignty good, driven basically by program ratings and market price. Usually, the government owns public television channels but even in those cases the advertising is not controlled. What government usually does is to control advertising of some products such as cigars, or the time and programs where you can advertise such products. Would you change the method of allocation for any of these goods? We would not change the method of allocation for any of the goods mentioned above. We think that in the examples mentioned, a mixed economy of public and private goods is the best to make services accessible to the whole population while having a market driven economy. However, if we customized this question to the Peruvian reality, we think that an example where government could intervene more is the banking regulations entity which should improve the credit policies in order to create a sustainable finance growth. 2. Question 3. This chapter discusses many â€Å"market failures† areas in which the invisible hand guides the economy poorly, and describes the role of government. It is possible that there are, as well, â€Å"government failures† government attempts to curb market failures that are worse than the original market failures? Think of some examples of government failures. Give some examples in which government failures are so bad that it is better to live with the market failures than to try and correct them. A possible failure can be represented by a tax system that discourages private and foreign investments in the country that at the end will affect government’s income. Another example is a bad monetary policy in which inorganic emission of currency will impact over inflation rate dramatically, affecting purchasing power of nationals (Peru 1985) . During this time Peru suffered more than 7000% inflation generating scarcity of basic goods and creating a parallel black market. During this time, another bad example would be that the banking system was nationalized and generated a lack of confidence in the population towards the banking system, loosing a high percentage of the savings of the population decreasing the country’s investment. Chapter 3 1. Question 1 . Explain why the price in competitive markets settles down at the equilibrium intersection of supply and demand. Explain what happens if the market price starts out too high or too low. In competitive markets, the prices settles down at the equilibrium intersection of supply and demand because at that point the market finds the optimal balance between the amounts willingly supplied and the amounts of what consumers are willing to demand. If the market price starts out too high, because of the high price, the suppliers are willing to sell more than what consumers are willing to demand, and this would produce a surplus of the product in the market, having to lower the price in order to reach the correct equilibrium. If the market price starts too low, the quantity demanded by consumers is higher from the amount the suppliers are willing to sell at that price level, and this generates shortages of the product in the market, this will generate the prices to rise in order to reach also the correct equilibrium. At the equilibrium price, there are no surpluses or shortages and the market is correctly balanced. Question 7. Examine the graph for the price of gasoline in Fig 3-1, page 46. Then, using a supply-demand diagram, illustrate the impact of each of the following on price and quantity demanded. a. Improvements in transportation lower the costs of importing oil into the United States in the 1960s. †¢As imports cost falls, the supply increases its quantity. †¢The supply curve therefore shifts to the right . †¢The producers reduces the price Q (+) , P (-) b. After the 1973 war, oil producers cut oil production sharply. †¢Since, the suppliers cut production, the supply curve moves left and the price increases †¢The quantity demanded decreases †¢ Q (-), P ( +) c. After 1980, smaller automobiles get more miles per gallon. †¢The technological improvement decreases demand of gasoline. †¢Shifting the demand curve to the left, the price decreases and also the quantity demanded. †¢ Q ( +), P(-) d. A record-breaking cold winter in 1995-1996 unexpectedly raises the demand for heating oil. Since heating oil and gasoline both come from the same natural resource, we are assuming that the supply for gasoline would shift to the left, since more production of heating oil would be made, considering that the PPF remains constant. Shifting the supply curve to the left would increase gasoline? s price and reduce the quantity demanded. †¢ Q( ), P(+) e. A global economic recovery in 1999-2000 leads to a sharp upturn in oil prices. †¢Prices increased to the new point of supply – demand equilibrium. †¢Shifting the demand curve to the right †¢Higher price and quantity. †¢ Q( +), P ( +) Chapter 4 Question 4. Consider a competitive market for apartments. What would be the effect on the equilibrium output and price after the following changes (other things held equal)? In each case, explain your answer using supply and demand. a. A rise in the income of consumers – This effect would shift the demand curve to the right increasing the price of the apartments and also the quantity supplied. b. A US$10-per-month tax on apartment rentals – This effect would shift the supply curve to the left, increasing the prices of apartments, therefore reducing the quantity demanded. . A government edict saying apartments cannot rent for more than US$200 pero month – By fixing a low price of US$200 would discourage suppliers to rent apartments and the demand for them would increase because of the low price – this would generate a shortage of apartments in the market. d. A new construction technique allowing apartments to be built at half the cost – Th is would incentive suppliers to build more apartments, reducing the price of the apartments, and this would increase the quantity demanded in the market.