Abstract:

The study shall show changes have occurred in the supply and demand of coal & iron-

ore in the Australian economy. These are two resources that are very much essential

for Australia. They add significantly to the country’s GDP. But the demand & supply for

these two resources have fallen drastically in China. This induced a greater affect for

the Australian manufacturing organizations. But their supplies have been increasing

considerably in Australia. Ironically, their demands have dropped very much. Since

2013 this trend has begun. It is still continuing. The Council of Financial Regulators

thinks it differently. Firstly, the council thinks this situation will change by 2018.

Secondly, supply will be constant. Thirdly, demand for these two resources by go up.

Table of Contents

1.0 Introduction: 2

1.2 Incomes: 2

1.3 Price of goods: 2

1.4 Price of related goods (Complements & (Substitutes): 3

1.5 Tastes & Preferences: 3

1.6 Income distributions: 3

2.0 Factors affecting the supplies of coal & iron ore: 3

2.1 Price of the said goods: 4

2.2 Prices of other goods: 4

2.3 Price of factor inputs: 4

2.4 Technology: 4

2.5 Government’s taxation policy: 5

3.0 The by and large effects: 5

4.0 Conclusion: 6

5.0 References 6

1.0 Introduction:

Factors affecting the demand for coal & iron ore:

Factors affecting the demand for these resources are given below:

1.2 Incomes:

The demand for these resources depends upon the peoples’ income. It is the

rudimentary factor. Normal goods pose a positive income effect. Inferior goods pose a

negative income effect. As incomes of people rise, demand falls for inferior commodities

(Carboni, 2014).

1.3 Price of goods:

As price of iron- ore and coal rises, their demand falls. It pertains to income effect. As

price of iron- ore and coal falls, their demand falls. Consumption of iron and coal falls as

its price rises.

1.4 Price of related goods (Complements & (Substitutes):

The demand for coal & iron is influenced when prices of other commodities change. The

goods may be substitutes or complements (Kim and Lee, 2014). For example when the

price of iron rises, then price of steel also rises. These are complementary goods.

Again, if the price of petroleum soars high, then biomass sources can be used. These

are substitute commodities.

1.5 Tastes & Preferences:

The demand for coal and iron is ordained by the consumers’ preferences & tastes. Their

demand may vary according to the use of products. Their demand may vary over times

also. Thus, to supply iron and coal, their demand is essential for the suppliers. For

example, railways of many countries used coal to run railway engines. But now they

mostly run on electricity. Thus, consumers’ preferences have changed. India is an

example where coal was used for cooking. But now the consumers use liquefied

petroleum gas for cooking.

1.6 Income distributions:

When the incomes in the society are equally distributed, all have equal purchasing

power (Miron and Alexe, 2014). Then every person in the society can purchase

commodities as per their preferences. The demand for costly commodities drops when

income is equally distributed. People consume more when their income soars. People

consume less when their income is less. But equal income distribution is a rarity in the

society.

2.0 Factors affecting the supplies of coal & iron ore:

Several factors influence the supply of these two resources. These factors are as

follows:

2.1 Price of the said goods:

The supply of goods and their prices are positively related. When price rises, so does

the supply. When the price falls, so does the supply. Greater profits are gotten by

suppliers when prices are exorbitant.

2.2 Prices of other goods:

Every resource has alternative uses. Not only their price but goods also depend on

prices of other commodities. When prices of other good rises, it is profitable for the said

commodity. It means firms alter their limited resources. Thus, firms produce some other

goods. For example if the prices of thermal energy rise, then the use of hydroelectricity

will be more. When the cost of meat rises, non-veg pizza is costly to make. Instead, the

pizza joints can make cheese pizzas. It is because meat is one of the essential

elements of non-veg pizza.

2.3 Price of factor inputs:

The costs of productions rise due to two situations as follows:

a) Firstly, if the cost of an input of production rises.

b) Secondly, if amounts payable to the inputs of production increases.

It means the profitability drops. Thus, the suppliers will slash the prices of goods that

they supply. The supply of goods shall rise if the prices of the production input drop.

Thus, production cost also drops. Subsequently, there is the hike in the profit margins.

For example, if the production cost of iron drops, then more steel can be produced. If

the cost of cement rises, the production of buildings will not be profitable. Thus, fewer

buildings will be made. But the producer will always try to pass on the extra amount to

the consumers.

2.4 Technology:

The supply of commodities is influenced by technological leapfrogging. If the technology

used in the production process is improved or advanced, then the cost of production is

lessened. Thus, the profit margin is hiked (Von Broembsen, 2012). Outdated technology

leads to incur more costs of production. This affects the supply of goods. Thus, the

supply decreases considerably.

2.5 Government’s taxation policy:

There can be rises in the cost of production and taxation (Von Broembsen, 2012). This

induces the reduction in the supply of goods. Because of less margin of profit it

happens. The government can bestow tax concessions or subsidies. It increases the

supply. Thus, firms become more profitable.

3.0 The by and large effects:

Since 201, there have been bulk investments by the Australian investors. It is mainly

due to a potent demand from the Chinese energy sector. At this time, the costs of iron

and coal were too exorbitant. Thus, the investors became greedy. They thought of

making the best use of this situation. The balance of trades was favorable for Australia.

It made the Australian economy flourish. The profile of the resource output is principally

based on the Chinese demand number. There were mere chances of growth in the

domestic market as per consumer demand for iron & coal. The GDP of the country is

mainly dependent on the yields from this sector. Primary concerns are about the growth

in the production of iron and coal. It is because the demands have dropped for coal and

iron. Australia’s resource boom happened due to the Chinese demand. There was a rise

in the production of steel from 489-832 million tons. By the year 2030 this matured

industry of China will decline. It is because they build scraps from older steel. So, the

economy will see a drop in the demand for coal and iron. The nation has made the

export prices lower. It is to maintain the same production level. Thermal energy uses

are degrading. It is because of the Chinese economy’s growth. Secondly, it is due to

environmental effects. Hydro-wind is a substitute for the thermal sector. Hydro-wind’s

increase caused a drop in the demands for the thermal energy. From the year 2006 to

2012, there was an increasing demand for coal. Thus, its consumption increased

considerably in China. But last year (2014), it dropped more than two percent. The

growth of the Indian economy is also the matter of fear. It is because quality coal and

iron is required to widen its infrastructure. South-east Asian nations will see more

growth in their demands. Thus, poor demand in the Chinese economy will offset. It is

thus, a golden opening for exporters in Australia (Financial Review, 2015).

4.0 Conclusion:

Challenges are faced by the Australian economy due to drop in demand of iron and

coal. It is for the decrease in the Chinese growth. The current ROI is poorer for the

country’s resources sector. But economists see a ray of hope from South-east Asian

countries’ demand. They argue the losses of the investors in the resource & mineral

sector.

5.0 References

Carboni, G. (2014). Term Premia Implications of Macroeconomic Regime

Changes. Macroecon. Dynam., pp.1-25.

Financial Review, (2015). Resources perfect storm. [online] Available at:

http://www.afr.com/opinion/australia-has-not-recognised-the-change-in-chinese-

demand-for-iron-ore-and-coal-20150405-1mf00o [Accessed 8 Aug. 2015].

Kim, S. and Lee, J. (2014). INTERNATIONAL MACROECONOMIC

FLUCTUATIONS.Macroecon. Dynam., pp.1-31.

Miron, D. and Alexe, I. (2014). Capital Flows and Income Convergence in the European

Union. A Fresh Perspective in View of the Macroeconomic Imbalance

Procedure. Procedia Economics and Finance, 8, pp.25-34.

Von Broembsen, M. (2012). People want to work, yet most have to labour: Towards

decent work in South African supply chains. Law, Dem. & Dev., 16(1).

KHA 117603

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In the following question, they have asked what are the issues surrounding the use of random number in simulation. You have given 5 points. Kindly elaborate the same.

Question:

Answer

Following are the issues surrounding the use of random numbers  in simulation:

1.Uniformity

2.Independence

3.Efficiency

4.Replicability

5.Long Cycle Length

Monte-carlo simulation technique requires the generation of a sequence of random numbers that is an integral part of the simulation model. The sequence of random numbers help in choosing random observations from the probability distribution.

Random numbers, used in simulation exercises are generated using digital computers.

*Multiplicative Congruential Random Number Generation Method:

Basic Relationship:

X_i+1 = a X_i (mod m), where a ³ 0  and  m ³ 0

Most natural choice for m is one that equals to the capacity of a computer word.

m = 2^b (binary machine), where b is the number of bits in the computer word.

m = 10^d (decimal machine), where d is the number of digits in the computer word.

The max period(P) is:

For m a power of 2, say m = 2^b, and c ¹ 0, the longest possible period is P = m = 2^b , which is achieved provided that c is relatively prime to m (that is, the greatest common factor of c and m is 1), and a = 1 + 4k, where k is an integer.

For m a power of 2, say m = 2^b, and c = 0, the longest possible period is P = m / 4 = 2^b-2 , which is achieved provided that the seed X₀ is odd and the multiplier, a, is given by a = 3 + 8k or a = 5 + 8k, for some k = 0, 1,…

For m a prime number and c = 0, the longest possible period is P = m – 1, which is achieved provided that the multiplier, a, has the property that the smallest integer k such that a^k – 1 is divisible by m is k = m – 1,

In the given demonstration , X_i+1 = a X_i (mod m)

Here, a=6, m=17, x₀=1, since m-1=16 is the 2 digit random number, therefore it will generate 2-digit random numbers.

So, X₁ = a X₀ (mod m)=6*1(mod 17)=6/17=06

X₂ = a X₁ (mod m)=6*6(mod 17)=36/17=02

X₃ = a X₀ (mod m)=6*2(mod 17)=12/17=12

The student got the following answer from one of his friend.  Please provide your suggestions for the answer given.

Question : What are the issues surrounding the use of random number in simulation.

Answer : Random numbers are integral part of simulation as it allows verification of model based on unbiased number generation. However there are multiple random number generation techniques varying from simple to complex calculation. Every model can only respond to particular set of random numbers only. Therefore it becomes quintessential to pin point random number generation technique to be used for any specific model.

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Hearing is a one of the vital senses of a human being. The organ involved in hearing is the ear.

The transmission of the sound waves from the source occurs through the external auditory canal

to the middle ear. In the middle ear, there are small bones commonly referred to as the ossicles

which include the malleus, incus and stapes that convert the sound waves into electrical stimulus

that is detected by the sensory neurons in the ear. The main nerve that is involved in the process

of hearing is known as the vestibular cochlear nerve. Some of the causes of damage to the

hearing system include trauma, drugs such as aminoglycosides, infections, and loud noise.

(NIDCD 2014).

The damage to the ear results in divergent symptoms mainly depending on the cause.

Some of the most common symptoms are ear-pain, discharge of pus or blood, tinnitus i.e. ringing

sounds in the ear, irritation and itchiness. The symptoms of damage to the hearing system i.e. the

ear, may appear suddenly or graduals in a manner that they are difficult to detect easily. It thus

calls for the individuals or parents to be highly suspicious and be able to identify the issue

quickly using the symptoms that appear early (PAMF or Palo Alto Medical Foundation-

2015). If not treated, any minor damage may result in hearing loss. Early treatment is hence

advised with the aim of eliminating the problem before it becomes a permanent issue i.e. loss of

hearing. Nevertheless, if the cause e.g. trauma was severe at the first encounter, it might directly

cause loss of hearing. Damage to the ear may result in difficulty in hearing the voice of people

clearly and thus leading to misunderstanding of the info that was being conveyed (Asha Sphere

2013).

In addition; the affected individual keeps on telling people to repeat what they have already said.

Another symptom that could be indicative would be an individual listening to music or watching

the television whose volume is high. On the other hand, some people tend to hear the sounds of

low frequency as loud sounds that are commonly referred to as hyperacusis. This mainly results

from the damage to a muscle known as the stapedius muscles that are located in the middle ear

where it supports the small bones of the middle ear i.e. the ossicles (Hidden Hearing- ND).

Such individuals also tend not to hear a doorbell or even a phone ringing. In children, there are

several symptoms that show that there is damage to the hearing system. One major symptom is

that the child lacks to get startled by sounds of high frequency. In addition, affected children tend

to talk loudly and learn to speak slowly (Mayo Clinic- 2014).

Currently, the researchers have solved the problem of hearing for the children born

lacking hearing nerve. In this case, the cochlear implants and the hearing aids cannot help. Such

individuals cannot perceive any sound no matter the frequency or amplitude. The researchers

have come up with an auditory brainstem implant that can induce the nerves located in the

brainstem directly. In this way, it eliminates the need for the cochlear nerve (BHI 2015). Another

study carried out recently has shown that supplements of vitamins to be helpful in the prevention

of hearing loss that is induced by noise. The experiment was done in a mouse by the use of

Vitamin B3. In addition, the vitamin supplements are effective in treating some of the age-related

diseases caused by the lack of that protein. The people of 65 years or more are getting trapped by

hearing loss known as presbycusis. ( HLAA- 2015)

Treatment of a patient who present with the symptoms of hearing system damage

depends on the cause. In case a person has pus discharging from the ear, the likely diagnosis is

otitis media and hence they are given antibiotics. In case the cause was trauma, a surgery may be

performed. For people with hearing loss, hearing aids are used as a mode of treatment. In

children too, the reason through the various tests detected first and then the exact treatment is

decided (NCPH – 2015).

Prevention mainly entails strategies that are aimed at preventing the different causes of

the damage. One main strategy is good hygiene of the ears to ensure that there are no infections.

In addition, one ought not to listen to music at a high volume. Also, regular ear check-up is

necessary for all but be conscious about children and infants. One should also avoid the use of

excessive drugs such as aminoglycosides (Caring, 2007).

References

Sound and Hearing Loss: Symptoms of Damage

Citation

1. NIDCD. (2014). Noise-Induced Hearing Loss. Retrieved May 09, 2015, from

http://www.nidcd.nih.gov/health/hearing/pages/noise.aspx

2. BHI. (2015). Signs of hearing Loss. Retrieved May 09, 2015, from

www.betterhearing.org/hearingpedia/signs-hearing-loss

3. Asha Sphere (2013) Know The Sign of Hearing Loss. Retrieved May 09, 2015, from

the site

http://www.asha.org/public/hearing/Hearing-Loss/

4. Hidden Hearing (ND). Hearing Information. Retrieved May 09, 2015, from

http://www.hiddenhearing.co.uk/hearing-information/

5. Mayo Clinic (2014). Diseases and conditions Hearing Loss- symptoms. Retrieved

May 09, 2015, from http://www.mayoclinic.org/diseases-conditions/hearing-

loss/basics/symptoms/con-20027684?reDate=09052015

6. Caring (2007). Hearing Loss Signs- 6 Early Warning Signs of Hearing Loss.

Retrieved May 09, 2015, from https://www.caring.com/articles/early-warning-

signs-of-hearing-loss

7. PAMF (Palo Alto Medical Foundation) (2015). Symptoms of Hearing Loss in

Children. Retrieved May 09, 2015, from

http://www.pamf.org/hearinghealth/facts/children.html

8. NCPH (2015). Early Hearing detection and Intervention Program. Retrieved May

09, 2015, from

http://www.ncnewbornhearing.org/lateonset.htm

9. HLAA (2015). Hearing Loss Basics Retrieved May 09, 2015, from

http://www.hearingloss.org/content/basic-facts-about-hearing-loss

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Monroe Doctrine

The Fifth US President James Monroe had announced about Monroe Doctrine in his speech on

December 2, 1823.This had a significant role that dealt with the development of the country.

According to this doctrine, the United States that just got independence would not accept power

of European countries to interfere in the affairs of the Western Hemisphere countries. But, in

case the European tried to interfere, the war would be the only option to retaliate.

Not only the President Monroe, but the state secretary John Quincy Adams was much more

responsible for stating the doctrine.

In 1822, none other than Bolivia were dependent under control of some other countries. Only

this one in Latin America had to follow the Spanish rules and regulations. Moreover, some other

islands in Caribbean continued under the control of Spain. In April 1823, when the war appeared

in the countries of Europe, the US government was horrified about those colonies in the US that

were in Spanish control. They thought the probability of controlling could be ceded to either

Quincy Adams, the secretary of the state, explained the concern outlining through a letter to

Hugh Nelson, the minister of Spain. The important countries like Spain, Britain, France and

Russia got involved and Britain tried to put an effort in front of the United State, which was

refused by Adams. When Adams argued in the cabinet of the president, then he forced on the

unilateral declaration and the president agreed. This declaration had some principles and these

were together known as Monroe doctrine. These principles are as follows-

 The colonization for the Western hemisphere would not be possible as it would not be

 There is a huge difference between the political system of Europe and America.

 There would be the refrain from the contribution of the United States in the wars of

 Any interference in the Western Hemisphere would be regarded by the US as a danger to

The United States invoked this doctrine in different areas and all those countries got their right

position. It took decades to settle and make it perfect for the nation, but lastly it succeeded.

Reference- http://www.u-s-history.com/pages/h255.html

http://www.ask.com/history/monroe-doctrine-important-4e43784554899ff4#full-answer

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