Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.
Subsidies create spillover effects in other economic sectors and industries. A subsidized product sold in the world market lowers the price of the good in other countries. Since subsidies result in lower revenues for producers of foreign countries, they are a source of tension between the United States, Europe and poorer developing countries. While subsidies may provide immediate benefits to an industry, in the long-run they may prove to have unethical, negative effects. Subsidies are intended to support public interest, however, they can violate ethical or legal principles if they lead to higher consumer prices or discriminate against some producers to benefit others. For example, domestic subsidies granted by individual US states may be unconstitutional if they discriminate against out-of-state producers, violating the Privileges and Immunities Clause or the Dormant Commerce Clause of the United States Constitution. Depending on their nature, subsidies are discouraged by international trade agreements such as the World Trade Organization (WTO). This trend, however, may change in the future, as needs of sustainable development and environmental protection could suggest different interpretations regarding energy and renewable energy subsidies.
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- Do you agree or disagree with the following statement? It is better to use printed material such as books and articles to do research than it is to use the internet. Use specific reasons and examples to support your answer. 3
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- Do you agree or disagree with the following statement It is much easier for people to achieve success without their family members’ help now than in the past? 80
Transition Words or Phrases used:
conversely, however, if, may, regarding, so, while, for example, such as, as a result
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 16.0 15.1003584229 106% => OK
Auxiliary verbs: 7.0 9.8082437276 71% => OK
Conjunction : 14.0 13.8261648746 101% => OK
Relative clauses : 4.0 11.0286738351 36% => More relative clauses wanted.
Pronoun: 14.0 43.0788530466 32% => OK
Preposition: 74.0 52.1666666667 142% => OK
Nominalization: 13.0 8.0752688172 161% => OK
Performance on vocabulary words:
No of characters: 2790.0 1977.66487455 141% => OK
No of words: 501.0 407.700716846 123% => OK
Chars per words: 5.56886227545 4.8611393121 115% => OK
Fourth root words length: 4.73107062784 4.48103885553 106% => OK
Word Length SD: 3.12425305116 2.67179642975 117% => OK
Unique words: 238.0 212.727598566 112% => OK
Unique words percentage: 0.4750499002 0.524837075471 91% => More unique words wanted or less content wanted.
syllable_count: 883.8 618.680645161 143% => OK
avg_syllables_per_word: 1.8 1.51630824373 119% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 5.0 9.59856630824 52% => OK
Article: 10.0 3.08781362007 324% => Less articles wanted as sentence beginning.
Subordination: 7.0 3.51792114695 199% => OK
Conjunction: 3.0 1.86738351254 161% => OK
Preposition: 4.0 4.94265232975 81% => OK
Performance on sentences:
How many sentences: 23.0 20.6003584229 112% => OK
Sentence length: 21.0 20.1344086022 104% => OK
Sentence length SD: 50.0407017701 48.9658058833 102% => OK
Chars per sentence: 121.304347826 100.406767564 121% => OK
Words per sentence: 21.7826086957 20.6045352989 106% => OK
Discourse Markers: 3.69565217391 5.45110844103 68% => OK
Paragraphs: 4.0 4.53405017921 88% => OK
Language errors: 0.0 5.5376344086 0% => OK
Sentences with positive sentiment : 12.0 11.8709677419 101% => OK
Sentences with negative sentiment : 10.0 3.85842293907 259% => Less negative sentences wanted.
Sentences with neutral sentiment: 1.0 4.88709677419 20% => More facts, knowledge or examples wanted.
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.0101661490922 0.236089414692 4% => The similarity between the topic and the content is low.
Sentence topic coherence: 0.00364180340348 0.076458572812 5% => Sentence topic similarity is low.
Sentence topic coherence SD: 0.0170815720778 0.0737576698707 23% => Sentences are similar to each other.
Paragraph topic coherence: 0.00806263064935 0.150856017488 5% => Maybe some paragraphs are off the topic.
Paragraph topic coherence SD: 0.0139648859273 0.0645574589148 22% => Paragraphs are similar to each other. Some content may get duplicated or it is not exactly right on the topic.
Essay readability:
automated_readability_index: 15.7 11.7677419355 133% => OK
flesch_reading_ease: 33.24 58.1214874552 57% => Flesch_reading_ease is low.
smog_index: 8.8 6.10430107527 144% => OK
flesch_kincaid_grade: 13.8 10.1575268817 136% => OK
coleman_liau_index: 15.03 10.9000537634 138% => OK
dale_chall_readability_score: 9.5 8.01818996416 118% => OK
difficult_words: 153.0 86.8835125448 176% => OK
linsear_write_formula: 14.0 10.002688172 140% => OK
gunning_fog: 10.4 10.0537634409 103% => OK
text_standard: 14.0 10.247311828 137% => OK
What are above readability scores?
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Better to have 5 paragraphs with 3 arguments. And try always support/against one side but compare two sides, like this:
para 1: introduction
para 2: reason 1. address both of the views presented for reason 1
para 3: reason 2. address both of the views presented for reason 2
para 4: reason 3. address both of the views presented for reason 3
para 5: conclusion.
So how to find out those reasons. There is a formula:
reasons == advantages or
reasons == disadvantages
for example, we can always apply 'save time', 'save/make money', 'find a job', 'make friends', 'get more information' as reasons to all essay/speaking topics.
or we can apply 'waste time', 'waste money', 'no job', 'make bad friends', 'get bad information' as reasons to all essay/speaking topics.
It is not exactly right on the topic in the view of e-grader. Maybe there is a wrong essay topic.
Rates: 3.33333333333 out of 100
Scores by essay e-grader: 1.0 Out of 30
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Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.