Table of Contents Introduction Chapter I. The Purpose ... - BritskÃ© listy

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210In case external assessment dominates in an economic system the accentis put on indicators which may considerably differ from performance. Thepriority of external assessment encourages economic agents to demonstrateindicators expected by the auditors assessing the results of their operations.In real economy overall performance includes a number of particularperformances such as output, sales revenue, mass of profits, profitability,capitalization… The indicators describing the behaviour of such particularperformances may move and usually move in different directions, which istypical of both economic and non-economic goal setting. Although in aneconomic system based on non-market values the lack of a general criterionresults in a continuous expansion of indicators controlled by upper managementlevels. The problem was so acute in the USSR that attempts were made ofregulatory restriction of the number of indicators to be reported by enterprisesto ministries and agencies.It should be noted that the diffusion, erosion of private ownershipinduced by corporate quasi-ownership results in phenomena similar to thoseobserved in the functioning of economic systems beyond the economic domain.The scandal about the manipulations of the management of Enron, apower giant ranking seventh in the USA, showed that the development ofcorporate ownership enabled manipulations through deliberate distortion ofinformation. What happened to Enron (and other companies caught red-handedsuch as WorldCom, Tyco or HealthSouth) essentially tallies with «write-ups»made by most enterprises in the Soviet Union. It is very likely that the USADepartment of Justice and the Securities and Exchange Commission (SEC) willencounter similar practices in future.Regulators of stock market and government supervisory authoritiesbehave today very similar to the defunct ministries and agencies of the USSR.Both are external to the operations of economic agents but require (required)from enterprises within their jurisdiction (investment objects) increasingly210
211detailed reports on an extended “body of indicators”. The inevitable differencebetween indicators and performance forms and feeds the growing supervisorysystem.A telling illustration is the Sarbanes-Oxley Law enacted in 2002 in theUSA regulating the operations of quoted companies (public companies) andaimed at stiffening the requirements to internal control systems and financialaccounting. According to Malory Factor, the founder of the Bank of New York,this law is “the government's worst act of violence”.A fundamental difference between the systems of performanceassessment under the two modes of goal setting lies in the degree of theirelasticity.In market environment business revenue and profit have no strictdelimitation of positive and negative performance. Different options ofperformance assessment are available: higher or lower revenue, varying levelsof profitability. Temporary losses are also possible.Non-economic goal setting is based on a rigid discrete assessment systemthat is ambiguous and contradictory. The assessment is based on theestablishing a correspondence between actual performance and approvedtargets.Budget Constraint and Deficit IssueThe concept of budget (financial) constraint was introduces by thefamous Hungarian economist Janos Kornai 29 who suggested the followingdefinition: “A budget constraint is tight if it governed by iron discipline: acompany may spend as much money as is available. It must cover expenses bysales revenue. It may borrow but banks are only willing to extend loans on29 Janos Kornai, Deficit. — Moscow, Nauka, 1990.211
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Table of ContentsIntroductionChapte
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4suggests answers to whether econom
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6require a relevant form. It might
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8that there is no other field of in
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10We should particularly emphasize
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12It is difficult to say who first
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14Let’s refer to the source:“On
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16and describe the algorithm or tec
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18instance, product sufficiency for
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20economic processes. Because of th
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22consumption of game does not cons
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24man. The essence of these transfo
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26tools that enable economics to pe
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28overcoming crises in financial an
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30Besides, I would like to notice t
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32create affine information product
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34foremost correlated with the name
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36ethics and aesthetics these effor
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38the need to sustain these activit
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40complicate the issue of securing
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42The key number used to measure ec
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44dine in a restaurant free of char
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46information to management that en
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48empirically prove their hypothese
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50At the same time, the use of the
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52However, economics constantly tri
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54So what’s behind this mistake,
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56that level of descriptiveness the
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58Economic and mathematical models
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60invariably study national, corpor
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621950s the Soviet radio broadcasts
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64I believe the reader is aware of
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66It is very important to say that
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68MethodOne of the evident indicato
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70change the structure of resources
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72Under crises, in time trouble sit
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74A ship with the economist on boar
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Chapter II. Price, Efficiency, Qual
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78The data from Table 1 are graphic
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80The 5 th month: 100 pence х 700,
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82The third problem to be considere
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84So economics has never lacking in
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86each subsequent commodity item pu
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88I have made an axe and you, reade
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90The present markets of capital go
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92If the price of the new equipment
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94The bargain, if made, will be set
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96Fig. 3Productionvolume innaturalu
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98Fig. 4Consumptionvolume innatural
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100VolumeFig. 6DEMANDSUPPLYS T С S
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102Overstock is known as opposite t
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104which involves costs (lower pric
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106The equilibrium of supply and de
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108However, the growing share of
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110Our approach to the exchange pri
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112predominant demand growth (2) su
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114In this case the equilibrium pri
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116suggest is aimed at revealing th
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118It should be noted that here we
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120Labour CostsBefore discussing th
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122To put it straight the economic
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124What does contemporary society d
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126Level of money incomeFig. 21Supe
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128profits. Whereas profit-making c
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130Fig. 22 depicts a situation aris
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132Here we face the well-known chic
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134certain time period, i.e. month?
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136When such fluctuations are withi
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138economics textbooks which insist
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140In the ordinary (not extreme) co
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142It is generally assumed that the
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144However, particular estimates ju
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146E = Q 2 - FQ1 2 = (Q2 - Q 1 ) -
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148QF11= FbThe common approach to t
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150At the same time such coefficien
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152J. Sloman defines efficiency as
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154It is clear that in our example
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156resources. Therefore, “the mar
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158The main property turns into a c
Page 160 and 161: 160These parameters included in qua
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Page 176 and 177: 176board of honour and cash bonus a
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Page 182 and 183: 182Goal Setting and PropertyEconomi
Page 184 and 185: 184available patterns of ownership
Page 186 and 187: 186seizure (basically fiscal) or ex
Page 188 and 189: 188Commodity-money relations make t
Page 190 and 191: 190However, neither such steps nor
Page 192 and 193: 192other lower interests representi
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Page 196 and 197: 196BalanceConsumingfactoriesА B C
Page 198 and 199: 198It should also be noted that the
Page 200 and 201: 200The centrally approved prices (b
Page 202 and 203: 202The most frequently found in mar
Page 204 and 205: 204The above definition of the comp
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Page 208 and 209: 208entire economic system of the US
Page 212 and 213: 212“conservative” or “orthodo
Page 214 and 215: 214It should be explained why in ma
Page 216 and 217: 216Output, demand (mln pieces)Produ
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Page 224 and 225: 224To a certain extent the “gover
Page 226 and 227: 226Second, notwithstanding obvious
Page 228: 228prices (advertising, packing, et
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Table of Contents Introduction Chapter I. The Purpose ... - BritskÃ© listy

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