spacenab

Spacenab

Log in

 Password
"Post your contents, writings, articles, info-graphics, and more on spacenab."
sign up with facebook
Create a new post
Mike Brown

GM 545 Entire Course Business Economics

Mike Brown

GM 545 Entire Course Business Economics

https://homeworklance.com/downloads/gm-545-entire-course-business-economics/

( GM 545 Business Economics Week 1 )

 

GM 545 Business Economics Week 1 Supply and Demand (graded)

 

Question (1): Demand and Supply

Let’s discuss the tutorial Understanding and Applying Supply and Demand in our Lecture this week.

(a) What is the difference between a change in demand versus a change in quantity demanded?

(b) A change in supply versus a change in quantity supplied?

(c) Why is it so important to differentiate between these similar-sounding terms?

 

Question (1): Elasticity

Let’s discuss three different types of Elasticity:

1- Price Elasticity of Demand
2- Income Elasticity of Demand
3- Cross Elasticity of Demand

What are the differences between these different types of Elasticity?

How can you apply the above concepts on your jobs?

 

The best way to determine whether any product is elastic or inelastic is to ask yourself whether there is a substitute for that product or not.

The Gas example is a bit confusing. On one hand, some people view gas as inelastic since regardless the increase in the gas price, you have to buy it. On the other hand, other people view gas as elastic since there are substitutes such as other sources of energy.

Based on the above discussion, what is your opinion? Is gas elastic or inelastic?

 

Question (2) – APPLICATION on Demand and Supply

 

Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.).

Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T).

 

 

Question (3): Change in Demand Versus Change in Quantity Demanded

What is the difference between ‘change in demand’ and ‘change in quantity demanded’? Can we use the two terms interchangeably?

What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product.

Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?

 

What do we mean by Total Revenue test of Elasticity? Any Examples?

 

Question (4): Price Ceiling and Price Floors

In market equilibrium, the price equilibrium is found where demand equals supply. Let’s discuss the following 2 scenarios:

  • For your selected product, if the government places a mandated price ABOVE the equilibrium price, how would this affect the market equilibrium?
  • For your selected product, if the government places a mandated price BELOW the equilibrium price, how would this affect the market equilibrium?
  •  
  •  

                                                                ( GM 545 Business Economics Week 2 )

 

GM 545 Business Economics Week 2 Perfect Competition (graded)

 

Question (1): General Concepts

What do we mean by average productivity (AP) and marginal productivity (MP)?

What is the relation between average productivity and marginal productivity?

Examples?

 

In chapter 12, our focus is on the pure perfect competition market. However, there are three other different market structures – Monopolistic Competition, Oligopoly, and Monopoly. What are the key differences between these four different market structures?

 

Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald’s is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your classification of the firm. Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm.

 

Question (2): Short-run Production Costs

 

Question (2): Short-run Production Costs: Describe the distinctions between fixed and variable costs and among total, average, and marginal costs. Examples?

What is the difference between Economic profit, Normal profit, and Accounting Profit?

 

Assume that you are the manager of a perfectly competitive firm selling a product. What would you do in the short run–shut down or continue to operate in each of the following 5 different scenarios:

 

1)      Profit Maximization Case (Market Price > Average Total Cost)

2)      Normal Profit Case (Market Price = Average Total Cost)

3)      Loss Minimization Case (Average Variable Cost < Market Price < Average Total Cost)

4)      Shutdown Point Case (Average Variable Cost = Market Price < Average Total Cost)

5)      Must-Shutdown Case (Average Variable Cost > Market Price)

 

Question (3): Long-run Production Costs

 

Question (3): Long-run Production Costs: How can you Use economies of scale to link a firm’s size and its average costs in the long run.

 

How can you Use economies of scale to link a firm’s size and its average costs in the long run?

 

 

                                                             (GM 545 Business Economics Week 3 )

 

 

GM 545 Business Economics Week 3 Oligopoly and Game Theory (graded)

 

Question # 1 (Chapter 14) – Oligopoly:

 

What are the major characteristics of Oligopoly? Can you give some examples?

 

Question (2): What is the difference between “CARTELS” and “Non-Collusive Oligopoly”?

 

Question (3): What do we mean by Game Theory? How is it related to Oligopoly?

 

Question # 1 (Chapter 15) – Monopoly:

Chapter 15 discusses one of the four different types of market structures which is Monopoly. Here are 3 questions which summarize the key points on Monopoly.

 

Question (1): What are the characteristics of Pure Monopoly? Can you give some real examples?

 

Question (2): Are there any differences in equilibrium between pure competition and pure monopoly? If yes, what are these differences?

 

Question (3): Price Discrimination

What are the three different types of Price Discrimination? Can you give some examples on each type of discrimination?

 

Question (4): Regulating Monopoly

What are the two approaches for regulating Monopoly?

 

 

 

                                                        ( GM 545 Business Economics Week 4 )

 

GM 545 Business Economics Week 4 Unemployment and Inflation (graded)

 

Question # 1: Business Cycles

What do we mean by the Business Cycles?

 

Question # 2: NIPA Accounts

What is the difference between GDP, GNP, and NDP?

** What is the difference between GDP, GNP, and NDP?

Please go to FRED website: http://research.stlouisfed.org/fred2/, and bring to the discussion the most recent data for US GDP

 

Question (3): the ‘Expenditure Approach’ Versus the ‘Income approach’

What is the difference between the ‘Expenditure Approach’ and the ‘Income approach’ to GDP?

 

Question # 1: Unemployment

What are the three different types of unemployment, and which of them are serious concerns for an economy?

 

Question (2): Actual Unemployment Data

 

Click on this website that gives data on unemployment rates in the U.S. ranked by State. http://www.bls.gov/web/laumstrk.htm.
Please take a look at the unemployment rate for your state. Is it higher or lower than the average for the entire U.S.? Why?

 

Question (3): Inflation

 

       (a) What is inflation?  What is the difference between stagflation, disinflation, and deflation?

       (b) What are the effects of inflation on the economy? Why is a high rate of inflation bad for an economy

 

Question (1): What do we mean by fiscal policy? What are the different  types of fiscal policy?

 

Question (2): Fiscal Policy and Aggregate Demand

Can you explain how fiscal policy (making changes to government spending and taxes) would affect aggregate demand (AD)?

How do these two mechanisms of expansionary policy differ?

 

Question (3): Policy Choices

If the government had the option to either make changes to the tax rates or vary government spending to combat a recession that is already in progress, which of these two fiscal policies do you think would have a greater time lag to see its effect on output, employment, and inflation?

 

Question (1): Crowding-out Effect

 

Describe the harmful impact of the crowding-out effect on the economy.

 

Question (3): Aggregate Demand

 

What is the aggregate demand (AD) curve? What are the components of AD? What factors can shift the AD curve?

 

Question (4): Multiplier Effect

What’s meant by the Multiplier Effect? Any examples?

 

                                             GM 545 Business Economics Midterm Exam Answers

 

What happens to bicycle supply?

 

Question 2. Question :

 

(TCO A) Ceteris paribus, Brand A Plain potato chips and Brand B Plain potato chips are substitutes in consumption. The price of Brand A Plain potato chips increases.

(4 pts.) a. What happens to the demand for Brand B Plain potato chips?

(6 pts.) b. What happens to the demand for Brand A Plain potato chips?

 

Question 3. Question :(TCO A) The number of new home sellers in a given market decreases.

(4 pts.) What happens to the supply of new homes?

(6 pts.) What happens to the demand for new homes?

 

Question 4. Question :TCO A) A market is in equilibrium with equilibrium quantity MEQ and equilibrium price MEP.

(2 pts.) a. What happens to Market Equilibrium Quantity (MEQ) if there is an increase in supply?

(4 pts.) b. What happens to Market Equilibrium Price (MEP) if there is a decrease in supply and a decrease in demand?

(4 pts.) c. What happens to MEP if there is an increase in demand followed by a decrease in supply followed by another increase in demand?

 

Question 5. Question :The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group:

 

Price (P)…Quantity (Q)

 

50……….. 100

 

35………. 180

 

20…………300

 

10…………500

 

  1. (2 pts.) What is demand elasticity in the $10 – $20 price range? Is demand elastic, inelastic, or of unitary elasticity? Calculate the value and show all of your work. Be sure to use the midpoint equation used to determine elasticity.

 

  1. (4 pts.) Assume demand elasticity is 1.3 in the $35 – $50 price range. In this range of demand, by what percentage would quantity demanded change if price increases by 9 percent? Show your detailed calculations.

 

  1. (4 pts.) What is the effect of a price decline from $35 to $20 on total revenue for the event? Does total revenue (TR) increase, decrease, or remain the same? By how much? Show your detailed calculations.

 

 

                                                              ( GM 545 Business Economics Week 5 )

 

GM 545 Week 5 Fiscal Policy (graded)

 

Question (1): What do we mean by fiscal policy? What are the different  types of fiscal policy?

 

Question (2): Fiscal Policy and Aggregate Demand

Can you explain how fiscal policy (making changes to government spending and taxes) would affect aggregate demand (AD)?

How do these two mechanisms of expansionary policy differ?

 

Question (3): Policy Choices

If the government had the option to either make changes to the tax rates or vary government spending to combat a recession that is already in progress, which of these two fiscal policies do you think would have a greater time lag to see its effect on output, employment, and inflation?

 

Question (1): Crowding-out Effect

Describe the harmful impact of the crowding-out effect on the economy.

 

Question (3): Aggregate Demand

What is the aggregate demand (AD) curve? What are the components of AD? What factors can shift the AD curve?

 

 

                                                              GM 545 Week 6 Discussions ( graded )

 

a. What is quantitative easing?

b. Why might quantitative easing have led investors, banks, and pension funds to engage in excessive risk taking?

 

What are the different definitions or components of MONEY? What do we mean by M1 & M2?

 

Can you please go to the FRED website and try to find the value of M1 and M2 during the second quarter in 2013? Here is the link: http://research.stlouisfed.org/fred2/categories/24

Also, why aren’t credit cards parts of the money supply?

 

Question (2): Money Creation Process

What is the money multiplier? What’s meant by money creation process?

 

Question (3): The structure of Federal Reserve Bank

 

What is the structure of the Federal Reserve Bank? Review the bios of the current members of the Federal Reserve Board at: http://www.federalreserve.gov/BIOS. Comment on the make-up of the board–the composition–ages, gender, level of education, work experience, etc.

 

a. Why was the Japanese government trying to drive down the yen?
b. What actions was the Japanese government taking to drive down the yen?
Question (1): Monetary Policy

What are the different tools of the monetary policy? Which one is the most important tool? Why?

 

Question (2): Monetary Policy Effectiveness

 

What measures were taken by the U.S. Government and Federal Reserve to counteract the financial crisis of 2007 and 2008? If you were the chairman of the Fed during the recent financial crisis in 2007-2008, would you use expansionary or Contractionary monetary policy? How you will use the monetary policy tools?

Is the Federal Reserve’s monetary policy or the Federal Government’s fiscal policy more effective in fighting inflation or fighting recession?

 

Question (3): Monetary Policy Independence

 

Views(257) Opinions(0) 07/10/2015 23:23:47 Report abuse
Copyright © 2014 spacenab.com . All the right reserved.