Gb540 unit 1 assignment and discussion

 

Discussion 1

 

There are two major kinds of government interventions in markets: price controls and quantity controls. The government intervenes to regulate prices by imposing price controls, which are legal restrictions on how high or low a market price may go. Price ceiling is the maximum price sellers are allowed to charge for a good or service whereas price floor is the minimum price buyers are required to pay for a good or service.

 

Price and quantity controls may have adverse impacts on productive and allocative (marketing) efficiency. However, price and quantity controls are used despite their well-known problems.

 

Based on the reading in Chapter 3 on price ceiling and price floor, explain the impacts of the following price control measures.

 

What would happen to the supply and demand of Super Bowl tickets if the government mandated that no more than $20 a ticket could be charged?

 

What would happen if a law passed dictating that kindergarten teachers could make no less than $100,000 per year?

 

Discussion 2

 

A fundamental assumption for economic analysis is that economic agents, be it an individual, a household or a firm/business, tend to make choices and select alternatives rationally. The rational economic choice (decision) implies that people are driven by the rational pursuit of self-interest, and engaged in economic decisions to maximize this self-interest.

 

By rational economic choice, economists mean that people try to make the best choice they can, given the available resources at their disposals (money, time, etc.) and information.

 

Self-interest is when individuals make economic decisions that are in their own best interest. On the other hand, social interest is when choices are made that benefit society as a whole. Economists argue that social interest can be attained by individual decision makers acting in their own self-interest. This process is what Adam Smith called the invisible hand, which has been the foundation of the market economy.

 

Create an example to demonstrate how an individual or firm acting out of self-interest to maximize profits by offering goods or services in economic markets benefit consumers – even if they do not care about them. In other words, how does self-interest help achieve society’s economic goals?

 

What is the relationship between self-interest and social interest in the economic decision (economic choice) process? Is there a conflict between the two in the economic world?

 

Assignment and Case Study

 

GB540: Economics for Global Decision Makers

Prof:  Tilahun Ayanou

Assignment 1

All problems below are to be completed and submitted to the Unit 1 Dropbox by the end of Unit 1.

Problem #1: Using either a graph or table (Refer to pages 11-15 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?

Problem #2 Part A: Go to the internet auction site eBay® at www.ebay.comand select the category Jewelry and Watches, followed by Loose Diamonds and Gemstones, and then Diamonds, Natural. How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the sellers in this market? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices?  

Problem #2: Part B) Describe what would happen if an outside agency determined the prices eBay could charge.

Problem #3: Read the “LAST word” feature on markets for human organs on Pages 62–63 of your text. Next, select a social problem where free markets are not allowed to function and describe how free market features could be introduced to help alleviate the problem. As part of your answer also include a discussion of the risks of introducing market mechanisms in situations where ethical issues are present. Your answer should be approximately two pages long and in APA format.

(Note: You can write about social problems where the free markets are not allowed to function, which includes the market for a particular illegal good or service, a regulated market, etc.).

GB540 Unit 1 Assignment Rubric

Content and Analysis

Points Possible

Points Earned

Problem # 1 ·         Graph or table to illustrate a production possibilities curve ·         Meaningful description of a variety of different points on the curve. ·         Explanation of what would make the curve expand or contract. ·         Explanation of why efficiency is lost at the extremes, (i.e., substantially more of one good and very little of another is produced).

12

 

Problem # 2 ·         Comprehensive discussion of the availability of natural diamonds as a component of supply in a competitive market and how it influences price. ·         Comprehensive discussion the demand for natural diamonds in a competitive market and how it influences the price. ·         Description of what would happen if an outside agency determined the prices eBay could charge.

12

 

Problem # 3 ·         Introduction and Conclusion

4

 

·                   Social problem identified where free markets are not allowed to function.

4

 

·                   Description of how free market features could be introduced to help alleviate the problem.

12

 

·                   Two pages in length

4

 

Writing Style, Grammar, APA Format

12

 

Total

60

 

 

ID: GB540-01-09-01-AS

 

Case Study

Economist Joseph Schumpeter, who taught at Harvard from 1932 until his death in 1950, popularized the term “creative destruction” to describe the capitalist process in which entrepreneurs introduce new goods and services to economic markets that displace existing goods and services. Though this innovative process results in increased wealth and better standards of living overall, not everybody benefits equally. The opportunity cost of buying a newly available product is the use of the old one that has been given up, so those in the camp of the new, different, and desirable do very well, while those camped out with the old and no longer desirable products see their prospects decline.

Provide an example of creative destruction you have witnessed during your lifetime and describe what the benefits and costs to the economy have been. Who was enriched and whose fortunes declined? Construct thoughtful, detailed responses to the cases contributed by at least three of your classmates.

 

 

Essay Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.