...two different countries, affects this. A market is defined as a group of buyers and sellers of a particular product or service. Competitive markets are markets with many buyers and sellers, so that each has a very small influence on the price. Supply and demand is the most useful model for a competitive market, and shows how buyers and sellers interact in that market. The demand for a product is the amount that buyers are willing and able to purchase. Quantity demanded is the demand at a particular price, and is represented as the demand curve. The supply of a product is the amount that producers are willing and able to bring to the market for sale. Quantity supplied is the amount offered for sale at a particular price. The main factor driving the price of the product is the supply and demand. There are two fundamental rules that apply to these, commonly called the Law of Supply and the Law of Demand. The Law of Demand states that if all other things hold constant, as the price of a good increases, the quantity demanded will fall. There are other factors that can influence demand including income, the price of related products, consumer tastes and expectation. As income increases, we are able to buy more of most goods. When demand for a good increases when incomes increase, we call that good a normal good. When demand for a good decreases when incomes increase, then that good is called an inferior good. Related goods come in two types, the first of which are substitutes. Substitutes...
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...Microeconomics Chapter 1 What is economics? Economic questions exist because everyone wants more than it can possibly get. We can't satisfy all our wants, this is called scarcity. General shortage of everything is scarcity. Because of scarcity we must make choices. These choices depend on the incentives we are faced with. Incentives are rewards that we would reap or a penalty we would face if we made a certain choice. Definition of economics- the social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity and incentives that influence and reconcile those choices. There are 2 branches of economics Microeconomics- the study of choices made by the individuals and businesses and the influence of government in those choices Macroeconomics- the study of the effects on the national and global economy of the choices that individuals, businesses and governments make There are 2 questions that essentially summarize the scope of economics 1. How do choices end up determining what, how, and for whom goods and services are produced? 2. How can choices made in the pursuit of self-interest also promote the social interest Question 1 Goods- the physical items which are produced for people Services- the actions performed which are rendered for the people Goods and services are the objects that people value and produce to satisfy needs. What?- What should we produce? What people produce changes over...
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...Accountability gives you the opportunity to grow by learning from your mistakes and flourishing through your accomplishments. Gratification also comes with personal responsibility because you are taking ownership of your actions, growing as an individual and putting yourself in a position where all decisions you make will create positive outcomes. These are all values that are demanded from us in order to be successful and reach our short and long term goals. These are also key elements to becoming a successful student and achieving your academic goals. While some may argue that personal responsibility does not directly affect college success because college already has an established structure to follow, it directly affects your overall success in life. Structure is everywhere we look, from a class syllabus to the way we drive, structure has been established. Personal responsibility helps builds structure in so many ways. Creating structure in your life gives you the opportunity to manage your time wisely, establish expectations and dictate your outcome with goal setting. When you are aware of what is expected of you and you give yourself the time to complete tasks such as studying and homework, you are setting yourself up for success. Without structure you are...
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...classroom-week 2 activities I completed. It was about the microeconomic concepts of the supply and demand curves that change based on different macroeconomic factors that affect the apartment rental industry. Two microeconomic concepts in this simulation were the supply and demand of two-bedroom rental apartments in Atlantis because these are based on decisions made by the individual consumer or rental agency. The simulation showed shifts to the supply and demand curves caused significant changes to the economic environment. “The demand curve is downward sloping, and that quantity demanded increases as the price decreases - that is, as you move down the demand curve” (University of Phoenix, 2015). “The supply curve is upward sloping, and quantity supplied increases with an increase in price – that is, as you move up the curve” (University of Phoenix, 2015). The macroeconomic factors in this simulation are what causes the shifts, beyond any one entity’s choice. In this simulation, it showed different scenarios of increased population and changes in consumer income. When the population increases, the demand curve moves to the right because of increased need of two-bedroom apartments. This does not shift the supply curve because there is the same amount of apartments for rent as before, now more people want them, causing a temporary shortage in the number of apartments available. This allows the apartment rental agencies to charge more for the current apartments available. The opposite...
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...Chapter 10 Classical Business Cycle Analysis: Market-Clearing Macroeconomics Goals of Chapter 10 A) Use the IS-LM model with rapidly adjusting wages and prices to present the classical model B) Examine the relationship between money and the business cycle I. Business Cycles in the Classical Model (Sec. 10.1) A) The real business cycle theory 1. Two key questions about business cycles a. What are the underlying economic causes? b. What should government policymakers do about them? 2. Any business cycle theory has two components a. A description of the types of shocks believed to affect the economy the most b. A model that describes how key macroeconomic variables respond to economic shocks 3. Real business cycle (RBC) theory (Kydland and Prescott) a. Real shocks to the economy are the primary cause of business cycles (1) Examples: a. Shocks to the production function, b. the size of the labor force, c. the real quantity of government purchases, d. the spending and saving decisions of consumers (affecting the IS curve or the FE line) (2) Nominal shocks are shocks to money supply or demand (affecting the LM curve) b. The largest role is played by shocks to the production function, which the text has called supply shocks, and RBC theorists call productivity shocks (1) Examples: a. Development of new products or production techniques, b. introduction of new management techniques, c. changes in the...
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...issues. Generally speaking, how much of the disagreement is based on normative economics compared to positive economics? Give an example of loaded terminology from each site. Answer: The republican energy policy focuses on less regulation and puts the responsibility of energy independence on American business. The belief is corporations will spend more on drilling, alternate fuels and research and development and do so in a responsible manner. In the process more jobs will be created and energy costs to the consumer will lower. The democrats focus on a balanced approach with environmental protection driving future development. They propose taking subsidies from “bad” oil companies and using the money to incentivize companies to develop new technologies and pursue existing sources in an environmentally sound way. Both parties view energy with a normative economic viewpoint. But this is clearly evident with the republican view of “ less regulation should encourage investment, lower prices, and create jobs here at home”. Now we come to healthcare and the current stalemate in Congress. The democrats believe “ accessible, affordable, high quality healthcare is part of the American promise and no one should go broke because they get sick”. On the other hand republicans think everyone should have the opportunity to pick and choose their healthcare policy needs. In modern politics I believe normative economics can describe both parties. 2. Assume that a business...
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...minus 45. Keller automatically snapped master control switch to GREEN and knew that his electronic impulse along with hundreds of others from similar consoles within the Cape Canaveral complex signaled continuation of the countdown. Free momentarily from data input, Keller leaned back in his chair, stretched his arms above his head, and then rubbed the back of his neck. The monitor lights on console 23 glowed routinely. It used to be an incredible challenge, fantastically interesting work at the very fringe of man's knowledge about hmself and his universe. Keller recalled his first day in Brevard County, Florida, with his wife and young daughter. How happy they were that day. Here was the future, the good life... forever. And Keller was going to be part of that fantastic, utopian future. LOUDSPEAKER: IGNITION MINUS 35 MINUTES... Keller panicked! His mind had wandered momentarily, and he lost his place in the countdown instructions. Seconds later he found the correct place and tripped the proper sequence of switches for checkpoint 1 minus 35. No problem. Keller snapped master control to GREEN and wiped his brow. He knew he was late reporting and would hear about it later. Damn! he thought, I used to know countdown cold for seven systems monitors without countdown instructions. But now... you're slipping keller... you're slipping, he thought. Shaking his head, Keller reassured himself that he was overly tired today... just tired. LOUDSPEAKER: IGNITION MINUS 30 MINUTES... ...
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...Managers in all organizations engage in four basic functions. These functions are generally referred to as planning, organizing, leading and controlling. Planning: Planning is the first managerial function, is the process of determining the organization’s desired future position and deciding how to best to get there. In this case Lockheed martin decided its goal and outlining strategies for achieving those goals . Example: The goal of Lockheed martin is to design and make 6000 aircraft within 40 years the total value of these is 200 billion dollar . The main strategy of the managers of Lockheed martin was naming Burbage to head the program because he credits his time as a Navy test pilot. Improving relation with BAE and Northrup Grumman as a partner was another important strategy. Organizing: The second managerial function is organizing--the process of designing job, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of job. organizational function of The managers and Burbage of Lockheed martin was made the unheard of decision to grant Northrup and BAE a 30 parcent financial and strategic share in the program and by this decision they divide the job as well as establish a patter of authority among themselves. LLeading: Leading , the third managerial function, is the process of motivation members of the organization to work together toward achieving the organization’s goal. Burbage used extravagant rewards to motivate...
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...services that fulfill these wants. Unfortunately, the resources are not sufficient to satisfy those wants. [1] b) Analyze the THREE interrelated features of the economic perspective? Answer: 1) Scarcity: The first interrelated feature of the economic perspective is the scarcity of resources that forces individuals and society to make decision among alternatives . Human and property resources are scarce, so choices must be made about how best to utilize those little resources. 2) Allocation decision: economics assumes that any decision-making is based on “rational self-interest.” People make rational decisions to achieve the maximum satisfaction of a goal. customers try to get the highest value for their payments. Workers try to get the best job given their skills and abilities. companies try to maximize their profitability. 3) Opportunity cost: economics focuses on marginal analysis when making an economic decision. The marginal or “additional” costs from an economic choice are weighed against the additional benefit. If the marginal benefit outweighs the marginal costs, then a decision will be made to take the beneficial action. If the marginal cost...
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...likely still paying them pay years later. An importance for obtaining a degree is very important these days because most jobs will require more than high school diploma. A lot of people pay for college because they have a better chance in getting a job and a good education for their future. Assess a raise in tuition and if it will necessarily result in more revenue. When it comes to Nobody State University (NSU) price elasticity of demand is a factor to see how tuition being increased can affect revenue. All these...
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...physicians move. Statistically, this may suggest the economy is preventing or affecting physicians from frequent job changes, or retirement. According to survey results, the move rate was reported as follows: 18.2% in 2008, 15% in 2009, 12.4% in 2010, and 11.3% in 2011. In as much as this reflects an obvious trend of lower move rate over the years, and may be attributed to a number of factors, it is however not enough scientific measure to ascertain the market supply and demand for physicians. PURPOSE: The purpose of this paper is to analyze the current position of physicians, and to establish an informed/detailed study of the trends. The research will also establish a theoretical framework of these trends, and their relatedness to the law of Demand and Supply with a focus on physicians. This review will among other things, institute recommendations. DEMAND DETERMINANTS The Law of Demand: As an initial approach, the analysis in this research paper will not be far-reaching if the concept of Demand is not critically examined. Demand has been defined in Economics as the goods and services people are willing and able to buy during a certain period of time at various prices, holding all other relevant factors constant. A simple way to explain this would be to use an everyday example of say - a café. If for instance a café increases the price of items, the quantity demanded will decrease because fewer people will be willing and able to spend their hard-earned resources on such. Conversely...
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...------------------------------------------------- Explain why the difference between the similar-sounding terms, quantity demanded and demand, is so critical to understanding the model of supply and demand. (P.58) Changes in Demand * Note that a change in demand is different from a change in quantity demanded. * A change in demand occurs when the entire curve shifts. * This means that the quantity demanded at every given price will be different from what it was before. Demand * Demand refers to the quantity of products people are willing and able to purchase during some specific time period, all other relevant factors being held constant. * Price and quantity demanded have an inverse relationship known as the Law of Demand, depicted as a downward-sloping curve. * A market demand is the horizontal sum of all of the individual demand curves. * Demand curves shift when one or more of the determinants of demand change. * The determinants of demand are: consumer tastes and preferences, income, prices of substitutes and complements, the number of buyers in a market, and expectations about future prices, incomes, and product availability. * A shift of a demand curve is a change in demand. An increase in demand is a shift up and to the right. A decrease in demand is a shift down and to the left. * A change in quantity demanded occurs only when the price of a product changes, leading consumers to adjust their purchases along the existing demand...
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...Microeconomics and the Laws of Supply and Demand The first microeconomic policy that I noticed in this simulation, was the company GoodLife's decision to try and reduce their rental vacancy rate while still increasing the revenue. This is a microeconomic concept because it focuses solely on the company's revenue and profit and does not take a look at how this will affect the bigger picture. By decreasing the price of rent at their apartments, they are increasing the quantity of rooms demanded. This in turn increases revenue because less apartments are empty. Another example of a microeconomic concept that is demonstrated in this simulation can be shown by GoodLife's decision to try and rent out all of their rooms. When they do this they actually have to increase the price of rent. The reasoning for this is because the more rooms that are rented out the more maintenance the company has to keep up. This is a good example showing that as you increase the price of the apartments, the number of apartments supplied to prospective clients also increases. A macroeconomic concept can be seen when the city of Atlantis begins to change and many more new companies move into the town. With the rise of the population, the city is beginning to notice more congestion in the town and a lack of housing. This is a macroeconomic concept because it the lack of housing is affecting the entire town's economics. The city also has plans on regulating the price of rent which can make it harder...
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...Answers to the Problems and Applications 1. William Gregg owned a mill in South Carolina. In December 1862, he placed a notice in the Edgehill Advertiser announcing his willingness to exchange cloth for food and other items. Here is an extract: 1 yard of cloth for 1 pound of bacon 2 yards of cloth for 1 pound of butter 4 yards of cloth for 1 pound of wool 8 yards of cloth for 1 bushel of salt a. What is the relative price of butter in terms of wool? 1 pound of butter exchanged for 2 yards of cloth and 4 yards of cloth exchanged for 1 pound of wool. Hence 1 pound of butter exchanged for 2 yards of cloth and 2 yards of cloth exchanged for 1/2 pound of wool. So the relative price of butter in terms of wool was 1/2 pound of wool per pound of butter. b. If the money price of bacon was 20¢ a pound, what do you predict was the money price of butter? 1 pound of bacon exchanged for 1 yard of cloth and 2 yards of cloth exchanged for 1 pound of butter. Hence it took 2 pounds of bacon to exchange for 1 pound of butter. As a result, if the money price of a pound of bacon was 20¢ the money price of 1 pound of butter was 40¢. c. If the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel, do you think anyone would accept Mr. Gregg’s offer of cloth for salt? If the money price of bacon is 20¢ a pound, Mr. Gregg’s offer to exchange 1 pound of bacon for 1 yard of cloth means that anyone could obtain 1 yard of cloth for a money price of 20¢. Mr. Gregg’s...
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...Cause and Effect Hurricanes, wars and all sorts of chaos could lead to shortages in our oil supply. These shortages would bring expected higher prices. But what happens when other factors are at work? The laws of supply and demand indicate “Quantity demanded rises as price falls, other things constant”. Or alternatively: “Quantity demanded falls as price rises, other things constant” (Colander 84). For some, it is easy to blame the speculators and separate them from the laws of supply and demand. In reality, speculators only changed who purchased the future supply. They did not change the principle fact that there was a shortage, albeit an artificially created one, but still a shortage. Until 2000 US energy futures were traded only on regulated exchanges within the US and they were subject to great oversight by the CFTC in order to detect price fixing and fraud. Recently, there has been a very large growth in trading contracts that look like futures contracts and are structured exactly the same. The only difference, these contracts are traded on an unregulated market. This unregulated OTC electronic market was exempt from CFTC oversight by a provision inserted in the late hours of the 106th Congress. Enron and many other large traders lobbied congress for this passage. By buying large quantities of futures contracts and pushing the prices higher speculators have given oil companies the incentive to buy even more oil and put it into storage. The following graph...
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