...viewing the issue of health insurance and how insurance rates are directly related to the amount of alcohol consumed. Here, we can consider how economists “think at the margin”. The change in health rates would have to be more than marginal to affect a change in a life style such as alcohol consumption. Similarly, if one thinks rationally, the higher the insurance rates are for alcohol consumers, the less these consumers will drink. Finally, “rational people respond to incentives”. If insurance companies offer price incentives to drink less, a rational person would respond by drinking less. Cooksey, J. A., Knapp, K. K., Walton, S. M., & Cultice, J. M. (2002). Challenges To The Pharmacist Profession From Escalating Pharmaceutical Demand. Health Affairs, 21(5), 182. Cook, P.J., & Moore, M.J. (2002). The Economics of Alcohol Abuse and Alcohol-Control Policies. Health Affairs, 21(2),...
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...DESCRIPTION Presents a survey of basic macro- and microeconomic principles and concepts. Reviews the economic dynamics of market forces affecting competition, different economic systems, the role of government in the economy, and economic aspects of international trade. Discusses the labor market, interest rates and the supply of money, and performance of a national economy. Examines the use of economics in business decisions, considering such principles as opportunity costs, diminishing returns, and the marginal principle. INSTRUCTIONAL MATERIALS Required Resources O'Sullivan, A., Sheffrin, S., & Perez, S. (2012). Survey of economics: Principles, applications, and tools (5th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall. MyEconLab book key Note: This book key comes with the purchase of a new textbook and is needed in order to access MyEconLab. Supplemental Resources Aaronson, D., Mazumder, B., & Schechter, S. (2010). What is behind the rise in long-term unemployment? Economic Perspectives, 34(3/4), 28-51. Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health, 100(2), 216-22 Heyne, P., Boettke, P. J., & Prychitko, D. L. (2010). The economic way of thinking. (12th ed.). Upper Saddle River: Pearson-Prentice Hall. High, J. (2011). Economic Theory and the Rise of Big Business in America, 1870-1910. Business History Review, 85(1)...
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...Assignment #1 Principles of Economics ECO-100 Professor Ahmad Zia Rawish By Jacqueline Sees May 4, 2013 CONTENT 1. Economics would approach the problem of alcohol abuse 2. How prescription drugs affect the demands and supply of other products and services. 3. Why the elasticity of demand is an important conderation when analyzing the impact of a shift in supply. 4. Examples of increasing cost industries in New Jersey and propose why they would have a positively sloped supply curve. 5. Under certain conditions, a perfectly competitive market is economically efficient Economics approach to alcohol abuse: Negative externalities, both in consumption and production, production costs, causes pollution too. The two possible solutions suggested by economics are Coase theorm, and Pigouvian taxes. Coase theorem states that in presence of complete competitive markets and the absence of transactions costs, an efficient set of inputs to production and outputs from production will change by agents regardless of how property rights over the inputs were assigned to the agents. Coase theorem doesn’t aloe people to negotiate by themselves without any government intervention if the property rights are secured and the cost of negotiation is not high. Government intervention, effects can be structured using the free market, allowing the government to make all the decisions or a mixture of both...
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...MBA-FP6008: Assessment 1, Economics Problem Set 1 Dennis J. Johnson Capella University 08/12/2015 Problems A, B, and C Introduction This assessment will be an analysis of graphed data and changes in supply and demand for three economic problems. Problem A involves production possibilities for consumer and capital goods, problem B is an evaluation of changes in supply and demand equilibrium, and finally, problem C involves pricing with relevance to supply and demand. Successful completion of this assessment demonstrates proficiency in; applying theories, models, and practices of economic theory, analyzing solutions with support from relevant data, resources, references, and economic principles, analyzing graphed and circular flow diagram data, and analyzing changes in supply and demand in a competitive market. Problem A. Production Possibilities | Type of Production | Production Alternative A | Production Alternative B | Production Alternative C | Production Alternative D | Production Alternative E | Butter | 0 | 1 | 2 | 3 | 4 | Guns | 15 | 14 | 12 | 9 | 0 | Production Possibilities for Consumer Goods (Guns) and Capital Goods (Butter) 1. The specific assumptions that underlie the production possibilities curve are: that there are only two goods, consumer and capital, that they are produced in different proportions in the economy, the quantities of the resources do not change, production techniques are given and constant, and that resources are...
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...2.1 Demand 2.1.1 Understanding the Determinants of Demand 2.1.2 Understanding the Basics of Demand 2.1.3 Analyzing Shifts in the Demand Curve 2.1.4 Changing Other Demand Variables 2.1.5 Deriving a Market Demand Curve 2.2 Supply 2.2.1 Understanding the Determinants of Supply 2.2.2 Deriving a Supply Curve 2.2.3 Understanding a Change in Supply versus a Change in Quantity Supplied 2.2.4 Analyzing Changes in Other Supply Variables 2.2.5 Deriving a Market Supply Curve from Individual Supply Curves 2.3 Equilibrium 2.3.1 Determining a Competitive Equilibrium 5.1 The Basic Assumptions of Competitive Markets 5.1.1 Understanding the Role of Price 5.1.2 Understanding Market Structures 6.1 Monopolies 6.1.1 Defining Monopoly Power 6.1.2 Defining Marginal Revenue for a Firm with Market Power 6.1.3 Determining the Monopolist's Profit-Maximizing Output and Price 6.3 Oligopoly 6.3.1 Introducing Oligopoly and the Prisoner's Dilemma 6.3.2 Understanding a Cartel as a Prisoner's Dilemma 6.4 Monopolistic Competition 6.4.1 Defining Monopolistic Competition 6.4.2 Understanding Pricing and Output under Monopolistic Competition Competency: 309.1.4 Economic Variables and the Economy 1.4 Production Possibilities 1.4.1 Understanding the Concept of Production Possibilities Frontiers 1.4.2 Understanding How a Change in Technology or Resources Affects the...
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...prescription drugs affect the demand and supply of other products and services in this country. 3.Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least one (1) example in each scenario. 4.Provide two (2) examples of increasing-cost industries in your state and propose why they would have a positively sloped supply curve. 5.Suggest how, under certain conditions, a perfectly competitive market is economically efficient. 6.Use at least three (3) quality resources in this assignment. Your assignment must follow these formatting requirements: •Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. •Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: •Apply the underlying principles of economics and the economic way of thinking to assess market issues and make business decisions. •Analyze the dynamics of supply and demand to anticipate market equilibrium...
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...consumed. Economists also consider how a small change in one variable will affect another variable and what that affect has on a person’s decision making. For instance what this means is that if taxes on alcohol were increased significantly, it could possibly change the demand for the product. With increased pricing, younger adults might be deterred from purchasing alcohol. 2. Analyze how prescription drugs affect the demand and supply of other products and services in this country. Prescription drugs are in high demand for people of all ages. According to Kaiseredu.org over 90% of elderly people use prescription medication. One product that it has had an effect on would be cigarettes. Because smoking has been proven to cause many diseases and is highly addictive, medication has been created to assist people to kick the habit. Therefore the demand for cigarettes has decreased significantly. 3. Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand. Include at least one (1) example in each scenario. The price elasticity of demand measures the...
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...abuse and include the 4 elements of the economic way of thinking. I will be discussing supply and demand and how it affects prescription drugs and also how it is an important. I will be discussing increasing-cost industries as well as reviewing a perfectively competitive market. Impact of Economics An economics perspective of alcohol abuse would be that, even with significant harm is caused; they feel it should not be restricted. Economics assume that people, usually, are the best judges of themselves. Economist have also come to the conclusion that consumers tend to drink less alcohol, and have fewer alcohol-related problems, when alcoholic beverage prices are increased or alcohol availability is restricted. A possible solution to the alcohol abuse problem could be limiting which stores are able to sell the alcohol products. It is very easy to obtain alcohol and if it was not as easy to access, the sales would go down, causing the number of alcoholics to decrease. Another possible solution to alcohol abuse could be to enforce tougher penalties for alcohol related crimes and or alcohol related traffic violations. By doing this, the consumer might realize that the crime might not always be worth the time. Prescription drugs affect the supply and demand of other products and services in this country by the demand for over the counter drugs decreasing as the demand for prescription drugs goes up. More people are visiting physicians as opposed to self-diagnosing...
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...is to help the top management to recruit, select, train and develop members for a company. Obviously, human resource planning is concerned with the people’s dimensions in organizations. HRP refers to set of programs, functions, and activities designed and carried out. Therefore, HRP should be heavily involved in the company’s strategic planning process. HRP is the process of forecasting an organization’s future demand for and supply of the right type of people in the right numbers. Only after the planning is done, the company can initiate and plan the recruitment and selection process. The importance of human resource planning a. Analyzing organizational plans and deciding objectives: Analysis of organizational plans and programs helps in forecasting the demand for human resources as it provides the quantum of future work activity. The business plan would be a blueprint of desired objectives. This objective stated in economic terms, would incorporate the growth rate of the company, diversification plans, market opportunities and government policies. b. Analyzing factors for manpower requirements: The HRM should keep in view the future capabilities, knowledge and skills of present employees. The job generally should be designed and analyzed reflecting the future human resources and based on future organizational plans. In addition, a survey approach can be adopted with the Delphi technique. The Delphi process requires a large number of experts who take turns to present...
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...the org have the right people with right skill in right place at the right time. HRP guides the long-term resourcing of people in org-the acquisition(capture),use and development of Human capital and knowledge assets Workfoce Planning(HRP)=>Preparing to recruit=>Attracting Staff=>Recruiting and selecting staff=>Developing and retaining staff. Step:Environmental Scanning(External and internal)=>Labour Demand Forecasting=>Labour supply analysis=>Balancing demand and supply Emphasied the need to diagnose(discover) the real reasons for mismatches in supply/demand Using a mix of qualitative and quantitative techniques It Involves: Forecasting labour requirement for an org Predicting likely(will happen) sources Environmental Scanning Development of Objective and Goals Formulating the necessary steps to meet needs Evaluation(Judgement) of the planning process The HR Planner should: 1st Analyzing Environmental Factors and Organization Direction=>Forecasting Demand Analyzing Internal & External Workforce=>Forecasting Supply 2nd Planning in HR,Employee Development,Finance &Budget and Logistical(Back of the Field) 3rd Implementing(Action!) Strategy,Process,Operational Changes and Evaluation&Feedback Notice*** Stages of HRP: Stage 1:Analysis: Analyze the environmental factors,organizational direction,internal &external...
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...Demand Forecasting is the business process that involves calculating future demands for products and services that consumers will buy. It also helps predict the quantity of products or services that must be manufactured and shipped. It is an important tool for managing a sustainable business, whether it comes from customer surveys, general predictions, market trends, or in-depth economical analysis (Hartman, 2015). Demand forecasts are necessary since the basic operations process, moving from the suppliers' raw materials to finished goods in the customers' hands, takes time. There are many advantages that come with demand forecasting, if done accurately, such as having adequate supply – business has to make sure it has enough supply of a product/service to meet the demands. If there is not enough supply, it can lead to lost of sales as customers buy from a competitor and if there is more supply than demand then the business’ revenue will be effected because of the expenses for labour, production, and shipping (Hartman, 2015). Also, managing human resources – this allows the business to manage human resources more efficiently by looking at information that gives managers an idea of how many workers they will need, and where their labour needs will be the highest (Hartman, 2015). For example, retail stores higher more staff in September to December because of Black Friday and Christmas/Boxing Day. However, there can be many challenges that businesses may overcome when...
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...abuse 3 Analyze how prescription drugs affect the demand and supply of other products 3 Formulate a reason why the elasticity of demand is an important consideration 4 Provide two (2) examples of increasing-cost industries in your state and propose 4 Suggest how, under certain conditions, a perfectly competitive market 5 Use at least three (3) quality resources in this assignment 6 References. 7 1. Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. During the twenty-five years experience of the Navy, they taught only two solutions to an individual’s alcohol abuse problem, education, and treatment. Alcohol abuse can be cure, and there are treatment facilities to help get their life back on track. The four element of the economic way of thinking would be Market forces, rational behavior, Opportunity Cost, Cost Benefit Analysis. According to Pettinger (2008), “The aim is to find patterns and use this to predict likely outcomes. In the real world, it is often difficult to model behavior because there are so many different variables”. (Para. 3) That is the therapy. 2. Analyze how prescription drugs affect the demand and supply of other products and services in this country. With these types of illness and injuries in the world today, there is a major demand for prescription drug. In most cases, some individual’s...
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...Abstract In this assignment, Principles of Economics, I will state my answer to the following six questions: First I will suggest how an economist would approach the problem of alcohol abuse. I will provide two possible solutions to this problem, while including the four (4) elements of the economic way of thinking in my analysis. Second, I will analyze how prescription drugs affect the demand and supply of other products and services in this country. Third, I will formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a shift in demand, while including at least one (1) example in each scenario. Fourth, I will provide two (2) examples of increasing-cost industries in your state and propose why they would have a positively sloped supply curve. Finally, I will suggest how, under certain conditions, a perfectly competitive market is economically efficient. Principles of Economics Alcohol Abuse Alcohol abuse is a major problem in today’s society. With a down an economy, there are more and more people turning to alcohol while actually helping the local package store to thrive. Economist may see it differently. They may see it as a way; first they will “Use Assumptions to Simplify”. (O'Sullivan, A., Sheffrin, S. M., & Perez, S. J. (2012)) Why are these people drinking? Is it because they struggle...
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...(Krugman, 2005), Microeconomics involves analysis of individual economic units such as households, demand, and supply and market equilibrium. Macroeconomics, on the other hand, includes analysis of aggregate economic variables such as national income, inflation, unemployment and interest rates. My primary objective in this paper, therefore, is to differentiate between macroeconomics and microeconomics. This fact alone cannot distinguish macro and microeconomics. Nevertheless, microeconomics and macroeconomics are interdependent. While analyzing macroeconomics an economist has to ask questions which affect the standards of living of an entire country. Such issues will be related to inflation, unemployment, national income, product markets, fiscal policies, international trade, economic growth and interest rates (Mankiw, 2007). On the other hand, an economist while analyzing Microeconomics will look at individual’s purchasing power, demand, supply, income, utility level, labor markets, production, consumption and opportunity cost. Macroeconomics is concerned with the national income and the gross domestic product while Microeconomics is concerned with the impact of an increase or decrease in a single economic variable (Krugman, 2005). Microeconomics works on the principle that prices of goods and services are determined by the market system that is forces of demand and supply. This fact means that Microeconomics works on a principle of equilibrium. Macroeconomics works on the...
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...government intervention on condition that the cost of negotiation is not high and the property rights are secured. • Pigouvian regulations or taxes: Drunk driving is incorporated. An economist would raise cost through reduced availability and added taxes Analyze how prescription drugs affect the demand and supply of other products and services in this country. According to Garrod and Willis (2007), in economics, the law of supply and demand is regard as one of the fundamental principles running an economy. It is illustrated as the situation where as supply raises the price will likely drop or vice versa. As demand raises the price will likely increase or vice versa. Essentially this is a standard that nearly all people intuitively understand concerning the relationship of services and goods against the demand for those services and goods. According to Lipsey and Courant (2011), when demand and supply are balanced, the economy is considered be in equilibrium between quantity and price. Formulate a reason why the elasticity of demand is an important consideration when analyzing the impact of a shift in supply and why the elasticity of supply is an important consideration when analyzing the impact of a...
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