Category: Economics

In a brief essay of 2000 to 2050 words, state a claim and support it with evidence. Choose an
issue from the list below in which you are genuinely interested and about which you already
know something. Familiarize yourself with the rubric (below) before, during, and after writing your
essay.
Topics:

1.1. The U.S. dollar is overvalued.
1.2. Fiscal and monetary policies of the United States should be coordinated with the fiscal and
monetary policies of developing countries.
1.3. When the private sector spending and incomes decline, the federal government should
undertake an expansionary fiscal policy.
1.4. Inflation exceeding what is expected should not be allowed to happen.
1.5. The government should not manage the level of aggregate demand.
1.6. The chief fault of fixed exchange rate during the Bretton Woods International Monetary
System was …
1.7. The consumption function should not concern policymakers.
1.8. The government should bolster a sagging economy by waiting for the economy to selfadjust.
1.9. The stock market and home prices should not concern those who do not own stocks or a home.
1.10. U.S. families should be cutting back on spending, reducing credit card debt, and even
setting aside more money for the proverbial rainy day.
1.11. The federal government should not reduce unemployment below the natural rate of
unemployment.

Background 
Read the following article in detail. Link to article: https://edition.cnn.com/2020/05/06/business/us-debt-deficit-coronavirus/index.html
Question 1
The article talks about “an invisible dog fence” reference by Maya MacGuineas, president of the Committee for a Responsible Federal Budget. What does this refer to, why is it important, and where do you think this “fence” is? Provide evidence to support your argument.
Question 2
One possible longer-run outcome once the economy improves is that we see United States bond interest rates to be low, while inflation increases. Describe how you think this situation would affect investment decisions. (Hint: Think about investment in real terms, using net present value calculations.)
Please submit assignment in word or pdf format.
A few notes:
• Please try to limit your answers to 100-150 words per question.
• Cite TWO additional articles to back up your arguments. The original CNN article or any links from that article do not count.
• Although you can talk to other students about the general ideas of the mini-project, the work must be your own.
• There are likely multiple strong answers to each question. Assignment will be graded not on the answer itself, but on having strong economic arguments to support the answer.

Provide with detailed explanations of the links between the current spot rate and contracts to buy or sell foreign exchange in the future. Use real-life examples to support your statements/arguments and describe the effectiveness of these transactions to the financial situation of the company?

Use your textbook (chapter 20 on pp. 469-497), LIRN-based research, a general reference list in international Economics, such as:

Specialized Journals (p.12);

General Journals (p.13);

Sources of International Data (p.13);

General Current information p.14) and

the Internet Sources (p. 14)

Document your citations throughout the text of your paper; Your papers must include:

–          An introduction and a clear thesis,

–          Several body paragraphs, and

–          A conclusion.

Top papers demonstrate a solid understanding of the material and critical thinking.

Economics Final Essay

Summary:

To satisfy the written component of your course grade, you must write a short, 2 page essay (double spaced) as a self-reflection- look at any one topic covered in class making sure the topic generated a lot of interesting class participation. Did you have any knowledge of this concept before starting this course? After all these weeks of studying economic principles, what do you think about the issue now? Did the material and our classroom conversation change your viewpoint from before this semester, or did it only strengthen it? Explain why.

Finally, what are the things you can take away from the course overall? Are there specific concepts and ideas that were eye-opening to you personally? Do you think you were able to meet the course goals and course objectives as described in the first few pages of this syllabus?

ECON1001: Macroeconomics

Exam 1

Instruction: Please choose the most appropriate answer.

1. Tom bought a new Honda CRV, Mary traveled to Acadia National Park, and Jack watched an exciting NBA game. By consuming those goods and services, they got pleasure, happiness, or satisfaction, which is called:
2. marginal cost.
3. rational outcome.
4. status fulfillment.
5. utility.

 

1. Jack sold a baseball card collection for $2,500 that he bought a year ago for $2,500. He says, “At least I didn’t lose any money on my investment in this baseball card.” His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $2,500, which is $75, if he had deposited the money in a bank. The economist’s analysis in this case incorporates the idea of:

1. opportunity costs among alternatives, which is $75 here.
2. opportunity costs among alternatives, which is $2575 here.
3. marginal costs that exceed marginal benefits.
4. marginal benefits that exceed marginal costs.

 

1. Economics can best be described as the:

1. consumers balancing the macro and micro considerations.
2. social science concerned with how economic agents make optimal choices under the condition of scarcity.
3. empirical study of value judgments of people.
4. study of the reasons for people being rational.

 

1. You should go to a Red Sox game:

1. if the marginal cost of the Red Sox game exceeds its marginal benefit.
2. if the marginal benefit of the Red Sox game exceeds its marginal cost.
3. if your income will allow you to buy a ticket.
4. because Red Sox game is enjoyable.

 

5. If GE produces too few aviation turbines, this would suggest that:
6. GE is making the rational choice.
7. the aviation turbines are produced when its marginal benefit exceeded its marginal cost.
8. GE doesn’t care about producing too many or too few.
9. the aviation turbines are produced where its marginal cost exceeded its marginal benefit.
10. Mary was out jogging and, despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Mary:
11. loved running.
12. decided that the marginal benefit of running one more mile would be higher than its marginal cost.
13. decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile.
14. was still full of strength, so the marginal cost was very low.

 

7. Ben says that “an increase in the tax on beer will raise its price.” Holly argues that “taxes should be increased on beer because college students drink too much.” We can conclude that:
8. Ben’s statement is normative, but Holly’s is positive.
9. Holly’s statement is normative, but Ben’s is positive.
10. Both statements are normative.
11. Both statements are positive.

 

Use the graph to answer questions 8 through 10

 

8. Refer to the budget line shown in the diagram. If the consumer’s money income is $40, then:
9. no enough information to determine the prices of tea and coffee.
10. coffee is $4 each and tea is $8 each.
11. a combination of 5 units of both coffee and tea is affordable.
12. coffee is $8 each and tea is $4 each.

 

9. Refer to the budget line shown in the diagram. If the consumer’s money income is $40, which of the following combinations of goods is unattainable?
10. 3 units of coffee and 5 units of tea.
11. 5 units of coffee and no units of tea.
12. 4 unit of coffee and 2 units of tea.
13. 2 units of coffee and 6 units of tea.

 

1. Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is:

3. 1/3.
4. 1/2.
5. P_T/P_C.
6. P_C/P_T.

 

Use the graph to answer question 11

 

11. The shift of the budget line from ab to cd in the figure is consistent with:
12. lower prices of both books and CDs.
13. a higher price of books and a lower price of CDs.
14. a higher income.
15. a lower income.

 

Use the graph to answer question 12.

1. Refer to the graphs. In which of the graphs is the opportunity cost of two bagel equal to two muffin?

1. Graph A.
2. Graph B.
3. Graph C.
4. Graph D.

Use the graph to answer question 13

1. In the graphs above. In which of the graphs is the opportunity cost of a bagel the highest?

1. Graph A.
2. Graph B.
3. Graph C.
4. Graph D.

 

1. The production possibilities curve (PPC) indicates that:

1. the production of more of one good requires smaller and smaller sacrifices of other goods.
2. an economy will automatically reach full employment of its resources.
3. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
4. an economy’s capacity to produce increases in proportion to its population size

 

1. Country A’s production possibilities curve (PPC) is bowed out from the origin because:

1. resources are not generally equally efficient in producing every good.
2. Originally it was drawn that way and remained unchanged afterwards.
3. available resources are scarce.
4. human wants are unlimited.

Use the graph to answer questions 16

16. Refer to the graph above, the opportunity cost of producing the third unit of clothe is:
17. 2 units of foods.
18. 6 units of foods.
19. 8 units of foods.
20. 4 units of foods.

 

 

Use the graph to answer questions 17

1. Refer to the diagram for cars. The optimal output of cars is:

1. Q1.
2. Q2.
3. Q3.
4. greater than Q3.

 

 

 

 

 

 

 

Use the following table to answer questions 18 through 19

Number of bananas	Total utility
1	$0.30
2	0.45
3	0.55
4	0.63
5	0.70

18. Suppose the table above show the total utility a consumer can get from buying and eating bananas. How much is his marginal utility from consuming the 3^rd
19. $0.45
20. $0.20
21. $0.15
22. $0.10

 

19. If the market price of banana is $0.08 each, based on the optimal decision rule, how many bananas should he buy?
22. 3

 

Use the following table to answer questions 20 through 21

Number of pairs of shoes	Total cost
1	$25
2	45
3	70
4	100
5	135

20. Suppose the table above shows the total cost of shoe maker. How much is the marginal cost of producing the 4^th pair of shoes?
21. 90
22. 60
23. 30
24. 35

 

21. If the market price of shoes is $35, how many pairs of shoes is the optimal amount for him to produce?
22. 2
23. 3
24. 4
25. 5

 

 

 

 

22. If U.S. government changes its immigration law to limit the amount of foreign workers to work in the U.S., what is the effect of this policy change on the Production Possibility Curve?
23. No effect
24. Shift outward (up)
25. Shift inward (down)
26. Either inward or outward

 

23. During early 2000s, U.S. economy experienced information technology improvement, which can be used widely in the economy. What is the effect of this technology improvement on U.S. PPC?
24. No effect
25. Shift inward (down)
26. Shift outward (up)
27. Either inward or outward

 

24. The main characteristic of Laissez-faire capitalism is:
25. very limited government role in the economic decision making process
26. very active government intervention in the economic activities
27. consumers and business be regulated by a central planner
28. equal income distribution

 

25. A market economy has all of the following characteristics except:
26. government makes most of economic decisions and controls the market prices for goods and services
27. the market prices are very important signals to buyers and sellers
28. the allocation of resources is mainly determined by private sectors
29. the interaction of buyers and sellers creates market prices for most of products.

 

26. According to economist, an economic system:
27. consists of some correlated private markets.
28. consists of a set of institutional arrangements and a coordinating mechanism used to link different economic agents in their decision making process.
29. includes a centralized authority (such as government) to coordinate all economic activities.
30. is an arrangement for someone to make money at the cost of someone else

 

27. If a competitive industry is neither expanding nor contracting, it implies that:
28. this industry has zero revenue.
29. this industry has zero economic profit.
30. this industry has zero opportunity cost.
31. this industry will draw more resources to it.

 

 

 

 

The following table illustrates alternative production techniques for producing 18 cups that can be sold for $1 each for a total revenue of $18.

		Technique
Resources	Resource price	Unit input for each technique
	Per unit	A	B	C	D
Land	2	3	2	1	2
Labor	1	2	1	3	1
Capital	4	1	2	2	3
Entrepreneurship	3	1	2	1	1

 

28. Based on the data given in the table above, the most economically efficient production technique is:
29. A
30. B
31. C
32. D

 

29. The idea of “invisible hand” explains that society’s interests are satisfied because:
30. individuals pursuing their self-interest will direct the resources to the production of goods and services that people want and are willing to purchase.
31. individuals are altruistic, or unselfish, and they will produce goods and services for others.
32. it guarantees that individuals will win in competition.
33. government sets the right amount of goods and services to be produced.

 

30. According to the circular flow graph, if businesses pay $150 for the resources and households get $50 for wage, and $40 for interest, and $30 profit for entrepreneurship. How much is the rent?
31. $10
32. $20
33. $30
34. none of above.

 

31. The demand curve of iphone7:
32. indicates the relationship between the price and quantity supplied of iphone7.
33. indicates the quantity demanded of iphon7 at each price.
34. is upward sloping.
35. indicates the relationship between consumers’ income and expenditure.

 

32. Marginal utility of consumption is:
33. decreasing and explains the law of supply.
34. decreasing and explains the income effect.
35. increasing and explains why the supply curve is upward sloping.
36. decreasing and explains why the demand curve is downward sloping.

 

33. When the price of Nike soccer balls decreased, Jack purchased more Nike soccer balls and fewer Adidas soccer balls. Which of the following explains Jack’s decision?
34. The substitution effect.
35. The income effect.
36. An increase in the demand for Nike soccer balls.
37. The price effect.

 

34. On his visit to Six Flags, John planned to spend $10 on a bag of popcorn for $8 and a bottled drink for $2. Later on he noticed the popcorns were on sale for $4 a bag, so John bought two bags of popcorns and a bottled drink. John’s response to the lower price of popcorn can be best explained by:
35. the substitution effect.
36. the income effect.
37. the price effect.
38. a rightward shift in the demand curve for hamburgers.

 

35. Which of the following would not shift the demand curve for beef?
36. New scientific study shows eating beef may raise one’s cholesterol level.
37. the cost of raising cattle is lower.
38. the pork producers launched a very successful commercial.
39. the usual beef buyers have higher income.

 

36. When the price of product A gets lower, the demand curve for product B shifts to the right, then:
37. A and B are both inferior goods.
38. A and B are substitutes.
39. A is an inferior good and B is a superior good.
40. A and B are complementary goods.

 

37. When the price of A declines, the demand curve for product B shifts to the left, then:
38. both A and B are inferior goods.
39. A is a superior good and B is an inferior good.
40. A and B are substitutes.
41. A and B are complementary goods.
42. Which of the following is likely to increase the gasoline demand today?
43. Consumers expect that gasoline will be more expensive in the near future.
44. Consumers expect that gasoline will be less expensive in the near future.
45. SUVs is losing its popularity to hybrid cars.
46. Public transportation is getting cheaper.
47. Which of the following is not held constant, when the point is moving along a demand curve?
48. The price of the product for which the demand curve is relevant.
49. The price expectations of consumers.
50. The income of consumers.
51. The price of substitute goods.

 

40. Which of the following statements uses the terms “demand” and “quantity demanded” correctly?
41. When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell.
42. When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell.
43. When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell.
44. None of these statements use the terms correctly.

 

41. South America as a major producer of coffee beans is experiencing a drought. Weather forecast states that the drought situation is getting worse in the next 3 months, we can expect the demand curve for coffee beans today
42. shifts to the right
43. shifts to the left.
44. does not shift.
45. none of above.

 

42. In crude oil production, the increasing marginal cost explains:
43. the law of demand.
44. the income effect.
45. why the supply curve is upward sloping.
46. why the demand curve is downward sloping.

 

43. Engineers in Ford improve the efficiency of assembly lines used in the production of Ford Escape (SUV). This improvement will:
44. increase equilibrium price of Escape.
45. shift the supply curve of Escape to the left.
46. shift the supply curve of Escape the right.
47. shift the demand curve of Escape to the left.

 

 

44. Mississippi is one of the home states for farming catfish in the U.S. A severe flooding damages plenty of catfish farms. We can expect the supply curve of catfish in Mississippi
45. shifts to the right
46. shifts to the left.
47. does not shift.
48. none of above.

 

45. In order to provide better financial support for the state highway system, RI state legislature plans to raise the excise tax on gasoline, we should expect the supply curve of gasoline:
46. shifts to the right.
47. shifts to the left.
48. does not shift.
49. none of above.

 

46. Other things equal, if the price of electronic circuit board, a key resource used to produce digital cameras, falls, the:
47. supply curve of digital camera will shift to the right.
48. demand curve of digital camera will shift to the right.
49. supply curve of digital camera will shift to the left.
50. supply curve of digital camera will not shift.

 

Use the graph below to answer question 47 and 48

47. The diagram above is a market for coffee. What are the equilibrium price and quantity in the coffee market?
48. $1.00 and 200.
49. $1.60 and 130.
50. $0.50 and 130.
51. $1.60 and 290.
52. In the diagram above, a surplus of 160 units of coffee will exist in the market when the price is:
53. $1.10, that is, $1.60 minus $.50.
54. $1.60.
55. $1.00.
56. $0.50.

 

49. At market equilibrium, it:
50. provides productive efficiency
51. provides allocative efficiency
52. clears the market.
53. all of above.

 

Use graph below to answer questions 50 and 51

50. The graph above is a market for shirt. The government regulation sets the price of $60 in this market and it will result in a:
51. price ceiling and a shortage of 50 units.
52. price ceiling and a shortage of 100 units.
53. price floor and a surplus of 100 units.
54. price floor and a surplus of 50 units.

 

51. The graph above is a market for shirt. The government regulation sets the price of $20 in this market and it will result in a:
52. a price ceiling and a shortage of 50 units.
53. a price ceiling and a shortage of 100 units.
54. a price floor and a surplus of 100 units.
55. a price floor and a surplus of 50 units.
56. When the market price is above the equilibrium level, competition among sellers will:
57. push down the price, increase quantity demanded, decrease quantity supplied, and thus reduce market surplus.
58. raise the price, decrease quantity demanded, increase quantity supplied, and thus reduce market shortage.
59. push down the price, decrease quantity demanded, increase quantity supplied, and thus increase surplus.
60. raise the price, increase quantity demanded, decrease quantity supplied, and thus increase shortage.

 

 

Use graph below to answer question 53

53. Refer to the diagram, which shows demand and supply conditions in the competitive market for HP laptops. Given D0, if the supply curve moved from S0 to S1, then:
54. supply has increased and equilibrium quantity has decreased.
55. supply has decreased and equilibrium quantity has decreased.
56. there has been an increase in the quantity supplied.
57. supply has increased and price has risen to G.

Use the graph below to answer question 54

54. The graph above shows different market situation for cars, which panel shows the effect of a lower wage for auto workers on the market for cars?
55. A only.
56. B only.
57. C only.
58. D only.

 

Use graph below to answer question 55

55. The graph above shows different market situations for software, which panel shows the effect of higher price of personal computers on the market for software?
56. A only.
57. A and D.
58. B only.
59. D only.

 

 

Use the graph below to answer question 56

56. The graph above shows different market situation for corns, which panel shows the effect of a higher price of irrigation equipment on the market for corn?
57. B only.
58. C only.
59. B and C.
60. D only.
61. When Hawaii’s Mt. Kiluea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases. We can expect that, in this tourism market, the equilibrium
62. price must rise and equilibrium quantity may rise, fall, or remain unchanged.
63. price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
64. quantity must increase but equilibrium price may rise, fall, or remain unchanged.
65. quantity must decrease but equilibrium price may rise, fall, or remain unchanged.

 

58. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster. We can expect that, on a windy day in this electricity market, the equilibrium
59. price must rise and equilibrium quantity may rise, fall, or remain unchanged.
60. price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
61. quantity must increase but equilibrium price may rise, fall, or remain unchanged.
62. quantity must decrease but equilibrium price may rise, fall, or remain unchanged.
63. On a hot day, both the demand for lemonade and the supply of lemonade increase. We can expect, on a hot day in the lemonade market, the equilibrium
64. price must rise and equilibrium quantity may rise, fall, or remain unchanged.
65. price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
66. quantity must increase but equilibrium price may rise, fall, or remain unchanged.
67. quantity must decrease but equilibrium price may rise, fall, or remain unchanged.

 

60. Refer to the table below for a market for corns, the equilibrium price is

Quantity demanded (bushels)	Price	Quantity supplied (bushels)
100	$ 3	50
90	$4	60
80	$5	70
75	$6	75
60	$7	90
50	$8	100

 

6. $6. At price $4, there is a shortage of 30 bushels of corn
7. $5. At price $4, there is a surplus of 20 bushels of corn
8. $6. At price $7, there is a shortage of 30 bushels of corn
9. $5. At price $7, there is a surplus of 20 bushels of corn

 

Analytical Exercise: Equilibrium in an Oligopoly Market with Capacity Constraints
Consider the economic environment we encountered in the online exercise on Monday, in
which a set of firms engage in Bertrand competition in four distinct markets. Each firm
produces a homogeneous good at a constant marginal cost � = 4, up to a capacity constraint �
which determines each firm’s maximum production. The firms compete in prices: each firm
posts a price in each market, where prices must be in whole numbers. Capacity constraints and
fixed costs of production vary by market according to the schedule below:
• Market 1: Capacity � = 1000 per firm, no fixed cost of production;
• Market 2: Capacity � = 1000 per firm, fixed cost � = 35,000 per firm;
• Market 3: Capacity � = 400 per firm, fixed cost � = 35,000 per firm;
• Market 4: Capacity � = 2000 per firm, fixed cost � = 35,000 per firm.
Demand is identical across markets and described by the schedule
on the right (also provided in more detail in the Excel file
attached). Consumers buy first from the firm with the lowest price
until its capacity is exhausted, then buy from the firm with the
second-lowest firm, and so on until no additional consumer wishes
to purchase at the lowest price charged among firms with
remaining free capacity. If two (or more) firms post the same
price, they split the remaining quantity demanded at that price,
after any firm charging a lower price has already sold the total
quantity it can produce.
You observe data on prices and quantities for a five-firm oligopoly
in these four markets, given below (generated from play in our inclass exercise on Monday). In this particular market, it appears
that four of the five firms are competing actively, while one firm
(Firm 3) is playing passively. Let us say that the passive Firm 3 is a
“Nonprofit,” while the remaining four firms are “For-profit.” Using
the models of oligopoly behavior we have discussed, your
assignment is to analyze the behavior of the four “For-profit” firms
in this market, taking the prices of the “Nonprofit” as given.
Assignment: In 1-2 pages, provide written answers to the following questions.
1. Analyze the Nash equilibrium of the pricing game between the four For-Profit players in
each of the four markets above, taking the price charged by the Nonprofit (Firm 3) in
each market as given. Based on this analysis, what theoretical predictions can you make
about the price in each market?
Market Demand
Schedule
Price Quantity
10 5120
20 4620
30 4190
40 3810
50 3470
60 3160
70 2880
80 2610
90 2360
100 2120
110 1890
120 1670
2. How do the observed prices charged by the four “For-profit” players compare with the
Nash equilibrium predictions in Part 1? Which Nash equilibrium predictions are borne
out in the data? Which predictions are not?
In your answer to Question 1, it may be helpful to consider the following:
• Should unavoidable fixed costs matter for Nash equilibrium prices? Why or why not?
(Note: By “unavoidable”, we mean that firms cannot leave the market this period.)
• If there were no capacity constraints, and ignoring the fact that price must be an
integer, what would be the Nash equilibrium price in each market?
• How do capacity constraints change our predictions about prices in each market? How
would we expect prices to be ranked with high, medium, and low capacity constraints?
• Consider any potential price � in the demand schedule below. Suppose that Firm 1’s
three for-profit rivals each charge this price � (holding the Nonprofit’s price fixed at its
observed value). Consider two strategies for Firm 1: “matching” the price charged by its
active rivals by setting �. = �, or “undercutting” all three active rivals by reducing price
by $1 to �. = � − 1. Bearing in mind Firm 1’s capacity constraints, what is the *highest*
price � on the demand schedule at which Firm 1 prefers to match than undercut? How
does this price vary with the capacity constraint �? And what does this tell you about
Nash equilibrium prices in each market?
[Hint: For a price � to be a symmetric Nash equilibrium, it must be that no for-profit
firm prefers to undercut when all for-profit rivals charge the given price. In this
particular game there may in general be many Nash equilibria, but from the firms’
perspective the best equilibrium will be the one with the highest price.]
Evaluation: This assignment will count for 10 percent of your final course grade. In your
answers, I will be looking for a clear discussion of both the key economic and strategic issues
governing competition in this market, and how predictions of the underlying theory fit (or
don’t!) the actual prices observed. Note that data *will not* line up with theory on every
dimension, although in some key dimensions it should. Long answers are not necessarily better;
the key is to identify and analyze the core questions involved.
Submissions are due via Canvas at midnight on Friday, April 10. Late submissions will receive a
one letter grade penalty for each day late.
Data on outcomes for each market is provided on the next page.
Market 1: Moderate capacity, no fixed costs
Firm Price Sales Capacity Revenues

Microeconomics: Market Analysis

Objective: One of the primary goals of this course it to apply relevant course concepts/theories to real world events. In addition to the article analysis, this final project will instruct students to continue to apply these theories.

The primary portion of the final project will be a market analysis. As we have discussed in class, markets form the foundation of our course and drive almost all of our discussions. This type of market analysis represents the core of the final project.

This project will be relatively free form. However, students should utilize these guidelines to ensure their work is complete:

Introduction: The 1^st step of this project is to choose a specific product offered by 1 company for your market analysis. I highly recommend that students choose a market that they are interested in.

For example, Professor Tung may choose the market for the video game handheld/console hybrid: the Nintendo Switch or the figure-to-life product: amiibo.

The introduction should include a recent history of the market. This information can include sales data, recent mergers, stock prices, new products/competitors, profit reports, a more in-depth history of the company, or any other information that will introduce this product to me. Do not feel constricted to use only this information. If other pertinent information is found, please include it in your overall market analysis. Additionally, I highly encourage students to use visual aids (graphs, profit reports, pictures of relevant figures, etc.)

Application of Course Concepts: We will cover many different topics throughout this course. Students will be required to use these concepts to analyze their chosen market. Please make sure to reference material from the entire course to more fully understand this market. For instance, the market forces of supply & demand, elasticity, surplus analysis and the efficiency of markets, international trade, and externalities.

In addition, future topics include the costs of production, firms in a competitive market, monopoly, monopolistic competition, & oligopoly. These topics will allow for in-depth analysis of the market in which student’s chosen company competes in.

 

Not all of these topics will be relevant for each student’s market analysis. However, students should attempt to maximize the relevant course concepts that are referenced. There are many ways that students can incorporate key concepts from class including graphical analysis, anecdotes, benefit/cost charts, and research statements. The work you have been doing on your article analyses will also bolster this aspect of the final project.

Examples of methods of incorporating key course concepts into your final project:

Analyzing a graph with sales data to demonstrate how the market has fluctuated over a short or long period of time. What was the cause?

Referencing elasticity to explain market fluctuations. How does the relative response of consumers or producers affect market outcomes? This is a great method to demonstrate the validity of our relevant course concepts.

Have taxes had a big impact in your market? What about international trade? Support your statements with graphs, visuals, and strong critical thinking.

Recommendations for Company: The primary purpose of this project is for students to utilize relevant course concepts to derive valuable conclusions. These conclusions should aid companies in making decisions. One primary way that this information can be presented is with a S.W.O.T. report.

S.W.O.T. stands for:

Strengths: What are the strengths of the company/product? In other words, does this company have a comparative advantage or other particular abilities this company may have in the production of your chosen product.

Weaknesses: On the other hand, what are the weaknesses this company may have? Do you believe that there are any deficiencies in terms of production capability, marketing, competitive position, or elsewhere?

Opportunities: Are there opportunities for this company to expand in this market or into another one altogether? Expand on these thoughts.

Threats: What kind of threats will this company potentially encounter? These threats may take the form of additional competition (domestic or foreign), government regulations, political turmoil, or shifts in sectors/industry.

-Your statements in your S.W.O.T. analysis should be comprehensive, precise, and well-formed. Companies require this kind of in-depth analysis when making decisions.

If you would like to create your own, original statements for your recommendations, that is also acceptable. However, I highly recommend that you see me to double check if your statements are appropriate if you choose to do so.

General Recommendations:

-Make sure to be highly professional in terms of wording, formatting, and presentation. Creating professional work is a valuable asset to have upon graduation.

-The length and form of this project is up to students. Though this is unorthodox, I believe students will benefit from having more freedom in terms of decision-making related to this final project.

-Please cite your sources using MLA format at the end of your final project.

Grading: The syllabus states that together the final exam and the final project will be worth 30% of your overall grade.

-Final Project: Will be worth 20% of your overall grade.

-Final Exam: Will be worth 10% of your overall grade.

Due Date: The final project will be due on the last day of the semester: Thursday, September 22, 2018

International Economics,

1-Suppose an hour’s labor produces 4 kg of rice and 8 meter of cloth in Nepal, and     2 kg and 8 meter in  Bangladesh. Using opportunity costs, explain which country will export cloth and which will export rice in trade? If you think Nepal and Bangladesh should trae rice and cloth, what principle you borrowed from Ricardo did you use? Discuss.   2-A country produces two crops – barley and wheat. Given the price of barley (Pb) and wheat (Pw), the relationship of labor allocation is shown as MLPb x Pb = MLPw x Pw = w, where MLPb and MLPw are marginal products of labor for the two. Suppose after opening up to trade wheat’s price increases by 15 percent and   barley’s price increases by 8 percent; in what percentages (any “possible” number) the wage increases and how the income distribution changes after opening up to trade?

Type your answers below the empty space provided (you may use more space of course) using BLUE in CALIBRI FONT: Then upload on designated portal on our course Bb on the date indicated.

Note we have two different due dates for submission.

 

These three readings all relate to economic growth-pollution relationship, but from a macroeconomic standpoint. This is how the readings and labs are related to each other and to other modules:  

 

1. The first HW due on this topic is for Pugel and Dasgupta together. Pugel reading (pages 284-288) provides the background on the relationship between economic growth and pollution, the components of those relationships, the shape of the traditional EKC and what it means. Dasgupta discusses the how the shape of the EKC can be different from the traditional EKC and the interventions needed to modify the shape. Note that these interventions relate to different types of regulations/interventions that we have discussed (standards, taxes, permits, VIBAs)

 

2. For EKC Lab 1: we will be estimating the turning point of the EKC: i.e., what level of GDP per capita will EKC start to slope down. The second HW due will be the Excel file that you did to re-create EKC Lab 1 results.

 

3. The third HW due date is for Cole which extends the EKC to incorporate trade. It is this inclusion of trade variables that will allow us to relate the EKC (the composition effect – see Pugel reading below) to pollution haven hypothesis (Dechezleprêtre and Sato reading). Note that the income effect (see below) is what relates EKC to regulation which is the topic in an earlier module). Note that Cole explains how inclusion of trade variables will affect the turning point of the EKC. Once again, our modules and concepts therein are inter-related and their linkages will get clearer as we go along. 

 

4. For EKC Lab 2: we will be analyzing whether the coefficients of the trade variables are as expected based from Cole, and estimate whether the turning point of the EKC in models with trade variables will behave as they did in the Cole paper. The fourth HW due date will be the Excel file that you did to re-create this EKC Lab 2 results.

 

Before you get started on the readings watch these:

https://www.youtube.com/watch?v=v-USvMNPNKM

https://www.youtube.com/watch?v=RXw_X9L_4TQ

Managerial Economics

Read the two articles below that discuss why fuel prices fluctuate. Research two of these types further.

2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.

3. Summarize these journal articles. in 1000 Words