| March 14, 2016

Topic 1 Introductions

Throughout this course, many discussion opportunities come up where you need to respond to other people’s opinions and comments. Please take this opportunity to introduce yourself and to learn something about each other. Be sure to include the following information:

Your name.
Why you are taking this course?
Any prior knowledge you may have about this topic.
Your current and/or future educational goals.
How you think this course will help you.

Click on the Respond button on the lower-left hand portion of this page to answer these questions on the Discussion Board. Take time to review the responses of your classmates and provide your feedback.

Topic 2We use economic concepts on a daily basis without even knowing it! When you decide whether or not to eat lunch at a restaurant or make a sandwich at home, you are making a decision based on the costs and benefits of those options. Economists use these same basic tools to examine economic issues. Think about one choice you made in the past several days and explain how this could be analyzed using economics concepts such as tradeoffs, opportunity costs, and marginal analysis.

Think about one choice you made in the past several days and explain how this could be analyzed using economics concepts such as tradeoffs, opportunity costs, and marginal analysis.

Discussion Checklist:

How does the concept of “tradeoff” relate to “opportunity costs?”
What is the difference between monetary and non-monetary opportunity costs?
Why are opportunity costs based on a person’s tastes and preferences?

Topic 3

Comparative advantage dictates which good or service a particular region specializes in and exports to other regions. List one good or service that your home region specializes in and where it exports this good. Why is your region particularly good at the production of that good or service?

.784px;”=””>Topic 1

You have learned that changes in price or other factors such as income or number of sellers will impact the demand and supply sides of the market. Recall that changes in current price are illustrated by movement along the curve and cause changes in either “quantity demanded” or “quantity supplied.” Other factors will cause either the demand or supply curve to shift and are referred to as changes in “demand” or changes in “supply.”

Choose one of the followingand determine whether there is correct usage of the terms “demand,” “quantity demanded,” “supply” and “quantity supplied.” Why or why not?

a. The price of Burger King’s Whopper hamburger declines causing the demand for Whoppers to shift to the right.

b. Because of a shortage of potatoes, the supply of French fries decreases.

c. Wage labor in the peanut butter industry increases causing the quantity demanded for jelly to decrease.

d. In the six months following Hurricane Katrina, the quantity supplied of oil in the Gulf of Mexico declined by 25 %.

It is a snowy winter and snow shovel prices have increased. Suppliers increase supply to take advantage of these higher prices.

Topic 2

Higher education has become increasingly expensive. And although the rate of increase has declined, education now costs much more than it did. One of the ways the government controls prices is by setting a floor or a ceiling on the market. Explain what might happen in the market for higher education if the government placed a price ceiling on the cost of one undergraduate credit hour? Consider the following:

Does it matter whether or not the ceiling is set above or below the equilibrium price?
Who might benefit from this price restriction?
Who might be harmed from this price restriction?

Explain your answers using economic theory.

.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 3 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>Topic 1

When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of raising the price of gas? In other words, who is harmed by the tax? Who benefits from such a tax? Are low-income households disproportionately harmed as compared to high-income households? Why or why not?

Topic 2

Your decision to pursue a higher-level degree is based on investment in human capital. What are the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision?

.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 4 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently.

Discuss the difference between how accountants and economists calculate profit giving example of costs each might use in this calculation.
Will accounting profit and economic profit always be different?
When might accounting profit and economic profit be the same?

Topic 2

Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale. Why do firms experience diseconomies of scale as they increase production volume? How might firms “avoid” experiencing diseconomies of scale and what does the long-run average cost curve look like when diseconomies of scale exist?

.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 5 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

Describe an industry that would meet the conditions of a perfectly competitive industry:

There are many buyers and sellers so neither side of the market has market power.
The product provided to the market is identical across suppliers.
There are no barriers to entry.

How do individual firms in a perfectly competitive industry respond to an increase in the market demand for the product? Would advertising by individual firms in this type of market provide any benefits?

Topic 2

In order to maximize profits, monopolies produce where: MARGINAL REVENUE = MARGINAL COST .784px;”=””>.784px;”=””>.784px;”=””>
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 6 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

There are many dairy farmers in the world and also many Starbucks coffeehouses. Why does a Starbucks coffeehouse face a downward-sloping demand curve while a dairy farmer has a horizontal demand curve? What other suppliers might face a downward-sloping demand curve and what implications does this have for their advertising budget as compared to suppliers with horizontal demand curves?

Topic 2

How do barriers to entry impact the level of competition in a market? What might happen to market price as greater barriers to entry come into existence? Not all barriers to entry are created through market conditions. Barriers to entry, such as patents, licenses, or international trade restrictions, may be government imposed. How do government-imposed barriers such as patents impact consumers and suppliers in these markets?
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 7 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

The national income accounts measure productivity, spending, and income; but these accounts were not designed to measure economic welfare. Discuss aspects of economic welfare ignored in GDP. HINT: Do a “Google” search on the Genuine Progress Indicator and compare this with GDP in terms of measuring economic welfare.

Topic 2

What factors might contribute to a low growth rates in a country? Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic? Compare growth rates across countries by visiting The World Bank website (http://data.worldbank.org/indicator). How does GDP growth (GDP growth (annual %)) compare across developed countries such as the U.S. and poorer countries such as Nigeria. Why might growth rates of developed nations be lower than those of poorer countries?

Source: The World Bank. Retrieved from http://data.worldbank.org/indicator

.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 8 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?

Topic 2

In this unit, you discussed some of the problems associated with inflation. List one of these problems and describe a situation in which you encountered this problem.

.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 9 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

In 2008, Federal Reserve Bank Chairman, Ben Bernanke, and U.S. Treasury Secretary, Henry Paulson, responded to the financial crisis by intervening in financial markets in unprecedented ways. Do you think this intervention was necessary? What are the consequences of this intervention? What might have happened if they had not intervened?

Topic 2

There is always debate regarding the structure of the current income tax system in the U.S. Many opponents of the current system argue that under its current structure, many wealthy households are able to avoid taxes and for most households, the tax system is simply too complicated and confusing. One solution that has been proposed is the “flat tax.” What are the benefits and detriments of replacing the current income tax system with a flat tax system? Who benefits and who might be harmed? What implications does the flat tax system have for tax preparation companies such as H&R Block?

.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>KAPLAN MT445 UNIT 10 DISCUSSION LATEST 2016 FEBRUARY
.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>.784px;”=””>Topic 1

Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantages for the country as a whole. Describe a recent foreign purchase. Do you think it is better to source from overseas or should tariffs be in place to protect American industries? Why or why not?

Topic 2

The Economist regularly publishes the Big Mac index to examine the validity of purchasing power parity. If purchasing power parity holds, a consumer should be able to take the same amount of money required to buy a Big Mac in the U.S. and buy a Big Mac in any other country. What are the reasons purchasing power parity may not hold? If the U.S. dollar depreciates against the euro and purchasing power parity holds, would a Big Mac in Europe become more or less expensive? Why? If purchasing power parity doesn’t hold, does an American tourist in Europe pay more or less for a Big Mac? Why?

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