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kaplan GB540 unit 1-2

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kaplan GB540 full course assistance;Unit 1. GB540;Please do the following;1// Answer two of the three Discussions topics below;2// Answer to the Case study below;3// Complete the Assignment paper with the Title and References pages (min 5 pages excluding the Title and References pages). Please use APA format.;Rubic for Discussion: Answer two of the three Discussion topics below on at least three different days. To earn credit for participation in this Discussion, you need to post three thoughtful and substantial posts under each of the two topics you have chosen. Post your initial response to the two topics you have chosen on the first day. Then, on two different days, post to your classmates and instructor for each of your chosen topics. You will have a total of six posts for this Discussion: three minimum posts for each of the two topics you have chosen. Please also respond to the feedback you receive from your instructor on your posts when appropriate. Your contributions should make it clear that you understand the assigned reading materials and you are able to apply them to the real world economic decisions.;1// Discussion 1;A fundamental assumption for economic analysis is that economic agents, be it an individual, a household or a firm/business, tend to make choices and select alternatives rationally. The rational economic choice (decision) implies thatpeople are driven by the rational pursuit of self-interest, and engaged in economic decisionsto maximize this self-interest.;Byrational economic choice, economists mean that people try to make the best choice they can, given the available resources at their disposals (money, time, etc.) and information.;Self-interestis when individuals make economic decisions that are in their own best interest. On the other hand, social interestis when choices are made that benefit society as a whole. Economists argue that social interest can be attained by individual decision makers acting in their own self-interest. This process is what Adam Smith called theinvisible hand, which has been the foundation of the market economy.;Create an example to demonstrate how an individual or firm acting out of self-interest to maximize profits by offering goods or services in economic markets benefit consumers ? even if they do not care about them. In other words, how does self-interest help achieve society?s economic goals?;What is the relationship between self-interest and social interest in the economic decision (economic choice) process? Is there a conflict between the two in the economic world?;2// Discussion 2;There are two major kinds of government interventions in markets: price controls and quantity controls. The government intervenes to regulate prices by imposing price controls, which are legal restrictions on how high or low a market price may go. Price ceiling is the maximum price sellers are allowed to charge for a good or service, whereas price floor is the minimum price buyers are required to pay for a good or service.;Price and quantity controls may have adverse impacts on productive and allocative (marketing) efficiency. However, price and quantity controls are used despite their well-known problems.;Based on the Reading in Chapter 3 on price ceiling and price floor, explain the impacts of the following price control measures.;What would happen to the supply and demand of Super Bowl tickets if the government mandated that no more than $20 a ticket could be charged?;What would happen if a law passed dictating that kindergarten teachers could make no less than $100,000 per year?;3// Discussion 3;The concept of rational action is a frontier of economic theory. Accordingly, traditional economics holds that humans, as rational beings, make rational economic choices to maximize their economic welfare as pursuit of self-interests. Thus, economics assumes that human economic behavior reflects rational self-interest.;Some economists argue that rationality has its bounds because many human behaviors do not appear to be rational, as traditional economics assume most human behavior is rational. Economist Herbert Simon developed the concept of ?bounded rationality,? which means that people are as rational as possible (seek to act in their own best interests) given their limitations. Bounded rationality is based on the premise that an individual?s rationality is limited by both his cognitive ability and the economic environment. Thus an economic agent behaves in a manner that is nearly optimal with respect to its goals as its resources will allow.;Therefore, some economists claim that bounded rationality better describes economic agent?s behaviors than optimal rationality approach. This is due to the fact that bounded rationality recognizes that it is impossible to comprehend and analyze all of the potentially relevant information in making economic choices. The only possible way of coping with the complexity of the world is to develop techniques, habits, and standard operating procedures to facilitate the decision making process. The debate still goes on the issue. Do people make rational decisions in economics? What are the factors that lead to bounded rationality? What leads to irrational economic decisions?;With this in mind, pick a behavior that appears irrational to other people but has rational components for the person doing it. Then provide a thorough explanation for your classmates.;CASE STUDY;Economist Joseph Schumpeter, who taught at Harvard from 1932 until his death in 1950, popularized the term ?creative destruction? to describe the capitalist process in which entrepreneurs introduce new goods and services to economic markets that displace existing goods and services. Though this innovative process results in increased wealth and better standards of living overall, not everybody benefits equally. The opportunity cost of buying a newly available product is the use of the old one that has been given up, so those in the camp of the new, different, and desirable do very well, while those camped out with the old and no longer desirable products see their prospects decline.;Provide an example of creative destruction you have witnessed during your lifetime and describe what the benefits and costs to the economy have been. Who was enriched and whose fortunes declined?;For your main (initial) response, construct thoughtful and detailed responses to the Discussion.After your initial response, post at least two substantial responses to your classmates and instructor?s posts in order to earn full credit.;Assignment for Unit 1;Assignment Directions: All problems below are to be completed and submitted to the Unit 1 Dropbox by the end of Unit 1.;Markets are mechanisms for coordinating the set of connections of production operations that are distributed throughout the whole economic system. Thus, the market is the predominant and determining link between producers of goods and services and consumers. Accordingly, markets, as an exchange of goods and services that takes place as a result of buyers and sellers interactions, are generally considered the most efficient allocator of resources in the market economy.;However, free markets are not allowed to solve some of the social problems in a society due to various reasons. One such social problem is illegal drugs. Another example is environmental such as pollutions. For an additional example for a social problem, where supply and demand is not allowed to freely function, read the ?Last Word? feature on markets for human organs on Pages 68?69 of your textbook. There are black markets (underground economy) for human organs in some countries. But a trade in human organs, based on supply and demand, raises ethical issues and hence it indicates a limitation of relying on markets to solve the social problems we have in the society.;You can write your research about social problems where the free markets are not allowed to function, which includes the market for a particular illegal good or service, a regulated market, etc.;? Select a social problem where free markets are not allowed to function and conduct research on the social problem.;? Describe how free market features could be introduced to help alleviate the social problem through free market operations of supply and demand.;? Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.;Your answer should be approximately 5 pages long and should be formatted in APA style. Cite at least three references for the paper.;Rubric for Unit 1 Assignment Paper;Introduction and conclusion 10;Identify a specific social problem where free markets are not allowed to function. 5;Describe how free market features could be used to help alleviate the social problem. 15;Discuss the risks of introducing market mechanisms where ethical issues are present. 15;5 pages in length and at least three reliable references. 5;Spelling, Grammar, APA Format;Writing style, grammar, APA format (references, cover page, etc.) 10;Total 60;Unit 2. GB540;Discussion1;The law of demand states that a fall in the price of a good raises the quantity demanded, and the increase in price leads to a decrease in quantity demanded. The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. Demand for a good is said to be elastic if the quantity demanded responds substantially to changes in the price, and the percentage change in quantity demanded is greater than the percentage change in price. Demand is said to be inelastic if the quantity demanded responds only slightly to changes in the price, which indicates that the percentage in price is greater than the percentage in quantity demanded.;However, the extent of responsiveness of quantity demanded to a change in price depends on the nature of a particular good or service in the market. The price elasticity of demand partly depends on the availability of close substitutes. When a large number of substitutes are available, consumers respond to a higher price of a good by buying more of the substitute goods and less of the relatively more expensive good. In addition, goods or services that are considered necessities tend to have less elastic (more inelastic) demand, whereas goods or services that are considered luxuries have more elastic (less inelastic) demands.;Explain why the demand for the good or service provided by the organization you work for is elastic or inelastic. How does this influence pricing decisions?;Provide examples on how the availability of close substitutes affects price elasticity of demand.;Give specific examples of necessities or luxuries, and explain how they affect price elasticity of goods or services.;Discussion 2;Externalities come about when individuals impose costs on or provide benefits to others but do not consider those costs and benefits when deciding how much to consume or produce. Thus externality is a cost or benefit received by a person not involved in a market transaction, and therefore not reflected in the market price of the commodity being transacted. There are two types of externalities: positive externalities and negative externalities.;A positive externality exists when an individual or firm making an economic decision does not receive the full benefit of the decision. In this case, the social benefit is greater than the benefit that goes to the individual or firm.;A negative externality occurs when an individual or firm making a decision does not have to pay the full cost of the decision. If a good has a negative externality, then the cost to society is greater than the cost consumer is paying for it.;Both positive and negative externalities result in market inefficiencies unless proper action is taken.;Describe your understanding of externalities by providing an example of a positive externality and a negative externality.;Why do positive and negative externalities lead to inefficiency in the market economy?;How can externalities be addressed using the private sector to reduce market distortions of externalities?;What government policies help deal with positive and negative externalities by reducing inefficiency?;Discussion 3;The role of governments in the economy is one of the most debated issues in economics. Similarly, one of the most enduring debates of U.S. economic history focuses on the role of government in the economy. On the one hand, it is argued that government regulation of the economy is too little and too late. On the other hand, there is also a claim that the U.S. economy is no longer a free market due to too many regulations.;Moreover, the causes of economic and financial crises have been parts of the larger debate on the role of the government in the economy. Some argue that the accumulation of incorrect policies and lack of effective policies led to the recent and other economic and financial turmoil (crises). Accordingly, the failures of the main entities that manage our economy, which are the Congress, the executive branch of the Federal government represented by the Treasury Department, and the Federal Reserve System, lead to economic and financial crises. The other side claims that it?s the lack of regulations that lead to economic and financial crises.;What are the roles of government in the market economy? Based the current economic conditions, to what extent should the government intervene in the market economy?;What are the justifications given in favor of more government involvement in the market economy?;What are the reasons given in favor of less government involvement in the market economy?;Case Study;Read the Last Word piece, ?Government Failure? in the News, in Chapter 5 in your textbook. Investigate the use of special-interest lobbyists for some of these articles. The process of lobbying legislatures is itself a big business. State legislatures are under the same kind of pressure from interest groups as the Senate and the House of Representatives. Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group?s size.;For your main (initial) response, construct thoughtful and detailed responses to the Discussion.After your initial response, post at least two substantial responses to your classmates and instructor?s posts in order to earn full credit.;Assignment for Unit 2;Assignment Directions;According to the law of demand, if price increases, quantity demanded of a good or service will decrease or vice versa. Price elasticity of demand tells us how much quantity demanded will decrease when price increases or how much quantity demanded will increase if price decreases.;On the other hand, according to the law of supply, if the price increases, quantity supplied of a good or service will increase. Similarly, if price decreases, quantity supplied will decrease. The degree of sensitivity (responsiveness) of production/supply to a change in price is measured by the concept of price elasticity of supply.;Total revenue is calculated as the quantity of a good or service sold multiplied by its market price. Thus, it is a measure of how much money a company makes from selling its product. The core objective of a firm is maximizing profit. One of the ways to maximize profit is increasing total revenue. The firm can increase its total revenue by selling more items or by raising the price. Among others, this depends on the nature of the price elasticity of demand. Moreover, the length of time is an important factor in determining price elasticity of demand and supply.;? Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain using empirical examples.;? Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time? Why?Give examples.;? What are the impacts of government and market imperfections (failures) on the price elasticities of demand and supply?;The Assignment should be a minimum of 5 pages in length, excluding title page and reference page. Your paper must incorporate several quality references, and it must be organized in APA format.;Rubric for Unit 1 Assignment Paper;Introduction and conclusion 10;Identify a specific social problem where free markets are not allowed to function. 5;Describe how free market features could be used to help alleviate the social problem. 15;Discuss the risks of introducing market mechanisms where ethical issues are present. 15;5 pages in length and at least three reliable references. 5;Spelling, Grammar, APA Format;Writing style, grammar, APA format (references, cover page, etc.) 10;Total 60

 

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