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kaplan GB540 unit 1-2




Question;kaplan GB540 full course assistanceUnit 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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