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GB540 Unit 1 Case Study (2 pages maximum)




Question;GB540 Unit 1 Case Study (2 pages maximum).;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? Construct thoughtful;detailed responses to the cases contributed by at least three of your;classmates.All problems below are;to be completed and submitted to the Unit 1 Dropbox by the end of Unit 1.Problem #1:Using either a graph or table (Refer to pages;11-15 for help with graphs and tables) use two goods to construct a production;possibilities curve. Clearly explain what a variety of different points on the;curve mean. What would make the curve expand or contract? Why is efficiency;lost at the extremes, as when substantially more of one good and very little of;another is produced?Problem #2 Part A:Go to the internet auction site eBay? at;www.ebay.comand select the category Jewelry and Watches, followed by;Loose Diamonds and Gemstones, and then Diamonds, Natural. How many natural;diamonds are for sale at the moment? Note the wide array of sizes and prices of;the diamonds. In what sense is there competition among the sellers in this;market? How does that competition influence prices? In what sense is there;competition among buyers? How does that competition influence prices? Problem #2: Part B)Describe what would happen if an;outside agency determined the prices eBay could charge.Problem #3:Read the ?LAST word? feature on markets for;human organs on Pages 98?99 of your text. Next, select a social problem where;free markets are not allowed to function and describe how free market features;could be introduced to help alleviate the problem. As part of your answer also;include a discussion of the risks of introducing market mechanisms in;situations where ethical issues are present. Your answer should be;approximately two pages long and in APA format.(Note: You can write;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.).;GB540 Unit 1 Assignment Rubric;Content and Analysis;Points Possible;Points Earned;Problem # 1;? Graph or table to illustrate a production possibilities curve ? Meaningful;description of a variety of different points on the curve. ? Explanation of;what would make the curve expand or contract. ? Explanation of why efficiency;is lost at the extremes, (i.e., substantially more of one good and very;little of another is produced).;12;Problem # 2;? Comprehensive discussion of the availability of natural diamonds as a;component of supply in a competitive market and how it influences price. ?;Comprehensive discussion the demand for natural diamonds in a competitive;market and how it influences the price. ? Description of what would happen if;an outside agency determined the prices eBay could charge.;12;Problem # 3;? Introduction and Conclusion;4;?;Social problem;identified where free markets are not allowed to function.;4;?;Description of how;free market features could be introduced to help alleviate the problem.;12;?;Two pages in length;4;Writing Style, Grammar, APA Format;12;Total;60;="body">


Paper#56913 | Written in 18-Jul-2015

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