...A. the supply curve for gasoline to shift inward. B. the supply curve for gasoline to shift outward. C. the quantity of gasoline demanded to move out along the demand curve. D. the quantity of gasoline supplied to move in along the supply curve. 2. Suppose the price of tomatoes dramatically increases. Which of the following could cause this change? A. Hurricanes during the late summer damages the Florida crop, shifting supply left B. A reduction in tariffs of tomatoes from Central American, shifting supply right C. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right D. Advertising for catsup increases demand for catsup, shifting the demand curve to the left 3. An increase in price and decrease in quantity are consistent with a: A. leftward shift in demand and no shift in supply. B. leftward shift in supply and no shift in demand. C. rightward shift in supply and a rightward shift in demand. D. rightward shift in supply and a leftward shift in demand. 4. An increase in quantity and an indeterminate change in price are consistent with a: A. leftward shift in demand and supply. B. rightward shift in supply and demand. C. rightward shift in supply, keeping demand constant. D. rightward shift in demand, keeping supply constant. 5. Suppose caviar sales soars at the same time price increases. What would lead to both a higher quantity sold and higher price of caviar? A. A shift in demand to the...
Words: 11789 - Pages: 48
...Chapter 03 - Markets, Organizations, And The Role Of Knowledge CHAPTER 3 MARKETS, ORGANIZATIONS, AND THE ROLE OF KNOWLEDGE CHAPTER SUMMARY This chapter answers three primary questions: How do market systems work? What are the relative advantages of market systems compared to central planning in large economies? Why do we observe so much economic activity conducted within firms in market economies? In addition to covering the basic principles of exchange and supply-and-demand analysis, the chapter introduces two concepts that are critical to the subsequent development in the book: specific knowledge and contracting costs. The chapter also makes the important point that individuals have incentives to choose value-maximizing organizational arrangements. An appendix presents the basics of present value analysis and the valuation of common stock. It also discusses the concept of stock market efficiency. This appendix provides useful background material (for example, when instructors want to discuss the stock market reactions to events). CHAPTER OUTLINE GOALS OF ECONOMIC SYSTEMS PROPERTY RIGHTS AND EXCHANGE IN A MARKET ECONOMY Dimensions of Property Rights Managerial Application: Patent for Priceline.com Managerial Application: Property Rights Insecurity in Columbia Gains from Trade Managerial Application: While Animosity between the Governments of Venezuela and the U. S. Grow, So Does Trade Managerial Application: Strategic Business Planning—Ignoring Economics of Trade Academic...
Words: 6097 - Pages: 25
...This course will teach students the basic tools of microeconomics and macroeconomics issues such as price determination, supply and demand, consumer behavior, costs of production and market structures growth, inflation, unemployment, interest rates, exchange rates, technological progress, budget and trade deficits. The course will provide a unified framework to address these issues and to study the impact of different policies, such as monetary and fiscal policies, on the aggregate behavior of individuals. Evaluation of Student Performance: | Weightage in grade | Hourlies | 30% (15% of each hourly) | Final exam | 30% | Assignments/presentations/quizzes | 25% | Class Participation | 15% | Total | 100 | Description of each component: * The term exams (hourlies) and final exam will be conducted as per the rules set by IBA. There will be no makeup exams, unless instructed. All IBA rules of examination apply to undertaking the exam * Assignments will be split in class assignments and home assignments. Class assignments must be handed over to the instructor at the end of the class (unless otherwise). Home assignments must be submitted on the LMS before the start of the class. No late submissions in the case of home assignment is allowed, under any circumstances. * At the start of the 3rd class, all students must have formed groups of 3. They must inform the TA about their group. The students will submit all group assignments in the group formed. If you change...
Words: 2405 - Pages: 10
...Post-Graduate Diploma in Management Managerial Economics Course Owner: Sadananda Prusty, Ph. D Name of Faculty Members to Teach this Course (To be mentioned after final course allocation) Institute of Management Technology Ghaziabad Course Background and Learning Objectives: “Economics is a study of mankind in the ordinary business of life.” So wrote Alfred Marshall, the great nineteenth-century economist, in his textbook, Principles of Economics. Although we have learned much about the economy since Marshall’s time, this definition of economics is as true today as it was in 1890, when the first edition of his text was published. In recent years, there are many questions about the economy that might spark any one’s curiosity. Why are apartments so hard to find in Mumbai City? Why do airlines charge less for a round-trip ticket? Why executive class airfare is costlier than economic class? Why are jobs easy to find in some years and hard to find in others? Why a package tour costs less as compared to individual booking of air ticket and hotel? Moreover, as one go about his/her life, he/she make many economic decisions. During student carrier one has to decide how many years to stay in school. After joining in a job, one has to decide how much of his/her income to spend, how much to save, and how to invest his/her savings. When running a small business or a large corporation, and one will decide...
Words: 2173 - Pages: 9
...9/19/2012 A Tour of the World A Tour of The World A Tour of The World Chapter 1: A Tour of the World CHAPTER 1 Prepared by: Fernando Quijano and Yvonn Quijano Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States Table 1-1 1996–2006 (average) 2006 2007 2008 3.1% 3.4% 3.3% 2.1% 2.5% Output growth rate Unemployment rate 6.2 5.0 4.6 4.6 4.8 Inflation rate The unemployment rate 4.0 2.0 2.9 2.6 2.2 Output growth rate: annual rate of growth of output (GDP). Unemployment rate: average over the year. Inflation rate: annual rate of change of the price level (GDP deflator). 3 of 18 Chapter 1: A Tour of the World The inflation rate The period 1996-2006 was one of the best decades in recent memory: The average rate of growth was 3.4% per year. The average unemployment rate was 5.0%. The average inflation rate was 2.0%. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States 4 of 18 1-1 The United States Has the United States Entered a New Economy? Should We Worry About the U.S. Trade Deficit? Figure 1 - 2 Figure 1 - 3 Rate of Growth of Output per Hour in the United States Since 1960. The U.S.Trade Deficit Since 1990 The trade deficit increased from about 1% of output in 1990 to about 6% of output...
Words: 25619 - Pages: 103
...economic aspects of international trade. Discusses the labor market, interest rates and the supply of money, and performance of a national economy. Examines the use of economics in business decisions, considering such principles as opportunity costs, diminishing returns, and the marginal principle. INSTRUCTIONAL MATERIALS Required Resources O'Sullivan, A., Sheffrin, S., & Perez, S. (2012). Survey of economics: Principles, applications, and tools (5th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall. MyEconLab book key Note: This book key comes with the purchase of a new textbook and is needed in order to access MyEconLab. Supplemental Resources Aaronson, D., Mazumder, B., & Schechter, S. (2010). What is behind the rise in long-term unemployment? Economic Perspectives, 34(3/4), 28-51. Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health, 100(2), 216-22 Heyne, P., Boettke, P. J., & Prychitko, D. L. (2010). The economic way of thinking. (12th ed.). Upper Saddle River: Pearson-Prentice Hall. High, J. (2011). Economic Theory and the Rise of Big Business in America, 1870-1910. Business History Review, 85(1), 85-112. Luojia, H., & Toussaint-Comeau, M. (2010). Do labor market activities help predict inflation? Economic Perspectives, 34(3/4), 52-63. COURSE LEARNING OUTCOMES 1. Apply the underlying principles of economics and...
Words: 5350 - Pages: 22
...ECON545 Quiz 1 Guidelines Recall that Keller courses are built around Terminal Course Objectives (TCOs). At the conclusion of the course, you will even be asked to rate the extent to which the TCOs have been covered. There are 9 TCOs specified for GM545. Review the TCOs by clicking on Course Syllabus at the top of the course home page, and then clicking on the Terminal Course Objectives link. Also, please note that the TCO(s) to be covered during any given week are specified in the Objective section for that course week. Quiz 1 addresses material covered in Weeks 1 and 2 of the course. The TCOs at issue are: Course Objective Description A Given a demand function and a supply function, illustrate how the price mechanism, in response to changes in other demand or supply factors, leads to a new market equilibrium price and level of output. B Given appropriate marketing data, including price elasticity coefficients, demonstrate how to use this information in product pricing in order to maximize revenues. C Given knowledge of key cost and marginal revenue relationships, use marginal analysis to demonstrate shutdown, break-even and optimal output points, as well as the optimal amount of a resource to utilize. You will note that the problems that have been assigned from the book focus on these TCOs. The problems address the basics while Discussion topics focus on broad applications. The quizzes (and the final exam) emphasize the basics. So, make sure...
Words: 2613 - Pages: 11
...GM545 Quiz 1 Guidelines Recall that Keller courses are built around Terminal Course Objectives (TCOs). At the conclusion of the course, you will even be asked to rate the extent to which the TCOs have been covered. There are 9 TCOs specified for GM545. Review the TCOs by clicking on Course Syllabus at the top of the course home page, and then clicking on the Terminal Course Objectives link. Also, please note that the TCO(s) to be covered during any given week are specified in the Objective section for that course week. Quiz 1 addresses material covered in Weeks 1 and 2 of the course. The TCOs at issue are: Course Objective Description A Given a demand function and a supply function, illustrate how the price mechanism, in response to changes in other demand or supply factors, leads to a new market equilibrium price and level of output. B Given appropriate marketing data, including price elasticity coefficients, demonstrate how to use this information in product pricing in order to maximize revenues. C Given knowledge of key cost and marginal revenue relationships, use marginal analysis to demonstrate shutdown, break-even and optimal output points, as well as the optimal amount of a resource to utilize. You will note that the problems that have been assigned from the book focus on these TCOs. The problems address the basics while Discussion topics focus on broad applications. The quizzes (and the final exam) emphasize the basics. So, make sure...
Words: 2618 - Pages: 11
...Using Supply and Demand 5 A f t e r r e a d i n g t h i s c h a p t e r, y o u s h o u l d b e a b l e t o : Show the effect of a shift in demand and supply on equilibrium price and quantity. Explain real-world events using supply and demand. Demonstrate the effect of a price ceiling and a price floor on a market. Explain the effect of taxes, tariffs, and quotas on equilibrium price and quantity. State the limitations of demand and supply analysis. State six roles of government. It is by invisible hands that we are bent and tortured worst. Nietzsche I n the last chapter we introduced you to the concepts of supply and demand. In this chapter we will (1) show you the power of supply and demand, (2) show you how the invisible hand interacts with social and political forces to change the outcome of supply and demand analysis; and (3) discuss how one must adjust supply and demand analysis with other issues kept at the back of one’s mind. THE POWER OF SUPPLY AND DEMAND To ensure that you understand the supply and demand graphs throughout the book, and can apply them, let’s go through an example. Figure 5-1(a) deals with an increase in demand. Figure 5-1(b) deals with a decrease in supply. 104 USING SUPPLY AND DEMAND s CHAPTER 5 105 Figure 5-1 (a and b) SHIFTS IN SUPPLY AND DEMAND When there is an increase in demand (the demand curve shifts outward), there is upward pressure on the price, as shown in (a). If demand increases from D0 to D1, the quantity of...
Words: 15505 - Pages: 63
...Fall 2012 CHAPTER 1: THE CHALLENGE OF ECONOMICS 1 CHAPTER 1: THE CHALLENGE OF ECONOMICS Definitions and Questions All economic questions and problems arise because human wants exceed the resources available to satisfy them. Scarcity: - The condition that arises because the available resources are insufficient to satisfy wants. o Our resources are limited but our wants are unlimited. - Scarcity: Lack of enough resources to satisfy all desired uses of those resources The Central Problem of Scarcity Our materialistic wants and desires continue to grow. - Newest camera phone - Larger television - Bigger house - Exotic vacation Why can’t we have everything we want? - Our wants exceed our resources. Economics and Opportunity Cost Economics – the study of how best to allocate scare resources among competing users. Opportunity cost – The value or price of the most desired goods and services that are foregone in order to obtain something else. - The next best alternative that you give up. Factors of Production Resource inputs used to produce goods and services. The four resources: - Labor, land, capital and entrepreneurship Resources are factors of production. Economic resources – all natural human and manufactured resources that can be used in the production of goods and services. Land – arable land, forests, minerals, energy (oil deposits and coal), water, air, wild plants, animals, birds and fish. Labor – all the physical and intellectual talents that can...
Words: 16615 - Pages: 67
... The PDF has been formatted for two-sided printing. Please address any queries to: pricesandmarkets@rmit.edu.au Copyright Martin C. Byford (2012). This version compiled on Thursday 6th December, 2012. Contents Using This Volume 1 Introduction to Demand and Supply 1.1 Quiz . . . . . . . . . . . . . . . . . . 1.2 Group Exercise . . . . . . . . . . . . 1.3 Homework Questions . . . . . . . . . 1.4 Homework Solutions . . . . . . . . . 2 Elasticity 2.1 Quiz . . . . . . . . . 2.2 Group Exercise . . . 2.3 Homework Questions 2.4 Homework Solutions iii 1 1 3 4 5 9 9 11 12 13 15 15 17 18 19 25 25 27 28 29 33 33 35 36 37 39 39 41 42 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Applications of Demand and Supply 3.1 Quiz . . . . . . . . . . . . . . . . . . 3.2 Group Exercise . . . . . . . . . . . . 3.3 Homework Questions . . . . . . . . . 3.4 Homework Solutions . . . . . . . . . 4 International Trade 4.1 Quiz . . . . . . . . . 4.2 Group Exercise . . . 4.3 Homework...
Words: 15136 - Pages: 61
...Assignment Scenario Analysis ECO 561 Week 2 Assignment Cost and Revenue Curves Simulation ECO 561 Week 2 DQ 1 ECO 561 Week 2 DQ 2 ECO 561 Week 3 Individual Assignment Cost Scenario ECO 561 Week 3 DQ 1 ECO 561 Week 3 DQ 2 ECO 561 Week 4 Individual Assignment Simulation Analysis ECO 561 Week 4 DQ 1 ECO 561 Week 4 DQ 2 ECO 561 Week 5 Individual Assignment Interest Rate Report ECO 561 Week 5 DQ 1 ECO 561 Week 5 DQ 2 ECO 561 Week 6 Learning Team Assignment International Paper ECO 561 Week 6 DQ 1 ECO 561 Chapter 1 Quiz ECO 561 Chapter 2 Quiz ECO 561 Chapter 3 Quiz ECO 561 Week 4 Quiz ECO 561 Chapter 5 Quiz ECO 561 Chapter 6 Quiz ECO 561 Chapter 7 Quiz ECO 561 Chapter 8 Quiz ------------------------------------------------------------------------------------------ ECO 561 Chapter 1 Quiz (UOP Course) For more course tutorials visit www.tutorialrank.com Chapter 1 Quiz Question 1 As per the law of demand: When rates increase, ceteris paribus Question 2 In response to news reports that taking aspirins daily can reduce an individual's risk of a heart attack, there will most likely be Question 3 The number of pizzas this restaurant sells per week increases from 500 to 700. This could be caused by Question 4 Which of the following is consistent with the law of supply? Question 5 Suppose that video game cartridges are a normal good. If the income of video game players increases, you predict that in...
Words: 995 - Pages: 4
...CHAPTER 1 ECONOMIC MODELS Economic modeling is at the heart of economic theory. Modeling provides a logical, abstract template to help organize the analyst's thoughts. The model helps the economist logically isolate and sort out complicated chains of cause and effect and influence between the numerous interacting elements in an economy. Through the use of a model, the economist can experiment, at least logically, producing different scenarios, attempting to evaluate the effect of alternative policy options, or weighing the logical integrity of arguments presented in prose. Certain types of models are extremely useful for presenting visually the essence of economic arguments. No student of economics has sat through a class for very long before a picture is drawn on a chalkboard. The visual appeal of a model clarifies the exposition. In this text, four primary models will be presented; the Aggregate Supply - Aggregate Demand (AS/AD) Model, the Loanable Funds Model, an HMCMacroSim simulation model, and the IS/LM Model. All but the Loanable Funds model are inclusive models of the national economy. The Loanable Funds Model is a model of the finance markets and is used to discuss interest rate determination theory. Types of Models There are four types of models used in economic analysis, visual models, mathematical models, empirical models, and simulation models. Their primary features and differences are discussed below. Visual Models Visual models are simply pictures of an abstract...
Words: 8095 - Pages: 33
...| Logistics | summary | | Ramon Mannie | 3/13/2014 | Contents 1. Lesson 1, Introduction (chapter 1) 4 1.1. Chapter objectives: 4 1.2. Logistics 4 1.3. Operations management 5 1.4. Supply chain management 5 2. Lesson 2, Operations and supply chain strategies (chapter 2) 8 2.1. Chapter objectives 8 2.2. Relationship and difference (point 1) 8 2.3. Core competencies (point 2) 9 2.4. Strategic alignment (point 3) 9 2.5. Supply chain operations and decision categories (point 4) 10 2.6. Customer value and value index calculations (point 5) 11 2.7. Trade-offs among performance dimensions (point 6) 11 2.8. Order winners versus and order qualifiers (point 7) 12 7. Lesson 3, Supply management (chapter 7) 13 7.1. Chapter objectives 13 7.2. Identify and describe the various steps of the strategic sourcing process. 13 7.3. Spend analysis (point 2) 14 7.4. Differences between insourcing and outsourcing (point 4) 15 7.5. Portfolio analysis (point 3) 16 7.6. Multi criteria decision (point 6) 17 7.7. Negotiations and the purpose of contracts (point 7) 18 7.8. Procure-to-pay cycle (point 8) 18 8. Lesson 4 Logistics (chapter 8) 19 8.1. Chapter objectives 19 8.2. Logistics management (point 1) 19 8.3. Transportation modes (point 2) 19 8.4. Warehousing (point 3) 21 8.5. Logistics strategy (point 4) 22 8.6. Measuring logistics performance (point 5) 23 8.7. Landed costs (point 6) 23 8.8. Reverse logistics systems (point 7) 24 8.9. Weighted center of gravity method...
Words: 6216 - Pages: 25
...Elasticity: A Measure of Responsiveness Chapter Summary This chapter explored the numbers behind the laws of demand and supply. The law of demand tells us that an increase in price decreases the quantity demanded, ceteris paribus. If we know the price elasticity of demand for a particular product, we can determine just how much less of it will be purchased at the higher price. Similarly, if we know the price elasticity of supply for a product, we can determine just how much more of it will be supplied at a higher price. Here are the main points of the chapter: • The price elasticity of demand—defined as the percentage change in quantity demanded divided by the percentage change in price—measures the responsiveness of consumers to changes in price. • Demand is relatively elastic if there are good substitutes. • If demand is elastic, the relationship between price and total revenue is negative. If demand is inelastic, the relationship between price and total revenue is positive. • The price elasticity of supply—defined as the percentage change in quantity supplied divided by the percentage change in price—measures the responsiveness of producers to changes in price. • If we know the elasticities of demand and supply, we can predict the percentage change in price resulting from a change in demand or supply. Applying the Concepts After reading this chapter, you should be able to answer these four key questions: 1. How does the price elasticity of demand vary over time? 2. How does an...
Words: 6227 - Pages: 25
