...Chapter 1 1. (Rational Self-Interest) Discuss the impact of rational self-interest on each of the following decisions: a. Whether to attend college full time or enter the workforce full time i. Individuals will consider the benefits of attending college full time and the expected cost of doing so. A benefit of attending college full time would be that it has the potential to increase their wage or salary because of increased knowledgebase, network and skills. The expected cost to consider includes tuition, fees, books and wages that could have been earned by working instead if attending school full time. If the expected benefits of attending college full time outweigh the cost, then the rational person would choose to attend school. b. Whether to buy a new textbook or a used one ii. When deciding whether to purchase a new or used textbook, individuals will consider the expected benefits of purchasing the new book at a higher cost than the used book. These benefits include a higher resale value for when they’re done with it and the ease of not being confused my other students markings or note in the book. Unfortunately, the student would have to pay more out of pocket for the new book. If the expected benefits of purchasing a new textbook out weigh the cost, then the rational person would purchase the new textbook. 2. (Resources) To which category of resources does each of the following belong? c. A taxicab iii. Physical...
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...| | |Econ 545 Project 1 | |Situation A | | | |Drucinda Sexton | |9/10/2015 | Introduction Since I have just finished a course in Business Economics my niece Jenny has asked me advice on if she should become a doctor she felt I was the best person to ask advice about whether or not to pursue her career choice in becoming a doctor. She also wanted to get my opinion if she did become a doctor what demographic location in my experience should she look into. I wanted to provide her with the best possible information possible. This is the research I have found on this matter. This...
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...Alejandro Bahena ECON 545 – 10388 Business Economics Microeconomics Analysis September 21, 2014 Introduction The demand for physicians and health care services in the United States is determine by the quantity the public is willing to pay for the lowest price in order to benefit from their services. Several factors affect the demand for physicians. The needs and size of the population, economic hardships and the high prices they are faced to pay. The technological constrains related to the practicality of the demands from consumers. The last demand of health care physicians depends on the relation between the demand and supply current conditions in the market of service. Past projections show that the continuous shortage of supply and demand for physicians will continue to influence the policies and programs related to the health care systems. Because completing medical school and creating a new structure for physicians is time consuming, the USA needs to predict the needs of the physicians in advance. The shortage of physicians was the leading cause for the creation of new medical school in the country. . The important factors which will estimate the future demand of the physicians depends on 800,000 present physicians, millions of nurses and other health care workers, about 300 million patients, hundreds of health plans, thousands of health care facilities, thousands of employers in the industry, thousands of legislators and policy makers, and other factors such economic...
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...Project Paper 1 Business Economics – GM545 Fall Session Exercise #1 – Ethical Issues Ethics is a major topic of concern with regards to financial reporting, decision making and company operations in today’s world of business. There are numerous laws and organizations that have been developed in order to establish punishments for unlawful behavior or the intent to commit fraud. People’s ethical standards are tested daily. The question remains, how does ethics have an impact on the subject or theories of economics? A realistic example would be best in utilizing ethics in conjunction with economic theories to exemplify the affect on supply and demand. A commodity that is continuously worrisome to the public is the price of gasoline. First, let’s describe what the determinants of supply and demand are in order to conclude a price that can satisfy the organizations that supply the product and the demand of consumers that are willing and able to afford the product. The determinants of demand in this case consist of income, number of buyers and expectations of future prices and availability (Stone, 2007). Tastes and preferences along with prices of related goods are not significant to this analysis because each company establishes similar gas prices and there are currently no substitute products (Stone, 2007). The determinants of supply consist of production technology (construction of oil rigs), cost of resources (extracting the oil and producing gasoline), expectations...
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...Week 1 Question 1 Welcome to our Week 1 Discussions! To get us started, let's consider the following questions. 1) Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer? 2) Could we use managerial accounting tools to assess the profitability of an organization other than a manufacturing business, or are the topics that we are learning only related to manufacturing? 3) If we could use these concepts in service and/or merchandising businesses, how would we go about doing so? Let's start with the first question. According to Casteele (2013), income statements are important to most business. It allows owners, managers, and shareholders to see how money is flowing into the company. This article also stated that service and manufacturing companies have several differences between their statements since the businesses have different types of expenses and different income sources. The article further explains, businesses adapt their income statements to their needs based upon the industry the business is in. A business in the service industry could not use the same income statement template as manufacturing industry businesses, because of the significant differences in how the businesses operate and earn money. Casteele, J. (2013). The Difference Between Service and Manufacturing Income Statements. Retrieved from http://smallbusiness.chron.com/difference-between-service-manufacturing-income-statements-34551...
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...Chapter 01 Limits, Alternatives, and Choice Multiple Choice [QUESTION] 1. Economics is a social science that studies how individuals, institutions, and society may: A) Expand the amount of productive resources available to them B) Attain a minimum level of unemployment C) Best use scarce resources to achieve the maximum satisfaction of economic wants D) Reduce the prices of goods and services to consumers Answer: C Topic: The Economic Perspective Difficulty: 2 Medium Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 2. The key economic concept that serves as the basis for the study of economics is: A) Inflation B) Unemployment C) Money D) Scarcity Answer: D Topic: The Economic Perspective Difficulty: 2 Medium Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 3. A recurring theme in economics is that people: A) Have unlimited resources, but limited economic wants B) Can increase resources by limiting their economic wants C) Have limited economic wants and limited resources D) Have unlimited economic wants, but limited resources Answer: D Topic: The Economic Perspective Difficulty: 1 Easy Learning Objective: 01-01 Bloom’s: Level 1 Remember AACSB: Analytic [QUESTION] 4. As a consequence of the problem of scarcity: A) There is never enough of anything B) Individuals have to make choices from among alternatives C) Production has to be planned by government D) Things which...
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...Econ 1 Assignment 4 1-) (Categories of Price Elasticity of Demand) For each of the following absolute values of price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. In addition, determine what would happen to total revenue if a firm raised its price in each elasticity range identified. a) ED = 2.5:elastic b) ED = 0.8:inelastic 2-) (Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic in each case. Please give details to your numeric answers. a) Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 400 units. 200/600= 1/3=33.3/22.2=.667 b) Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 500 units. 100/600=.1667 / 2.25/1.75=.757 3-) Consider the following pairs of goods. Which would you expect to have the more elastic demand? Why? a) water or diamonds=water b) insulin or nasal decongestant spray=insulin c) food in general or breakfast cereal=food d) gasoline over the course of a week or gasoline over the course of a year = week 4-) Outsourcing Inpatient Care to India The Wall Street Journal, Monday April 26, 2004. Global health care has arrived. During 2003, Canadian resident Terry Salo flew to India to have his...
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...Project 1 | ECON 545 – Microeconomic Analysis | Submitted by: Adriana Sabou Email: ady_mierea@yahoo.comCourse: ECON 545Professor: Alex Gialanella | 9/20/2014 9/20/2014 Contents: Page Introduction ……………………………………………………………………………………………. | 2 | Overview ……………………………………………………………………………………………….. | 2 | Relevant Information ……………………………………………………………………………….. | 3 | Determinants of Demand, Supply …………………………………………………………………….. | 4 | Relevant Data ………………………………………………………………………………………….. | 7 | Recommendations……………………………………………………………………………………. | 9 | Economic Justification ……………………………………………………………………………….. | 9 | References …………………………………………………………………………………………….. | 11 | Introduction Overview Cousin Edgar needs to understand/decide if he should invest in buying two gas stations. He must consider the high costs of pursuing this idea on business and to try to recover his costs quickly. If the cost of gasoline is taken as a measuring rod then he needs to understand if he can earn enough to recover the costs of investing. Starting a gas station business can be one of the best decisions Cousin Edgar can make as an entrepreneur. He can either set up new gas stations or buy gas stations for sale. If he decides to buy one then he must have some knowledge about how to buy a gas station and if he is planning to set up new gas stations on his own then he is going to need to do some serious research as to how he can go from start to launch. He needs to consider doing lots of...
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...Chapter 1 1. Ideas for beyond the final exam a. How much does it really cost? i. Opportunity Costs 1. Value of the next best alternative that must be given up because of that decision. 2. Economists say that the true cost of such decisions are not the number of dollars spend on the computer, new equipment, or military, but rather the VALUE OF WHAT MUST BE GIVEN UP TO ACQUIRE THEM. 3. EXAMPLE- cost of college is more expensive add the money you could be making with a job at home, don’t add housing since you pay that either way (tuition + possible income if you weren’t working) b. Attempts to Repeal the Laws of Supply and Demand- The Market Strikes Back ii. Short Supply-Prices Rise iii. Large Quantity-Prices Fall 4. Ceiling on Price or Price Floors a. Such attempts to repeal the laws of supply and demand usually backfire and cause more problems c. Comparative Advantage iv. Even if one of them is more efficient at everything, both countries can gain by producing the things they do best COMPARATIVELY v. Even if you are better at something than someone else, the time you could be spending on what you specialize in is losing money. Do what you do best and hire someone to do the rest. d. Trade is a Win-Win Situation vi. Fundamental Idea- Both parties must expect to gain something! vii. Some things like ticket scalping...
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...Deandra Romanoff ECON 545 May 25th, 2014 It is indeed very lucrative for potential owners to purchase gas stations in our current economic condition where gas prices are at sky high, especially in places where public transportation is scarce. On average, the whole United States have faced an increased in gas prices nearly 5 cents from March 21st, 2014 to April 4th, 2014 (Reuters, 2014). According to Reuters, Lundberg survey has shown that this increase in gas prices was caused by an increase in demand. In fact, the United States has been experiencing gas prices increasing since early February this year after gas prices saw a price fall in late 2013 (Reuters, 2014). Despite of the fact that gas prices and demand for gas is high, it makes sense for cousin Edgar to spend his money on purchasing gas stations because the facts suggest that he could gain a lot of profits by operating gas stations. However, there are other various factors that cousin Edgar must take into consideration before spending his money, such as the gas demand and supply, the price elasticity of both, the cost of gas production, as well as the future challenges that awaits him in the future. One thing that Edgar must know about what can affects demand is the availability of substitute product, which in this case the substitute product for gas would be the use of public transportation. In places where there is a good public transportation system like in San Francisco, the demand for gas could be more elastic...
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...The Inferno Outside What time is it? I was groggy as I opened my eyes and struggled to get my senses working again. I noticed that my laptop was still open and then I remembered. I was trying to get my homework done. It was 1:00 a.m. I really should try to get more of this finished. Then I remembered that this was not the first time I had nodded off tonight. Tomorrow, ah today, would be less hectic if I didn’t have as much to accomplish. Hmm, I was pretty tired though and studying Econ while struggling to stay awake probably wasn’t the best idea. I decided it was time for much needed sleep. Everyone else in my house had been asleep for hours so I really needed to be as quiet as possible. I slowly crawled off the couch and walked as quietly as possible to the bathroom to brush my teeth. What was that noise? What could be going on outside this time of the morning? That sounded like someone shooting a gun. I knew that as tough as I like to think that I am, I needed to wake my husband to go find out what was happening. The shades were drawn, but I had to walk by the windows to get to the bedroom. I crouched and all but crawled past them. I roused my husband twice to get him up. After telling him what I had heard, he went to the carport door to determine the reason for the noise. He opened the door and quickly shut it, telling me there was an active fire outside. He would know active since he was a retired volunteer firefighter. He opened the door a second time...
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...Econ 301B Winter 2012 Problem Set 1 Due date: Monday, January 23 in class 1. Suppose the country of Utopia has a population of 1,000 and produces only three goods: T-shirts, cars and pineapples. Assume that Utopia does not trade with other countries. The production amounts and prices (in US Dollars) for 2009, 2010 and 2011 are given in the table below: Year 2009 2010 2011 Quantity of Tshirts 10,000 9,500 10,500 Price of Tshirts Quantity of cars Price of cars Quantity of pineapples Price of pineapples $10 $10.50 $11 75 85 90 $15,000 $16,000 $15,500 50,000 60,000 45,000 $4 $4.50 $5 a) Using 2009 as base year, calculate nominal and real GDP per capita for 2009, 2010 and 2011. b) Keeping 2009 as base year for prices, compute Utopia’s inflation rates for 2010 and 2011 using both the CPI and the GDP deflator. When calculating the CPI, assume that the representative consumer purchases in any given year 10 T -shirts, 1 car and 100 pineapples. c) Explain why the computed inflation rates are not the same when u sing the two different methods. 2. For this question assume that we are within the short -run goods market framework developed in Chapter 3 in Blanchard. Suppose that the economy is characterized by the following behavioral equations: Note that in this economy investment, I, depends positively on output, Y. This mirrors the fact that firms in the real world will increase their investment expenditure...
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...Chapter 1 answers Rational Interest 1a) According to my self beneficial factor i believe i would like to attend school full time because this would allow me to complete school faster and earn a degree for a high paying job and a life changing career but at the same time when there seems to be some time on my hands i would also decide not to be a full time student. For instance, on the summer i would be able to work, comprehend and experience the factors for working for ones self etc. I say this because it is not a logical idea to always be a full time student and not have any experience of work and at the same time it would be shoddy for me to work full time because i would have not time for school. 1b)I would rather buy a used book because it allows me to save more money for emergencies. Buying a new book would cost me a lot and selling it would not benefit me what so ever because i would have to sell it at a quarter of the price because it has be used. Buying it used and selling it at the same pre-owned amount is the best decision for me to make. Resources 2a)a taxi cab- physical capital 2b)computer software- physical capital 2c)one hour of legal counsel- labour s)a parking lot - physical capital Macro or Micro issue 3a) microeconomic issue 3b)macroeconomic issue 3c)microeconomic issue 3d)microeconomic issue Chapter 2 answers Opportunity cost 4)if i decide to go to florida i will lose $1000 700 for the cost of florida + the 400 made...
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...Pernille von Ubisch Dr. Nagy ECON 337 11/04/15 Assignment 3 The United States’s current account deficit is a result of United States expenditure exceeding income. With an increasing government budget deficit, an increasing trade deficit, in addition to little national saving, the United States is dependent on large inflows of money from other countries. In other words, by running a current account deficit, the United States need to run a surplus on the financial and capital account in order for their balance of payments to balance out. This current capital inflow is allowing the United States to invest more than they save, and consume more than they produce, yet, this deficit makes the United States a debtor nation. Economist argue that there are some concerns associated with having a current account deficit and being a debtor nation. As of now, foreign investors have big confidence in the U.S. economy, as the U.S. dollar is seen...
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...INSS 370 Final Exam Study Guide Below is a study guide for your final exam. There will be a combination of true/false and multiple choice questions. 1. Who is responsible for prioritizing the product backlog? 2. What does a burn‐down chart show? 3. What are the principles outlined in the Agile Software Development Manifesto? 4. If our highest priority is to satisfy the customer through early and continuous delivery of valuable software, in general, how can we do that? 5. In agile software processes are the highest priorities to satisfy the customer through early and continuous delivery of valuable software? 6. What traits need to exist among the members of an agile software team? 7. In agile development is it more important to build software that meets the customers' needs today than worry about features that might be needed in the future? 8. The ____ phase of the SDLC includes four main activities: requirements modeling, data and process modeling, object modeling, and consideration of development strategies. 9. One of the main activities in the systems analysis phase is ____ modeling, which involves fact‐finding to describe the current system and identification requirements for the new system. 10. How is planning performed on projects that use Agile approaches? 11. Who should be the main judge of the business value (think of the various roles within an agile team)? 12. How should work be allocated and who should allocate the work to the team in an Agile ...
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