...Project Paper 1 Project Paper 1 Business Economics GM545 Fall 10 Semester Standard and Session B Polo_29918@yahoo.com 1/30/2011 Business Economics GM545 Fall 10 Semester Standard and Session B Polo_29918@yahoo.com 1/30/2011 Arthur Smart Arthur Smart Everyone’s Gasoline Problem We are all familiar with fluctuating prices of gasoline at the pump. Supply and demand is a major factor causing price fluctuation at the pump. The law of demand states all else being equal, as price falls, the quantity demanded rises, and as the price rises, the quantity demanded falls. This is an inverse relationship. If this statement was true concerning fuel then the consumer demand for fuel would decrease as the price increases. Obviously it is not. Supply must also be taken into account. The law of supply states that as prices rise, the quantity supplied rises, as price falls the quantity supplied falls. If demand rises or a disruption of supply occurs; pressure will be placed on the price. The inverse is also true, if a surplus exists or demand falls less pressure will be put on the price. Competition between retailers could cause prices to fluctuate. If competition does not exist and the retailer is the only player for miles the price may be higher. Oil, gold, wheat and other products are traded on a world market. The price of oil has risen because of its demand around the world. The unrest and war in Iraq and other oil producing countries has also driven prices...
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...Course Project Paper 1 David J Marshall Business Economics GM545 Winter Term 2012 mr_marshalls@live.com Exercise 1: Microeconomics Issues: Question # 1 There are two reasons gas prices must go up. The first is to get people into coal-powered cars. Coal-powered cars can only be driven around 40 miles before they must be plugged back into the grid for more coal power. If everyone moves to coal-powered cars, the drivers will be forced to live closer to cities (Erickson, 2011). According to my current reading, when you look at the term product differentiation in buying your gas, this term gives competitors the edge to host the cheapest gas (Chapter 10:253). In the current week, the Shell gas pump went from $3.65 to $3.57 per gallon and the week before that the gas price during week 1 was $3.47 expecting to rise to $4 per gallon in Lexington, KY. During my travel to Indiana the gas prices average $3.99 per gallon. In using the midpoints of price and quantity to compute the relevant percentage changes essentially gives us the average elasticity between point (a) and point (b) (Stone, Gerald. “Core Economics” Worth Publishers, 07/2011. p. 118). My equation below may show just exactly how these price may increase or decrease based on the elasticity formula: Eᵈ = 200 / 400 ÷ 3.65 – 3.57 / (3.57 + 3.65) / 2 = 200 / 400 ÷ (- 0.08 / 5.3950) = .5 ÷ -0.0148 = [-33.72] = 33.72 I think for the most part of our gas prices has increase due to determinants of our increase...
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...PROJECT PAPER II LISA JOHNSEN BUSINESS ECONOMICS-GM545 SUMMER 2012 LCJOHNSEN@YAHOO.COM Ch. 16 Question 5 “Frictional unemployment is important to any economy because people need time to search for new jobs, and employers need time to interview and evaluate potential new employees.” (Stone, 443). This involves short-term unemployment of people who are changing jobs, careers, or locations. The people looking for jobs are the jobless and are searching but have not found a job yet. Due to the mismatch of the characteristics of supply and demand in the job market this type of unemployment exists. The characteristics mentioned previously include skills, payment, location, timing, tastes, attitudes, as well as other factors. When people hold on for the ideal job extend frictional unemployment short-term while reducing unemployment long-term because they are less likely to change jobs. The good sign of frictional unemployment is that it signifies a healthy economy. This type of unemployment can only survive in a fast-growing economy. Frictional unemployment benefits workers by giving them time to search or jobs in which they are a good-fit while allowing companies to choose from the best talent available. Absence of frictional unemployment signifies a stagnant economy; one without growth, innovation, and tires skillsets. Ch. 16 Question 6 “Hyperinflation is an extremely high inflation rate of at least 50 percent per month. Currently most economies...
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...Project Part 2 Submitted to: Matthew Anderson Submitted by: Ravi Verma Business Economics GM545 Spring 2011 session B ravi83.u@gmail.com Chapter 16 Question 6 1 Frictional unemployment, also known as search unemployment or voluntary unemployment, involves people in the midst of transiting between jobs, arising due to normal labor market mobility and expansion. Frictional unemployment is the short-term unemployment of people who are changing jobs, careers, or locations. This category of unemployment includes the jobless who have the skills and competencies to land a job, and are in the process of finding a job, but have not landed a job yet. Workers who look out for a new job when still retaining their old jobs do not count under frictional unemployment. This type of unemployment exists because of the mismatch between the characteristics of supply and demand in the job market. Frictional unemployment arises due to many reasons, such as: • Expansion of the workforce when young people get out of school or collage equipped with the necessary skills to land a job. • People quitting their jobs and relocating to new places. • People quitting their jobs owing to disagreements, lack of compatibility, or any other reason. • People losing their jobs because the company goes bankrupt, or owing to layoff or termination for any reason. Frictional unemployment never reaches zero because there always remain some companies with some unfulfilled vacancies...
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...KELLER GRADUATE SCHOOL OF MANAGEMENT MBA - PROJECT PAPER 1 NAME: - BOCKARIE LANSANA COURSE NAME: - BUSINESS ECONOMICS COURSE NUMBER: - GM545 FALL SESSION B-JANUARY-FEBRUARY 2011 Email address:-lans58@yahoo.co.uk 2. EHTICAL ISSUES IN BUSINESS One of these issues is the over reporting and under reporting of net income. The company management seeks to show that every quarter the net income of the business has grown. In order to show this they adopt unethical means and or illegal means in the operation and financial reporting system. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. This method will reduce the equilibrium price and increase equilibrium quantity for this company's products and services. The reason for this is that the wage is bill shown lower than what it actually is. This causes the supply curve to shift to the right. With an increase in supply, if the firm is a monopoly or an oligopoly or a monopolistic competition, there will be a decline in the price of the product of the firm. In case the firm is operating in perfect competition, there will only be an increase in the quantity the company sells in the market. The scenario described above indicates that there is a shift in the supply curve, in other words the costs are shown to be lower than what they actually are. The supply curve shifts to its right but...
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