...ECON545 Quiz 2 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 2 addresses material covered in Weeks 4 and 5 of the course. The TCOs at issue are: Course Objective Description E Given an introduction to key macroeconomic variables, distinguish between real and nominal output variables, between various inflation measures, and demonstrate the derivation of the unemployment rate; assess the sensitivity of strategic policy decisions based on these measures to the quality of available statistical data. F Given increasing interdependencies between trading nations and the analogy of foreign currency as a commodity, analyze the effects of demand and supply pressures on exchange rates; students must demonstrate an understanding of trade barriers in general, as well as the effectiveness of institutional entities (e.g., GATT, NAFTA, and EU). You will note that the problems that have been assigned from the book focus on these TCOs. The problems address the basics while Discussions topics focus on applications...
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...Midterm Exam Jan 2006 GM545 Microeconomics Instructions: --You are to answer one question from each section of the exam. --Please indicate the question selected on your answer sheets --Please return your answers by 6:00 pm Sunday, Jan 29th --The exam is to be completed solely by the student without assistance from anyone else. --Send your answers to my email address: lpatille@etaconsultants.com or place them in the Drop Box Section I: Answer one of the following questions in this section. 1. Discuss the impact in the context of consumer demand of the recent fluctuations and projected future changes in the price of gasoline. Would you classify this product as elastic or inelastic? Why? Explain. 2. A recent article in the New York Times stated that the Denver housing market has gone from “frothy to flat” in just the last twelve months. As a result, consumers are having to cut back their spending in many areas. Explain why a decrease in housing prices might cause a homeowner to cut back their demand for other products and services. 3. In a recent article in the WSJ it was revealed that some consumers are willingly shelling out more money for certain vehicles above the manufacturer’s suggested retail price. Economic theory would suggest that this is contrary to the workings of an efficient market where supply and demand create an equilibrium price that clears the market. Explain. Section II: Answer one of the following questions in this section. 4....
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...Everyone’s Gasoline Problem. Why does this happen? Gasoline prices have been on the minds of almost everyone lately. Many times people dread having to go to the pump or wait until it is absolutely necessary to full up their gas tanks. Some have even changed the type of vehicle they drive in an attempt to help save them money at the pump. It would seem that gas prices are either always increasing or decreasing on a weekly and even sometimes daily basis Gas prices are affected by numerous factors including the demand and supply for gasoline on the market, the prices of crude oil on the world market, seasonal changes and local market competition just to name a few. In recent years, the world's appetite for gasoline and diesel fuel grew so quickly that suppliers of these fuels had a difficult time keeping up with demand. The demand for gasoline has changed over the years as more and more people globally have access to vehicular transportation. Countries such as China and India, each with a population in excess of 1 billion, are experiencing an expanding middle class that will likely use more gasoline over time1. Although the demand for gasoline has dramatically increased, its supply sources are still the same and are depleting. The quality of the oil is not the same in all locations, hence the higher quality oil cost a lot more. These costs then trickle down to the consumer. Crude oil prices are significantly influenced by the Oil Producing and Exporting Countries...
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...Homework Practice Questions: Microeconomics/Macroeconomics The following questions are for homework practice only. They are to be answered in detail, so it can be used for practice and future reference. 1. Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? The increase in supply is likely the result of the increased demand, which created economic profit for firms because of higher prices. Depending on whether the increase in supply has expanded sufficiently to causes prices to fall and economic profits to disappear, your firm could profit by expanding output and increasing prices. This can be determined by seeing if prices are higher than they were before the increase in demand. The price per unit tells you the marginal revenue per unit sold. Output decisions should then be based on setting output so that marginal cost is equal to marginal revenue. In this case, the manager would increase the supply and price; but is should increase both in a controlled environment so that the total revenue profits does not drop (for example, raising price beyond a certain price might decrease the demand thus reducing overall profit) Also, the supply should be increased so that Marginal Cost< Marginal...
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...Course Description Business Economics provides a basic understanding of managerial economics and the impact of the economic environment on business decision making. The course develops micro- and macroeconomic topics, with particular emphasis on marginal analysis and supply and demand considerations. No prerequisite Terminal Course Objectives DeVry University course content is constructed from curriculum guides developed for each course that are in alignment with specific Terminal Course Objectives. The Terminal Course Objectives (TCOs) define the learning objectives that the student will be required to comprehend and demonstrate by course completion. The TCOs that will be covered in detail each week can be found in the Objectives section for that particular week. Whenever possible, a reference will be made from a particular assignment or discussion back to the TCO that it emphasizes. 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 profits. | 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. ...
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...Week 2 Homework Help – GM520. 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The proposed regulation can be submitted as either a separate Word document (.doc) or Adobe file (.pdf). This means you will submit two attachments to the Week 2 Dropbox: (1) a Word doc with the questions and your answers and (2) a copy of the proposed regulation you used for this assignment. (10 points) Interstate Commerce Commission (ICC) regulated interstate surface transportation between 1887 and 1995. This interests me because of the changes of transportation. Yes, it does affect me because they are doing price controls and entry controls on the collective vendor’s price setting in the United States transportation. 2. Describe the proposal/change. (10 points) It is regulated through varies transportation modes starting with the railroad industry and later the trucking and airline industry. 3. Write the public comment which you would submit to this proposal. If the proposed regulation deadline has already passed, write the comment you would have submitted. Explain briefly what you wish to accomplish with your comment. (10 points) Deregulation—freeing up the trucking market to permit much more flexible pricing and...
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...Business Economics GM545 Course Project- Part 1 Exercise 1 Microeconomics Issue: Everyone’s Gasoline Problem The recent history of gasoline prices in the North East part of the country, specifically Philadelphia, PA. has been consistently declining and according to sources such as the Associated Press prices will continue to fall. (See Exhibit 1) Gasoline prices fluctuate for many reasons. The reason this happens is because of the following factors: Seasonal Demands Gas prices usually rise in the late spring and summer months because the demand for it is greater. During the summer months people drive more, they get out in the good weather, they go on vacation. In winter gasoline prices usually go back down. Not many people are driving like they do in the summer so the quantity demanded is less. Competition Gas stations change their prices to stay competitive with other gas stations. The way it is now, some days a gas station will make more, and some days it will make less. Unfortunately, in the short run there are no substitutions for consumers to replace gas with, so we must pay the higher prices, because we are not able to switch to another type of fuel. Supply and Demand If the use of gas powered vehicles increases the demand for the fuel goes up. Usually when this happens it causes cost increases because of the extra production costs involved in supplying the product. The refineries have to work more to increase the quantity supplied, tankers and trucks...
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...oject 2Project 2 Project 2 Christopher Salazar 3518 N. Howard Ave. Fresno CA, 93726 Chrissalazar07@gmail.com (559)288-8175 GM545 Business Economics 2/5/2012 Jonathan Altman DeVry University Chapter 15 Question 14 In order to know the limitations of Americas National income accounts and how they represent our standard of living, it is necessary to kn0ow our GNP or Gross National Product. According to Chron.com, a business expert web site, it is the total output of and economy, our economy in this case. It is said that the production output of America is directly related to how well we are living, our economy is doing, and also how well we are prepared for any sudden disruptions in the course our economy would take. With the GNP defined, one of the limitations that represents Americas standard of living would be services that are not considered in the GNP. These can still have an effect though but are not considered for various reasons including the government not gaining taxes from it or illegal activity. Any of these are understandable to not consider due to the fact that they are not something America can rely on as solid figures compared to an employer’s payout wages. This however is not something to totally ignore. These services are called Ommition or Underestimation (Chris Chan). The drug trade is a large black market, although there are no solid figures that economists have been able to gain due to the nature of product, it is widely known that much activity...
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...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...
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...GM545 - Research Project Prof. M. Peterson What is meant by “triple bottom line”? The “triple bottom line,” which can be abbreviated as TBL or 3BL, which is also known as people, planet, profit or "the three pillars.” UN standards apply to natural capital and human capital measurement to assist in measurements required by TBL. TBL is it important? Because the TBL is made up of "social, economic and environmental" factors. These factors are made up of "People" which business practices towards the labor that is put out and the communities where a business is established. You have a social structure which stakeholder interest is all-interdependent. "Planet" which are natural capital and refer to the environmental practices. TBL when related to nature fit the natural order and ensures no harm to the environment. A TBL reduces ecological footprint, carefully managing its consumption of energy and non-renewables and reducing manufacturing waste as well as rendering waste less toxic before disposing of it in a safe and legal manner. A TBL company won’t produce harmful/destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals that will cause environmental damage. "Profit" the economic value created by an organization which deducting the cost of all inputs, including cost of the capital tied up. TBL is the economic impact the organization has on its economic environment. That can be confused to be limited...
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...Business Economics GM545 Project Part 2 Fall Session A 2011 Mohamed Bah t.bahafsl@yahoo.com _______________________________ DeVry University Keller Graduate School of Management New Jersey North Brunswick An economic system should provide two social needs for the people it serves first an adequate production of goods and second an equitable distribution of those goods. National Income is the science of how to measure an economy’s overall economic performance. It mainly focuses on the overall level of production of goods and services. The Gross Domestic Product (GDP) per person tells us the income and expenditure of the average person in the economy, though it is not intended to be a measure of happiness or quality of life, It is good to measure the material well-being of the whole economy, because the more real GDP we have mean that we have higher standard of living by being able to consume more goods and services. In addition, we do have some factors or issues not in GDP that lead to the well being of the economy such as leisure, quality environment, volunteer work, and child rearing. Having measured these factors or issues above the national income accounting is faced with these limitations: • Measurement problem exist, • GDP measure economic activities not welfare, and • Subcategories are often interdependent. Finally, due to these limitations we faced these measurement errors: • Illegal drug sales • Work...
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...Business Economics GM545 Winter 2012 Chapter 25 Question 7 Free trade in the United States has assisted the country to thrive and be successful. Free trade has made its mark on Americans for wealth and prestige. Free trade has brought Americans accustomed to a way of living and that is why there is free between states. There are other factors as to why free trade is free between states and why free trade is not necessarily free for countries. The following will explain. Free trade has given Americans a benefit in the United States. The NAFTA (North American Free Trade Agreement) has given Americans the ability to trade freely with Canada and Mexico. It is only beneficial that there be free trade between the United States, Canada, and Mexico. All three feed off of each other and will only benefit from each other’s resources and abilities. For example, USDA.gov explains, “In 2007, Canada and Mexico were, respectively, the first and second largest export markets for U.S. agricultural products” (usda.gov). Exports to the two markets combined were greater than exports to the next six largest markets combined. This only allows for trade to increase between the two countries. Canada is benefitting the same exact way. With trading with the United State, Canada is benefitting from the agriculture that they are lacking in the North. With the three countries so closely tied together, this is how and why free trade...
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...#1 – Ethical Issues in Business Whenever there is an unethical action discovered by a company that is brought to light in the public eye, from both a economic and consumer standpoint, I believe there would be significant impacts that would affect the economic and fiscal activities of the organization. On the question of “Are ethical issues more likely to occur in one market type rather than another market type”, I believe that it is not so much a particular market as it is the proper conditions in which unethical actions are fostered. Bigger businesses in comparison of small “mom and pop” shops have greater tendencies because of the scale of operations they undertake. However any business, regardless of size, is capable of unethical activities. An example that I encountered personally as a consumer: I once frequented a local fast food restaurant close by my work. This place had good quality food and was a short drive away from several large companies, allowing for it to draw a large amount of business. Next to the cash register was a “fuel fund” bucket for customers to ‘donate’ money to a fund to help employees with the rising gas costs at that time. When using a debit/credit card, patrons could also add a tip. It was discovered that patrons who were not leaving tips and instead leaving the field blank were being charged an average of $2-$6 per transaction by the restaurant, without the consent or knowledge of the customer. Once discovered, the patronage of the restaurant...
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...Mr. President, due to the current severe and deep recession the economy is experiencing, I would like to suggest a combination of both monetary and fiscal policies that I believe can aid in stabilizing the economy. The fiscal and monetary policies are completely separate of each other and are handled by different components of the U.S. government. Agreeing with Mr. Burke’s and Ms. Tanney’s statement, the fiscal policy is controlled by Congress and the President with the use of its two tools, government spending and taxes, to stabilize the economy. In contrast to Ms. Lee’s advice, executing an expansionary fiscal policy of lowering taxes and increasing government spending would increase AD. Increasing government spending helps in stimulating the economy by increasing consumer confidence and creating employment. To determine by how much increasing government spending increases the overall GDP, the spending multiplier is used. By lowering taxes, consumer’s disposable income is increased. They have more funds available for spending however, would only spend a certain amount in which we call this the marginal propensity to consume. Any changes in taxes affect the tax multiplier. The monetary policy is the use of the money supply and credit to help stabilize the economy. In agreeance to Ms. Lopez’s statement, the money supply is controlled by the Fed Reserve Board of Governors, central banking in the U.S., in which they use the three tools of discount rate, open market transactions...
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...J. Wesley Day GM 545 – Economics Keller Graduate School Professor, Suzzette Arnold March 19, 2011 The Bernard Madoff scandal occurred during a major economic crisis by operating an investment Ponzi scheme that took citizens, companies, and 501c’s for millions of citizens. A time that major banks and other firms performed poorly or failed altogether many bank executives still received high salaries, bonuses and severance. Which is an example of diseconomies of scale. This is all unethical business. While many workers are losing their jobs, taking pay cuts, or having their hours to decline, in part due to diminishing marginal returns. Authors from a Harvard Business Review article point out that managers are now losing the public trust. The article asks for colleges and universities to address management as a profession governed by codes of conduct that holds managers responsible to society for their unethical behavior. According to the business dictionary, ethics is the philosophical study of morality or standards regarding good character and conduct. In society when we apply ethical reasoning to decisions made by individuals and teams in organizations, the focus is on moral problems and dilemmas that are associated with the decision-making process that affects our society. The public image of business has been slipping since the EON scandal due to dishonesty and poor ethical standards. As companies are downsizing, they are putting more responsibility on...
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