...Business Economics GM545 May 2012 Chapter 16 Question 5 According to our text book, frictional unemployment is used to describe he short period of time that people are unemployed between jobs. Usually it is when someone quits a job for another job that they want and there is a short period of time that the person spends between jobs. This time is referred to as frictional unemployment. Even when people quit their jobs and don’t have another one lined up it can still be referred to as frictional unemployment if they are able to find a new job within a short period of time. (Stone, Gerald. CoreEconomics. Worth Publishers, 07/2011. p. 443). Frictional unemployment is a natural part of the employment cycle. It shows us that there are choices for both employers and employees. Typically when the economy is expanding there are jobs available and people feel comfortable moving from one job to another without much fear of being unemployed for too long. Structural unemployment is the opposite of Frictional Unemployment and refers to the extended periods of time that people spend unemployed (Nayab, 2012) Both employees and employers benefit from the presence of frictional unemployment. Employers can choose from talented pool of individuals and employees can choose where they want to work from the different options available. This leads to people finding jobs that are better suited to their needs and skills. Also when people don’t feel stuck in...
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...Exercise 1 - Everyone’s Gasoline Problem It seems like gas prices change on a daily basis for the better or for worse. I spent the week studying the gas prices in my area as I drove by different gas stations. It’s amazing how the prices can different from area to area, company to company, and even the same company but just a mile few miles apart. The simplest answer is supply and demand but what actually goes into the decision making part of what gas prices should be? Research shows that 50% of the price of gas is based on the price of crude oil. This is what is refined and turned into gasoline. (Energy: demand vs. supply) Companies have to purchase crude oil to make into gasoline. This cost of purchasing the oil and refining it is then passed down to the customer. As the demand for crude oil or gas goes down, so do the prices. This can happen during recessions or when people travel less. As the demand increases, prices can go up, like during the summer when consumers travel more. Location can also contribute to the price of gas. Some locations can tend to have lower prices because of competition. They’re considered perfect competitive firms because they have to have the best price for the customer to want to come in and purchase their gas. I usually use the Safeway gas pumps instead of going across the street to the Arco station because I can receive a discount but the price is usually always three to five cents less than the Arco station. As I continue to drive to...
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...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 - Part 1 This course contains two project assignments -- Project Part 1 in Week 2, and Project Part 2 in Week 5. Because of this, you will need to spend additional time and effort in Weeks 2 and Week 5. |Overview | | | | | Project Part 1 (PP1) Project Part 1 (PP1) consists of performing application-oriented exercises wherein the specific economic principles learned in this course are put to practical use. You must translate your ideas into economic analysis using the specific economic theory and economic terms contained in the TCOs covered in the course, and demonstrate that you are understanding and utilizing material from text chapters covered up to this point in the course, to receive full credit on the assignment. You are being asked to submit a report containing responses to three exercises. Exercise 1 entails a choice of one topical microeconomic issue out of two possible alternatives. Exercises 2 and 3 entail a choice of two textbook questions out of a list of possible alternatives. |Exercise 1 | | | | ...
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...Project 2 Running head: PROJECT 2 1 Project 2 kgsm Business Economic GM545 May 2011 June 06, 2011 Project 2 2 Project 2 Chapter 16, Question 5 “Separation of days” is needed to curb and continue our economic rat race. It allows the old to move out, the young to move in, while those in the middle move up, down and sideways. Understanding that full unemployment can never be achieved, voluntary and temporary unemployment serve as the lesser of the “evils”. Additionally healthy economic indicators are when citizens 1) feel confident enough to leave their existing employment, it indicates a belief in the marketplace that opportunities are abundant and 2) are experiencing short periods of unemployment. The frictional unemployment segment provides both tangible and intangible information cues for the four key indexes used to monitor inflation in the U.S. As an employer, I see the benefit of this segment because it offers me a larger pool of talent to choose from, thus improving my business. This pool of applicants ranges from graduate level college graduates, to those returning from international employment, housewives back to work, professionals who took hiatus for professional development or rejuvenation. good As an employee, the small stints of unemployment provides chances to rejuvenate, participate in professional development trainings, leave one job and get hired at another on a higher pay scale etc.. good Life as human beings evolves and revolves,...
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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 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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...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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...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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