Subject: Economics
Topic: microeconomics
Pick one of these critical scarce resources:
• Phosphorus
• Scandium
• terbium
• provide 3 reasons why this resource is so critical along with what the resource is primarily used for.
• As the availability of the resource decreases, what would you expect to happen to the price of the resource and how will that impact the demand for the resource, and the costs of production of products that rely on that resource?
• Explain 3 ways the national economy would be impacted by decreased availability of this resource.
• explain 3 things American companies should do to minimize the negative economic impacts of declining availability of the resource.
• Explain 3 things the Federal government should do to support the economy as this resource declines in availability.
B. According to various reports, water scarcity will be a major problem going forward. A particular problem is the over withdrawal of water from groundwater sources.
The theory of rational behavior says that we humans act in our own self-interest. Given our actual behavior and the decisions we have made and continue to make relative to the planet:
• What would you expect to happen to the price of water as it becomes scarcer and why?
• Is continued over-pumping of aquifers in America in our best interest? If yes, explain why. If no, explain why not. Provide thorough explanations.
• Is access to water a right or a privilege?
• What are 3 economic consequences of continuing to over withdraw ground water?
• Explain 3 things American companies should do to minimize the negative economic impacts of declining availability of ground water.
• Explain 3 things the Federal government should do to support the economy as this resource declines in availability.
C. Utility Concepts:
i. Provide 1 example of how utility, marginal utility, and diminishing marginal utility concepts might be applied to the Keystone XL Pipeline project.
D. The Theory of Consumer Behavior: This material is provided in the slides and audio lecture.
i. Provide 3 examples of how the CocaCola
Company might use the theory of consumer behavior to enhance its revenue.
E. Marginal Analysis
Marginal analysis is a decision-making tool. This material is provided in the slides and audio lecture.
i. define Marginal Cost.
ii. define Marginal Benefit.
iii. Explain the following 3 cases in terms of what you should do regarding the activity involved. Should we do more of the activity, less of the activity, or keep doing the same thing? Explain why in each case.
1. MB>MC
2. MC>MB
3. MC=MB
iv. Explain 1 example of MC related to the Keystone
XL Pipeline project.
v. Explain 1 example of MB related to the Keystone
XL Pipeline project.
2. The objective of this question is to help you understand and apply the various concepts related to the Production Possibility Model.
The Production Possibilities Model is one of the first Economic Models students learn about. refer to the material covered in the topic called The Economizing Problem.
• explain 2 things the model teaches us.
• explain each of the 4 assumptions of the model.
• explain Productive Efficiency and how it relates to the ppc.
• explain Allocative Efficiency and provide a thorough explanation of the 2-step process for finding the point of allocative efficiency on the PPC.
On the topic of Economic growth:
• What does it mean and how is it measured?
• How can it be graphically represented?
• What are the prerequisites for Economic growth?
• Why is Economic growth good for you and your country? Please be thorough.
• Why is Economic growth bad for you and your country? Please be thorough.
• provide thorough explanation of 3 factors that would tend to limit economic growth. Be sure you explain how those factors would cause economic growth to be limited.
The Presentville – Futureville case:
1. Explain what motivated each group to make the decisions they made.
2. Explain the impact of those decisions on the future of each group.
3. Which group is most like America, and why?
4. What does this story teach you?
• Explain how you could use the Production Possibility Model to represent the US Economy during the Corona Virus pandemic.
The Circular Flow Model with Government is another important model for students to understand.
use the material covered in the topic called The Economizing Problem.
• For info on the Government sector use the material covered in the topic called The US Economy – Private and Public Sectors.
• explain what the model shows us. Be thorough.
• List and explain at least 2 of the characteristics of each component of the circular flow model. Be very thorough and provide plenty of detail!
• Thoroughly explain how each component of the model interacts with the other components – be very thorough – this requires lots of detail! Explain how all of the sectors and markets interact with each other. You can do this as part of your answer to part ( b) if you like but understand that this will require significant detail!
Every country has its own unique type of Economic System.
Consult the material covered in the topic called The Market System.
4 “good” things produced by capitalism
• list and explain 4 “good” things Capitalism has produced for us over the years. Make sure you provide thorough explanations of why you believe these are “good” things.
Focus only on good things that capitalism has produced.
4 “bad” things produced by capitalism.
• list and explain 4 “bad” things Capitalism has produced for us over the years. Make sure you provide thorough explanations of why you believe these are “bad”.
Steady flow of resources and expanding markets
Capitalist Economic Systems typically require a steady flow of resources and expanding markets. Please explain in detail what would happen to our American capitalist system if these two conditions are absent and explain why you would expect to see those results.
5. In the discussion of the Market System, we talked about the characteristics of the Market system and 4 Fundamental Questions that every economic system must answer. use the material covered in the topic called The Market System
• List and thoroughly and completely explain those 4 fundamental questions and how they are answered.
1. Why must firms try to employ the most economically efficient production techniques?
2. For each of the following issues, explain in detail, why they are important to a firm and how a firm might address each one (need to see the detail here):
a. Optimal plant location
b. Resource Prices
c. Resource Productivity
d. Transportation Costs
Who will get the goods and services?
• Explain who will get the goods and services
How will the system accommodate change?
• How will the system accommodate change?
Characteristics of the Market system.
• Select any 5 of the characteristics of the Market system that we covered and explain each of them. Be thorough!
• Explain how each characteristic you selected impacts the 1% versus the 99%.
Demand, Supply, Market Equilibrium. use the material covered in the topic called Supply and Demand.
Demand:
• Thoroughly and completely define demand.
• State the law of demand.
• List and thoroughly explain the 3 factors that support the law of demand. Be sure you explain how each supports the law of demand.
1. Don’t just copy from the slides, explain what they actually mean and how they support the law of demand.
• List and explain the determinants of demand and how 1. List and explain each of the 5 determinants and how they impact demand.
• Thoroughly and completely explain the differences between a change in demand and a change in quantity demanded along with the causes of those changes, and how each change is graphically represented.
• Pick 3 products and explain how the pandemic affected the demand for those products and what happened in the supply chains for those products.
Supply.
i. Define supply.
ii. State the law of supply.
iii. List and explain the determinants of supply and how each can cause an increase in supply and a decrease in supply.
iv. Thoroughly and completely explain the differences between a change in supply and a change in quantity supplied, the causes of those changes, and how each is graphically represented.
v. Pick 3 different products and explain how the pandemic affected the supply of those products and what happened in the supply chains of each of those products.
Market equilibrium.
• thoroughly and completely explain what market clearing equilibrium means and how it happens.
1. Don’t just copy stuff, explain what this really means. be thorough.
• Explain how the Covid pandemic shocked the markets for hand sanitizer and sanitizing wipes out of equilibrium and how those markets have returned to equilibrium. Need the details.
• Thoroughly and completely explain the two government intervention cases, price floors and price ceilings and give examples of each.
7. Find some applications here The objective of this question is to help you understand the concepts of private goods, public goods, free rider problem, and quasi-public goods.
Public goods vs. Private goods. use the material covered in the topic called The US Economy – Private and Public Sectors
Private goods:
1. provide a definition of private goods.
2. explain their characteristics.
3. give 2 examples of private goods, including why those examples best fit your definition.
4. explain how private goods impact income inequality.
