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ECO 561 Final Exam Guide (New) For more classes visit www.snaptutorial.com

1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this information

2) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to: A. raise their price and reduce their quantity supplied B. raise their price and increase their quantity supplied


C. lower their price and reduce their quantity supplied D. lower their price and increase their quantity supplied 3) In which of the following industries are economies of scale exhausted at relatively low levels of output? A. Aircraft production B. Automobile manufacturing C. Concrete mixing D. Newspaper printing

4) The average cost curves (AVC and ATC) should be minimized A. where MC = ATC and MC = AVC B. where FC = ATC and FC = AVC C. where TC starts to increase at a faster rate D. where ATC = AVC

5) If the wage rate increases, A. a purely competitive producer will hire less labour, but an imperfectly competitive producer will not B. an imperfectly competitive producer will hire less labour, but a purely competitive producer will not C. a purely competitive and an imperfectly competitive producer will both hire less labour


D. an imperfectly competitive producer may find it profitable to hire either more or less labour 6) The real wage will rise if the nominal wage A. falls more rapidly than the general price level B. increases at the same rate as labor productivity C. increases more rapidly than the general price level D. falls at the same rate as the general price level

7) Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason they do this is to A. restrict the supply of construction workers B. increase the elasticity of demand for construction workers C. increase the demand for construction workers D. increase the price of substitute inputs

8) Paying an above-equilibrium wage rate might reduce unit labour costs by A. permitting the firm to attract lower-quality labour B. increasing the cost to workers of being fired for shirking C. increasing voluntary worker turnover


D. increasing the supply of labour 9) A good real-world example of monopolistic competition is A. lawyers B. gas stations C. Time Warner Cable D. groceries store

10) An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called A. monopolistic competition B. oligopoly C. pure monopoly D. pure competition 11) Price is constant or given to the individual firm selling in a purely competitive market because A. the firm's demand curve is downward sloping B. of product differentiation reinforced by extensive advertising C. each seller supplies a negligible fraction of total supply D. there are no good substitutes for its product


12) The most important pricing strategy for a perfectly competitive firm is A. minimizing cost B. maximizing sales C. product differentiation D. advertising 13) Which of the following is a nonprice barrier of entry? A. Huge sunk cost B. Discounts C. Product differentiation D. Advertising 14) A third-degree price discrimination can be applied to which of the following market structures? A. A monopoly B. An oligopoly C. A monopolistic competition D. A perfect competition

15) Investing in R&D is more likely to occur in markets where


A. firms have monopoly power protected by regulatory barriers B. markets are closely competitive markets with close to zero economic profits C. markets are oligopoly markets with strong collusion agreements D. markets are monopolistic competitive markets

16) All economies of scale are achieved at the minimum of A. average total cost B. total cost C. average variable cost D. average fixed cost 17) Inflation is undesirable because it A. arbitrarily redistributes real income and wealth B. invariably leads to hyperinflation C. usually is accompanied by declining real GDP D. reduces everyone’s standard of living in the same pro portion 18) An economy’s aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the


A. net export effect B. wealth effect C. real-balances effect D. multiplier effect

19) Suppose productivity rises in a particular economy, but wages stay the same. Other things equal, A. the demand curve will shift leftward B. the supply curve will shift rightward C. the supply curve will shift leftward D. expenditures curve will shift rightward 20) If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium A. output would rise B. output would fall C. price level would necessarily fall D. price level would necessarily rise 21) Expansionary fiscal policy is so named because it A. involves an expansion of the nation's money supply B. can only be attained by expanding government consumption


C. is aimed at achieving greater price stability D. can motivate an expansion of real GDP 22) Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative$100 billion. To achieve full-employment output (exactly), government should A. increase government expenditures by $100 billion B. increase government expenditures by $50 billion C. reduce taxes by $50 billion D. reduce taxes by $200 billion 23) GDP understates the value of output produced by an economy because it A. includes transactions that do not take place in organized markets, such as home cooked meals B. includes environmental degradation caused by increased output production C. excludes value added from the underground economy, such as tips taken under the table D. excludes the value of the wages and benefits of government employee 24) Other things equal, a decrease in the real interest rate will A. shift the investment demand curve to the right


B. shift the investment demand curve to the left C. move the economy upward along its existing investment demand curve D. move the economy downward along its existing investment demand curve

25) Other things equal, a decrease in corporate income taxes will A. decrease the market price of real capital goods B. have no effect on the location of the investment demand curve C. shift the investment demand curve to the right D. shift the investment demand curve to the left 26) Inflation in U.S. prices will cause A. an increase in the demand for U.S. dollars and an appreciation in the exchange rate B. an increase in the supply of U.S. dollars and a depreciation in the exchange rate C. a decrease in the demand for U.S. dollars and a depreciation in the exchange rate D. a decrease in the supply of U.S. dollars and an appreciation in the exchange rate 27) The quantity theory of money states that A. the money supply divided by the velocity of money equals the price level divided by real output


B. the money supply times the velocity of money equals the price level times real output C. the money supply times the price level equals real output divided by the velocity of money D. the money supply times the price level equals real output times the velocity of money 28) Suppose that U.S. prices rise 4% over the next year while prices in Mexicorise 6%. According to the purchasing power parity theory of exchange rates,what should happen to the exchange rate between the dollar and the peso? A. The dollar should depreciate. B. The peso should appreciate. C. The peso should depreciate. D. The dollar will be revalued. 29) A rise in the domestic interest rate leads to capital A. outflows and exchange rate appreciation B. outflows and exchange rate depreciation C. inflows and exchange rate depreciation D. inflows and exchange rate appreciation 30) A firm under monopolistic competition will earn A. a positive economic profit as it has some monopoly power B. zero economic profit as it sets P = MC C. zero economic profit as its P = ATC


D. a positive economic profit as it sets MC = MR ------------------------------------------------------ECO 561 Final Exam Guide For more classes visit www.snaptutorial.com

ECO 561 Final Exam Guide ------------------------------------------------------ECO 561 Week 1 DQ 1 For more classes visit www.snaptutorial.com

What kinds of changes in underlying conditions can cause the supply and demand curves to shift? Give examples and explain the direction in which the curves shift. ------------------------------------------------------ECO 561 Week 1 DQ 2 For more classes visit www.snaptutorial.com


What is price elasticity? Give examples of five products whose demand is price elastic, and five products whose demand is price inelastic and elaborate on the choices you make. ------------------------------------------------------ECO 561 Week 1 Economic Choice & Economic Decision Making (2 Papers) For more classes visit www.snaptutorial.com

THIS TUTORIAL CONTAINS 2 PAPERS Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While analyzing your decision, keep in mind that everything from the interest rates to the price of gasoline is driven by the economy in one way or another. Develop a 1,400-word analysis of your decision-making process in which you include the following: Discuss the role of the interest rate and the cost of financing on your purchase decision. Interest rates are derived from the supply and demand for money and the actions of the Federal Reserve System. What was the rate of interest you paid on your vehicle loan? Were interest rates rising or falling at the time of your decision? Examine the influence of gasoline prices on the choice of vehicle you selected. Gasoline prices rise and fall dramatically based on


economic supply of and demand for crude oil. When gasoline prices are low, Americans buy larger, heavier autos, SUV's and pick-up trucks. When gas prices are high, Americans purchase more compact and fuel efficient vehicles. When you purchased your last vehicle, were crude oil and gasoline prices rising or falling? Discuss the following in regard to your household at the time of your purchase: Were you employed? Was the economy growing or contracting (recession)? If you were employed, did you take into consideration the risk that you might lose your job if a recession occurred during the period of your loan pay-back? A basic assumption of consumers making purchases of large items requiring financing is that their household cash flow will be adequate to cover the monthly loan payments. For most Americans, this also means assuming continuation of their present wages. But many jobs are sensitive to rises and falls in the business cycle, as witnessed by the 10% unemployment rate of the past "Great Recession." Evaluate the financial trade-offs made when making your purchase. This includes lower maintenance costs for a newer vehicle versus a car payment and higher insurance among other factors. Discuss the influence of any of these Federal or state level programs on your decision to purchase a vehicle; or if these did not factor into your decision, explain why or why not:


Buying fuel efficient vehicles such as Flex fuel, hybrids and electrics Converting existing vehicles to use alternative fuels (Flex fuel) Removing old, fuel inefficient, and high polluting vehicles from the highways Explain the influence of environmental factors such as emissions and health concerns on your decision. Discuss the ways in which your purchase illustrates one piece of the circular flow model of economic activity. What are the other parts? Develop conclusions about the economy's influence on personal and business decision making such as purchases, investments, and so forth. Cite a minimum of three peer reviewed sources. Format your paper consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 1 Individual Assignment Market Equilibrating Process Paper For more classes visit www.snaptutorial.com

Market Equilibrating Process Paper Write a 700- to 1,050-word paper in which you relate the concepts in this week's readings to a prior real world experience.


The experience does not necessarily have to be work experience. One note; these word count figures are meant to be a guideline, but feel free to exceed this if you find it is necessary to adequately provide relevant details and clarify important points. Discuss the market equilibrating process in relation to your experience. First define at least five key concepts including those related to the market equilibrating process. Suggestions include the laws of supply and demand, the factors that affect the supply and demand curves, market equilibrium, price ceilings and price floors, and the price elasticity of demand. Second, provide an application of each concept to the context of the real world event. Format your paper according to APA standards. ------------------------------------------------------ECO 561 Week 1 Knowledge Check (Quiz) For more classes visit www.snaptutorial.com

Revenue increases when 2.

An increase in the price of an inelastic good

3.

Price elasticity of demand increases when

4.

The purpose of a market in a market system is to

5. By specializing in the production of one good, a company is able to benefit from economics of scale which increases its revenue. Which of the following is an attribute of specialization? 6.

The market system promotes progress by


7.

Productive efficiency is achieved when

8.

The market is asid to be in equilibrium when

9.

The market will move to a higher equilibrium price if

10. The intersection of supply and demand will be at a lower equilibrium price but a higher equilibrium quantity if 11. When a price ceiling occurs 12. Because the goals of firms, entrepreneurs, and workers have different incentives, which of the following principles applies? ------------------------------------------------------ECO 561 Week 2 DQ 1 For more classes visit www.snaptutorial.com

Cost is a big issue with every company, and changing the technology is the biggest cost for most companies, how your company was able to cope with this problem and maintain the level of profit in a very competitive market? ------------------------------------------------------ECO 561 Week 2 DQ 2 For more classes visit www.snaptutorial.com


Among the types of costs faced by a firm (short-run costs, fixed and variable, as well as long-run costs), how can technology help firms to lower their costs? What are some specific examples of how firms have used technology to lower costs? ------------------------------------------------------ECO 561 Week 2 Government Interventions vs. Market Based Solutions (2 PPT) For more classes visit www.snaptutorial.com

THIS TUTORIAL CONTAINS 2 PPT ECO 561 WEEK 2 GOVERNMENT INTERVENTIONS VS. MARKET BASED SOLUTIONS The theory of market economies emphasizes freedom of choice and limited government intervention. The classic argument for government intervention is market failure - the inability of the market economy to correct itself from a dysfunctional state (such as the Great Depression). Examine one case of significant government intervention as it relates to your current industry of employment or an industry in which you are interested in working. Examples of intervention programs include, but are not limited to: US agriculture support programs


Low income support programs (Food Stamps, Earned Income Tax Credit, Child Tax Credit, and Temporary Assistance to Needy Families) Medicaid, Children's Health Insurance Program, Obamacare Low income rent controls and housing vouchers Government promoting renewable energy sources, discouraging fossil fuel sources Develop a 16-slide presentation including detailed speaker notes or voiceover including the following: Describe the intervention and detail its history. Analyze the arguments for government intervention as opposed to arguments for market-based solutions. Examine who may be helped and who may be hurt by the selected government intervention. Examine externalities and/or unintended consequences of such intervention. Determine the cost trend of the intervention program since its implementation. Evaluate the success or failure of the intervention in achieving its objectives and develop conclusions. Defend the use of or discontinuation of the selected intervention. Note: The use of tables and/or charts to display economic data over the time period discussed is highly encouraged. Cite a minimum of three scholarly references.


Format your paper consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 2 Individual Assignment Market Equilibration Process Paper For more classes visit www.snaptutorial.com

Equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand. Understanding how market equilibrium is sought following such a change is essential for business managers. It is important to understand how economic principles, and specifically supply, demand, and their determents are a part of your everyday business decisions. Write a paper, or create a PowerPoint presentation using a real world experience in a free market (not government regulated) to describe a change that occurred in supply or demand as a result of world events that led to the need for a move between two equilibrium states. Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well. Required Elements: Include academic research to support your ideas Consider the Law of demand and the determinants of demand Consider the Law of supply and the determinants of supply


Describe Efficient markets theory Explain Surplus and shortage Deliver the content in no more than a 700-word paper, OR 7- to 10-slide Microsoft PowerPoint presentation (Please choose one of these choices, not both) Use University of Phoenix Material: Appendix A to create graphs illustrating the movement between the two equilibrium points and include this in the body of the assignment. Your assignment is consistent with APA guidelines. Click the Assignment Files tab to submit your assignment ------------------------------------------------------ECO 561 Week 2 Knowledge Check (Quiz) For more classes visit www.snaptutorial.com

Purely competitve firms increase total revenue by 2. What are two ways for a competitve firm to determine the optimal level of production, that is, the level of production that will maximize profit or minimize losses? 3. Suppose that a firm determines that its marginal revenue is greater than its marginal cost, it would be better to 4. It is profitable for a firm to continue employing additional resources as long as


5. As additional units are produced, the marginal revenue product falls for all firms because marginal product decreases. For firms operating in industries that are not perfectly competitve, marginal revenue product also falls because 6.

All things being equal, an increase in demand for a product,

7. Marginal cost can be defind as the additon to one more unit of output. 8. If a firm stars small and, over time, builds successively larger plant sizes or adds additonal work space in an office, average total costs are most likely to 9.

Demand for resources, including labor, depend on its

10. The primary difference between increasing-and decreasingcost industries lies in 11. When adding labor or other factors of production, buisnesses may see their total product rise, but see their per-unit increase in return for each additional unit diminish. This phenomenon 12. In the short run, firms should shut down if 13. When you are considering the value of a resource in its next best use, you are considering its 14. Of the four major market structures-perfectly competitive, monopolistic competition, oligopoly, monopoly-reducing variable costs of production ------------------------------------------------------ECO 561 Week 2 Learning Team Reflection For more classes visit


www.snaptutorial.com

ECO 561 Week 2 Learning Team Deliverable The learning objectives of week 2 were to identify production level to maximize profits, explain how to balance fixed and variable costs, and to apply economic cost concepts in making business decisions. ------------------------------------------------------ECO 561 Week 2 Team Assignment Learning Team Project Product Pricing Component (Apple) For more classes visit www.snaptutorial.com

Learning Team Assignment: Learning Team Project Product Pricing Component

Select an organization with which you are familiar or in which you are interested that provides a private good or service. You will want to focus on the same firm or organization as you work on each Learning Team Project assignment in this class as you build the final paper due Week 6.Examples of good firms to use as a subject include Southwest Airlines (a very successful airline), Ford (they have not declared bankruptcy), Pulte (a successful homebuilder with a historical track record), Whirlpool (their


performance is very dependent on the economy), Caterpillar, Microsoft, Apple Computer, etc. Describe the utility of that good or service to the immediate consumer (which may or may not be another organization) and the consumer needs that the product or service meets. Discuss the number and closeness of substitute and complementary products and their impact on the pricing decision. Explain why the demand for the product or service is relatively price elastic or relatively price inelastic. Address the following; 1) The effect on revenue when there is a change in price (assuming competitors do not follow); 2) Determine whether demand for the product or service is relatively price elastic or relatively price inelastic based on conclusions from peer reviewed or other reputable resources. You will want to consider the number and closeness of substitutes (including foreign substitutes). Justify your conclusion. Describe the issues that affect consumer demand and the price. Describe issues related to the cost of doing business which may affect the firm's pricing decisions. Focus on issues related to the cost of doing business that affect the firms average and marginal costs, and the pricing decisions of the firm Suggest strategies to enhance revenue based upon all of the above information. This document should be 1,050-1,400 words in length. APA format is required. One note; these word count figures are meant to be a guideline, but feel free to exceed this if you find it is


necessary to adequately provide relevant details and clarify important points. ------------------------------------------------------ECO 561 Week 3 DQ 1 For more classes visit www.snaptutorial.com

Do you think that competition can be counted on to discipline the industrial business firms of a modern economy? Explain. -----------------------------------------------------ECO 561 Week 3 DQ 2 For more classes visit www.snaptutorial.com

In your industry, would you support regulation or deregulation and why or why not? ------------------------------------------------------ECO 561 Week 3 Knowledge Check (Quiz) For more classes visit www.snaptutorial.com


A purely- or perfectly-competitive firm would be characterized by which of the following? 2.

For a purely-competitive firm, price must be

3. What will excessive or economic profits induce for a firm in any industry structure? 4. A pure-monopoly firm’s demand curve is also the market demand curve. This kind of firm may successfully engage in price discrimination to increase its total profit if it 5. Oligopolies are characterized by a small number of firms where the top three firms hold the majority of the market. If in an oligopoly market, firm A ia almost twice as big as firm B and firm C then

6. In a monopolistic competiton industry, if one firm appreciably increased its price from the existing equilibrium price, which of the following outcomes would most likely ensue? 7. Which factor charcterizes the competitive relationship between firms in an oligopoly market structure? 8. Unregulated (natural) monopolies maintain their status through a variety of measures. Whether any particular measure can effectively constrain new firms from entering the market depends on 9. Regulated monopolies are empowered by public authority for which specific reason?


10. Using a significantly greater economy of scale—with attendant lower, long-run average total costs—to restrict the market entry of new competitors 11. In technology-intensive oligopolies—charcterized by dynamically evolving product design—restricting the entry additional firms is 12. Whether the market structure is monopolistic or oligopolistic, a firm may increase consumer demand for its product as an overall portion of market share if 13. One difference between firms already established in a monopolistic competition industry and those attempting to enter it is that 14. An average firm in an industry characterized by a homogeneous product, relatively low barriers to entry, and a low concentration ratio 15. A monopolistic firm may operate in a relatively mature market with little likelihood for significant change in technology or process efficiencies. To maximize its profits, such a firm might 16. Production differentiation can effectively be achieved by 17. While mass retail industries have one or several dominat producers, smaller firms have a limited set of nonpricing options. The most feasible of these inlude 18. In monopolistic competiton inductries, effective product differentiation is illustrated by 19. Differrntiation strategies vary in degree of effectiveness form one type of market structure to another. For firms other than perfect competition


20. If a firm’s industry developed from a monopolistic competiton into an oligopolistic structure, the firm would discover that 21. A firm can increase both profit and per-unit profit margin by lowering production costs. To make this a long-term outcome, the firm should 22. A firm’s cost-reduction strategies may span multiple stages, from acquisition of production input factors to product service and maintenance. When seeking to lower cost in the short term, firms should 23. Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by ------------------------------------------------------ECO 561 Week 3 Learning Team Reflection For more classes visit www.snaptutorial.com

ECO 561 Week 3 Learning Team Reflection/Deliverable The learning objectives of week 3 were to determine pricing strategy to meet organizational goals, determine ways to create non price barriers to entry based on market structure, determine ways to increase product differentiation based on market structure, and to determine ways to reduce costs for an organization. -------------------------------------------------------


ECO 561 Week 3 Market Structure And Pricing Power For more classes visit www.snaptutorial.com

ECO 561 WEEK 3 MARKET STRUCTURE AND PRICING POWER Select a new, realistic good or service for an existing industry, preferably an industry you current work in or one in which you are interested in working. Develop a 1,400-word evaluation of pricing strategies available producers of your selected product. This will include statements about the market structure and the elasticity of demand for the product, based on text book principles and real world products under development. Identify the market structure of the industry (monopoly, oligopoly, competitive monopoly). Determine elasticity of demand for various quality ranges of the product based on textbook theory and judgments about the degree of luxury vs. necessity represented by various brands (e.g. a luxury car vs an economy car). Determine how pricing relates to elasticity of demand for competing models. Explain how changes in the quantity supplied as a result of pricing decisions might affect the company's marginal cost, marginal revenue, and market share as production volume rises.


What reaction might be expected by other producers if one producer changes its pricing strategy? Determine strategies that a company might use to develop product differentiation and market segmentation. What alternative nonpricing strategies are available? What alternative non-pricing strategies can be used to increase barriers to entry? Discuss how producers might alter the mix of fixed and variable costs to support their pricing strategy. Format the assignment consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 3 Team Assignment Market Structures Simulation (Apple) For more classes visit www.snaptutorial.com

Learning Team Assignment: Market Structures Simulation Write a 1,050- to 1,400- word paper where you explain the following in the context of the simulation. One note; these word count figures are meant to be a guideline, but feel free to exceed this if you find it is necessary to adequately provide relevant details and clarify important points. Create a solution using strategic variables available to you to sustain the economic profits the firm can earn.


What are some of the pricing strategies that you would recommend? What are some of the non-pricing strategies that you would recommend? What kind of innovations would you propose to sustain the organization's uniqueness? ------------------------------------------------------ECO 561 Week 4 DQ 1 For more classes visit www.snaptutorial.com

How does the Federal Reserve's monetary policy affect your industry's, or company's growth? ------------------------------------------------------ECO 561 Week 4 DQ 2 For more classes visit www.snaptutorial.com

How would you evaluate monetary policy today? Is monetary policy contradictory with fiscal policy? Why or Why not? Support your analysis with examples. -------------------------------------------------------


ECO 561 Week 4 Knowledge Check (Quiz) For more classes visit www.snaptutorial.com

Business cycles occur when output 2. Which of these statements best describes a complete individual buisness cycle? 3. During the buisness cycle, the period between the point at which output reaches a high and the point at which it reaches a low is called 4. Which of the following equals the market value of all final goods and services produced in an economy, stated in the prices of a specific base year? 5. Imagine a country has a population of 210 million. Within the country there are 95 million people who are employed workers. 50 million people incapable of working, and 60 million people capable of working, but not actively looking. Based on this information, what is the unemployment rate? 6. The unemployment produced by fluctuations in economy activity is called 7.

New college graduates are most likely to experience

8.

The natural rate of unemployment is defind as the

9.

The Consumer Price Indx (CPI) is based on

10. Unanticipated inflation is a problem for society because it


------------------------------------------------------ECO 561 Week 4 Learning Team Project Macroeconomic Forecast Outline (Apple) For more classes visit www.snaptutorial.com

1. Learning Team Assignment: Learning Team Project Macroeconomic Forecast Outline: Prepare a brief outline of the Week 5 Learning Team Project Macroeconomic Forecast Component in which you answer the following questions: 1. What are the economic indicators for which you will be providing forecasts? 2. It is important to evaluate the historical relationship between variables in order to explain how one indicator or variable may impact another. With this in mind, what sources will you use to obtain historical data for the economic indicators that you have selected? 3. What sources will you use to obtain forecasts related to your selected economic indicators? 4. Why do you think that professional forecasters rely so heavily on past data and trends? 5. Include any details you feel are necessary that support your outline in order to justify your choices of economic indicators, and sources for data and forecasts. See my feedback on your Week 2 Learning Team Assignment for details that will help with this assignment. See also the Resources


on the Internet posted in the Week 1 Recommended Activities for sources of historical economic data, and also sources for economic forecasts ------------------------------------------------------ECO 561 Week 4 Team Assignment Business Cycles, Economic Shocks, And Restoring Equilibrium For more classes visit www.snaptutorial.com

ECO 561 WEEK 4 TEAM ASSIGNMENT BUSINESS CYCLES, ECONOMIC SHOCKS, AND RESTORING EQUILIBRIUM As a manager, it is important to understand how the business cycle affects supply and demand, prices, and how economic shocks will impact your company's markets, supply chain, and financing. The recent collapse of the housing market, the near failure of our financial system, the wild swings in commodity and stock prices, and the deep recession of 2007-2009 provide a virtual laboratory for the study of the economic shocks and stabilization measures taken to restore equilibrium. Create a 1,400-word analysis based on the team's assigned market in which you include the following: Analyze the economic and sociological forces that drove the market equilibrium to unsustainable heights and the shocks that brought the markets back down. What might be done to moderate the effects of these economic swings? Discuss specific changes in supply and demand.


Examine prior government policies and legislation that exacerbated the impact of the shocks. Evaluate the actions of the federal government and the Federal Reserve to restore equilibrium. How effective were these countercyclical policies? Cite a minimum of three peer reviewed sources not including the text. Format the assignment consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 5 DQ 1 For more classes visit www.snaptutorial.com

How does the Federal Reserve's monetary policy affect your industry's, or company's growth? ------------------------------------------------------ECO 561 Week 5 DQ 2 For more classes visit www.snaptutorial.com

How would you evaluate monetary policy today? Is monetary policy contradictory with fiscal policy? Why or Why not? Support your analysis with examples.


------------------------------------------------------ECO 561 Week 5 Knowledge Check (quiz) For more classes visit www.snaptutorial.com

The Classical Theory of Asset Prices assumes which of the following ideas? 2. Economists use two principle interest rates: normal and real. The purpose of this distinction is to 3. During periods of incresing inflationary pressure, the Federal Reserve should 4. What is the increased morak hazard associated wuth the too big to fall (TBTF) ballouts of the largest of financial institutions? 5. The Federal Reserve’s primary tool for managing the money flow is 6. Which of the following is a major drawback of a flexible exchange rate? 7.

The major advantage to a flexible exchange-rate policy is

8. ------------------------------suggests that a country will engage in trade and produces that it can produce at a lower-oppurtunity cost than a competing nation 9.

Absolute advantage encourages a country to


10. The------------------------------------Explains that long-run trends in exchange rates are based on a predictable relationship between product price levels and exchange rates. 11. A buisness traveller to Germany who, uopn depending in berlin, uses an airport ATM to withdraw 100 Euros from her U.S. bank would receive which kind of exchange rate? 12. Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week. If this is a two-good, two nation model, what would Nation B’s best choice in regards to trade and specialization? ------------------------------------------------------ECO 561 Week 5 Learning Team Project Macroeconomic Forecast Component (Apple) For more classes visit www.snaptutorial.com

Learning Team Assignment: Learning Team Project Macroeconomic Forecast Component Include the following in this paper; Identify a list of five economic indicators which will be the subject of this paper. In addition to real GDP, the unemployment rate, and the inflation rate, focus on at least two of the following : A key interest rate (I suggest the 10-year Treasury rate)


Housing starts Oil prices Auto sales Foreign exchange rate (either a trade weighted index or dollar versus yen, pound, Euro, Yuan, etc.) Look at the trends related to the historical relationship between the economy as measured by the economic indicators you identified above and the success of the firm that is the subject of your Learning Team project. A good measure of your firm's success is its historical stock prices. See the Resources on the Internet posted in the Week 1 Recommended Activities for sources of historical economic data. Some examples of sources for historical economic data include; Federal Reserve Bank of St. Louis, Bureau of Economic Analysis, and the Bureau of Labor Statistics. Assemble two or three macroeconomic forecasts for each of the economic indicators that you chose to focus on in your paper. See the Resources on the Internet posted in the Week 1 Recommended Activities for sources of economic forecasts. Examples of sources for economic forecasts include the Congressional Budget Office, the Federal Reserve Bank of Philadelphia's Livingston Survey, the Mortgage Banker's Association, and the National Association of Homebuilders). The annual forecasts should be national and should be for the next two years. In a 1,400-2,450-word paper, based on the historical data you have identified and the forecasts you have selected, evaluate the relationship among the economic indicators and the success of


your firm. In addition, compare and contrast the economic reasoning that would support any differences for the respective views prepared by the forecasters. In addition, explain the any differences among the selected forecasts. In addition, project the impact of global economic conditions regarding trade and trade related issues like the specialization of labor and capital in the production process and exchange rates. Analyze the implications of these forecasts on three operations or planning issues that your organization has identified or should identify for the next two years. Based on your work, recommend any changes to these operations or planning issues that would minimize potential risks or maximize opportunities. APA format is required. One note; these word count figures are meant to be a guideline, but feel free to exceed this if you find it is necessary to adequately provide relevant details and clarify important points. See my feedback on your Week 2 Learning Team Assignment, and the Week 4 Assignment for details that will help with this assignment. See also the Resources on the Internet posted in the Week 1 Recommended Activities for sources of historical economic data, and also sources for economic forecasts. ------------------------------------------------------ECO 561 Week 5 Team Assignment Comparative And Absolute Advantage For more classes visit www.snaptutorial.com


ECO 561 WEEK 5 TEAM ASSIGNMENT COMPARATIVE AND ABSOLUTE ADVANTAGE Develop a 1,750-word analysis of the international economy in which you do the following: Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: USA China Saudi Arabia Democratic Republic of Congo Research each country, using such resources as the CIA World Fact Book, World Bank data, and World Trade Organization. Research its economic, political, and cultural development. Compare the following using tables or graphs, for most recent year available and for 2009 (the trough of the last economic cycle): Country GDP per Capita Country GDP as a % of World GDP Country exports per capita Country exports as a % of GDP Country exports as a % of World exports. Country imports per capita Country imports as a % of GDP


Country imports as a % of World imports (world imports = world exports) Discuss reasons why the economic growth of the four countries varies so markedly. How does trade influence the strength of the economy worldwide? Determine the stage in the lifecycle for each country's economy. Discuss the following for each country: At least two products that have provided the country an absolute advantage in trade (if any) At least two products that have provided the country a comparative advantage in trade Factors that have prevented a country from achieving either Cite a minimum of three peer reviewed sources. Format the assignment consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 6 Challenges Of Expansion To A Foreign Location (2 Papers) For more classes visit www.snaptutorial.com

THIS TUTORIAL CONTAINS 2 PAPERS ECO 561 WEEK 6 CHALLENGES OF EXPANSION TO A FOREIGN LOCATION


Revise your Week 3 economic analysis using the feedback provided by your facilitator to evaluate the challenges of expanding your company's production to a foreign market. This will require you to revise previously recommended pricing and non-pricing strategies for your company's product based on the selected country's economy's stage in the business cycle and the projected economic conditions. Discuss the evidence that supports your recommendations. Select a foreign market in which to expand your chosen product. Write a 1,750-word paper (including any material you include from your Week 3 assignment) detailing your findings. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged. Describe current global economic conditions and their effect on local macroeconomic indicators in your selected country. Consider forecasts for population growth, GDP growth, GDP per capita growth, export growth, and sales growth. Evaluate the competitors' existing production in the chosen country. Evaluate forecast sales in the selected country. Determine the type of economy that exists in your selected country - closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?


Describe how your chosen country's current credit market conditions affect demand for your product or service and your planning or operating decision for your production in that country. Analyze the role of the selected country's central bank on that country's economy. Evaluate the availability, education, and job skills of the work force in the selected country. Discuss the additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks. Discuss any additional supply chain challenges you anticipate if attempting to sell your product made in your chosen country to countries outside of that market. Discuss any comparative advantages your company will have over competitors in that country. Recommend either for or against expanding your company's production into your chosen country based on your research. Cite a minimum of three peer reviewed sources not including the textbook. Format your assignment consistent with APA guidelines. ------------------------------------------------------ECO 561 Week 6 DQ 1 For more classes visit www.snaptutorial.com


How much has the growth in international trade impacted your company, or industry? Has the devaluation of the U.S. dollar impacted your company, or industry? Explain ------------------------------------------------------ECO 561 Week 6 Knowledge Check (Quiz) For more classes visit www.snaptutorial.com

If the demand is QD = 100 – 10P and there is a $1 price increase, then the elasticity of demand at p = 2 is 2. If the absolute value of a demand elasticity is less than 1, then 3. are

If the cross-price elasticity is negative, then the two goods

4. Under perfect competition, a firm maximizes its profit by setting 5. In a large city, a good, real-world example for perfect competition would be 6.

A firm under monopolistic competition will earn

------------------------------------------------------ECO 561 Week 6 Team Assignment (Final), (Apple) For more classes visit www.snaptutorial.com


Learning Team Assignment: Complete the Learning Team Project that contains the following elements; Present the viability of the selected good or service, considering the demand cost, market conditions, and economic conditions. Product Pricing Component (Completed in Week Two) Select an organization with which you are familiar or in which you are interested that provides a private good or service. Describe the utility of that good or service to the immediate consumer (which may or may not be another organization) and the consumer needs that the product or service meets. Discuss the number and closeness of substitute and/or complementary products and their impact on the pricing decision. Explain why the demand for the product or service is price elastic or price inelastic. Describe the issues that affect consumer demand and the price. Suggest strategies to enhance revenue based upon all of the above information. Cost Component (Not Completed in Prior Weeks) Identify and discuss issues that affect the cost of doing business. Discuss the impact of technology on productivity and average total cost. Market Structures Component (Not Completed in Prior Weeks) Determine the market structure in which the selected good or service competes. Discuss the implications of the market structure


on pricing. Suggest non-price strategies to preserve or enhance sales. Suggest steps to remain in or move into an optimal competitive position. Macroeconomic Forecast Component (Completed in Week Five) Utilizing the Learning Team Macroeconomic Forecast, describe three to five factors in the economy that will impact the demand for the selected good or service and one for the cost associated with producing the good or service. Identify the economic indicators that reflect those factors. Locate a forecast for each of the economic indicators you have selected for the next two years. In some cases, it may be more feasible to look at prior trends for selected indicators rather than forecasts. Comment on the degree of confidence that can be placed in economic forecasts. Discuss the implications of this economic forecast and the income elasticity of demand for the pricing strategy (identified previously). Identify to what extent tariffs or quotas would affect international trade in your product. How would you pay for imports, receive payment for exports, and manage exchange rate risk? (Not Completed in Prior Weeks) -------------------------------------------------------

Eco 561 final exam guide (new)  

For more classes visit www.snaptutorial.com 1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price...

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