ECO discussion Questions

I-3 sentences for each sections, just answer all the questions

6.2 “GDP and GNP” Please respond to the following:

· In view of the weak economy of the last several years, explain which of the four components of GDP had, or is having, the greatest positive impact in our economy. Use your results from the second e-Activity to support your response.

· Explain how one of the components of the GDP would help you to predict the amount of inventory to keep in stock if you were the owner of a retail store and were placing a merchandise order for the next few months.

6.1″The Labor Market and Minimum Wage” Please respond to the following:

· Review the e-Activity, and examine two arguments one for and one against raising the minimum wage.

· Based on your choices explain whether the minimum wage should be raised or not. Please use appropriate economic terms to support your position.

5.2″Moral Hazard” Please respond to the following:

· In 2020, a leading insurance company started a policy that pays a policy holder a 5 percent rebate on their insurance premium in a year in which the policyholder does not file an insurance claim. For example, a household with an annual premium of $1,200 will get a $60 rebate check each year it does not file a claim. Identify what problem(s) the insurance company is trying to solve by introducing this policy.

· Determine whether the above policy benefits the insurance company or the policy holder.  Provide support for your response.

5.1″Public Goods” Please respond to the following:

· Identify a product that you have consumed in the past couple of months and explain what makes the product a public good, based on the characteristics of a public good as defined in this week’s textbook readings.

· Discuss two (2) reasons why the government only supplies public goods. Provide specific examples to support your response.

For example, an aesthetic view is a pure public good.  No matter how many people enjoy the view, others can also enjoy it.  Other services may be quasi-public goods, where at a certain level of use, others’ enjoyment may be diminished.  For example, a public recreation area may be open to everyone.  However, crowding can decrease peoples’ enjoyment of the area.  The problem with public goods is that, although people value them, no one person has an incentive to pay to maintain the good.  Thus, collective action is required in order to produce the most beneficial quantity.

4.2″Market Entry and Monopolistic Competition” Please respond to the following:

· From the e-Activity article, explain your position on whether or not Apple is stifling competition and monopolizing the tablet market. Examine the type of market structure within which Apple operates. Support your answer by relating to each of the characteristics described in Chapter 8 of your textbook.

· Based on the characteristics of the referenced in the first part of this discussion, determine two to three (2-3) ways in which potential competition would affect Apple’s ability to gain its share of the market. Provide support for your response

4.1″Monopoly” Please respond to the following:

· Identify a company in your local area that you would classify as a monopoly. Explain why you classified the company as a monopoly, and state how the company relates to at least two (2) characteristics of that particular market.

· Discuss one advantage and one disadvantage of having the government regulate monopolies. Provide an example in your response.

Example: First of all, we need to stress the difference between Monopolistic Competition and Monopoly, and it is rather simple. Monopolistic Competition is a hybrid market structure, with features of both monopoly and perfect competition. The term may seem similar to virtual reality. However, the term conveys the two key features of the market. Each firm in the market produces a good that is slightly different from the goods of other firms, so each firm has a narrowly defined monopoly. The products sold by different firms in the market are close substitutes for one another, so there is intense competition between firms for consumers. For example, your local grocery store may stock several brands of toothbrushes with different design features. If the price of one brand increases, some loyal customers will continue to buy the brand but others will switch to different brands that are close substitutes.
Agree? What about Microsoft? Is it Monopoly?

3.2″Perfect Competition” Please respond to the following:

· Examine a perfectly competitive firm that you have recently purchased a product from, focusing specifically on how it relates to the characteristics of the market.

· Imagine that you are a manager of the perfectly competitive firm that you examined in the first part of this discussion. Identify two challenges of raising the price for a product when other competitors are selling the same type of product for a lower price.

3.1″Production Costs” Please respond to the following:

· You are the owner of a fast food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.

· Using the fast food restaurant context in the first part of this discussion, state two methods that take advantage of the increased demand while minimizing costs. Explain two (2) advantages and disadvantages for each method that you have chosen. Provide support for your response.

2.2″Elasticity” Please respond to the following:

· Identify two elastic and two inelastic goods that you have purchased in the last month.

· Using the determinants of elasticity, explain why each good you selected is elastic or inelastic.

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2.1″Demand and Supply” Please respond to the following:

· Discuss one recent price change that you have noticed while visiting your local supermarket.  Determine whether or not the price change that you identified was a result of a change in either supply or demand.

· Based on your response to the first part of this discussion, identify what may have caused the shift in either supply or demand.

1.2″Principles of Economics” Please respond to the following:

· Analyze what your opportunity costs have been in terms of personal resources that you have given up in order to take this course at Strayer University.

· Explain two ways in which you applied the use of marginal cost and benefit to your decision to pursue a college degree.

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1.1″What is Economics?” Please respond to the following:

• Identify a recent purchase that you made and determine how scarcity influenced your purchase decision.

• Give an example how scarcity of a product would have an impact on a macroeconomic and microeconomic level. Explain your rationale.

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