Economics Game

Assignment Goals

  

Directions

 

1.    

Go to

http://www.bigfuntown.com/Game-436.html

  Or this one –

http://www.classbrain.com/artgames/publish/lemonade_stand_sim_game2

 

2.    

Start a lemonade stand. You must play for 100 days in game. You may play more but you must play for at least 100 days in game. Try different amounts of things in the game so that your results will help you with the questions below.

 

3.    

Record your daily totals. This should include your supplies, money, and feedback from customers. You can review the questions below to see what information you will need from the game.

4.    

Answer the questions below in full sentences and as complete and detailed as you can. Answer the questions one by one and number each one. DO NOT PUT IN ESSAY FORMAT. All questions will relate to material in Chapters 1-6 from your ECON book.

 

5.    

Submit your review in Word format by 11:59pm Sunday, Week 1. Answer each question and put the number of the question before your answer. Keep each group of questions together under each answer. Each answer should be a complete sentence that is able to stand alone without the question it is part of.   Example: 1. The game I played was Pirates. 2. In this game my Economic Profit was…

 

Questions:

1.     Business Questions:

a.     

Tell me what your resources, labor, capital, and natural resources are for this game.

                                                    i.    

ANSWER GOES HERE

b.    

Were you providing a good or a service?

                                                    i.     ANSWER GOES HERE

c.     

What was your rent?

                                                    i.     ANSWER GOES HERE

d.    

How did this affect your profit?

                                                    i.     ANSWER GOES HERE

e.     

Did changing your rent change your profit for better or worse?

                                                    i.     ANSWER GOES HERE

f.     

How did you make the decision on where to rent?

                                                    i.     ANSWER GOES HERE

g.    

How did you determine your resources and how much you would need?

                                                    i.     ANSWER GOES HERE

h.    

Did you notice a change in your profit mixed with different rent or different amounts of resources?

                                                    i.     ANSWER GOES HERE

i.      

How did this change your decisions? I realize that you may not be able to see all of them in the game but you can answer the question based on what you know you would use even if it is not visible.

                                                    i.     ANSWER GOES HERE  

2.     Provide the data for the following:

a.      Amount of money at the end of the 100 days

                                                    i.     ANSWER GOES HERE

b.     Rent – Average for 100 days

                                                    i.     ANSWER GOES HERE

c.      Sales – Total sales for 100 days

                                                    i.     ANSWER GOES HERE

d.     Price – Average for 100 days

                                                    i.     ANSWER GOES HERE

e.      Profit/Loss – Total for 100 days

                                                    i.     ANSWER GOES HERE

f.      Customer Feedback:  Good, Bad, Too Slow, Price – Average for 100 days

                                                    i.     ANSWER GOES HERE 

3.     Now take the data in question 2 and provide the following graphs: (THERE IS A GRAPH OPTION IN WORD)

a.      Give a short summary of each of these graphs and why you think they went up or down based on what choice you made for the resources and rent. You may include information based on customer feedback regarding price, taste, and service.

b.     Amount of resources (total spent) vs. sales

                                                    i.     ANSWER GOES HERE

                                                  ii.    
 

c.      Amount of resources (total spent) + Rent + Advertising (if you did it) vs. Profit/Loss

                                                    i.     ANSWER GOES HERE

d.     Sales vs. Price

                                                    i.     ANSWER GOES HERE

4.     Tell me your “coulda, woulda, shoulda” for the Lemonade Stand. Think about when you made the changes each time and how you determined the opportunity cost of those choices.

                                                    i.     ANSWER GOES HERE

b.     Did you have any sunk costs in your Lemonade Stand business?

                                                    i.     ANSWER GOES HERE

c.      What were they if you did? If you didn’t have any, why not?

                                                    i.     ANSWER GOES HERE

5.     What if you opened a Lemonade store instead of a stand?

a.      Would you use division of labor?

                                                    i.     ANSWER GOES HERE

b.     Would you look to specialize your labor?

                                                    i.     ANSWER GOES HERE

c.      Why or why not?

                                                    i.     ANSWER GOES HERE

d.     Would this change profits?

                                                    i.     ANSWER GOES HERE

e.      Why or why not?

                                                    i.     ANSWER GOES HERE

f.      How would you try to achieve a production possibilities frontier (PPF)?

                                                    i.     ANSWER GOES HERE

g.     Would you need division of labor to do this?

                                                    i.     ANSWER GOES HERE

h.     Why or why not?

                                                    i.     ANSWER GOES HERE

i.       When would you see a shift in the PPF?

                                                    i.     ANSWER GOES HERE

j.      
What would have to happen for you to see this in the lemonade stand or store market?

                                                    i.     ANSWER GOES HERE

k.    
What would you learn from a shift in the PPF?

                                                    i.     ANSWER GOES HERE

6.    
Answer the three (3) questions that every Economic System must answer as related to your lemonade stand. (page 30-31 in ECON)

                                                    i.     ANSWER GOES HERE

b.     How would pure capitalism come into play here?

                                                    i.     ANSWER GOES HERE

c.      How about the pure command system?

                                                    i.     ANSWER GOES HERE

d.     What if it was a mixed system?

                                                    i.     ANSWER GOES HERE

7.    
Based on where you decided to rent each day you had your stand open, who was your target market? Households? Firms?

                                                    i.     ANSWER GOES HERE

b.     What type of consumer was in those markets? (This should include gender, age, status, etc.)

                                                    i.     ANSWER GOES HERE

c.      How did your price in each of these areas you rented change depending on who your market was?

                                                    i.     ANSWER GOES HERE

d.     Why do you think this happened?

                                                    i.     ANSWER GOES HERE

8.    
Explain your supply for your stand each day.

                                                    i.     ANSWER GOES HERE

b.     How did you determine how much to hold?

                                                    i.     ANSWER GOES HERE

c.      Did you notice a larger loss of goods (lemons going bad) when you held more than you needed?

                                                    i.     ANSWER GOES HERE

d.     Did price have an affect on your supply or did the limit on what you could hold in supply affect your choice?

                                                    i.     ANSWER GOES HERE

e.      How did your choice for supply change based on your rent? Or recipe?

                                                    i.     ANSWER GOES HERE

f.      Did the weather forecast have an affect on your choice for supply?

                                                    i.     ANSWER GOES HERE

9.    
Explain your demand.

                                                    i.     ANSWER GOES HERE

b.     How did your price changes affect your demand each day?

                                                    i.     ANSWER GOES HERE

c.      How did you determine what to put your price at each day?

                                                    i.     ANSWER GOES HERE

d.     What factors helped you determine the price so that you could expect the highest demand coupled with the highest profit?

                                                    i.     ANSWER GOES HERE

e.      Provide the price elasticity of demand for your stand over the period you played. You can see an example on page 68.

                                                    i.     ANSWER GOES HERE

f.      Was your price ever inelastic?

                                                    i.     ANSWER GOES HERE

g.     Why do you think this happened or didn’t happen?

                                                    i.     ANSWER GOES HERE

h.     What could possibly cause diminishing marginal returns for a lemonade stand?

                                                    i.     ANSWER GOES HERE

i.       How would you keep that from happening?

                                                    i.     ANSWER GOES HERE