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\nVisit Below Link, To Download This Course:\n\nhttps://www.tutorialsservice.net/product/econ-545-business-economics-full-course-devry/\n\nOr \nEmail us on\nSUPPORT@TUTORIALSSERVICE.NET\n\nECON 545 Business Economics Full Course-DeVry\nECON545\nECON 545 Week 1 Discussion 1 Latest-DeVry\nSupply and Demand (graded)\nBelow is a recommended topic for this discussion. If your instructor chooses a different “Making the Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and any required work in MyEconLab or elsewhere will be in the instructors’ first posting.\n• Read the Making the Connection short case titled Forecasting the Demand for iPhones in Chapter 3 of our textbook, and also be sure to watch the video right under the Making the Connection title (maybe a few times). Then post your first posting this week beginning to discuss what you’ve read and watched in the video.\n• Then work on Problems and Applications 1.17, at the end of Chapter 3, answering and discussing the questions in that exercise.\n

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econ 545 business economics full course devry

ECON 545 BUSINESS ECONOMICS FULL COURSE-DEVRY

Visit Below Link, To Download This Course:

https://www.tutorialsservice.net/product/econ-545-business-economics-full-course-devry/

Or

Email us on

SUPPORT@TUTORIALSSERVICE.NET

ECON 545 Business Economics Full Course-DeVry

ECON545

ECON 545 Week 1 Discussion 1 Latest-DeVry

Supply and Demand (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Forecasting the Demand for iPhones in

Chapter 3 of our textbook, and also be sure to watch the video right under the Making the

Connection title (maybe a few times). Then post your first posting this week beginning to discuss

what you’ve read and watched in the video.

Then work on Problems and Applications 1.17, at the end of Chapter 3, answering and discussing

the questions in that exercise.

MyEconLab video link to the Week 1 My EconLab screen for both week 1 videos.

ECON 545 Week 1 Discussion 2 Latest-DeVry

Elasticity and the Minimum Wage (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Why Are Oil Prices So Unstable in Chapter 6 of

our textbook, and also be sure to watch the video right under the Making the Connection title

maybe a few times then post your first posting

(maybe a few times). Then post your first posting this week beginning to discuss what you’ve

read and watched in the video.

Then work on Problems and Applications 6.3, at the end of Chapter 6, answering and discussing

the questions in that exercise. You don’t have to post a graph, but please at least create one on

paper and discuss the results.

MyEconLab video link to the Week 1 MyEconLab screen for both week 1 videos.

ECON 545 Week 2 Discussion 1 Latest-DeVry

Perfect Competition (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled In the Apple iPhone Apps Store, Easy Entry

Makes the Long Run Pretty Short in Chapter 12 of our textbook, and also be sure to watch the

video right under the Making the Connection title (maybe a few times). Then post your first

posting this week beginning to discuss what you’ve read and watched in the video.

Then work on Problems and Applications 5.9, at the end of Chapter 12, answering and discussing

the questions in that exercise.

ECON 545 Week 2 Discussion 2 Latest-DeVry

Costs (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Adam Smith’s Famous Account of the Division

of Labor in a Pin Factory in Chapter 11 of our textbook, and also be sure to watch the video right

under the Making the Connection title (maybe a few times). Then post your first posting this week

beginning to discuss what you’ve read and watched in the video.

Then work on Problems and Applications 3.7, at the end of Chapter 11, answering and discussing

the question in that exercise.

ECON 545 Week 3 Discussion 1 Latest-DeVry

Oligopoly and Game Theory (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

slide3

Read the Making the Connection short case titled With Price Collusion, More is Not Merrier in

Chapter 14 of our textbook, and also be sure to watch the video right under the Making the

Connection title (maybe a few times). Then post your first posting this week beginning to discuss

what you’ve read and watched in the video.

Then work on Problems and Applications 2.15, at the end of chapter 14, answering and

discussing the questions in that exercise.

ECON 545 Week 3 Discussion 2 Latest-DeVry

Antitrust and Market Power (graded)

Below is a recommended topic for this discussion. If your instructor chooses a “Making the Connection”

from this weeks’ readings or another alternate discussion topic, his or her chosen topic and any required

work in MyEconLab or elsewhere will be in the instructors’ first posting.

Review and chose a firm of your choice or one provided by your instructor. Is this firm a

monopoly? In what ways could it be considered a monopoly? What markets are involved? What

antitrust legislation would apply? Is antitrust legislation fair to your chosen firm? Why or why not?

ECON 545 Week 4 Discussion 1 Latest-DeVry

Unemployment and Inflation (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the “Making the Connection” short case titled “What’s So Bad about Falling Prices?” in

Chapter 20 of our textbook, and also be sure to watch the video right under the Making the

Connection title (maybe a few times). Then post your first posting this week beginning to discuss

what you’ve read and watched in the video.

Then work on Problems and Applications 7.9, at the end of Chapter 20, answering and discussing

the questions in that exercise.

ECON 545 Week 4 Discussion 2 Latest-DeVry

Business Cycles (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Can a Recession Be a Good Time for a

Business to Expand? in Chapter 21 of our textbook, and also be sure to watch the video right

under the Making the Connection title (maybe a few times). Then post your posting this week

beginning to discuss what you’ve read and watched in the video.

slide4

Then work on Problems and Applications 3.6, at the end of Chapter 21, answering and discussing

the questions in that exercise.

ECON 545 Week 5 Discussion 1 Latest-DeVry

Fiscal Policy (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Did Fiscal Policy Fail during the Great

Depression? in Chapter 27 of our textbook, and also be sure to watch the video right under the

Making the Connection title (maybe a few times). Then post your first posting this week beginning

to discuss what you’ve read and watched in the video.

Then work on Problems and Applications 6.6, at the end of Chapter 27, answering and discussing

the questions in that exercise.

ECON 545 Week 5 Discussion 2 Latest-DeVry

Monetary Policy (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Trying to Hit a Moving Target: Making Policy

with Real-Time Data in Chapter 26 of our textbook, and also be sure to watch the video right

under the Making the Connection title (maybe a few times). Then post your first posting this week

beginning to discuss what you’ve read and watched in the video.

Then work on Problems and Applications 3.12, at the end of Chapter 26, answering and

discussing the questions in that exercise.

ECON 545 Week 6 Discussion 1 Latest-DeVry

Federal Reserve Policy (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled The Debate over Quantitative Easing? in

Chapter 28 of our textbook, and also be sure to watch the video right under the Making the

Connection title (maybe a few times). ? Then post your first posting this week beginning to

discuss what you’ve read and watched in the video.

slide5

Then work on Problems and Applications 4.10, at the end of Chapter 28, answering and

discussing the questions in that exercise.

ECON 545 Week 6 Discussion 2 Latest-DeVry

Macro in an Open Economy (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Japanese Firms Ride the Yen Roller Coaster in

Chapter 29 of our textbook, and also be sure to watch the video right under the Making the

Connection title (maybe a few times). ? Then post your first posting this week beginning to

discuss what you’ve read and watched in the video.

Then work on Problems and Applications 2.15, at the end of Chapter 29, answering and

discussing the questions in that exercise.

ECON 545 Week 7 Discussion 1 Latest-DeVry

Comparative Advantage (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from this weeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Comparative Advantage, Opportunity Cost, and

Housework in Chapter 2 of our textbook, and also be sure to watch the video right under the

Making the Connection title (maybe a few times). Then post your first posting this week beginning

to discuss what you’ve read and watched in the video.

Then work on Problems and Applications 2.15, at the end of Chapter 2, answering and discussing

the questions in that exercise.

ECON 545 Week 7 Discussion 2 Latest-DeVry

Fixed and Floating Exchange Rates (graded)

Below is a recommended topic for this discussion. If your instructor chooses a different “Making the

Connection” from thisweeks’ readings or another alternate discussion topic, his or her chosen topic and

any required work in MyEconLab or elsewhere will be in the instructors’ first posting.

Read the Making the Connection short case titled Why Did Iceland Recover So Quickly from the

Financial Crisis? in Chapter 30 of our textbook, and also be sure to watch the video right under

the Making the Connection title (maybe a few times). Then post your posting this week beginning

to discuss what you’ve read and watched in the video.

slide6

Then work on Problems and Applications 2.23, at the end of Chapter 30, answering and

discussing the questions in that exercise.

ECON 545 Week 2 & 3 Project Paper 1 Latest-DeVry

ECON545 Paper Project 1

The Microeconomic Paper tests your ability to apply economic principles to a business decision. Select

one situation from the items outlined below: A toD. Complete the paper on the selected situation as

specified below. The completed paper is a professional report and is due in Week 3 (130 points). See the

grading rubric at the end of this document. For sources of data, you can choose from the list presented at

the end of this document.

The following is a list of the specific required information, research, graphs, and math to be included in

each answer regardless of the scenario chosen.

1. Demand Determinants:

2. Each individual determinant analyzed for your situation, with examples applicable to your

situation(3 points each) and research (2 points each)showing current demand data or most recent

past data, except for the expectations determinant in which you need to use data estimating

future market conditions.

3. (10 points)Price Elasticity of Demand facing you in your scenario, including actual calculation of it

using the midpoint formula. If you can’t find data, then determine the price elasticity from the

characteristics and make up numbers to use. Be sure to identify this if you use this approach.

This will help you in deciding the slope of your demand curve below.

4. (5 points)Graph the demand facing your situation. Note that this requires information from the

supply determinant analysis before deciding how to draw the curve(s), as you may need a

separate MR curve.

5. Supply Determinants:

6. Each individual determinant analyzed for your situation, with examples applicable to your

situation(3 points each) and research (2 points each)showing current supply data or most recent

past data, except for the expectations determinant in which you need to use data estimating

future market conditions.

1. (20 points)You need to be very specific in the cost of production determinant to identify

fixed, variable, and marginal cost in order to derive your supply curve for the graphing

component. You will need to explain and show how profit maximization or loss

minimization output and price are determined. You will need to do the math using actual

figures [cited] or your own estimated figures [identified as such] and explain why you

expect short run economic or normal profits, acceptable loss or temporary shutdown, and

how you will know which it is.

2. The number of sellers determinant must contain your analysis of the kind of market

structure in which your firm or labor service will be sold.

7. (10 points)Price Elasticity of Supply you have based on the cost of production changes as output

changes, including actual calculation of it using the midpoint formula. If you can’t find data, then

determine the price elasticity from the characteristics and make up numbers to use. Be sure to

identify this if you use this approach. This will help you in deciding the slope of your supply curve.

8. (5 points)Graph your supply situation using the numbers from your earlier cost of production

analysis.

9 recommendations 40 points what are your

9. Recommendations—(40 points) what are your recommendations explained by your analysis?

10. Paper presentation—(10 points) good format, citations, lack of spelling errors, etc.

Situation A

Jenny, your niece, is a smart high-school student who wants to make smart choices for her future.

Hearing of your course in Business Economics, she has emailed you asking for advice on whether to

become a medical doctor and on the best location to practice it. She recognizes the high costs of tuition

and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an

optimum decision for her. So she has asked you for advice.

Having read the introduction to Chapter 1 on page 3 of the textbook, you recognize the significance of

such a career decision for Jenny. You decide to examine the career choice in terms of the utility it

provides to Jenny: return on investment as well as personal satisfaction of contributing to the well-being

of others. But to evaluate the utility, you also need to identify and quantify the total opportunity costs of

the decision. You decide to educate yourself about the market for physicians in terms of supply and

demand, elasticity, costs of production, pricing, and normal profit. You want to provide Jenny with the

most informed advice possible.

Situation B

Your neighbor Cindy wants to start a contracting business for installing solar panels. She has heard of the

cost savings that households and businesses can make each year from installing solar panels on the

roofs. Cindy has also heard of government incentives for installing solar panels. Being concerned about

the environment and wishing to reduce pollution, Cindy thinks installing solar panels also serves a social

purpose. But she does not want to risk her life’s savings on a venture that might not succeed or become

profitable enough. After hearing from you about taking this course in Business Economics, she decides to

ask you for advice.

At first you were hesitant to give investment advice. Then you read the section “Losing Money in the Solar

Panel Industry” on pages 402-403 of the textbook, and the need for differentiation in Chapter 13. You

realize there are more pieces to the decision than Cindy is considering. You decide to research the

market in terms of supply and demand, elasticity, costs of production, pricing, normal profit, and savings

for consumers. You want to provide Cindy with the most informed advice possible

Situation C

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas

stations. He reckons American consumers have come to accept the high gasoline prices, and estimates

world prices for gasoline will increase even

world prices for gasoline will increase even further due to increasing high demand from India and China.

Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station.

But before buying the gas stations, he decides to ask for your advice since you are taking this course in

Business Economics.

You recall reading about making pricing decisions for gasoline on pages 173-174 of the textbook. You

also recall reading about perfectly competitive markets in Chapter 12, and the need for differentiation in

Chapter 13. Being skeptical of Cousin Edgar’s optimism on the profitability of selling gasoline and

convenience items, you decide to research the market in terms of supply and demand, elasticity, costs of

production, pricing, and normal profit. You want to provide Cousin Edgar with the most informed advice

possible.

Situation D

After hearing of your taking this course in Business Economics, your college friend has emailed you

asking for advice on opening a restaurant. Your friend Rajeev reminded you of his popular recipes for

Indian food, and shared his dream of building a franchise business modeled on the P.F. Chang chain of

restaurants. He reckons that creating special fusion recipes based on a popular ethnic cuisine will provide

the restaurant chain with sufficient differentiation to become profitable and to grow nationwide.

Luckily before you could find time to answer Rajeev’s email, you read the pieces on Starbucks and

opening a restaurant, on page 425 of the textbook. Recognizing the costs and risks for Rajeev, you

decide to research the market in terms of supply and demand, elasticity, production costs, pricing, normal

profit, and the supply chain for ethnic cuisine. You decide to educate yourself about the restaurant

business so you can provide Rajeev with the most informed advice possible.

Microeconomic Paper as a Professional Report

Your paper should be organized into five parts as listed below.

1. Title Page—Name, course, and date

2. Introduction to situation, but do NOT copy the scenario.

Briefly summarize the situation and identify the microeconomic issue(s) to be decided from the

perspective of the organization.

3. Relevant Economic Principles: Determinants of Demand, Supply, etc. and Relevant Data

identify the variables that are critical

Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data on

the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text citation

to report the source(s) of the data. Graphs may be included here.

4. Recommendations and Economic Justification

Formulate and present your recommendations for addressing the issue(s) based on the relevant data and

economic principles identified above. Justify your recommendations in terms of the economic impact on

those affected.

5. References

List the full references for at least five sources alphabetically in APA format.

ECON 545 Week 5 & 6 Project Paper 2 Latest-DeVry

ECON545 Paper Project 2

The Macroeconomic Paper tests your ability to apply economic principles to a business decision

considering the impact of macroeconomic variables. Select one situation from the items outlined below: A

to D. Complete the paper on the selected situation as specified below. The completed paper is a

professional report and is due in Week 6 (180 points). See the grading rubric at the end of this document.

Be sure to use the DeVry library to find data, and avoid questionable sources, such as Wikipedia.

Each of the scenarios has a list of macroeconomic areas you are to address, with sources, in your

answer. Briefly, you are to research and show how these apply to your scenario: GDP growth rate (20

points), the business cycle, unemployment, and inflation (40 points), fiscal policy and level of

unemployment (30 points), monetary policy and interest rates (30 points), and demographics (10 points).

Situation A

Rick, your friend, runs a small manufacturing plant that produces parts for the auto industry. Rick is

thinking of expanding his operations to meet the increasing demand from car manufacturers. Hearing of

your taking this course in business economics, he asks you for advice on how to go about making the

expansion decision.

You realize that Rick needs to take a number of macroeconomic variables into consideration for the

expansion decision. You decide to research the economy in terms of GDP growth rate, interest rates,

level of unemployment the business cycle fiscal

level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and

demographics. You want to provide Rick with the most informed advice possible.

Situation B

Your neighbor Cindy wants to start a contracting business for installing solar panels. She has heard of the

cost savings that households and businesses can make each year by installing solar panels on their

roofs. Cindy has also heard of government incentives for installing solar panels. Being concerned about

the environment and wishing to reduce pollution, Cindy thinks installing solar panels also serves a good

social purpose. But she does not want to risk her life savings on a venture that might not succeed or

become profitable enough. After hearing from you about taking this course in business economics, she

decides to ask you for advice.

You realize there are more pieces to the decision than Cindy is considering. You decide to research the

economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal

policy, monetary policy, international trade, and demographics. You want to provide Cindy with the most

informed advice possible.

Situation C

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying four gas

stations. He reckons American consumers have come to accept the high gasoline prices, and estimates

world prices for gasoline to increase even further with high demand from India and China. Besides,

Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But

before buying the gas stations, he decides to ask for your advice because you are taking this course in

business economics.

Cousin Edgar needs financing for his new business, but you realize there are more macroeconomic

factors he needs to consider in timing his decision. You decide to research the economy in terms of GDP

growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy,

international trade, and demographics. You want to provide Cousin Edgar with the most informed advice

possible.

Situation D

After hearing of you taking this course in business economics, Uncle Dan has e-mailed you asking for

advice on his 100-acre corn farm. He mentioned how, after 30 years of growing corn, he wishes to leave

that commodity’s market and enter a more profitable market instead. He is thinking of subdividing his land

and building homes and shops he reckons he could

and building homes and shops. He reckons he could make a good profit by selling the homes and renting

the shops.

Recognizing the costs and risks for Uncle Dan in making the switch, you decide to research the economy

in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy,

monetary policy, international trade, and demographics. You decide to educate yourself about

macroeconomics so that you can provide Uncle Dan with the most informed advice possible.

Macroeconomic Paper as a Professional Report

Your paper should be organized into five parts as listed below.

1. Title Page: Name, class, and date

2. Introduction to situation but do NOT copy the scenario.

Briefly summarize the situation and identify the macroeconomic issue(s) to be decided from the

perspective of the organization.

3. Business cycles, unemployment, inflation, international—comparative advantage, exchange

rates, trade, etc., monetary policy and interest rates, and fiscal policy and unemployment.

Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data on

the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text citation

to report the source(s) of the data. Graphs may be included here.

4. Recommendations and Economic Justification

Formulate and present your recommendations for addressing the issue(s) based on the relevant data and

economic principles identified above. Justify your recommendations in terms of the economic impact on

those affected.

5. References

List the full references for at least five sources alphabetically in APA format.

ECON 545 Final Exam Latest-DeVry

Question 1. (TCOs A and D)

Suppose you are hired to manage a small manufacturing facility that produces Widgets. (30 points)

part a you know that you are operating

(Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small

part of a large market with many competitors in this market. From data collected on the Widget Market,

you know that market demand has recently increased and market supply has recently decreased. Name

two shift factors and determinants that could have caused the market demand to increase and two shift

factors and determinants that could have caused the market supply to decrease. Also as manager of the

facility, what decisions should you make regarding production levels and pricing for your Widget facility?

(15 points)

Remember that supply and demand are about the market supply and market demand, which is much

bigger than your own company. You are being given data on supply and demand for the whole market

and are being asked what effect that has on you as a small part of that market. You want to identify the

possible change in market equilibrium price and possible change in market equilibrium quantity based on

the shifts in demand and supply and adjust your own price and quantity to match the market.

(Part B) Now, suppose that the following changes in demand and supply occur: (1) a complimentary good

goes up in price and (2) your costs of production decrease. What decisions will you make regarding

production levels and pricing for your Widget facility based ONLY on these changes, for example, do not

factor in the changes in part (a) here? (15 points) (Points: 30)

Question 2. (TCO B)

Consider the data for two products as shown below. (20 points)

Prices

$6

$4

Quantities Purchased

Product X

40

50

Quantities Purchased

Product Y

50

80

Income

$30,000

50,000

Quantities Purchased

Product X

25

10

Quantities Purchased

Product Y

20

30

(Part A) Using the midpoint formula, calculate the coefficient of elasticity for each product. (8 points) (Part

B) Calculate the income elasticity for each product and characterize each. (12 points) (Points: 20)

Question 3. 3. (TCOs C and D)

You have been hired to manage a small manufacturing facility whose cost and production data are given

in the table below. (20 points)

workers 1 2 3 4 5 6 7

Workers

1

2

3

4

5

6

7

Total Labor Cost

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

Output

60

110

150

180

200

210

215

Total Revenue

$150

$475

$725

$925

$1,065

$1,195

$1,295

(Part A) (5 points) What is the marginal product of the second worker?.

(Part B) (5 points) What is the marginal revenue product (MRP) of the fourth worker?

(Part C) (5 points) What is the marginal cost (MC) of the first worker?

(Part D) (5 points) Based on your knowledge of marginal analysis, how many workers should you hire?

Explain you answer. (Points : 20)

Question 4. 4. (TCO C)

John operates a small business out of his home and has very little in terms of fixed costs. Answer the

next questions (Parts A and B) on the basis of the following cost data for John’s firm operating in pure

competition. (20 points)

Output

0

1

2

3

4

5

6

TFC

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

$30.00

TVC

0.00

70.00

120.00

150.00

200.00

270.00

360.00

(Part A) Refer to the above data. If the product price is $70, at its optimal output, will the firm realize an

economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all

calculations. (10 points)

(Part B) Refer to the above data. If the product price is $45 at its optimal output, will the firm realize an

economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all

calculations. (10 points) (Points: 20)

Question 5. 5. (TCOs E and F)

compare and contrast a historical and or current

Compare and contrast a historical and/or current macroeconomic disturbance to the business cycle and

economic policy decisions related to that disturbance. The disturbance would be some event that causes

either unemployment or inflation to rise. Be sure to discuss the appropriate fiscal and monetary policies

which would address that disturbance. (20 points) (Points: 20)

Question 6. 6. (TCO E)

Answer Parts A and B completely. (30 points)

(Part A) (20 points) Suppose nominal GDP in 2012 was $100 billion and in 2014 it was $220 billion. The

general price index in 2012 was 100, and in 2014 it was 140. Between 2012 and 2014, the real GDP rose

by what percent?

(Part B) Use the following scenario to answer questions (Part B1) and (part B2).

In a given year in the United States, the total number of residents is 190 million, the number of residents

under the age of 16 is 38 million, the number of institutionalized adults is 15 million, the number of adults

who are not looking for work is 27 million, and the number of unemployed is 5 million.

(Part B1) (5 points) Refer to the data in the above scenario. What is the size of the labor force in the

United States for the given year?

(Part B2) (5 points) Refer to the data in the above scenario. What is the unemployment rate in the United

States for the given year? (Points: 30)

Question 7. 7. (TCOs E and F)

Answer Parts A, B, and C completely. (40 points)

(Part A) Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level

of government involvement in our economy to minimize the impact and stabilize the different stages of the

business cycle. (15 points)

(Part B) Any change in the economy’s total expenditures would be expected to translate into a change in

GDP that was larger than the initial change in spending. This phenomenon is known as the multiplier

effect. Explain how the multiplier effect works. (10 points)

(Part C) You are told that 90 cents out of every extra dollar pumped into the economy goes toward

consumption (as opposed to saving). Estimate the GDP impact of a positive change in government

spending that equals $8 billion. (15 points) (Points: 40)

question 8 8 tco h

Question 8. 8. (TCO H)

You are in charge of making recommendations based on economic forecasts to upper management of

your firm, which produces widgets and employs 2,500 workers. Upper management has informed you

that they are planning to build a new facility and hire 500 additional workers. They would like you to

research leading indicators and produce a detailed analysis of where the economy is heading in the next

6 months. What would you look for in terms of leading indicators (discuss at least three indicators), and

what recommendations would you make to upper management based on your findings regarding leading

indicators? Be sure to consider the macroeconomic nature of leading indicators, and the microeconomic

nature of your firms’ decisions. (30 points) (Points: 30)

Question 9. 9. (TCO G)

Let the exchange rate be defined as the number of dollars per Japanese yen. Assume there is an

increase in U.S. interest rates relative to that of Japan. (30 points)

(Part A) Would this event cause the demand for the dollar to increase or decrease relative to the demand

for the yen? Why? (5 points)

(Part B) Has the dollar appreciated or depreciated in value relative to the yen? (5 points)

(Part C) Does this change in the value of the dollar make imports cheaper or more expensive for

Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Japan?

Illustrate by showing the price of a U.S. e-reader in Japan before and after the change in the exchange

rate. (10 points)

(Part D) If you had a business exporting goods to Japan, and U.S. interest rates rose as they have in this

example, would you plan to expand production or cut back? Why? (10 points) (Points: 30)