ECON312
Principles of Economics
Week 1
Discussion
ECONOMIC THINKING AND ECONOMIC SYSTEMS
Initial Post (up to 10 points)
Why do we make choices? Is being rich or poor a choice? Is
living healthy or unhealthy a choice? What about having kids? Is that a calculated
choice or simply an accident? Why do rural areas have typically calmer and
nicer people than cities where you find a mix of professionals and difficult
people? Why do you bother wrapping your friend's gift knowing that the wrapping
paper is going to be thrown away? Does going to school make sense? How do you
know?
These are among countless questions that could be answered
through understanding the economics way of thinking. Economists do nothing but
watch how the world, including people, work and make calculated assumptions to
help the world become a better place.
For your initial post, answer one of the following
questions.
Share with us an example from your life where you had to
make a choice knowing that you are giving up opportunities for doing or gaining
something else. Tell us about your thinking process and how you arrived at the
final choice you made. Would you make the same choice again?
Moreover, why do consumers make choices when they acquire
something (jobs, money, friends, vacations, sleep, living places, etc.)? And
why do individual producers or nations have to choose the type, quality, and
quantity of what they produce?
Multimedia Post (up to 15 points)
Create a short, 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions include creating
an Adobe Spark Page (Links to an external site.)Links to an external site. with
a Spark Video, Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
Opportunity cost
Trade off
Scarcity
Economic problem
Self-interested versus selfish
Production possibilities frontier
Budget line
Utility
Economic growth
The market system and the command system
Specialization
The circular flow
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial posts or
multimedia posts.
Your response should add new facts, ideas, knowledge, and/or
corrections to the initial post or the multimedia post. Also, provide examples
to support your response post.
ECON312
Principles of Economics
Week 2
Discussion
DEMAND, SUPPLY, AND ELASTICITY
Initial Post (up to 10 points)
Shift in Supply & Demand: Choose a commodity (a good or
a service) that you are familiar with and discuss how and when demand and
supply have changed (shifted) for this commodity. Provide examples of
historical or current events where market demand and market supply for that
commodity have shifted significantly, and state the factors that you believe
have caused the shift in supply and/or in demand.
Multimedia Post (up to 15 points)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions include creating
an Adobe Spark Page (Links to an external site.)Links to an external site. with
a Spark Video, Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
Law of demand
Law of supply
Demand versus quantity demanded
Supply versus quantity supplied
Demand determinants
Supply determinants
Market equilibrium, equilibrium price, and equilibrium quantity
Price elasticity of demand
Income elasticity of demand
Cross elasticity of demand
The relationship between total revenue and price elasticity
of demand
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial or multimedia
posts.
Your response should add new facts, ideas, knowledge, and/or
corrections to the initial post or the multimedia post. Also, provide examples
to support your response post.
ECON312
Principles of Economics
Week 3
Discussion
MARKET STRUCTURE AND PROFIT MAXIMIZATION
Initial Post (up to 10 points)
Suppliers such as your local water suppliers, railroad,
restaurants, coffee shops, hairdressers, artists, gas stations, movie theaters,
airlines, universities, and so forth, operate under different market structures.
All businesses exist for one purpose, which is to make profits. Profits or
losses occur as a result of interaction between cost of production and market
price. Higher production could lead to higher revenue; however, higher prices
reduce quantity demanded and might lead to higher cost of production. In sum,
suppliers and producers will make profit only when average total cost of
production is lower than market price.
For your initial post, answer one of the following
questions.
Provide an example of a firm or a small business from the
real world that is surviving the dynamic nature of monopolistic competition,
and discuss some approaches they have used (or are currently using) to compete
and survive in the market.
Provide an example or a scenario from your personal (or
professional) experience, an observation, a story that you have read, or an
idea or thought that you might have for practical, creative, and/or effective
ways to minimize production costs in order to maximize profits.
Multimedia Post (up to 15 points)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions: Adobe Spark
Page (Links to an external site.)Links to an external site. with a Spark Video,
Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
Fixed costs versus variable costs
Explicit costs versus implicit costs
Accounting profits versus economic profits
Marginal cost and marginal revenue
Production maximization output
Optimum level of output
Monopolistic competition
Perfect competition
Law of dimensioning return to labor
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial posts or
multimedia posts.
Your response should add new facts, ideas, knowledge, and/or
corrections to the initial post or the multimedia post. Also, provide examples
to support your response post.
ECON312
Principles of Economics
Week 4
Discussion
GROSS DOMESTIC PRODUCT (GDP)
Initial Post (up to 10 points)
Follow the steps below to obtain real-world information
about GDP growth pattern from the Bureau of Economic Analysis to assess GDP
current situation. Use your findings to answer the questions below.
Go to www.bea.gov (Links to an external site.)Links to an
external site..
Click on the National tab (on the top left-hand side).
Click on Interactive Tables: GDP and the National Income and
Product Account (NIPA) Historical Tables (Links to an external site.)Links to
an external site. (on the left-hand side under subtitle Gross Domestic Product
(GDP)).
Click on Begin Using the Data (found under GDP &
Personal Income).
Click on SECTION 1: Domestic Product and Income.
Click on Table 1.1.1. Percent Change from Preceding Period
in Real Gross Domestic Product (A) (Q).
To expand your search after you click on the Table, click on
Modify on the top middle portion of the table above the results, then change
the First Year to 2005 and Last Year to the current year, and then change the
Series to Annual, and then click on Refresh Table. Note what happened before and
after the recession of 2007–2008.
Also, explore other tables, particularly Table 1.1.2. and
Table 1.1.4 to learn about changes in prices and how and why GDP changes.
For your initial post, answer one of the following
questions.
What is the current GDP growth rate? Also, examine the trend
of GDP growth over the past few years. What stage of the business cycle is the
U.S. economy currently in given the trend of GDP growth?
What components of GDP tend to decline significantly during
recessions (particularly during the 2008 recession), and what GDP components
rise during expansion? In other words, what aspects of GDP are mostly affected
when the economy slows down? and why?
Multimedia Post (up to 15 points)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions: Kaltura video
post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
GDP income approach
GDP expenditure approach
Nominal GDP versus real GDP
Potential GDP
Economic growth
Determinants of economic growth
Production possibilities curve
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial posts or
multimedia posts.
Your response should add new facts, ideas, knowledge, and/or
corrections to the initial post or the multimedia post. Also, provide examples
to support your response post.
ECON312
Principles of Economics
Week 5
Discussion
UNEMPLOYMENT
The Bureau of Labor Statistics provides up-to-date
statistics about unemployment and employment on the national and regional
levels. It also provides unemployment-related data by different groups such as
age, gender, ethnicity, educational attainment, and so forth.
Follow the link below to access and review unemployment
related statistics then answer the discussion question.
Go to the Bureau of Labor Statistics website,
www.bls.gov/news.release/empsit.toc.htm (Links to an external site.)Links to an
external site..
Click on and review the following links to learn about the
relationship between age, race, and gender and unemployment.
Employment Situation Summary
Employment Situation Summary Table A. Household data,
seasonally adjusted
Table A-2: Employment status of the civilian population by
race, sex, and age
What interests or surprises you from the summary tables?
Discuss the differences in unemployment rates by gender, age, educational
attainment, and so forth, and provide possible explanation for the variations
in unemployment over time and the variation in unemployment by age, gender,
educational attainment, and race.
Multimedia Post (up to 15 points)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions: Adobe Spark
Page (Links to an external site.)Links to an external site. with a Spark Video,
Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
Business cycles: Recessions and expansions
Unemployment
Full employment
Inflation
Aggregate demand
Shift in aggregate demand
Aggregate supply
Shift in aggregate supply
Aggregate supply and its determinants
Macroeconomic equilibrium
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial posts or
multimedia posts.
Your response should add new facts, ideas, knowledge, and/or
corrections to the initial post or the multimedia post. Also, provide examples
to support your response post.
ECON312
Principles of Economics
Week 6
Discussion
MONETARY POLICY AND FISCAL POLICY
A healthy economy typically has low rates of unemployment
and steady prices. Low rates of unemployment means that the economy is
operating at its full potential. To ensure the economy continues to operate at
potential GDP (full capacity where all savings are invested in production
functions, and where all those who wish to work can find a job, and all other
factors of production are fully utilized in the production function),
governments use fiscal and monetary policies to lower unemployment rates and to
control prices (inflation).
For your initial post, answer one of the following
questions.
Discuss the primary goals of expansionary and contractionary
fiscal policies and their effects on unemployment rates, inflation rates,
interest rates, private investment, and GDP.
Discuss the goals of expansionary and contractionary
monetary policies used by the Federal Reserve Bank and the approaches (called
monetary policy tools) used to achieve each policy. Also, discuss the effect of
each policy on GDP, price level, private investment (investment in capital
acquisition by firms and housing by households), and net trade.
In your opinion, which policy is more effective—monetary
policy or fiscal policy? Why?
Multimedia Post (up to 15 points)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions: Adobe Spark
Page (Links to an external site.)Links to an external site. with a Spark Video,
Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
Expansionary fiscal policy
Contractionary fiscal policy
Government budget deficit
Money supply
Interest rate and demand for money
Required reserve
Expansionary monetary policy
Contractionary monetary policy
Peer Response Post (up to 10 points)
Respond to at least one of your peers' initial posts or
multimedia posts.
ECON312
Principles of Economics
Week 7
Discussion
INTERNATIONAL TRADE AND EXCHANGE RATES
INITIAL POST (UP TO 10 POINTS)
Trade is the exchange of goods for goods or labor service
for money (indirect). Trade is based on what people can do well given their
factor endowment (knowledge, abilities, skills, and resources). International
trade is the exchange of good, services, and capital across international
borders. International trade is based on the concept of comparative advantage,
which is the country's ability to produce a good or a service at a lower
opportunity cost than other countries. Factor endowment is generally what
determines the country's comparative advantage. It is assumed that if every
country is specialized in producing what they are good at producing (meaning lower
opportunity cost), every country will have more goods and services and more
income.
For your initial post, answer one of the following
questions.
1. Take a closer look at our local economy or a country of
your interest and pick a good or a service that you believe America (or your
country of choice) has a comparative advantage in producing. Discuss the
factors that you believe give America (or your country of choice) such an
advantage.
2. In addition, which is better for a country—to export more
or to import more?
3. Moreover, what is the impact of trade surplus (exporting
more than importing) and trade deficit (importing more than exporting) on GDP,
employment, and the exchange rate of the country's currency?
MULTIMEDIA POST (UP TO 15 POINTS)
Create a short 1- to 2-minute slide presentation with a
voice narration or a video using any technology you are comfortable with to
explain one of the economic concepts listed below. Suggestions: Adobe Spark
Page (Links to an external site.)Links to an external site. with a Spark Video,
Kaltura video post, or a narrated PowerPoint.
Start the presentation by introducing yourself (name and
your topic of choice), and then give a brief explanation of at least one of the
concepts listed below, including an example to support your presentation.
International trade
Comparative advantage
Absolute advantage
Production possibilities curve
Exports and imports
International specialization
Gains from trade
Barriers of trade: Tariffs and quotas
Foreign exchange
Flexible exchange rate
Fixed exchange rates
ECON312
Principles of Economics
Week 8 Assignment
Professional and Personal Reflection Assignment
As we have learned throughout the course, economic
conditions and principles have an important impact on how we and the world
around us analyzes and applies these principles to address issues. This week,
you will consider the rolethat having a better understanding of the principles
of economics will play in your life and your career path as you reflect on the
team collaboration experience along with the knowledge that you have gained
this session.
Compose your professionally focused responses from the
broader perspective of one of the following three career path areas: business,
technology, or healthcare. Or if you prefer, you may narrow the focus down to a
very specific career path that you are already in or are seeking.
This week, you will write a reflective essay that addresses
the following questions. Use at least one or two fully developed paragraphs for
each response.
What are your career goals? How do the principles of
economics (macro or micro) influence these goals?
What concepts from the course are applicable to your career
path? Name and describe at least two economic concepts that will translate to
your profession. Explain why these concepts are important and how they will be
helpful to you or to the organization you will work for.
What concepts from the course are applicable to your
personal life? Name and describe at least one economic concept that you
consider to be an important takeaway from this course. Explain why, and
describe how you plan to apply it.
What can you do to continue to reinforce and grow these
ideas about economics and/or about ways to improve team collaboration? What are
some of the resources that you can utilize as you continue your education?
Successful assignments will accomplish the following.
Have a clear focus that clearly links course content
knowledge and objectives to career path and personal application.
Use concrete economic concepts from class discussion and the
readings to address professional goals and areas for economic-competency
development.
Draw on experience with team dynamics—people collaborating
toward a common goal.
Establish a plan for continuing to scaffold knowledge and
develop as a professional.
Demonstrate articulation (mechanics, spelling, clarity,
structure, and organization, utilizing APA style and grammar to produce a
well-designed and coherent document).
ECON312
Principles of Economics
Week 2 Case
Study
Supply and Demand
OVERVIEW
A market exists whenever buyers and sellers meet to exchange
goods and services. A mall is a market, a street is a market, your classroom is
a market, a garage sale is a market, and even the airplane you ride is a
market. Markets are everywhere. Their primary purpose is to get suppliers
(producers) and demanders (buyers) together to sell and buy at a price they
both agree on.
Market demand represents the sum of the individual demand
for a commodity (a good or a service) from buyers in the market. On the other
hand, market supply represents the total quantity of a commodity that producers
are willing and able to provide to the buyers at a given price level. Market
equilibrium occurs where the quantity supplied equals the quantity demanded,
and the market price (equilibrium price) is set at that quantity (equilibrium
quantity).
The equilibrium price and equilibrium quantity are not
static, however, meaning that they change due to changes in market demand or
market supply.
A commodity or an idea might be a “hot item” and very
popular at one point in time where people are willing to pay a high price for
it, and producers will be willing to produce more of it because it is
profitable. Smoking a cigarette at one point in time was considered a symbol of
“a tough man” and smoking was acceptable everywhere, including inside
hospitals! But what has changed for cigarettes? Whenever the demand for a
commodity rises or declines, and whenever the production of a commodity expands
or shrinks, it is certain that at least one market force or a set of market
forces have taken place to cause this change. At the same time, whenever market
demand and/or market supply changes, the market price and the quantity of that
commodity available in the market changes, too.
Dynamic and free markets are constantly changing due to
changes in factors (determinants) that affect either demand, supply, or both.
Analyzing and understanding the forces behind the shift in market demand and
market supply determines the growth pattern of the commodity.
Assignment Description
In this assignment, we are going to analyze the changes in
market demand and market supply for a commodity (a good or a service). In
addition, we will also analyze how the changes in demand and supply affected
the market price and production of this commodity. To do so, we will are going
to address the key factors (determinants) that have caused the shift in demand
and/or the shift in supply. The goal here is to provide an objective analysis
of the forces that have caused this change in order to better understand the
behavior of the market and to determine the potential growth or decline for
this commodity. Some of the commodities that have experienced a drastic change
(an increase or a decrease) in supply and/or demand in recent years are organic
foods, cage-free eggs, social media, higher education, online education, healthcare
services, online banking, online shopping, DVD players, digital cameras, fidget
spinners, health clubs, bottled water, landlines, Cash for Gold, and fried
food. You could use one of these commodities for your study or choose one you
are familiar with or prefer.
To start, select a commodity that you wish to analyze to
determine changes in its market demand, market supply, equilibrium quantity
(output), and equilibrium price.
Your research should be structured with consistent and clear
thoughts. It should be supported by facts and data, and you must base your
results on these facts. Your conclusions should be thorough and based on your
findings and understanding of supply and demand determinants.
Writing Style and Page Number Requirements
Font Type: Times New Roman or Arial
Font Size: 12
Spacing: Double
Number of Pages: Four to six pages, along with a separate
Title page and a separate References page
Structure and Requirements
Title Page
Title of the paper
Name of the author
E-mail address of the author
Class name
Professor's name
Date
Introduction
Describe your commodity and the market that commodity
targets. Also, state when, how, and why it became popular or less popular. In
addition, state the factors (demand determinants and supply determinants) that
have caused its supply and demand to change and how those changes affected its
price. Basically, why has demand and supply for that commodity changed?
Data
Obtain data from at least three credible sources (not
Wikipedia) to provide facts about the changes in demand and supply.
Use tables, graphs, and figures to support your argument.
You could use figures that show the changes in demand and supply, as well as
changes in the market price for the commodity.
Analysis
Use the findings from your data section to fully explain the
growth or decline pattern of the supply and demand. Is the commodity growing or
is it declining, and why? If it is growing, state the factors that led to its
growth. If it is declining, state the factors that led to its decline.
Conclusion
Provide your own final thoughts, opinions, and understanding
of the outcome. Do you believe this commodity is profitable for its producers?
Or should they provide something different instead? Should they modify the
commodity? Moreover, if you were to produce this commodity, what would you do
to increase your revenue?
Reference List
Use at least three professional sources to support your
argument. The references need to be in APA format. To learn more about APA
format, click on the link below.
ECON312
Principles of Economics
WEEK 5 CASE
STUDY
Unemployment
Overview
People need income in order to consume, and consumption
leads to production, and production leads to higher demand for labor
(employment), so unemployment is a crucial macroeconomic issue that confronts
all modern economies. A lower unemployment rate, however, is not the end of the
problem. The type of employment and the price of labor (wages) have to be
sufficient for consumption (which is the major component of GDP) for the
economy to be healthy. If wages are low or if the prices in the economy are
high, consumption would be low and thus, production and demand for labor would
be low as well. So high unemployment rate, high part-time employment rate for
economic reasons, and low wages could have negative effects on economic growth.
Assignment Description
In this assignment, you need to analyze unemployment-related
issues. You need to analyze only one issue (topic).
You are going to study the past trends, provide an overview
of the current status, and provide solutions to overcome any problems related
to the issue you are studying. You will use data, articles, and government
reports to draw a clear picture of the current unemployment issues.
Some unemployment-related topics that you could choose from
(choose only one topic) include the following.
Part-time employment rates for economic reasons
Unemployment rates among young college graduates
Unemployment rates by gender
Unemployment rates among Black and Hispanic communities
Low supply of labor (professionals) in certain industries
High supply of labor in education
Low wages by profession and their causes
Low demand for labor in some industry (you could choose
whatever industry you wish)
Low wages in some parts of the country
High unemployment rate among workers with high school
diploma or less
Your research needs to be structured with consistent and
clear thoughts. It also needs to be supported by facts and data. Your results
need to be based on solid facts. Your conclusion and recommended solution need
to be thorough and based on your findings and understanding of unemployment and
GDP.
Writing Style and Page Number Requirements
Font Type: Times New Roman or Arial
Font Size: 12
Spacing: Double
Number of Pages: Six to seven pages, along with a separate
Title page and a separate References page
Structure and Requirements
Title Page
Title of the paper
Name of the author
E-mail address of the author
Class name
Professor's name
Date
Introduction
Include the following in your introduction.
A clear definition of unemployment and how and why it rises
and declines in the economy
Briefly provide your understanding of the relationship
between economic growth (GDP growth), high/low unemployment, high/low wages,
and the way they impact one another.
An overview of the current unemployment rates in the economy
using facts and statistics (tables or graphs)
A brief description of the unemployment-related issue
(topic) that you are going to address in this paper
Data
Obtain data from at least two credible sources (not
Wikipedia) to provide facts about unemployment and wages and their growth
pattern and their current statuses.
Obtain data about changes in unemployment rates for a period
of 10 years.
Obtain historical data (10 years or more) about GDP growth
rate (percentage) and Real GDP volume (in dollar value).
Obtain historical data (10 years or more) about the issue
(topic) you are going to study in this paper, as well as data about its current
status.
Use tables, graphs, and figures to support your argument.
You can find the latest unemployment data at www.bls.gov (Links to an external
site.)Links to an external site. (Bureau of Labor Statistics).
Analysis
This section needs to contain the following discussions
based on the data that was gathered and your understanding of unemployment and
GDP.
Unemployment Rates: Discuss the trends of unemployment rates
over the past 10 years and provide your objective analysis of the changes in
unemployment and the current rates. Place extra emphasis on the periods where
unemployment was either too high or too low (higher or lower than the natural
rate of unemployment).
Issues (your choice): Discuss the unemployment-related
issue. Provide an overview of the trends and use facts to highlight the major
changes in the trends and the current status. State the reasons why you believe
the issue you are analyzing represents a challenge for the economy.
Conclusion and Solution
This section needs to cover the following areas.
Highlight the causes of the issue that you selected and how
it impacts the economy negatively and why it needs to be addressed by policy
makers.
State your own solution. Basically, answer the following
question.
What would you do to solve the issue you addressed if you
were in charge of the U.S. economy? State why.
Reference List
Use at least five professional sources to support your
argument. The references need to be in APA format. To learn more about APA
format, click on the link below.
