Assignment:
The Basic Concepts for Economic Reasoning
• Analyze how economics explores the use of scarce resources and forces choice among alternatives.
• Explain the economizing problem and the models used in economics.
• Analyze how the laws of supply and demand determine equilibrium price and quantity.
Cost Concepts & Profit Maximization
• Differentiate the costs of production in a firm.
• Explain profit maximization principles in a purely competitive market.
• Apply incremental cost and contribution analysis to make a business decision.
Market Structure & Strategic Choice
• Differentiate among the pure competition, monopolistic competition, oligopoly, and monopoly market models.
• Describe pricing and non-pricing strategies in monopolistic competition, oligopoly, and monopoly market models.
• Describe the role of technology, R&D, and efficiency within the market models.
Macroeconomic Measurement & Basic Concepts
• Explain the concepts and measurement of Gross Domestic Product (GDP).
• Analyze the trends and cycles of real GDP growth in business cycle.
• Analyze the causes and remedies of unemployment and inflation.
• Analyze the basic macroeconomic relationships.
Money, Creation & Control and Monetary Policy
• Explain the concepts of money and interest rates.
• Explain how banks create money.
• Evaluate the effectiveness of the central banks monetary policy in stabilizing the economy.
Global Context: Business Beyond National Borders
• Explain the concept of comparative advantage and its recommendation for specialization.
• Explain the effects of barriers to free trade and the reasons countries impose them.
• Explain how the foreign exchange market works and how exchange rate risk is managed.