Discussion questions:
1 Supply and Demand
Let's discuss the tutorial Understanding and Applying Supply and Demand in our Lecture this week. What is the difference between a change in demand versus a change in quantity demanded? A change in supply versus a change in quantity supplied? Why is it so important to differentiate between these similar-sounding terms?
1 Elasticity and the Minimum Wage
What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives? What role do demand and supply elasticities play in determining outcomes? What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives? What role do demand and supply elasticities play in determining outcomes?
1 Marginal Analysis
Why is marginal analysis important in economics? How do the tutorials Basics of Marginal Analysis and Understanding and Applying Marginal Analysis at the end of this week's lecture reinforce the concepts of marginal analysis? How can any firm find the right production level which guarantees maximum profit (or minimum loss)? Why is marginal analysis important in economics? How do the tutorials Basics of Marginal Analysis and Understanding and Applying Marginal Analysis at the end of this week's lecture reinforce the concepts of marginal analysis? How can any firm find the right production level which guarantees maximum profit (or minimum loss)?
Controlling Costs
Name some of the ways firms attempt to control their costs. How does your firm control costs? The key here in keeping this question interesting is that reducing the workforce or having one person do the work of three people are not the only ways to control costs. I'm looking for more creative ways. Maybe you can think of some that your firm is not currently using. Be creative here. Name some of the ways firms attempt to control their costs.
Mergers/Acquisitions
Have you ever been involved in a merger or acquisition? If so, tell us about your experiences. If not, comment on this week's tutorial, "The Private Sector." Have you ever been involved in a merger or acquisition? If so, tell us about your experiences. If not, comment on this week's tutorial, "The Private Sector."
Anti-Trust Policy and Microsoft
Is Microsoft a monopoly? In what ways could it be considered a monopoly? What markets are involved? What anti-trust legislation would apply? Is anti-trust legislation "fair" to firms like Microsoft? Why or why not? Is Microsoft a monopoly? In what ways could it be considered a monopoly? What markets are involved? What anti-trust legislation would apply? Is anti-trust legislation "fair" to firms like Microsoft? Why or why not?
Macroeconomic News
Scour the national news media (many good sources are available online) for a juicy story in which Chapter 15 or Chapter 16 material is at the heart of the matter. The article does not have to be current. Say what the story is about and be sure to cite the source and date so that others might find it easily. Refer to the textbook sections that apply.
Healthcare
The healthcare sector is often cited as being fraught with just about every economic imperfection that is known to humankind. Can you identify and briefly describe ONE of these imperfections? Do you know of any examples?
Trade Deficits
What have been some major causes of the large U.S. trade deficits since 1992? What is a major benefit (you could address that issue) or a major cost (or you could address that issue) associated with trade deficits? what have been some major causes of the large U.S. trade deficits since 1992? What is a major benefit (you could address that issue) or a major cost (or you could address that issue) associated with trade deficits?
Exchange Rates
Do a little research about foreign exchange traders. It's a big business; how do they make money? What is the relationship between FX rates and interest rates? Do a little research about foreign exchange traders. It's a big business; how do they make money? What is the relationship between FX rates and interest rates?
Fiscal Policy
What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy? What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?
Monetary Policy
What are the monetary policies required to fight unemployment? What about those required to fight inflation? What are some of the downside risks and potential problems involved when using monetary policy? What are the monetary policies required to fight unemployment? What about those required to fight inflation? What are some of the downside risks and potential problems involved when using monetary policy?
The Public Sector
What is the appropriate balance between private and public (i.e., government) activity? Think of a case where the government has intervened (or it was suggested that government intervene) in a previously private market (e.g. Chrysler, tariffs on Japanese luxury cars, the airline industry, etc). What other examples can you think of? Using a marginal benefit/marginal cost analysis, support or argue against the intervention.
Forecasting
Let's discuss one of the most important areas of economics, namely the use of leading economic indicators to forecast the future direction of the macroeconomy. What websites are helping you gain a better understanding of where the economy is heading in the next 12 months? Let's discuss one of the most important areas of economics, namely the use of leading economic indicators to forecast the future direction of the macroeconomy. What websites are helping you gain a better understanding of where the economy is heading in the next 12 months?