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Economics Questions

Economics Questions

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Economics Questions

Question 1

Opportunity cost best explains the solution to this question. The cost used on skiing instead of working is the income lost during that particular day. The cost of going skiing instead of going to the library to study is the loss of knowledge.

Opportunity cost is the benefit an individual or a group of individuals would have gained when opting for one event over another (Palencia, 2021). It is also called the best alternative forgone by a firm or an individual. An opportunity cost example is when an individual decides whether to go to a movie or spend time at home. In this case, there are two opportunity costs. One is the opportunity cost between going to work and going to ski. The cost involved in skiing is the foregone cost of not working for that particular day, i.e., the wages for that particular day plus the cost of skiing. Going to ski means taking a leave for that day and the payments for working on that day will not be earned. The second opportunity cost is between skiing and going to the library. Instead of going to the library and opting to go skiing, the cost involved is the knowledge that is forgone while skiing. If the student has an examination in the following week but opts to go skiing, then the cost will be scoring low marks in the examination.

Question 2

Organic foods are grown without chemical fertilizers, GMOs, and synthetic pesticides. Over the last decade, the overall food industry has experienced an average of 0.8% increase in demand with organic products being at the leading of this race (Bojnec et al., 2019). The increase in demand is due to the concepts of demand and supply. As individuals continue to learn more about the destructive impacts of growth hormones, chemical manures, insecticides and such from factory husbandry, their tastes and preferences for biological nutrients that are safer will increase. The change in tastes is then accompanied by an increase in income which allows individuals to purchase products that are pricier making organic diets more ordinary. This has then led to augmented request for organic diets. The demand curve in a demand-supply curve will shift towards the right moving up alongside the stock curve due to the manufacturers responding to the advanced pricing by supplying a more quantity (Bojnec et al., 2019).

Additionally, there have been increases in the numbers of those farmers that have converted to organic farming. This is showcased by the shifting of the stock curve to the right. Since both supply and demand curves have changed to the right, the subsequent equilibrium measure of the organic diets will be greater, but the worth will reduce when the supply rise is greater than the demand rise. As the manufacture costs of organic foods stay higher compared to conservative agricultural, they might not catch up with the low values of non-organic nutrition. This is because pest management techniques and fertilizers are a bit more expensive (Bojnec et al., 2019).

Question 3

Competitive firms are small firms that usually produce homogenous products. Competitive firms have limited market power to set their optimal quantity and price. These firms, therefore, try to capture the maximum share of the market to earn maximum revenue (Genakos & Pagliero, 2022).

a.

The profit of this competitive firm in question will therefore be obtained by deducting the average total cost from the average revenue and then multiplying this result by the output.

ATC=$8

Average Revenue= $10

Total output=100 units

Profit= $(10-8)*100units= $200

Profit is therefore $200

b.

In competitive markets, the marginal revenue= average revenue. Agreeing to the profit maximization objective, marginal cost= marginal revenue. In this case, therefore, the marginal cost will be equal to or the same as the average revenue.

The average revenue is $10, so the marginal revenue is $10

c.

The average fixed cost will be $2 when $200 of the profit is spread over the output of 100 units of the product. The average variable cost is done by deducting the average fixed expense from the average overall total.

Average fixed cost= profit/quantity= 200/100=$2

Average total cost= $8

Average variable cost= % (8-2) = $6

Therefore, the average variable cost will be $6

d.

The average total cost of this competitive firm is $8. Its marginal cost is $10. Therefore, the average total budget of this farm is less than the marginal budget. So, the efficient scale of production of the firm will be when this firm produces less than 100 units of output.

Question 4

GDP is the financial price of all the final products and facilities made within a nation during an exact financial period (Kvasha, 2021). The GDP is composed of two categories, the Real GDP and the Minimal GDP. The key dissimilarity between the real and nominal GDPs is that the real GDP is accustomed for rise but the minimal GDP is not. Usually, Real GDP is somewhat lesser than nominal GDP. Mostly, the real GDP is used to provide a more accurate picture of the economic performance of a country as it can be easily compared to historical figures. It is therefore easy to determine whether a nation is restored or worse over the year. The GDP is also made of four components, business investment, personal consumption, net exports, and government spending (Kvasha, 2021).

The recent changes in the GDP and its components

Following a decline of 1.6 out of a hundred in the initial quarter, real GDP shriveled at an annual stride of 0.6 out of a hundred in the next quarter of 2022. The second forecast, which was published in August, had earlier predicted the same decline for the second quarter. An increase in exports and an increase in consumer expenditure were responsible for the second quarter’s fall being less than that of the first quarter. In June 2022, 9.282% was reported as the nominal GDP growth for the United States. This is a decline from the prior figure of 10.657% for March 2022 (BEA, 2022). 

State personal consumption expenditures (PCE) fell by 1.9 percent in 2020 but rose by 12.7 percent in 2021. The District of Columbia and in 50 states the percent change in PCE went from 16.3 percent in Utah to 9.4 percent in New York. In 2021, overseas direct stockholders spent a budget of $333.6 billion (estimated) to grow, build, or buy U.S. corporations. Expenses surpassed the $289.7 billion annually average for 2014 to 2020 and cultivated by $192.2 billion from $141.4 billion in 2020. As in previous ages, the mainstream of total expenditures was spent on purchasing already-existing initiatives. Federal spending increased nearly 50% from FY 2019 to FY 2021 as a result of the COVID-19 epidemic. The growth in net exports was $18.5% or $394.1 billion. 576.5 billion dollars or 20.5 percent more was imported (BEA, 2022). International trade was still being impacted in December 2021 and all through the year by the global epidemic and the economic recovery.

Question 5

Economic growth is the process in which the wealth of a nation increases with time. It is important as it increases the prosperity of a nation. Prosperous countries can care for their citizens better and therefore raise their living standards (Bakari & Tiba, 2022).

The three main drivers of economic growth in a country are capital stock accumulation, technological advancement, and increased labor inputs such as hours worked and workers (Bakari & Tiba, 2022). It has been established, both theoretically and empirically, that progression in knowledge is the primary power behind longstanding growth. The explanation is fairly modest. From the law of diminishing profits, the additional output produced when totaling one additional unit of wealth or labor contribution will eventually be lessening, holding other contribution elements constant. As a consequence, a state cannot last to grow in the long term by simply getting more labors or capital. Therefore, practical progression must be the main power behind long-term development (Bakari & Tiba, 2022).

Question 6

The USA steel segment was affected by a severe depression from 1974 to 1986. The key contributing issue was the ten-year financial collapse brought on by the Iranian Rebellion and the OPEC Oil Prohibition. The customer markets contracted greatly throughout both downturns, and the steel request also declined greatly. America’s integrated steel producers were compelled to reduce their output and sell steel at unfavorable prices as the markets for steel shrank. For a significant portion of this time, America’s steel producers lost a sizable sum of money on each ton of steel they sold due to these unfavorable conditions. These losses in 1982 alone were US$3 billion (Armstrong, 2021).

References

Armstrong, B. (2021). Industrial policy and local economic transformation: evidence from the US Rust Belt. Economic Development Quarterly, 35(3), 181-196.

Bakari, S., & Tiba, S. (2022). Determinants of Economic Growth: The Case of The United States of America. JDE (Journal of Developing Economies), 7(1), 29-44.

Bojnec, Š., Petrescu, D. C., Petrescu-Mag, R. M., & Rădulescu, C. V. (2019). Locally produced organic food: Consumer preferences. Amfiteatru Economic Journal, 21(50), 209-227.

Genakos, C., & Pagliero, M. (2022). Competition and pass-through: evidence from isolated markets. American Economic Journal: Applied Economics, 14(4), 35-57.

Kvasha, T. (2021). Potential GDP and its factors assessment.

Palencia, C. (2021). Economics For Everyday Life: Opportunity Cost and Marginal Benefit.

Economics plus Growth for Tempe City

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Economics + Growth for Tempe City

The element of economic development is very critical in the development of the city of Tempe in the sense that it has enabled the city develop a strong industrial, commercial, office, and retail economy. The city has a dynamic atmosphere that attracts very talented people from around all regions to work in major development areas such as bio-industry, technology and software, advanced business services, and aerospace. The city has also managed to attract retail developments such as value oriented malls, autoplex, boutiques, electronics stores, large scale grocery, and other successful shops. New development opportunities for the future are also provided by the city’s proactive development in downtown and the Tempe Town Lake. Tempe is a very strategic city in the greater phoenix area that competes or for new development opportunities and business adventures nationally, regionally, and globally. The element of economic development enables the city to identify new strategies for effective competitiveness by identifying new and diverse opportunities. This ensures that the city attains its goals and objectives and at the same time improves the lives of all residents in the city. This was witnessed in the year 2001 when so many opportunities and vacancies for employment opened up in various sectors of the economy.

It has some features that make it have a competitive advantage in development over other cities in the region. For example, it is recognized as a “Tech Oasis”, which implies that it has a number of technology oriented companies giving it the opportunity to develop at a faster rate than the rest of the cities in the region. Arizona State University is also located in the community thereby offering proper education to the residents in the region. In addition to that, there is also the Phoenix Sky International Airport and extensive freeway connections, which are very vital factors in the city’s growth and economic development. However, the city has in the past experienced retail leakages to other neighboring communities and cities, thereby leading to a reduction in the number vacancies available in the offices and industrial markets. This has caused great concern for the long term viability of the city’s economic growth and development. In addition to that, business consolidations are unavoidable and very common in today’s evolving and fast moving economy. This calls for the need of a very detailed and elaborate development strategies that that can propel the city to higher economic growth in context of its goals and objectives.

One of the major ways of coping with the dynamic and evolving global economy is to strengthen the relationship or the connection between Arizona State University and the Tempe business operations and industries. This would ensure that the individuals that come out of the the University have the right knowledge and skills to fit in the job market and at the same time undergo training or education that would not become irrelevant in the market after short period of time. The city has also demonstrated itself as a national destination for the tourism sector. This ensures that the city develops by use of proceeds from the tourism sector to develop the economy.

The major objective of the element of Economic Development is to stimulate a diversified, sustainable, and a vibrant economy, while at the same time preserving the City’s vision and values. The element has enabled the city develop an improved business climate in the local region that would ensure private business investment, thereby giving all residents in the region the power and the opportunity to develop on their own. When individuals in the city are empowered to open their private business, there would be increased tax base for the city thereby fostering its growth and economic development.

Economic development element has a goal of promoting a sustained improvement in the living standards and the increased quality of life among all residents in the city. When all residents in the region have an improved lifestyle, there would also be increased revenue to the City through taxation. This only has an implication of improved economic growth in the city. The city of Tempe has strived so much to remain flexible in the dynamic regional, national, and global economic environment. It has managed to achieve this goal by attracting employers and businesses that would offer flexible and modern job opportunities to residents in the region. It has also strived to ensure that businesses and employers pay high wages to the employees in order to attract competent and skilled workers that would offer relevant and flexible services that would fit in the ever changing economic environment.

For Economic Development element to be effective, the City of Tempe has designed strategies that would ensure long term and viable economic growth. Some of the strategies set up by Tempe include setting up of a proactive business retention programme and at the same time recruit and retain a diverse retail base. The other strategy is to use an incentive policy that targets quality companies that have significant impact on economic growth and at the same time ensuring that living costs are not increased for the residents. Cultural, recreational, and educational opportunities are very important in the realization of a well balanced community and economic growth that impacts positively to the quality of life. The element of economic growth also seeks to ensure that the economy is diversified in the sense that the industries are able to produce a variety of product and at the same time be able to pursue the emerging industries.

Tempe City needs to streamline its processes for redevelopment and development by coordinating community development and zoning. There is also the need to permit the processes in order to create a seamless path for easier economic growth. The other important strategy adopted by Tempe for economic growth is the aspect of retaining citizen involvement in redevelopment and development plans so that a variety of skills are obtained in the development process. New business and industries also need to be attracted into the region in order to encourage local investment. This would lead to significant economic growth since an economy that invests is likely to achieve high levels of economic growth. The City has also tried to set up development policies that guide all the activities in the city. This ensures that all private businesses observe the existing rules and regulations governing the operations in the region. This is very vital in the sense that it enables the city achieve its goals and objectives since a law abiding industry has high likelihood of recording high growth and development.

The Economic Development Element is closely related to cost development element because for an industry to grow, there is need for the assessment of all the costs incurred during the growth process. However, economic development for Tempe City can only be achieved by carrying out serious analysis on the methods that are comparatively cost effective in order to achieve a viable and sustainable economic growth. This involves identifying the policies and the strategies for the developers in paying for public infrastructure and the services required for new developments. Tempe city is advantaged in the sense that it is land locked and there is low cost incurred in the development of infrastructure, which is very vital for economic development.

Final Exam

NAME: Final Exam

HIST 1302, Fall2020

Dr. Cameron

The exam is based primarily on these events/people/concepts. Before you turn this in, please delete this list so it doesn’t mess up your “turnitin.com” report. You may opt to do the same for all of the instruction sections as well, but that’s up to you. I’m only looking for similarities within your content – not mine

Section 1. Identification (45 points). This section will test your knowledge of the key people/events/concepts of the course and whether you can explain the significance. From the list of terms given above, choose FIVE (at least one from each column) and write a paragraph (4-5 sentences) for each that discusses the who/what/when/where information. Then you should be able to argue why it/they is significance to American history. (The significance could be at least one of the following: the event/person created a change or led to something else happening; and /or the event/person is an example of a larger concept or phenomenon; and/or the event/person corrects a common misperception about American history). Type your responses in the numbered area below. Use as much space as you need.

Cold War

Cold war refers to the period of open yet restricted rivalry that took place after World War II between the United States and the Soviet Union and their allies of each side. The rivalry was established along economic, political, and propaganda fronts with limited use of weapons. This conflict was a construct of geopolitical and ideological struggle for global supremacy following their victory from a temporary alliance formed against Nazi Germany in 1945. These two superpowers employed indirect means such as espionage, psychological warfare, propaganda campaigns, far-reaching embargoes, and rivalry at technological competitions or sports events to express their dominance. The cold war solidified by 1948 when aid provided by the United States’ Marshall plan in western Europe brought together countries that had been influenced by Americans. By this time, the Soviets had already established a communist system of government in Eastern Europe.

Civil Rights Act of 1964

The Civil Rights Act was signed on 2nd July 1964 by President Lyndon Johnson hence prohibiting any form of discrimination in public places. Further, it facilitated the integration of public facilities such as schools and criminalized discrimination of people in employment. This proposition was made by President John. F. Kennedy before his assassination during a televised public address urging the state to take action that would guarantee all Americans equal treatment regardless of race. What followed was Kennedy’s proposition to Congress to consider civil rights legislation to rewrite the injustices in public accommodations and equality in federally assisted programs. The significance of this Act is that it outlawed the segregation of businesses such as restaurants, theatres, and hotels. Further, it ended discrimination practices in public spaces like libraries, schools, and swimming pools.

Voting Act Right 1965

The Voting Act was signed into law by President Lyndon Johnson with the aim of bridging the legal barriers that existed at local and state levels, which prevented African Americans from voting, which is their constitutional right guaranteed in the 15th Amendment. To date, this Act is considered as one of the most far-reaching tools in the legislation of civil rights in the United States. Notably, the 15th Amendment had been ratified in 1870 after the civil war, which maintained that denying men the right to vote based on color or race was an offense. Nevertheless, discriminatory practices continued to ensue, preventing African Americans particularly from the south, from voting. The main significance of the Act is that it eliminated the mechanism used to suppress the voting votes of African American People, which included the literacy tests, grandfather clause, and Poll tax.

Affordable Care Act

The Affordable Care Act refers to the comprehensive health reform, which was signed into law by President Obama in March 2010. The law, which is commonly known as ObamaCare, entails health care policies meant to ensure that millions of uninsured Americans access health insurance coverage. The primary goal of the law is to make health care available to all American citizens. Notably, this law grants users subsidies known as premium tax credits, which reduce expenses for households with incomes ranging between 1005 to 400% of federal poverty levels. Moreover, the Affordable Care Act expanded the Medicaid Program to cater to adults with income under 138% of federal poverty levels. The Act also supports medical delivery methods that are innovative to reduce general costs of healthcare.

HIV/AIDS Crisis

The HIV/AIDS crisis began in 1981 in the United States, where the first case was reported. Today, over 1.1 million people live with the virus, and more than 700,000 people have succumbed since the epidemic began. This crisis continues to disproportionately affect populations such as ethnic and racial minorities, bisexual and gay men. Because the condition has no known cure yet, experts developed drugs known as antiretroviral therapy drugs, which substantially reduce mortality and morbidity rates. Notably, people of color account for the highest population of people who lives with HIV than other racial groups, with their survival rates after and AIDS diagnosis being relatively low.

Section 2. Consequences (20 points). This section will test whether you can identify and explain the consequences of events in American history (in other words, you’re discussing what happened because of something). You must provide the consequences for these key events. Answer in 3-5 sentences.

What were the consequences of World War II for women and minorities at home? The Second World War provided an opportunity for women who were always left at home to enter the job market for the first time. Women were able to join the defense sector. The war changed the type of work women were doing and the volume in which they worked. Before the war, women were largely restricted to feminine jobs like sewing and typing. After the war, they began adopting careers in masculine fields such as factories, defense, and aircraft industries.

What were the consequences of the Truman Doctrine?

The Truman doctrine was laid on the central pillars that followed the signing of the agreements to aid Turkey and Greece. The consequences of the Truman Doctrine were that the American national security ceased being premised on protecting the physical and political security of both United States citizens and territories because it was limited. The aid agreement that was signed in 1947 selectively formalized the United States’ commitment to intervene, reshape, and or preserve the structures, political integrity, and stability of communist nations in the world.

What were the consequences of the Brown v. Board of Education ruling?

The Board V. Board of Education of Topeka is a 1954 landmark made by the Supreme Court where the justices made a unanimous ruling that the racial segregation of children going on in public schools was unconstitutional. The ruling is significant because it helped establish the ruling that services that claimed to be separate-but-unequal were indeed unequal. The ruling fueled the civil rights movement across the United States.

What were the consequences of the Watergate Scandal?

In June 1972, there was a break-in to the Democratic National Committee’s headquarters, leading to an active investigation that revealed how Nixon’s administration was abusing power. Nixon’s abuse of power had a long-lasting effect on the political life of Americans. It created an atmosphere of distrust and cynicism. The Watergate scandal deepened Americans’ disappointment to a climate that had already been soured by losses and difficulties of previous decades.

Section 3. Historical Progression (35 points). This section will test whether you understand the relation of events in American history to each other. You will choose one the historical progression questions below and provide seven events in that category in order. For each event, you will provide a 2 sentence statement that explains why that step was significant or served as a turning pointin a given progression question. Some of the terms above could be points or could inform your points. Begin by deleting all the questions except for the one you’re choosing.

How did the labor movement evolve after the 1930s?

The decline of the labor Movement (1929-1933)

The decline of the labor movement was significant because it led to the development of a new labor movement known as the Unemployed Citizens League among the unemployed people. The organization grew quickly, accumulating up to 20,000 members, and demanded services and jobs for unemployed citizens.

Rebuilding of the Union (1934-1936)

The National industrial Act had a new set of rights, and for the first time, workers had the right to join unions. Activists from across states organized huge campaigns as they set out to rebuild the unions that had collapsed and creating new ones.

The Waterfront Strike

This strike, which took place in 1934, inspired a series of strikes among sailors, loggers, truckers, pilots, and Filipino cannery workers. One of the key achievements was that journalists from the Seattle newspaper strike who were mostly white walked out of their white-collar jobs to support Seattle Unions.

Labor’s Civil war

The passing of the National Labor Relations Act was a reaffirmation of the promises made to establish the additional right for unions and workers. Unions became organized based on the industry instead of their craft, allowing the inclusive organization of women workers, non-white and unskilled people.

Labor culture

Organized labor began emerging as strong, and they enjoyed legitimacy at this point more than even before. This gave unions renewed meaning after the 1930s because they had been granted better wages, better working conditions as well as a new measure of destiny.

The American Federation of Labor

By 1936, The AFL had begun growing rapidly, with its population standing at 3.4 million members. It began experiencing severe stress in recruiting new members because traditionally, the union organized crafts rather than industries. Leaders were hesitant to shift from craft unionism leading to a strain in the relationship.

Upsurge During the Second World War

The war dramatically made the membership of the union to expand significantly. For the first time, women were enrolled as workers in the factories and aviation; careers which were once considered too masculine for them.