Posted: May 13th, 2018

kaplan GB540 unit 1-2

kaplan GB540 full course assistanceUnit 1. GB540
Please do the following:
1// Answer two of
the three Discussions topics below
2// Answer to the
Case study below
3// Complete the Assignment
paper with the Title and References pages (min 5 pages excluding the Title and
References pages). Please use APA
format.
Rubic for Discussion: Answer two of the
three Discussion topics below on at least three different days. To earn credit
for participation in this Discussion, you need to post three thoughtful and
substantial posts under each of the two topics you have chosen. Post your
initial response to the two topics you have chosen on the first day. Then, on
two different days, post to your classmates and instructor for each of your
chosen topics. You will have a total of six posts for this Discussion: three
minimum posts for each of the two topics you have chosen. Please also
respond to the feedback you receive from your instructor on your posts when
appropriate. Your contributions should make it clear that you understand the
assigned reading materials and you are able to apply them to the real world
economic decisions.
1// Discussion
1
A fundamental assumption for economic analysis is that economic
agents, be it an individual, a household or a firm/business, tend to make
choices and select alternatives rationally. The rational economic choice
(decision) implies thatpeople
are driven by the rational pursuit of self-interest, and engaged in economic
decisionsto maximize this
self-interest.
Byrational economic choice,
economists mean that people try to make the best choice they can, given the
available resources at their disposals (money, time, etc.) and information.
Self-interestis when
individuals make economic decisions that are in their own best interest. On the
other hand, social interestis when choices are made that
benefit society as a whole. Economists argue that social interest can be attained
by individual decision makers acting in their own self-interest. This process
is what Adam Smith called theinvisible hand, which has
been the foundation of the market economy.
Create an example to demonstrate how an individual or firm acting
out of self-interest to maximize profits by offering goods or services in
economic markets benefit consumers – even if they do not care about them. In
other words, how does self-interest help achieve society’s economic goals?
What is the relationship between self-interest and social interest
in the economic decision (economic choice) process? Is there a conflict between
the two in the economic world?
2// Discussion
2:
There are two major kinds of government interventions in markets:
price controls and quantity controls. The government intervenes to regulate
prices by imposing price controls, which are legal restrictions on how high or
low a market price may go. Price ceiling is the maximum price sellers are
allowed to charge for a good or service, whereas price floor is the minimum
price buyers are required to pay for a good or service.
Price and quantity controls may have adverse impacts on productive
and allocative (marketing) efficiency. However, price and quantity controls are
used despite their well-known problems.
Based on the Reading in Chapter 3 on price ceiling and price
floor, explain the impacts of the following price control measures.
What would happen to the supply and demand of Super Bowl tickets
if the government mandated that no more than $20 a ticket could be charged?
What would happen if a law passed dictating that kindergarten
teachers could make no less than $100,000 per year?
3// Discussion 3:
The concept of rational action is a frontier of economic theory.
Accordingly, traditional economics holds that humans, as rational beings, make
rational economic choices to maximize their economic welfare as pursuit of
self-interests. Thus, economics assumes that human economic behavior reflects
rational self-interest.
Some economists argue that rationality has its bounds because many
human behaviors do not appear to be rational, as traditional economics assume
most human behavior is rational. Economist Herbert Simon developed the concept
of “bounded rationality,” which means that people are as rational as possible
(seek to act in their own best interests) given their limitations. Bounded
rationality is based on the premise that an individual’s rationality is limited
by both his cognitive ability and the economic environment. Thus an economic
agent behaves in a manner that is nearly optimal with respect to its goals as
its resources will allow.
Therefore, some economists claim that bounded rationality better
describes economic agent’s behaviors than optimal rationality approach. This is
due to the fact that bounded rationality recognizes that it is impossible to
comprehend and analyze all of the potentially relevant information in making
economic choices. The only possible way of coping with the complexity of the
world is to develop techniques, habits, and standard operating procedures to
facilitate the decision making process. The debate still goes on the issue. Do
people make rational decisions in economics? What are the factors that lead to
bounded rationality? What leads to irrational economic decisions?
With this in mind, pick a behavior that appears irrational to
other people but has rational components for the person doing it. Then provide
a thorough explanation for your classmates.
CASE STUDY:
Economist Joseph Schumpeter, who
taught at Harvard from 1932 until his death in 1950, popularized the term
“creative destruction” to describe the capitalist process in which
entrepreneurs introduce new goods and services to economic markets that
displace existing goods and services. Though this innovative process results in
increased wealth and better standards of living overall, not everybody benefits
equally. The opportunity cost of buying a newly available product is the use of
the old one that has been given up, so those in the camp of the new, different,
and desirable do very well, while those camped out with the old and no longer
desirable products see their prospects decline.
Provide an example of creative destruction you have
witnessed during your lifetime and describe what the benefits and costs to the
economy have been. Who was enriched and whose fortunes declined?
For your main (initial) response, construct thoughtful and
detailed responses to the Discussion.After your
initial response, post at least two substantial responses to your classmates
and instructor’s posts in order to earn full credit.
Assignment for
Unit 1:
Assignment Directions: All problems below are to be completed and
submitted to the Unit 1 Dropbox by the end of Unit 1.
Markets are mechanisms for
coordinating the set of connections of production operations that are
distributed throughout the whole economic system. Thus, the market is the
predominant and determining link between producers of goods and services and
consumers. Accordingly, markets, as an exchange of goods and services that
takes place as a result of buyers and sellers interactions, are generally
considered the most efficient allocator of resources in the market economy.
However, free markets are not
allowed to solve some of the social problems in a society due to various
reasons. One such social problem is illegal drugs. Another example is
environmental such as pollutions. For an additional example for a social
problem, where supply and demand is not allowed to freely function, read the
“Last Word” feature on markets for human organs on Pages 68–69 of your
textbook. There are black markets (underground economy) for human organs in
some countries. But a trade in human organs, based on supply and demand, raises
ethical issues and hence it indicates a limitation of relying on markets to
solve the social problems we have in the society.
You can write your research about
social problems where the free markets are not allowed to function, which
includes the market for a particular illegal good or service, a regulated
market, etc.
? Select a social problem where
free markets are not allowed to function and conduct research on the social
problem.
? Write a page paper – Describe how free market
features could be introduced to help alleviate the social problem through free
market operations of supply and demand.
? Discuss the risks of
introducing market mechanisms of supply and demand in situations where ethical
issues are present.
Your answer should be
approximately 5 pages long and should be formatted in APA style. Best paper writer websites, Custom term paper writing service and Research papers owl essays – Professional help in research projects for students – Cite at least
three references for the paper.

Rubric for Unit 1 Assignment
Paper:
Introduction and
conclusion 10
Identify a
specific social problem where free markets are not allowed to function. 5
Write a page paper – Describe how
free market features could be used to help alleviate the social problem. 15
Discuss the
risks of introducing market mechanisms where ethical issues are present. 15
5 pages in
length and at least three reliable references. 5
Spelling,
Grammar, APA Format:
Writing style,
grammar, APA format (references, cover page, etc.) 10
Total 60

Unit 2. GB540
Discussion1:
The law of demand states that a fall in the price of a good raises
the quantity demanded, and the increase in price leads to a decrease in
quantity demanded. The price elasticity of demand measures the responsiveness
of the quantity demanded to a change in price. Demand for a good is said to be
elastic if the quantity demanded responds substantially to changes in the
price, and the percentage change in quantity demanded is greater than the
percentage change in price. Demand is said to be inelastic if the quantity
demanded responds only slightly to changes in the price, which indicates that
the percentage in price is greater than the percentage in quantity demanded.
However, the extent of responsiveness of quantity demanded to a
change in price depends on the nature of a particular good or service in the
market. The price elasticity of demand partly depends on the availability of
close substitutes. When a large number of substitutes are available, consumers
respond to a higher price of a good by buying more of the substitute goods and
less of the relatively more expensive good. In addition, goods or services that
are considered necessities tend to have less elastic (more inelastic) demand,
whereas goods or services that are considered luxuries have more elastic (less
inelastic) demands.

Explain
why the demand for the good or service provided by the organization you
work for is elastic or inelastic. How does this influence pricing
decisions?
Provide
examples on how the availability of close substitutes affects price
elasticity of demand.
Give
specific examples of necessities or luxuries, and explain how they affect
price elasticity of goods or services.

Discussion 2:
Externalities come about when individuals impose costs on or
provide benefits to others but do not consider those costs and benefits when
deciding how much to consume or produce. Thus externality is a cost or benefit
received by a person not involved in a market transaction, and therefore not
reflected in the market price of the commodity being transacted. There are two
types of externalities: positive externalities and negative externalities.
A positive externality exists when an individual or firm making
an economic decision does not receive the full benefit of the decision. In this
case, the social benefit is greater than the benefit that goes to the
individual or firm.
A negative externality occurs when an individual or firm making
a decision does not have to pay the full cost of the decision. If a good has a
negative externality, then the cost to society is greater than the cost
consumer is paying for it.
Both positive and negative externalities result in market
inefficiencies unless proper action is taken.

Write a page paper – Describe
your understanding of externalities by providing an example of a positive
externality and a negative externality.
Why do
positive and negative externalities lead to inefficiency in the market
economy?
How can
externalities be addressed using the private sector to reduce market
distortions of externalities?
What
government policies help deal with positive and negative externalities by
reducing inefficiency?

Discussion 3:
The role of governments in the economy is one of the most debated
issues in economics. Similarly, one of the most enduring debates of U.S.
economic history focuses on the role of government in the economy. On the one
hand, it is argued that government regulation of the economy is too little and
too late. On the other hand, there is also a claim that the U.S. economy is no
longer a free market due to too many regulations.
Moreover, the causes of economic and financial crises have been
parts of the larger debate on the role of the government in the economy. Some
argue that the accumulation of incorrect policies and lack of effective
policies led to the recent and other economic and financial turmoil (crises).
Accordingly, the failures of the main entities that manage our economy, which
are the Congress, the executive branch of the Federal government represented by
the Treasury Department, and the Federal Reserve System, lead to economic and
financial crises. The other side claims that it’s the lack of regulations that
lead to economic and financial crises.

What are
the roles of government in the market economy? Based the current economic
conditions, to what extent should the government intervene in the market
economy?
What are
the justifications given in favor of more government involvement in the
market economy?
What are
the reasons given in favor of less government involvement in the market
economy?

Case Study:
Read
the Last Word piece, “Government Failure” in the News, in Chapter 5 in your
textbook. Investigate the use of special-interest lobbyists for some of these
articles. The process of lobbying legislatures is itself a big business. State
legislatures are under the same kind of pressure from interest groups as the
Senate and the House of Representatives. Provide an example to discuss how
special interests can succeed in perpetuating policies that are opposed by the
majority of voters because the costs of organizing and motivating groups to
take political action increase with group’s size.
For your main (initial) response, construct thoughtful and
detailed responses to the Discussion.After your initial response, post at least two
substantial responses to your classmates and instructor’s posts in order to
earn full credit.
Assignment for Unit 2:
Assignment Directions:
According to the law of
demand, if price increases, quantity demanded of a good or service will
decrease or vice versa. Price elasticity of demand tells us how much quantity
demanded will decrease when price increases or how much quantity demanded will
increase if price decreases.
On the other hand,
according to the law of supply, if the price increases, quantity supplied of a
good or service will increase. Similarly, if price decreases, quantity supplied
will decrease. The degree of sensitivity (responsiveness) of production/supply
to a change in price is measured by the concept of price elasticity of supply.
Total revenue is
calculated as the quantity of a good or service sold multiplied by its market
price. Thus, it is a measure of how much money a company makes from selling its
product. The core objective of a firm is maximizing profit. One of the ways to
maximize profit is increasing total revenue. The firm can increase its total
revenue by selling more items or by raising the price. Among others, this
depends on the nature of the price elasticity of demand. Moreover, the length
of time is an important factor in determining price elasticity of demand and
supply.
? Explain the
relationship between the price elasticity of demand and total revenue. What are
the impacts of various forms of elasticities (elastic, inelastic, unit elastic,
etc.) on business decisions and strategies to maximize profit? Explain using
empirical examples.
? Is the price
elasticity of demand or supply more elastic over a shorter or a longer period
of time? Why?Give examples.
? What are the impacts
of government and market imperfections (failures) on the price elasticities of
demand and supply?
The Assignment should be
a minimum of 5 pages in length, excluding title page and reference page. Your
paper must incorporate several quality references, and it must be organized in
APA format.

Rubric for Unit 1 Assignment
Paper:
Introduction and
conclusion 10
Identify a
specific social problem where free markets are not allowed to function. 5
Write a page paper – Describe how
free market features could be used to help alleviate the social problem. 15
Discuss the
risks of introducing market mechanisms where ethical issues are present. 15
5 pages in
length and at least three reliable references. 5
Spelling,
Grammar, APA Format:
Writing style,
grammar, APA format (references, cover page, etc.) 10
Total 60

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