Exam 3 | Economics homework help

 1.Technology, R & D, and Efficiency.

a.Invention:

i.Thoroughly and completely explain Invention.

ii.Distinguish between invention as a process and invention as a result and give2 examples of each.

iii.The case of a slow growth / no growth economy.

1.We live on a planet with finite resources which makes continued economic growth difficult to maintain.  Please explain  how invention as a process and invention as a result might be impacted by a slow growth /no growth economy.

iv.Whatcan we do to cause Invention to happen in a slow growth / no growth economy? Be specific.

b.Innovation.

i.What is it?

ii.For eachof thetypes of innovationcovered in the slides and audio:

1.Provide 2 examples of each (that were not included in the slides or audio) and explain why these are good examples ofthose types of innovation. 

 2.For each of your examples explain how these two types of innovation were used to drive up profits.

a.Discuss the 2 key factors required to drive up profits(drive down costs and drive up revenues). Include explanation of hownew products gain customer acceptance, including the importance of the relationship between price and utility.

iii.The case of a slow growth / no growth economy.

1.Explain how our ability todo process and product innovation might be impactedby a slow growth / no growth economy, and what we can do about the problem.

c.Diffusion.

i.Define it,

ii.Explain how it works, 

iii.Give 3 examplesinvolving firms that have lead diffusion of some innovation and why these represent good examples of diffusion, 

iv.The case of a slow growth / no growth economy.

1.Discuss how diffusion might be affected by a slowgrowth / no growth economy.

d.You work for Mr. Elon Musk and he has asked you to explain how his company can determine its optimal level of R&D spending.

i.Please explain the general concept of optimal level of R & D spending

ii.List and explain the marginal cost and marginal benefit components.1.You have a good list of items in the slide set –just need to provide explanations of the items.

iii.Explain how the optimal level of R & D spending is computed.

1.Feel free to use graphs to support your explanation.

2.Don’t forget to let him know that returns are expected, not guaranteed.

2.Technology, R & D, and Efficiency.

You are a business manager for Coca Colaand some new competitive soft drinks are being introduced with great customer acceptance.  

a.Fast second strategy.

i.Explain the fast second strategy.

ii.Explain why and how Cokecoulduse the fast second strategy to increase its economic profitusing 2 examples.

b.Explain to your boss how Coke can use theprotection provided by patents, copyrights, and trademarks to increase their economic profitsof the company.

i.Discuss what each of the 3 protections apply to, and

ii.Discuss how each will help a firm achieve economic profits.

c.Explain to your boss how Coke can use their Brand to increase their economic profits. 

i.Discuss the following and how each can be used to increase a firms’economic profit:

1.Brand-name recognition

2.Brand equity

3.Brand promise

4.Brand personality

d.Explain to your boss how technologicaladvance increases productive efficiency and allocative efficiency.

i.Discuss the impact of technological advancements on productive and allocative efficiency.

 

3.The demand for resources 

a.You are an Economics teacher.Please explain to your class thesignificanceof resource pricing onresource allocationamong firms and industries, 

b.Please explain to your class thesignificanceof resource pricing on the determination of income,

c.Resource pricing impact on firms

i.Explainhow resource prices affect the ability of firmsto acquire resources and the subsequent impact on output, 

ii.Explain the impact of resources prices on the ability of firms to minimize costs.d.Explain to the class the marginal productivity theory of resource demandand why businesses care about it.

i.State the assumptions.

ii.Explain MRP and MRC, and the firms’ rule for employing resources.Be sure to explain the terms and what they mean to a business.

e.Explain the determinants of resourcedemand.

i.Discuss the3 determinants of resource demand.

1.Changes in product demand

2.Changes in productivity

a.Quantities of other resources

b.Technological advance

c.Quality of the variable resources

3.Changes in the prices of other resources including:

a.The case of substitute resources–the substitution effect and the output effect

b.The case of compliments.

 4.The demand for resources.

a. Please thoroughly explain the following determinants of the elasticity of resource demand.

i. Ease of resource substitutability

ii. Elasticity of product demand

iii.Ratio of resource cost to total cos

b. Please explain how a firm would determine the optimal combination of resourcesrequired to produce a given level of output. 

 

5.Government Regulation of business:

a.Regulation

i.List and explain 4 reasons in favor offederal government regulation of business.  Include the economic consequences of each for the economy and you individually.

ii.List and explain4 reasons against federal government regulation of business.Include the economic consequences of each for the economy and you individually.

b.Explain why the effectiveness of antitrust laws changesthrough time. Include the role of politics and elections.

c.Explain Industrial Regulation(purpose, problems, and economic impacts)

d.Explain Social Regulation(purpose, problems, and economic impacts)

6.Incomeinequality

a.Please explain 5factors that have contributed to increased income inequality since 1969.

b.What are 5results of the growing income inequality in America.

c.For each of the items listed abovein part b, explain what might be done to eliminate the problems that cause growing income inequality.

d.Explain howdiscrimination reduces domestic output and income, 

i.Look at the items under Discrimination in the notes and explainhow each contributes to the reduction of domestic output and income.

e.Social Insurance Programsand Public Assistance Programs.

i.Social Insurance

1.What is it?

2.List and explain3 examples of social insurance programs and what they do for the beneficiaries of each program.

ii.Public Assistance 

1.What is it?

2.List and explain 3 examples of public assistance programs and what they do for the beneficiariesof each program.

iii.Explain the difference between the two types of programs.

f.Discuss the pros and cons of reducing spending on these two types of programsrelative to stimulating economicgrowth.

i.Some Google research should help with this. 

 

7.On the subject of Poverty

a.Define poverty–check definition in notes, check google as well

b.What is the most recent Federal Poverty Guideline for a family of 4?

c.Assume a household of 2 adults working at full time jobs paying minimum wage, with 2 elementary school age children.  Please create a monthly budget for this family and explain each budget line item.  Remember to take 15% off their gross earning for taxes. Explain some of the challenges this family will face.

d.When the national unemployment rate was around 4% or less, please explain why there were so many people living in poverty in America?  Where were they located geographically? Were race was more likely to be living in poverty?  Which gender was more likely to be living in poverty?  

1.A bit of Google research should provide additional information.

e.Explain 5 things that need to be done to significantly reduce the number of people in poverty going forward.

8.TheAmerican economy has been shut down because of the COVID-19 virus.  The unemployment rate was approximately 15%.  Assuming that the leadership of the Federal Government had scientific evidence that the worst is behind us, please explain in detail how you would restart the national economy .Focus on what industries you would open, in what order, and why. I suggest you go to the BEA.GOV website and review the input output tables to gain some perspective on how industries interact. 

9.Please select a bill currently in congress and provide an economic impact analysis.

a.Provide a summary of the Bill, including the objective of the Bill.

b.In your analysis of the Bill

i.Explain who will be helped and how.

ii.Explainwho will be hurt and how.

iii.Explain where the money will come from to fund the Bill.

iv.Explain how the money will bespent.

v.Explain the Economic impact of the Bill on theU.S. Economy.

Congress.gov is a good place to start.  Please be thorough in your analysis.  Try tothink about how the impacts of this legislation will work its way through our economy and how it will impact people, businesses, the environment, etc. What groups of people will be impacted and how?  What industries will be impacted and how? Etc.  Be as thorough as possible.  We need to be able to complete this type of analysis for the crazy stuff congress does, before the bills get passed so that we can either support them or get them stopped. 

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