Traditional economic theory assumptions

 

 

Order Number			45471455714
Type of Paper			Essay
Writer Classification Level			Undergraduate
Style of Writing			MLA/APA/CHICAGO/
Sources and References			5
Number of Pages			4
Paper Instructions Week 1 – Demand Concepts 1. Opportunity Costs What do economists mean by “opportunity cost?”  What are your opportunity costs in taking this course? 2. Demand v. Quantity Demanded What is the difference between a decline in the quantity demanded and a decline in demand?  Given an example of something for which your demand has fallen.  Is it an example of a decline in the quantity you demand or a decline in your demand? 3. Behavioral Economics Traditional economic theory makes a number of simplifying assumptions that may not always be true, e.g., that people always make rational decisions that are in their own best interest.  In recent years a new subdiscipline of economics has emerged called behavioral economics that attempts to employ a more realistic set of assumptions about how people behave to explain economic decision-making. Based on information in this link (Behavioral Economics For Dummies Cheat Sheet) present two examples from your own experience that illustrate principles of behavioral economics. Further reading for those with an interest: Ariely, Dan. 2009. The End of Rational Economics. Harvard Business Review, Jul-Aug. Connick, Hal. 2018. Read this Story to Learn How Behavioral Economics Can Improve Marketing. Marketing News. Jan. Week 3 – Incentives and Externalities   1. Externalities and the Environment Meyer describes the “Tragedy of the Commons.” The IMF article explains how this type of problem is an example of an “externality.”  What is an externality? What might be a good government policy to solve the problem of the environmental externality that leads to high green house gas emissions? 2. Moral Hazard and Adverse Selection “Moral hazard” is a term often used in the context of peoples’ behavior once they have insurance.  Szuchman and Anderson explore the idea of moral hazard in personal relationships.  How would you define moral hazard?  Provide an example of moral hazard that you have observed in your own community or workplace. How does moral hazard differ from adverse selection?  Provide an example to illustrate this concept. Week 5 – Monetary Policy and Inflation 1.  The Fed and Monetary Policy Monetary policy is the action taken by the Federal Reserve to expand or contract the money supply and influence interest rates. What are the Fed’s target levels for the inflation rate and the unemployment rate?  What are the inflation and unemployment rates today?  As the top advisor to the chair of the Federal Reserve, define contractionary and expansionary monetary policies and explain which you advise the Fed to pursue today – given the inflation and unemployment targets versus the current rates. 2.  Inflation – Winners and Losers We  often hear of inflation characterized as a bad thing, but Meyer describes both winners and losers from inflation.  Give an example of one way in which you would win from unexpected inflation, and an example of one way in which you would lose from unexpected inflation. Week 7 –  Classical or Keynesian? 1.  Classical v. Keynesian Approaches to Smoothing Business Cycles Fiscal policies are the actions of Congress on spending and taxing.  (Note that this is different from monetary policy, which is the action take by the Federal Reserve to change the money supply and interest rates.) a. Explain and compare the Keynesian and classical points of view on whether or not to intervene during the business cycle (an expansion = positive real GDP growth; and a recession = negative real GDP growth). b. Are we in recession today? Use today’s real GDP growth rates to explain your answer. c. As the President’s chief economist, describe the Keynesian fiscal policy you think the administration should follow given today’s economic conditions.  Support your point of view using principles of Keynesian economics, as described by Mayer in Chapter 16 of “Everything Economics.” 2.  What Role for Government? In Chapter 3, Wheelan describes a number of ways in which the “government is your friend” in a well-functioning society and economy.  List and explain two ways that, in your everyday lives, there is a need for an effective government role in an economy. Explain how this government role does, or does not, solve a market failure such as an externality.
	Distinguished (100%)	Proficient (85%)		Basic (70%)	Below Expectations (50%)	Non-Performance (0%)
Thesis Statement	Raises the strongest   objection to the thesis presented in the assignment. The objection is strongly grounded in research and logical reasoning.	Raises a plausible objection to the thesis presented in the assignment. The objection is mostly grounded in research and logical reasoning.		Raises an objection to the thesis presented in the assignment. The objection is somewhat grounded in research and logical reasoning.	Attempts to raise an objection to the thesis presented in the assignment. The objection is minimally grounded in research and logical reasoning.	The objection to the thesis is either nonexistent or lacks the components described in the assignment instructions.
Counter Argument	Provides a strong, thorough rebuttal to the objection. The rebuttal effectively demonstrates that the thesis can withstand the objection and applies the principles of charity and accuracy.	Provides a rebuttal to the objection. The rebuttal mostly demonstrates that the thesis can withstand the objection and mostly applies the principles of charity and accuracy.		Provides a limited rebuttal to the objection. The rebuttal somewhat demonstrates that the thesis can withstand the objection and somewhat applies the principles of charity and accuracy.	Attempts to provide a rebuttal to the objection; however, the rebuttal minimally demonstrates that the thesis can withstand the objection and does not apply the principles of charity and accuracy.	The rebuttal is either nonexistent or lacks the components described in the assignment instructions.
Conclusion	Provides clear and concise closing remarks that comprehensively summarize the essay. The remarks consider the broader controversy and/or further research that could offer additional insight into the moral solution of the business problem.	Provides closing remarks that summarize the essay. The remarks mostly consider the broader controversy and/or further research that could offer additional insight into the moral solution of the business problem. The closing remarks are somewhat unclear.		Provides closing remarks that minimally summarizes the essay. The remarks minimally consider the broader controversy and/or further research that could offer additional insight into the moral solution of the business problems. The closing remarks are unclear and/or vague.	Attempts to provide closing remarks that summarize the essay; however, the remarks do not consider the broader controversy and/or further research that could offer additional insight into the moral solution of the business problem. The closing remarks are unclear and vague.	The closing remarks are either nonexistent or lack the components described in the assignment instructions.
Written Communication: Context of and Purpose for Writing	Demonstrates methodical application of organization and presentation of content. The purpose of the writing is evident and easy to understand. Summaries, quotes, and/or paraphrases fit naturally into the sentences and paragraphs. Paper flows smoothly.	Demonstrates sufficient application of organization and presentation of content. The purpose of the writing is, for the most part, clear and easy to understand. There are some problems with the blending of summaries, paraphrases, and quotes. Paper flows somewhat smoothly.		Demonstrates a limited understanding of organization and presentation of content in written work. The purpose of the writing is somewhat evident but may not be integrated throughout the assignment. There are many problems with the blending of summaries, paraphrases, and quotes. Paper does not flow smoothly in all sections.	Organization and presentation of content are extremely limited. The purpose of the writing is unclear. There is little or no blending of summaries, paraphrases, and quotes. Paper does not flow smoothly when read.	The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Control of Syntax and Mechanics	– Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains no errors and is very easy to understand.	Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand		Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors which may slightly distract the reader.	Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors which distract the reader.	The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Required Formatting	Accurately uses required formatting consistently throughout the paper, title page, and reference page.	Exhibits required formatting throughout the paper. However, layout contains a few minor errors.		Exhibits limited knowledge of required formatting throughout the paper. However, layout does not meet all requirements.	Fails to exhibit basic knowledge of required formatting. There are frequent errors, making the layout difficult to distinguish as required style.	The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Word Requirement	The length of the paper is equivalent to the required number of words.	The length of the paper is nearly equivalent to the required number of words.		The length of the paper is equivalent to at least three quarters of the required number of words.	The length of the paper is equivalent to at least one half of the required number of words.	The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Resource Requirement	Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.	Uses the required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.		Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are used within the body of the assignment. Citations may not be formatted correctly.	Uses an inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly.	The assignment is either nonexistent or lacks the components described in the instructions.