Devry ECON312N Week 1 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Opportunity Cost (graded) Give an example of how the Principle of Opportunity Cost applies to your life. Think of a recent decision you made. It could be a decision as simple as whether to eat out or cook your own dinner, or it could be a decision to quit your job and go back to school. What alternatives did you consider? How did you arrive at your final decision? Did you implicitly weigh marginal cost and marginal benefit? How does the concept of opportunity cost apply to production possibilities curve (PPC) analysis? How can we use PPC analysis to examine what we do? DQ 2 Economic systems (graded) Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald’s, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale? How did the producers decide on the best combinations of resources to use? Who made those resources available, and why? How does the market determine who will get the goods and services? Who decides whether these particular products should continue to be produced and offered for sale? How do these decisions differ between capitalist and socialist systems? Devry ECON312N Week 2 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Demand, Supply, and Market Equilibrium (graded) Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand? Which factors are more influential? DQ 2 Price Elasticity of Demand (graded) Elasticity shows the responsiveness of supply or demand to changes in price. What are the factors exerting influence on price elasticities of supply and demand? Devry ECON312N Week 3 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Free Trade (graded) Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource differences. What are some examples of goods that the U.S. has comparative advantage in producing? Take a look at the tag of the shirt/dress/pants you are wearing today. Where was it made? Anyone wearing “Made in America” items of clothing today? We sometimes hear people say “Buy American.” Why don’t we? What is the basis of international trade? What are the benefits and the costs? Under what conditions would you advocate for trade restrictions? DQ 2 Foreign Exchange (graded) What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What are freely floating exchange rates all about, and how do they work? How can the falling U.S. dollar impact your travel expenses? Why would a cheap dollar relative to other nations’ currencies be good or bad for U.S. trade? Devry ECON312N Week 4 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Concept of Cost (graded) What are the differences between economic and accounting concepts of cost? How would you manage the costs associated with a value-creation activity? How do costs of operations relate to the strategy of the organization? DQ 2 Prices Under Different Market Structures (graded) How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald’s is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? How does market structure affect the firm’s ability to set the price for its products? Devry ECON312N Week 5 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 GDP, Real and Nominal GDP, Aggregate Demand, and Aggregate Supply (graded) Explain how GDP is calculated. Go to the Bureau of Economic Analysis website, www.bea.gov, and access the BEA interactively by selecting “National Accounts” and then “National Income and Product Account Tables.” Select “Frequently Requested NIPA Tables,” and find Table 1.1.1 on GDP. What is the current GDP growth rate for the U.S.? DQ 2 The Business Cycle (graded) Examine the level of business activities in the U.S. economy over the past few months. Which trends do you find of interest? What stage of the Business Cycle is the U.S. economy, given the current levels of business activity? Devry ECON312N Week 6 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Unemployment (graded) Go to the Bureau of Labor Statistics website, www.bls.gov/news.release/empsit.toc.htm, and click on “Employment Situation Summary” to get the most up-to-date summary of unemployment in the U.S. or the “Employment Situation Summary Table A. Household data, seasonally adjusted.” What interests or surprises you about the summary table? How does that rate compare with the rate in the previous month or quarter? Discuss the differences in unemployment rates by gender, age, education, etc. DQ 2 Inflation (graded) What factors are considered in calculation of the CPI? Explain your answer. Where would you find data on CPI and PPI for the U.S.? What does the current level of inflation tell you about the state of the U.S. economy? Devry ECON312N Week 7 Discussion DQ 1 & DQ 2 Latest 2016 March DQ 1 Money and Banking System (graded) You use money just about every day. What is money and what functions does it perform? How is the supply of money measured? Who influences how much liquidity in created or reduced in the U.S. economy? DQ 2 Fiscal Policy and Monetary Policy (graded) What would happen if no one tried to manage the business cycle? What role do you see for the Executive Branch of the U.S. government in managing the business cycle? How does Fiscal Policy work? What are its limitations?