Below are samples of assignments submitted for this course with names removed so as not to violate anyone's privacy.
These aren't templates for you to use while working on assignments nor do they follow any required or preferred format.
Rather, they are examples of the quality of work I expect.
Too, the assignments you see here are NOT necessarily the best work for that assignment
but examples chosen at random from among all of the assignments I considered well done.
If you don't see an example of a particular assignment, it's because I haven't yet found one to post.
ACTIVITY #1
10. This section discusses the fundamentals of economics. I have seen thus far that economics is almost like a puzzle, it is not complete unless you have every counterpart. There are quite a few pieces to the economic puzzle. In order for everything to correspond there has to be the correct information that is input.
Consumer Price Index (CPI) is an index of prices used to measure the change of the cost of basic goods and services in comparison with a fixed base period. CPI is a factor used when dealing with GDP. This index reflects changes in prices, which, depending on the growth or reduction, reflects the status of the GDP. The whole point of the U.S. Bureau of Labor Statistics doing a report on CPI and inflation was to regulate the numbers in which they would be dealing. For example, it would be kind of hard to determine how much you had to tax the nation if you did not have the increments of information like the report details. The following are some of the parts of the information needed to make sure that equilibrium holds true.
Unemployment is a significant part because it is vital to know the amount of people who are working versus those who are not to make sure everything will add up. The formal definition of unemployment is “the number of adults (16 years or older) who are willing and able to work and who are actively looking for work but have not found a job”. There are many different kinds of unemployment; a few types are frictional, structural, cyclical and even seasonal unemployment.
Another important part of economics is inflation. In order for the economy to “balance” out there is a need for inflation or in some cases deflation. When the average prices of goods and service seem high, inflation occurs to equal out the difference. The same thing happens with the opposite as goods and services go down, deflation occurs.
For this “balance” to take place there is such a thing as the Circular Flow. The Circular Flow contains two parts: one where the goods are bought and received and two where the goods are given and money is replacing there place. This happens in all business and even if one party is spending money for either bills or taxes it is considered income to the other so that total output will always equal income.
National Income Accounting uses Gross Domestic Product (GDP) to make sure that total output will equal income. GDP is a basic measure of an economies size. Per Capita GDP is the total GDP divided by the number of citizens also called average GDP which reflects the standard of living. GDP deals with two sides, supply and demand. To calculate GDP you must add: consumer spending plus the investment made by industry plus net exports plus government spending.
Economic Growth is increases in per capita real GDP over time. The reason that this is necessary to update is obvious: to maintain that information is correct and not shadowed by the growth of the economy.
Economic Development is explanation on how some countries develop and some do not. The U. S is a prime example. One of the reasons that we are one of the most powerful nations is because we are highly educated.
Economist must put the pieces of the puzzle together by calculating inflation, CPI, U.S. Bureau of Labor Statistics, including every little detail to make sure everything is intact. This is the job that countries face to make sure that the economy will continue. A puzzle missing one piece is not complete.
ACTIVITY #2
1. I believe I was successful in balancing the budget because I continued to decrease the deficit.
2. For every cut or addition that you make you have to be aware of how it is going to affect the budget as a whole. It’s not as easy as it may appear because one adjustment can throw the balance off.
3. Yes, because it gave you a general idea of the amount with which you would be working.
4. The first time I created a simulated budget, No, my perception did not match reality. Seeing the dollar amounts, what percentage, and how much went into each category helped create a more concrete understanding in the budget.
5. While creating the simulated budget, not all of my cuts were realistic. For example, I cut social security which would in reality be very unlikely considering this is money set aside for the security of our citizens in their old age. Before cutting certain areas it is important to be aware of how significantly it benefits the nation. This poses problems because in order to find a solution you need to monitor the problem over the course of a few years to make sure that one year was not a fluke.
6. Developing a national budget is one of the most important issues that economists must address. The government handles this multifaceted math problem by using a method called fiscal policy. Implemented by Congress, the government works to influence the nation’s spending, employment, and price levels through the use of government spending and taxes. The National Budget Simulator is based entirely on the concept of fiscal policy. In order to control money supply and interest rates, economists adjust government expenditures and taxation. This is precisely what the budget simulator demonstrates, allowing students or anyone else to gain a better understanding of how the nation’s financial decisions are made.
When dealing with matters that affect a mass population, every decision must be made with careful deliberation and in the best interests of the people as a whole. Government officials are professionals who come to what they deem the most effective conclusions possible. Despite this fact, there will still always be those that are unsatisfied with governmental decisions. This phenomenon is known as
Public Choice Theory, which is directed towards the study of politics based on economic principles.
Government deficit is another aspect discussed in the text. A deficit is the remaining of government spending over government revenues during a given period of time. In other words the government has spent more than it had earned in revenue. When a nation spends more money than it has, it creates a National Debt. If the National Debt is increasing, then the nation has to borrow money to pay that dept, and there must be a deficit. This occurred a few times when I tried my hand at the National Budget Simulator. Cutting back the spending eventually showed that if you cut the budget to where it is not spending as much as you are earning, then you will decrease the deficit.
ACTIVITY #3
Although these estimates are based on information obtained from prior years, it is still an estimate which means if any crisis occurs I will not be held responsible. Also, the information given does not date to the year 2008 which would provide the most accurate analysis for the following year. That being said, I am confident in reporting that given the following information, the following events will occur.
The Consumer Price Index (CPI) is rising in the first quarter of 2006. I predict that in the fourth quarter of 2009, there will be an increase in the CPI due to inflation. Business Inventories and Sales have been steadily climbing since 2004. Since it has shown a steady growth in inventory and sales, it will continue to grow as long as the inventory and sales ratio balances out. Because the money supply seems to be increasing, it will lead to the growth of nominal GDP. The Stock Index shows that it is increasing steadily, which entails a strong increase of customer spending and business investment.
For every plus there is a minus; this principle relates to many areas, including economics. Housing and light-weight vehicles are just two that appear to be decreasing on the graphs. Housing starts will potentially decrease from 1.47 to 1.45 million which means that people are suffering financially and cannot afford to build or begin building houses. Light-weight vehicles are also decreasing because of the CPI increase. Meaning, if the consumer price index rises then people will focus on spending their money on needs and cut back on wants, such as light-weight vehicles. Also, while the Yield on 10-year Treasury Bond is down, it seems to be gradually climbing which will not have much effect for the next few years.
Durable goods, retail sales and Industrial Production are all positive but remaining constant. According to the advanced report on durable goods, unfilled orders are rising, shipments are down, new orders seem to be at a stand point. Another subcategory that is at a standpoint is retail sales. The important thing about retail sales is that it represents almost two-thirds of the Gross Domestic Product. With Industrial Production/Capacity Utilization barely afloat but still positive and representing about twenty percent of the GDP, it is safe to assume that the GDP will minutely fluctuate.
Given the information, I strongly believe that the GDP will remain almost constant. However, if any change does occur, the GDP will reflect a slight increase, showing that retail sales and industrial production/capacity utilization is at a constant and that makes up roughly 86% of the total GDP. That being said, the economy will not show much change. The change that will occur will be small increases in the GDP and the CPI.
ACTIVITY #4
CRITICAL THINKING ESSAY
PROJECT
In consideration of the concept of globalization and its long-term effects on the people directly affected by it, if one looks at China as an example, one can see that the bad often outweighs the good. Ever since China joined the WTO in 1998, it has slowly and steadily risen as a leading economic power in the global community. There is no doubt that the results of their joining the global community have benefited many.
In the documentary "To Have and to Have Not" which gives an inside look at Chinese economic conditions since China joined the WTO, some of these benefits are pointed out. The tariffs, for example, have been lowered since its joining. Also, the Chinese government has begun to loosen its tight grip on some of its citizens by allowing international satellites TV to broadcast in certain apartment complexes. Now citizens are able to watch programs such as CNN and HBO, which is something that was unheard of until recent years.
However, as one is given a glimpse into the lives of the common people of China, the rural villagers, once the very heart of Chinese industry, one can see that the bad certainly outweighs the good in the case for globalization. In this documentary, Dwanzhi She, a Chinese foreign trade consultant first gives viewers a look at his life in the city, then takes viewers on a trip back to his childhood home, where many still live in poverty. He admits that he feels guilty that he is living such a life of luxury in comparison to those who still live in his village as a child. China is the classic example of the old proverb "the rich get richer while the poor get poorer."
As business booms in Beijing, the poor villagers in rural areas continue to be completely unfunded by the government and left to fend for themselves. One girl,10 years-old, from Dwanzhi She's village shyly admits that she wants to be a writer and reads viewers a poem she has written about dreaming of growing up and achieving great things. Sadly, based upon statistics, out of a Chinese rural classroom full of children, only three will grow up to leave their poor villages and leave a life of poverty behind them. Since China's entry into the WTO, the number of food imports continues to rise, causing the lack of a need for Chinese farmers, because products are no longer needed that once were in high demand. This is expected to result in the loss of over 20 million farm jobs.
Many migrants, out of desperation, flee to cities to look for work. When nothing turns up, some are forced to use their last resort, prostitution, going as far as selling themselves to get by. While the poor get poorer, over the last ten years, the number of millionaires in China has risen considerably. Industries such as real estate developmental, have resulted in the success of once common people, pushing them into an upper level economic status. Couples like Zhang and Pan Shi Xin have achieved success through the housing industry. Ever since 2000, because the Chinese government-run banks started lending mortgages, this really jump-started the Chinese real estate industry. In essence, based upon this documentary, globalization certainly does not benefit everyone.
Chapter 8 Summary McConnell-Brue
section 1:
1) Both consumption spending and savings rise when disposable income increases; both fall when disposable income decreases.
2) The average propensity to consume (APC) is the fraction of any specific level of disposable income that is spent on consumer goods; the average propensity to save (APS) is the fraction of disposable income that is saved. APC falls as APS rises when income increases.
3) Marginal propensity to consume (MPC) is the fraction of a change in disposable income that is consumed and it is the slope of the consumption schedule; the marginal propensity to save (MPS) is the fraction of a change in disposable income that is saved and it is the slope of the saving schedule.
4) Changes in consumer wealth, consumer expectations, interest rates, household debt, and taxes can shift the consumption and saving schedules.
section 2:
1) The immediate determinants of investments are:
a. the expected rate of return
b. the real rate of interest
2) The economy's investment demand curve is found by cumulating investment projects, arraying them in descending order according to their expected rates of return, graphing the result, and applying the rule that investment should be undertaken up to the point at which the real interest rate equals the expected rate of return.
3) Shifts of the investment demand curve can occur as the result of changes in :
a. the gaining, maintenance and operating of capital goods
b. business taxes
c. technology
d. stocks of capital goods on hand
e. expectations
4) Either changes in interest rates or shifts of the investment demand curve can change the level of investment.
section 3:
1) Through the multiplier effect, an increase in investment spending ripples through the economy, ultimately creating a magnified increase in real GDP. The multiplier is the ultimate change in GDP divided by the initiating change in investment or some other component of spending.
2) The multiplier is equal to the reciprocal of the marginal propensity to save:
a. the greater the marginal propensity to save, the smaller the multiplier.
b. the greater the marginal propensity to consume, the greater the multiplier
3) Economists estimate that the actual multiplier effect in the United States economy is about 2, which is less than the multiplier in the text examples.