Circular Flow Diagram

Week 1
DQ 1
Circular Flow Diagram. Explain how the circular flow diagram relates to the current

economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.

Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your

classmates and comment on their descriptions of the circular flow diagram and factors of production. Discuss how circular flow relates to current economic situations.

DQ 2

Supply and Demand. Analyze how the law of demand applies to a recent purchase that

you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?

Guided Response: Review the discussion board posts of your classmates. Note their analysis of a recent purchase and respond to at least two of your classmates. In your responses, discuss the effects of a price change and how it might alter your decision to make a purchase, according to the determinants of supply or demand.
Quiz

1. Due Day 6. Week One Quiz. Complete the quiz on the assigned readings for the week.
Week 2

DQ 1

Elasticity. Analyze the determinants of the price elasticity of demand and determine if

each of the following products are elastic or inelastic:

a. bottled water

b. toothpaste

c. cookie dough ice cream

d. fresh green beans

e. gasoline

In your analysis, please make sure to explain your reasoning and relate your answers to the characteristics of the determinants of the price elasticity of demand.

Guided Response: Review the discussion board posts of your classmates. Note their responses to the determinants of price elasticity of demand. Respond to at least two of your classmates. Discuss with your peers the characteristics of an inelastic versus elastic good.

DQ 2

Externalities. Explain the difference between a positive and negative externality. In your

analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What solutions need to be provided for your xamples?

Guided Response: Review the discussion board posts of your classmates. What are some of the key differences between positive and negative externality? Respond to at least two of your classmates. Analyze the solutions your classmates offered and compare them to your own. Provide advice to your classmates’ solutions for making the market more efficient.
Week 2

Assignment

1. Due by Day 7. Raise or Lower Tuition?Suppose that, in an attempt to raise more revenue, Nobody State

University increases its tuition. Will this necessarily result in more revenue? Under what conditions will revenue

(a) rise, (b) fall, or (c) remain the same? Explain this process, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. If the true price elasticity were -1.2, what would you suggest the university do to expand revenue? If you were the president of NSU, how would you tackle this problem based on what you have learned in this course?

Your paper will need to include a title page, reference page, and in-text citations that are formatted in accordance with APA style as outlined in the Ashford Writing Center. Also, your content should be three to five pages, which does not include your reference or title page. You will need to include two to three academic sources from the Ashford University Library to include in your paper as part of your research to support your work and analysis

Week 3
DQ 1
Short and Long Run. Let’s assume that you own a fast food restaurant and you are faced

with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?

Guided Response: Review the discussion board posts of your classmates. Discuss the difference between short run and long run with relation to costs. Respond to at least two of your classmates. Discuss how short run and long run vary in a firm.

DQ 2

Fixed and Variable Costs. After reading Chapter 8 in the text and viewing the required

video for this week,Fixed, variable, and marginal cost, address the following in your initial post:

a. First, describe several different fixed costs and variable costs associated with operating an automobile.

b. Next, assume that you would like to travel from Los Angeles to New York City by either car or plane.

Which costs would you take into account in making your decision, fixed costs, variable costs or both?

Make sure to explain your analysis in the decision that you have to make.

Guided Response: Review the discussion board posts of your classmates. Analyze the difference in your answer to your peers in response to the different costs that are discussed. Respond to at least two of your classmates. Discuss the different types of costs like fixed, variable, or both.
Quiz

1. Due Day 6. Week Three Quiz. Complete the quiz on the assigned readings for the week.
Week 4

DQ 1
Market Structures. Explain the most important characteristic in perfect competition,

monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run. In your analysis, make sure to relate an example for each of the market structures listed and how it relates to the particular characteristics.

Guided Response: Review the discussion board posts of your classmates. Analyze the difference between market structures. Compare your response to those of your classmates. Respond to at least two of your classmates. Discuss the way profits vary based on market structure.

DQ 2

Barriers to Entry. Analyze the major barriers for entry and exit into the airline industry.

Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?

Guided Response: Review the discussion board posts of your classmates. Do you agree or disagree with their reasons on whether or not government should get involved when it comes to monopolies? Respond to at least two classmates. Compare and contrast your posts and comment on barriers to enter a market and analysis of government’s relationship with monopolies.
Quiz

1. Due Day 6. Week Four Quiz. Complete the quiz on the assigned readings for the week.
Week 5

DQ 1

Transfers. Why would cash transfers typically be preferred by recipients over in-kind

transfers? What are the pros and cons of each from a government perspective? Respond to at least two of your classmates.

DQ 2

Tariffs and Quotas. Who gains and who loses from a tariff? How do the effects of tariffs

differ from the effects of quotas? If you were a small country, what would you rather utilize?

Guided Response: Review the discussion board posts of your classmates. Note their analysis of those who gain and lose from a tariff. Respond to at least two of your classmates. Compare your classmates’ analyses on using tariffs vs. quotas by comparing to your own. Which is better?

Week 5 Focus of the Final Paper
Market Structures

In an eight- to ten-page paper, describe each market structure discussed in the course (perfect competition, monopolistic

competition, oligopoly, monopoly), provide a real-life example of each market, and respond to the following for each

market structure:

1. Indicate how high entry barriers into a market will influence:

a. Long-run profitability of the firms

b. Cost efficiency of the firms in the industry

c. Likelihood that some inefficient firms will survive

d. Incentive of entrepreneurs to develop substitutes for the product supplied by the firms

2. Are competitive pressures present in markets with high barriers to entry? Explain.

3. Describe which market structure you would prefer for selling products. Explain why and support your answer

with the characteristics of that market.

4. Describe which market structure you would prefer for buying products. Explain why and support your answer

with the characteristics of that market.

5. How does each market structure respond to price changes of the products that they sell? Explain whether each

market structure will be selling elastic or inelastic products, and how this will affect the market price charged.

6. How does the role of the government affect each market structure’s ability to price their products?

7. How does international trade affect each market structure?

Your paper will need to include a title page, reference page, and in-text citations that are formatted in accordance with

APA style as outlined in the Ashford Writing Center. Also, your content should be eight to ten pages, which does not

include your reference or title page. You will need to include five academic sources from the Ashford University Library

to include in your paper as part of your research to support your work and analysis.

Writing the Final Paper

The Final Paper:

1. Must be eight to ten double-spaced pages in length, and formatted according to APA style as outlined in the

Ashford Writing Center.

ECO204: Principles of Microeconomics

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2. Must include a title page with the following:

a. Title of paper

b. Student’s name

c. Course name and number

d. Instructor’s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.

4. Must address the topic of the paper with critical thought.

5. Must end with a conclusion that reaffirms your thesis.

6. Must use at least five scholarly sources from the Ashford University Library.

7. Must document all sources in APA style, as outlined in the Ashford Writing Center.

8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.