Based on this module week’s summit session, what would you say is the role of firms in our macroeconomy? Do consumers indirectly and/or directly affect our macroeconomy?
Discuss how microeconomics and macroeconomics affect the flow of money within the Circular Flow Model.
Do you think firms could operate without households? Describe how these disciplines relate to the Circular Flow Model.
How Does Our Economy Work?
Identify the microeconomic/macroeconomic concept(s).
Choose a special-interest group from a U.S. industry and examine their role in politics. Discuss how that interest group aligns with public choice theory.
Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion:
State the article or event you selected.
Identify the microeconomic concept(s).
Describe your findings.
Analyze the relevance to real-life applications.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
Select a relevant microeconomics industry of your choice in the region in which you reside. Differentiate between the firm’s implicit and explicit cost and discuss the firm’s variable and fixed costs. For your chosen industry express whether your firm is economically viable or not. Is your firm profitable? Do they have an optimistic or uncertain outlook for the near future?
Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion:
State the article or event you selected.
Identify the microeconomic concept(s).
Describe your findings.
Analyze the relevance to real-life applications.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
Select a relevant microeconomics industry and explain how consumer demand affects the production levels of the industry you choose. Discuss determinants that affect supply and demand. Consider whether this will shift the supply and demand curve to the left or the right and why.
Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion:
State the article or event you selected.
Identify the microeconomic concept(s).
Describe your findings.
Analyze the relevance to real-life applications.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
1. How do rational individuals decide what to buy?
a) Explain how microeconomics provides answers to this, outlining key insights from
microeconomics theory on Rational Consumer Choice.
b) Why might optimal choices vary between individuals?
c) Why might optimal choices change over time?
With respect to parts b) and c), provide interesting illustrative example(s) to compare
and contrast different outcomes under different scenarios.
2. How do individuals decide how much they are willing to pay for insurance?
a) Explain how microeconomics provides answers to this, outlining key insights from
microeconomics theory on Choice under Uncertainty.
b) How and why might an individual’s attitude to risk affect this decision?
c) How and why might an individual’s life situation (e.g. age) affect this decision?
With respect to parts b) and c), provide interesting illustrative example(s) to compare
and contrast different outcomes under different scenarios.
3. How do firms decide the best combination of labour and capital in production
planning?
a) Explain how microeconomics provides answers to this, outlining key insights from
microeconomics theory on Production and Costs (in the long run).
b) Why might optimal use of capital and labour vary between firms?
c) Why might optimal use of capital and labour change if a new production process is invented?
With respect to parts b) and c), provide interesting illustrative example(s) to compare
and contrast different outcomes under different scenarios.
