Econ
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ECONAssignment1.docxResource Economics and Political Ecology
Assignment #1
Introduction to Micro and Macroeconomics (ECON 1030)
Assignment #1
Instructions:
Please answer each of the following questions, making sure to address each prompt. The responses should be in your best, most clear writing.
1.) Produce the following:
· Production Possibilities Curve[footnoteRef:1] [1: Note: remember that you can simply sketch them on paper, photograph, and insert them into the file if there is no way to produce something digitally - i.e., with a program or app, etc. ]
Be sure to label each axis, curve, etc. Give a brief narrative discussion of the overall “logic” of the model and the choices or tradeoffs being made. Be specific and explain. Show two (2) shifts of the curve and explain what it represents (e.g., changes in resources, technology, etc.). Lastly, if possible, briefly critically comment on the realism of the model, perhaps using insights from political economy.
2.) Supply and Demand:
a) Construct a demand curve and demand schedule for a particular good or service that you actually buy (want to buy). Use the logic and assumptions of the mainstream supply and demand model to give a narrative account or explanation of your demand for the good at different prices and quantities.
b) Now, construct a supply curve and supply schedule for the good or service above (a). Use the logic and assumptions of the mainstream supply and demand model to give a narrative account or explanation of the supply price and quantity for the good or service at different prices and quantities.
c) Connect the demand and supply curves above (a, b), showing the equilibrium price and quantity.
d) Use the determinants of demand to show two (2) different hypothetical shifts of the demand curve, pointing out the new equilibrium point.
e) Use the determinants of supply to show two (2) different hypothetical shifts of the supply curve, pointing out the new equilibrium point.
f) Assess and briefly explain the price elasticity of demand in the context of your work.
3.) Consumer and Supplier Decision Making[footnoteRef:2] [2: Yes, if you like, you may analyze the good or service you chose for Question #2.]
a) consumer decision making: pick a particular good or service and examine and assess the demand for it from the Political Economy perspective (e.g, Institutional, Behavioral, Post Keynesian). In other words, perform a more contextual, cultural, ‘non-rational,’ non-price-theoretic analysis of the demand for your particular good or service. For example, do you see pecuniary emulation, herd behavior, conspicuous consumption, culture, and/or cognitive biases as helpful in explaining demand? How so? Explain.
b) supplier decision making: quickly evaluate the business, institution or organization that is selling the good or service you chose above (a). Do you feel it has "pricing power"? Does it compete on more than prices? How so? Explain, giving examples if possible.
4.) Market Structure(s) and Industry
Please find and critically evaluate a specific industry and market structure of personal interest to you. Briefly introduce and discuss the industry and classify the market structure in terms of:
a) competition – i.e., perfect competition, monopolistic competition, oligopoly and/or monopoly;
b) key market characteristics – e.g., barriers to entry, etc.[footnoteRef:3]; and, [3: (Schneider, Ch. 12, p. 269)]
c) if possible, discuss the characteristics of the heterodox analysis of markets[footnoteRef:4] in the context of your market structure/industry [4: (Jo, Ch. 10 - e.g., managed competition, market governance, trade associations, the social context of your industry and market structure, etc.)]
5.) Markup Pricing
Use a markup pricing formula to price any good or service.[footnoteRef:5] Come up with and list the raw, hypothetical costs of production going into each unit. That is, show the "back of the envelope" per unit costs for each labor, capital, rent, ingredients, technology, etc., that go into each individual unit to be sold. Apply a profit markup to your per unit cost (ATC). Briefly explain your pricing procedure, price point, strategy and any behavioral factors you relied upon (e.g., “psychology” of anchoring at $X.99). [5: (Schneider, Ch. 13, p. 290)]
6.) Market Failure
Find an example of a market failure of personal interest to you. Use the tools, categories, concepts and ideas from the readings to discuss and analyze your issue. Please address:
a) the type(s) of market failure – e.g., imperfect information, negative externalities, inadequate supply of public goods, etc.
b) any economic policies you, as an economist, would recommend to redress the market failure – e.g., taxes, subsidies, laws, regulations, etc.
… optional …
Assess Thyself
On a scale of 1 – 10, where “10” is the highest, please assess your personal performance for class participation:
Class Participation: _____
Comments:
[Thank You]
Assess the instructor
Use the space below to give feedback or suggestions as to how the instructor can improve this class.
[Thank You]
3
University of Denver
ECON 1030 (Winter, 2021)
