Assignment: WK 1 Discussion Questions
Purpose
To assess your ability to discuss the reading in Farnham (2014).
Overview
Weekly Discuss Questions
An economics course is a mainstay of curricula. Commonly the course is called managerial economics to emphasize an applied approach relevant to business decisions with less focus on the theory that comprises the bulk of the subject matter in graduate courses in economics departments. In this course we strive to emphasize the applied, building upon the basic tools of both micro- and macroeconomics. Throughout the textbook are sections entitled “Managerial Rule of Thumb” that stress application of the text’s material. These sections will serve as one component of the weekly discussions in the course.
Another source will be questions posted here for reflection and discussion on topics related to the current week’s textbook readings. Later in the course, beginning in Week 3, a topic of weekly discussion will be considerations of the slow growth in advanced economies since the Great Recession in the last decade, culminating in a final position paper at the end of the course. Finally, your instructor may provide additional or alternative questions for discussion.
Action Items
- BEFORE you come to the class/Meet session,
- Read Chapters 1 – 3 in Farnham (2014).
- Complete Week 1 Readings and Preparation.
Weekly Readings and Preparation
Upon completion of this week, you will be able to:
- Distinguish between microeconomics and macroeconomics and their respective influences on managers.
- Discuss the price and nonprice factors that influence demand.
- Distinguish between a change in quantity demanded and a change in demand.
- Discuss the price and nonprice factors that influence supply.
- Distinguish between a change in quantity supplied and a change in supply.
- Define equilibrium price and equilibrium quantity in the demand and supply for a good.
- Define and calculate elasticities.
Introduction to this week’s topics:
In this course we build upon the coverage of economic topics- Business Environment to study in more depth how managerial decisions are affected by both microeconomics (the study of how consumers, firms and industries make decisions regarding the products that they buy and sell) and macroeconomic (the study of the overall level of economic activity, including topics such as changes in the price level, unemployment and economic growth) factors. Fundamental to all economics is demand and supply and their joint determination of price and the quantity demanded and supplied. This module also examines the concept of elasticity, including demand, income, and cross-price elasticities.
- Reflect on the following questions:
- Consider firms in industries you are familiar with. Are firms in such industries price-takers or price-setters? How much control do they have over the prices they charge?
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- Using the Discuss tool, post a brief summary of your thoughts regarding the questions above.
- Next, to prepare for the class/Meet session, read the following question and answer on the limits of economics and reflect on the discipline’s possible usefulness for graduate business studies:
- Question: Does the discipline [of economics] have sufficient predictive power to play an important role in our debates about public policy?
Answer: Speaking of predictive power can be misleading. Scientists (and I include economists) are not fortunetellers. Their theories only allow them to predict what will happen if initial conditions are satisfied. Elementary physics enables us to predict how long it will take an object to fall to the ground, provided that gravity is the only force acting on the object. Predicting how long it will take a leaf falling from a tree to reach the ground or where it will land is a much harder problem.
The problems that we want economists to help us solve are more like predicting how leaves will fall on a windy day than predicting how objects will fall in a vacuum. Economic phenomena are affected by a very large number of causal factors of many different kinds…Standard economic theory provides useful tools, but it focuses on a very limited range of causal factors — mainly the choices of millions of consumers, investors and firms — which it simplifies and assumes to be governed entirely by self-interested pursuit of goods or financial gain. When one recognizes all the other factors that affect economic outcomes, from government policies to the whims of nature, it is easy to see that economists cannot predict the economic future with any precision.
Source: Gutting, G. (2015, July 14). Interview with Daniel Hausman. Retrieved from http://opinionator.blogs.nytimes.com/2015/07/14/what-economics-can-and-cant-do/?smid=tw-NYTOpinionator&seid=auto&_r=2
Grading Criteria
Weekly Class/Meet Discussion Rubric
- Total 30 points
| Criteria | Unacceptable | Acceptable | Proficient | Student Points and Comments |
| Addresses all the required items in the assignment
|
Vaguely addresses and develops all the required items in the assignment
(0-15 points) |
Addresses and develops all the required items in the assignment and, for the most part, fulfills assignment requirements.
(16-17 points) |
Addresses and develops all the required items in the assignment and demonstrates solid ability to accomplish the assignment.
(18-20 points) |
|
| Presents ideas with clarity and logic in concrete language
|
Demonstrates little clarity and logic. Readers have difficulty following the line of reasoning. Inadequate or minimal use of proper terminology in the field(s).
(0-7 points) |
Develops ideas with clarity and logic. Readers can generally follow the line of reasoning. For the most part, uses proper terminology.
(8 points) |
Consistently presents ideas with clarity and logic. Ideas flow smoothly from one to another and are clearly linked to each other. Consistently uses proper terminology.
(9-10 points) |
|
| Subtotal Points = | ||||
| Grammar, spelling, and sentence structure | Too many errors in grammar, spelling, and sentence structure to demonstrate the ability to write at the graduate level.
(deduct 3 points) |
Few errors on grammar, spelling, and sentence structure. Demonstrates an acceptable ability to write at the graduate level.
(deduct 1-2 points) |
No errors on grammar, spelling, and sentence structure. Demonstrates a proficient ability to write at the graduate level.
(no points deducted) |
|
| Total Points = | ||||
