ECO 365 WEEK 1 ASSIGNMENT 1 

 Assignment 1

 Ten Principles of Economics and How Markets Work Grading Guide

 ECO/365 Version 10

                                Principles of Microeconomics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Individual Assignment: Ten Principles of Economics and How Markets Work

 

Purpose of Assignment

 

In Week 1, students are introduced to the ten fundamental principles on which the study of economics is based.  Throughout this course, the students will use these ten principles to better develop their understanding of economics and how society manages its scarce resources.  Students will see how markets work using supply and demand for a good to determine both the quantity produced and the price at which the good sells.  The concepts of equilibrium and elasticity are used to explain the sensitivity of quantity supplied and quantity demanded to changes in economic variables. Students will see how government policies impact prices and quantities in markets.

 

Resources

Principles of Microeconomics, Ch. 1, 2, 3, 4, 5, and 6.

Grading Guide

 

Content	Met	Partially Met	Not Met	Comments:
Student identified the fundamental lessons the Ten Principles of Economics teaches about: a. How people make decisions b. How people interact c. How the economy works as a whole
Student explained how society manages its scare resources and benefits from economic interdependence.
Student explained why the demand curses slopes downward and the supply curve slopes upward.
Student explained where the point of equilibrium is and what it determines.
Student explained the impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices.
The paper is 875 words in length.
		Total Available	Total Earned
		5	#/5

 

 

Writing Guidelines	Met	Partially Met	Not Met	Comments:
The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.
Intellectual property is recognized with in-text citations and a reference page.
Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed including spelling and punctuation.
		Total Available	Total Earned
		2	#/2

 

 

Assignment Total	#	7	#/7
Additional comments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ten Principles of Economics and How Markets Work

 

 

 

Purpose of Assignment 

In Week 1, students are introduced to the ten fundamental principles on which the study of economics is based. Throughout this course, the students will use these ten principles to better develop their understanding of economics and how society manages its scarce resources. Students will see how markets work using supply and demand for a good to determine both the quantity produced and the price at which the good sells. The concepts of equilibrium and elasticity are used to explain the sensitivity of quantity supplied and quantity demanded to changes in economic variables. Students will see how government policies impact prices and quantities in markets. 

Assignment Steps 

Resources: Principles of Microeconomics, Ch. 1, 2, 3, 4, and 6. 

Prepare an 875-word research paper as part of a marketing research committee for your organization about current microeconomic thought and theory. 

Identify the fundamental lessons the Ten Principles of Economics teaches regarding:

• How people make decisions
• How people interact
• How the economy works as a whole 

Explain the following to help the committee members understand how markets work:

• How society manages its scarce resources and benefits from economic interdependence.
• Why the demand curve slopes downward and the supply curve slopes upward.
• Where the point of equilibrium is and what does it determine?
• The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices.

Format consistent with APA guidelines. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principles of Microeconomics, Ch. 1: Ten Principles of Economics

 

 

Read Ch. 1 of Principles of Microeconomics:

• 1-1 How People Make Decisions, pp. 4-8
• 1-2 How People Interact, pp. 9-11
• 1-3 How the Economy as a Whole Works, pp. 12-15 

Consider the following as you read: 

1. Methods of understanding and applying the Ten Principles of Economics.
2. Consider how economics are applied in a society of consumers.
3. Consider how limited resources apply to an expanding society.
4. Consider how the economy reflects the behavior of the individuals who make up the economy

 

 

 

 

Principles of Microeconomics, Ch. 2: Thinking Like an Economist

 

Read Ch. 2 of Principles of Microeconomics:

• 2-1 The Economist as Scientist, pp. 20-26
• 2-2 The Economist as Policy Adviser, pp. 27-29
• 2-3 Why Economists Disagree, pp. 30-33 

Consider the following as you read: 

1. Consider how to apply the economic terms, supply, demand, elasticity, comparative advantage, consumer surplus, deadweight loss to the consumer market.
2. Consider your personal experiences in theory, case studies, and examples of economics in the news and how you can apply it to refine your skills.
3. Consider what is distinctive about how economists confront a question.
4. Consider what it means to think like an economist

 

 

 

 

 

 

 

 

 

 

 

Principles of Microeconomics, Ch. 3: Interdependence and the Gains From Trade

 

 

Read Ch. 3 of Principles of Microeconomics:

• 3-1 A Parable for the Modern Economy, pp. 48-51
• 3-2 Comparative Advantage: The Driving Force of Specialization, pp. 52-54
• 3-3 Applications of Comparative Advantage, pp. 55-58 

Consider the following as you read: 

1. Consider how an economy coordinates the activities of millions of people with varying tastes and abilities.
2. Consider the reasons for economic interdependence.
3. Consider exactly what people gain when they trade with one another.
4. Consider why people choose to become interdependent.

 

 

 

 

 

 

Principles of Microeconomics, Ch. 4: The Market Forces of Supply and Demand

 

 

 

 

Read Ch. 4 of Principles of Microeconomics:

• 4-4 Supply and Demand Together, pp. 77-82 

Consider the following as you read: 

1. Consider the combination of supply and demand and how together they make the market economies work.
2. Consider how supply and demand affects buyers and sellers behavior and how they interact with one another.
3. Consider how supply and demand determine prices in a market economy and how prices, in turn, allocate the economy's scarce resources

 

 

 

 

 

 

 

 

 

Principles of Microeconomics, Ch. 6: Supply, Demand, and Government Policies

 

 

Read Ch. 6 of Principles of Microeconomics:

• 6-1 Controls on Prices, pp. 112-120
• 6-2 Taxes, pp. 121-127 

Consider the following as you read: 

1. Consider how to analyze various types of government policies using only the tools of supply and demand.
2. Consider how policies directly control prices.
3. Consider when price controls are usually enacted.
4. Consider how supply and demand effects the impact of taxes.