Economic Analysis – Workshop 1

1.1 Exercise: What Is a Steward?

In your Bible, read Genesis 39:4-6 and Luke 16:1-13.
For each reading, consider your answer to the following questions:

Who is managing the resources?
Did this person act justly or unjustly in his or her given situation?  Explain.
What point do you think the Bible is trying to make with these verses?

Research the word oikonomia, a Greek word in the New Testament.  What does it mean?
After this reading and research, how would you describe the work of a steward?  Whose property is a steward handling?
Psalms 24:1-2 states, The earth is the Lord’s, and everything in the world, and all who live in it; for He founded it upon the seas and established it upon the waters.  Do these verses and the verses above affect how you think of your job as a good steward?  How?

 
1.2 Discussion: Application of Microeconomic Principles
   

In Economics for Managers, read:

Chapter 1(attached)
Chapter 2(attached)

Read the Wall Street Journal article and the Case for Analysis on pages 17-18 in Chapter 2.
Download and review the Ch01.ppt and Ch02.ppt PowerPoint files.
View the media Sony Stock Stumbles.(https://brightspace.indwes.edu/d2l/le/content/129275/viewContent/2163855/View)
Navigate to the threaded discussion and post an entry that answers the following questions:

Explain the opportunity cost Sony faces and apply the concept of opportunity cost to the tradeoffs we make.
Explain when coping with scarcity during the current CO-19 pandemic and the tradeoffs we all must make.

Your initial post should be 400 to 600 words in length and include two academic sources that are properly cited. It is due by the end of the fourth day of the workshop.
Now conduct a critical analysis of a posting by two of your classmates by the end of the workshop.

The topic of your discussion response should be your classmate’s posting and should be written as if you were reviewing his or her posting in an academic journal. Your discussion response should, therefore, answer the following questions as applicable:

Were your classmate’s arguments articulate and logical? Were the facts correct?
Was the interpretation your classmate provided reasonable and consistent with experts in the field? Was your classmate consistent with both the substance and intent of his/her references?

The focus for your critical analysis is not whether or not you agree with your classmate, but how well his/her position was presented. Each response should be at least 200 words in length and cite two academic sources.  Please strive to make your discussion responses ones that cause iron to sharpen iron.

 
1.3 Discussion: Demand Elasticity
 

Read Chapter 3 (and refer to Chapter 2) in Economics for Managers regarding demand shifts and elasticity. As you read, think about how an increase in the demand for some particular good or service is greeted by the providers of that good or service.
Download and review the Ch03.ppt PowerPoint file.
View the following media:

Supply and Demand(https://tpi.bb.pearsoncmg.com/tpi/UserConsent?TPITOKEN=487B9AD27AA065DD2834267ACD4F138F)
Changes in Supply and Demand(https://tpi.bb.pearsoncmg.com/tpi/UserConsent?TPITOKEN=487B9AD27AA065DD2834267ACD4F138F)

Then examine your own workplace or some other organization with which you are familiar and determine how it seeks to increase demand for its product.
Navigate to the threaded discussion and post an entry that answers the following questions:

How do firms attempt to stimulate demand (shift demand outward)? Defend your answer with a detailed evaluation that demonstrates clear, insightful critical thinking.
If a firm successfully builds brand loyalty for its products, what happens to the elasticity of the product? Hint: Think about consumers’ views of substitutes. Defend your answer with a detailed evaluation that demonstrates clear, insightful critical thinking.

Your initial response should be 400 to 600 words in length and include two academic sources that are properly cited.  It is due by the end of the fourth day of the workshop.
Now conduct a critical analysis of a posting by two of your classmates by the end of the workshop.

The topic of your discussion response should be your classmate’s posting and should be written as if you were reviewing his/her posting in an academic journal. Your discussion response should, therefore, answer the following questions as applicable:

Were your classmate’s arguments articulate and logical? Were the facts correct?
Was the interpretation your classmate provided reasonable and consistent with experts in the field? Was your classmate consistent with both the substance and intent of his/her references?

The focus for your critical analysis is not whether or not you agree with your classmate, but how well his/her position was presented. Each response should be at least 200 words in length and cite two academic sources.  Please strive to make your discussion responses ones that cause iron to sharpen iron.

 
1.4 Assignment: Analyzing Elasticity
 
1.  In Economics for Managers, review: Demand, Supply and Equilibrium Prices, Demand Elasticities

Review the media: Changes in Supply and Demand
Analyze gasoline price hike statistics in the following scenario. In June 2008 the U.S. retail gas price jumped from $3 to $4 a gallon.

This is a 33% increase in price from January 2008.
During that time the total quantity of gasoline purchased fell by 3%.
Supplies of gasoline produced also decreased from 1 million barrels to 800,000 barrels.
No viable substitute had been created to replace gasoline.

In a two-page paper, address the following. Be sure to show your calculations.

Calculate the price elasticity of demand for gasoline.
Calculate the elasticity of supply using the information provided.
Calculate the changes in consumer and producer surplus.
Because there is no viable substitute for gasoline at this time, what can you say about the cross-elasticity and income elasticity of supply and demand for gasoline? Explain your answer and demonstrate clear, insightful critical thinking.
Is the demand for gasoline elastic, inelastic, perfectly elastic or inelastic, or unit elastic? Explain your answer and demonstrate clear insightful and critical thinking.