This Keller's course describes that Business Economics provides a basic understanding of managerial
economics and the impact of the economic environment on business
decision-making. The course develops micro- and macroeconomic topics,
with particular emphasis on marginal analysis, and supply and demand
Every time we choose to do something (consume it or produce it), we give up doing or gaining something else that could give us a certain level of benefit or satisfaction. Choices exist because of our limited (scarce) resources. Even if you were the richest person in the United States, you still cannot do more than one thing at a time. For example, you cannot watch a movie and sleep at the same time, and you cannot fish and bike at the same time.
When we make choices, we usually weigh se..
Week 1: Discussion Question
Have you ever wondered why people act the way they do on Black Friday or on the 4th of July? Or why wealthy people and nations have less children than poorer ones? Or why we buy flowers or a card for a loved one knowing that it will end up in the garbage later? Or why some countries are poor while others are rich? Or why some people live longer in some parts of the world than others? Or why wars happen? These are among countless questions that could be answered thr..
Week 2: Discussion Question
Choose a commodity (a good or a service) that you are familiar with and discuss how and when demand and supply have changed (shifted) for this commodity.
Provide examples of historical or current events where market demand and market supply for that commodity have shifted significantly, and state the factors that you believe have caused the shift in supply and/or demand...
Week 3: Discussion Question
Most firms and businesses in our economy operate under monopolistic competition, and product differentiation in this market type is one of the main factors that lead to price differentiation. In addition, and because prices affect quantity demanded inversely (higher prices lead to lower quantity demanded, and lower prices lead to higher quantity demanded), marginal revenue (the additional revenue obtained from producing and selling an additional unit of output) wil..
Week 4: Discussion Question
This discussion is a great opportunity to learn about one of the most fundamental aspects of our economy, the Gross Domestic Product (GDP). GDP is the total value of final goods and services (output) the economy produces during a given period of time.
To learn about GDP in the real world and to answer the discussion questions, follow the steps below to obtain data from the Bureau of Economic Analysis.
Go to bea.gov(Links to an external site.)Links to an exter..
Week 5: Discussion Question
Unemployment is an indication of the health of the economy. Unemployment means that there is a portion of the productive population (labor force) that is not producing and unable to earn income for consumption and/or for investment. The more unemployed workers there are, the less output the economy will be able to produce. High unemployment also means that there are less wages available in the hands of people to consume, which reduces the incentive or need ..
Week 6: Discussion Question
An economy is assumed to be operating at full capacity when its real GDP (what the economy produces) equals its potential GDP (what the economy would produce if all factors of production are used). When the economy is producing at full potential, everyone who wants to work can find a job, because every worker who enters the workforce will produce what he or she will eventually consume with the income. In addition, and when the economy is producing at full capacity,..
Week 7: Discussion Question
Do I really need a mechanic? Technically I can learn how to fix cars when my car breaks down, right? But is it efficient to do so? Maybe yes or maybe no! As we discussed in microeconomics, people are utility maximizers (always seek to gain the most possible outcome while giving up the less resources), people are rational in their choices (choose the best option available), and people are self-interested (choose what gives them the ultimate satisfaction). These conc..