- Evaluate the concepts of supply and demand to identify and determine the impact of changes in market conditions in the short-run and long-run and identify the economic impact on a company’s operations.
- Analyze production and cost – the fundamental blocks on the supply side of the market – in the short and long-run. Use short run and long run firm production and cost functions to analyze and understand the behavior and strategy of individual firms and industries.
Select an article from the news of the past week that illustrates one or two of the concepts that are discussed in chapters 1 and 2. In a paper of no more than two pages (double spaced, one inch margins, 12 point type) briefly summarize the article and discuss the underlying economic concept(s) of the article.
The basic economic problem that drives the study of economic is the fact that we are all limited human beings with limited resources. We usually feel the problem of limited resources in terms of our time and money. We only have 24 hours in a day, and we only have so much money in our accounts. As a result of our limits, we cannot buy or do everything we want to do. As a result of our limited resources, we have to make choices. Economics is all about the choices we make because our personal resources are limited. Or, if you want to put the same idea in terms of a business, any business cannot invest in all of the potential projects it wants to invest in because its resources are limited or finite. This is the economic problem, and the discussion of that problem and its implications are the subject for week one.