c Question Assignment Type:Individual Project Del

05 Jun c Question Assignment Type:Individual Project Del

c
Question
Assignment Type:Individual Project Deliverable Length:10–PowerPoint Slides
Points Possible:150 Due Date:2/16/2013 11:59:59 PM CT

You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.

Choose 4 cities west of the Mississippi River, each of a different size, and research the housing prices for a 3-bedroom, 2-bath condo for each city. Determine how supply and demand can affect the prices of these homes. In a PowerPoint presentation, submit data findings that include economic factors within that area that may influence your decision, or factors that have prohibited an area to be chosen.

Present the data in the following format:

· 1 slide of housing data findings. Provide the housing prices of each chosen city west of the Mississippi for a 3-bedroom, 2-bath condo or house.

· 2 slides of your preferred city to relocate with your reasoning for this choice

· 1 slides: Explain at least 2 reasons why housing prices vary from city to city

· 3 slides: Explain 3–4 ways in which supply and demand affect the prices of the homes

· 3 slides: Include any supply and demand figures or calculations to support your reasoning

· Cite sources using APA style.

Economic Systems

Every country has an economic system that is a complex combination of laws,

customs, and organizations including businesses and government. Economic systems

produce what the society wants and needs—sometimes effectively and often poorly.

Economic systems can be divided into two fundamentally different camps: demand

economies and command economies. Demand economies are driven largely by

consumer wants while command economies respond to the directives of the country’s

government, ruling party, or leader. Each country’s economic system, be it command or

demand, must answer three basic questions:

What is to be made (e.g., schools or prisons? airplanes or computers? how

many?) You cannot have everything, so you must choose some of both or all of

one and none of the other. For example, North Korea spends 80% of its gross

domestic product (GDP) on its military, leaving 20% for domestic needs. The

United States, by contrast, spends about 20% of its federal budget on defense

How are these products and services to be made and/or provided? That is, are

they made and/or provided by privately run or state-run enterprises or some

combination of the two? Most economic systems are some combination called a

mixed economy.

How are the benefits to be distributed or shared? A pure capitalist economy

says that he/she who makes the money keeps the money. A communist society,

by contrast, says that system is unfair. A communist government owns and

controls 100% of productive assets then redistributes the benefits to the people

equally. This practice, however, only works in theory.

Historically, capitalism was first launched by the steam engine and the Industrial

Revolution that occurred around 1750. Capitalism and the Industrial Revolution

forever changed how people worked and lived. Many of the changes were good, but

there was a dark side as well. Children worked fourteen or more hours a day in

extremely dangerous work environments. Karl Marx proposed that there must be a

better way; he called his proposed form of government socialism.

Socialism, Marx wrote, would eliminate the profit motive and therefore the need to

exploit those in the labor force who are the most vulnerable and powerless. Instead, he

said, mankind can live in harmony in a socialist economic system, where each person

gives what he/she can and is given what he/she needs. Then, Marx believed, the State

and the government would eventually wither away.

Socialism, the system that Marx envisioned in the 1850s, turned into something very

different when it was tried in Russia in 1917 with the Russian Revolution. Instead of

the dictatorship of the proletariat, where all people work for the common good, Russia

got a dictatorship of an elitist party, called Communists, who caused the death of more

than 50 million of their own people, not including the deaths related to World War II.

China, under Mao Tse-Tung, surpassed that staggering number by causing the death of approximately 74 million of its own people.

Modern socialism evolved from the need to create a third way that took the good

features of capitalism and communism and eliminated the major flaws. The important

element of modern socialism includes the idea that government should intervene in the

free-market systems whenever there are market failures such as pollution, widely

disparate incomes, recession, and/or depression.

John Maynard Keynes, an English economist and speculator, became the godfather of

modern socialism when he wrote one of the most influential books of the twentieth

century, The General Theory of Employment, Interest, and Money. When it was

published in the mid-1930s, the world was mired in one of the worst depressions in

history. Capitalism and free markets had not only failed but had failed catastrophically.

In a time when millions were unemployed, it would have been unconscionable, he

argued, even criminal, to sit back and wait (as classical economists argued) for the

economy to recover its balance. Government, he wrote, should intervene to generate

more demand for products and services that would trickle down to the need for

increased labor forces. Terms like aggregate demand and deficit spending began to

circulate. Governments were pleased with the idea of deficit spending: the U.S.

government has had only five surpluses in the last forty years. After all, it is hard to

argue against deficits when they are ostensibly being done for the good of the country.

The last of the isms is also a command economy: it is directed and dominated by the

state/government. Though typically placed on the right of the political spectrum,

fascism shares the most features with communism including—but not limited to—a

state-dominated economy, large armies, a high percentage of budget spent on defense,

and few civil rights: in other words, a police state. The most important differentiation

between the two is in the area of private property. Most fascist governments allow

ownership of private businesses and private property while most communist

governments own or control everything except the most marginal of personal effects.

Private ownership of businesses and property in a fascist country comes with a major

footnote. If the government wants you to do something with your business or property,

you had better do it. In other words, you own it, but they control it.

Basics Of Supply And Demand

The study of economics teaches the student a way of thinking that will help him or her

make tough, effective decisions in the future, help him or her to understand society and

global affairs and to become an informed voter. That is not bad for a much-maligned

topic.

Economists would say that economics is the study of how individuals and societies use

scarce resources most efficiently; this is just another way to say, “get the most value.”

Economics is the study of how societies deliver what people want when they want it.

All economic systems must answer three basic questions:

What will be produced?

How will it be produced?

Who will get what is produced?

U.S. Economic History: Revolution to Evolution

In 1776, during the Revolution, more than 90% of people lived on farms or in the

wilderness. During the next two centuries, our business economic system evolved from

an agrarian society to an industrial powerhouse to a largely service-marketing oriented

business environment to the present technology-information age. Many, if not most, of

the major developments during the last century and a half have been enabled by major

technologies. Once the steam engine and railroad were invented, it provided the muscle

for the nascent industrial revolution in the last 25 after World War II, the United States

and its people made up for lost time by building interstate highways and moving to the

suburbs. Today’s economy is fueled largely by innovation and technology.

An Economic Tool That You Can Use: Opportunity Cost

Opportunity cost is one of the important concepts in understanding economics, and it

will point you in the right direction when making a difficult choice between two

alternatives. Let’s say you can borrow $40,000, and you can spend it on either a new

car or a college education.

In many of these situations, we’d like to do both, but in the real world, when you do

more of one, you usually have to do less of the other. Generally, we must choose one

or another alternative. Both is not the correct answer.

Let’s go back to your car or school dilemma. Due to the fact that you spent the $40,000

on a nice car, you lost the opportunity to go to school and earn a degree. Latest

statistics show that the average college graduate will earn $1.8 million over a 40-year

work life; the average high school graduate earns about $800,000. Your new car has

then cost you about $40,000 plus $1 million in lost salary.

Concepts And Problems In Macroeconomics

Macroeconomics is a part of our everyday lives. If the macroeconomy is doing well,

few people do not have jobs who want one, people’s incomes are generally rising, and

profits of corporations are generally high.

Whereas microeconomics focuses on the factors that influence the production of

particular products and the behavior of individual industries, macroeconomics focuses

on the determinants of total national output. Macroeconomics is concerned with the

sum, or aggregate of industries’ performaence, including the consumption of all

households in the economy, the amount of labor supplied and demanded by all

individuals and firms, and the total amount of all goods and services produced.

Macroeconomics was born out of the effort to explain the Great Depression of the

1930s. Since that time, the discipline has evolved, concerning itself with new issues as

the problems facing the economy have changed. Through the late 1960s, it was

believed that government could “fine-tune” the economy to keep it running on an even

keel at all times. The poor economic performance of the 1970s however, showed that

fine-tuning does not always work.

There are three very important macroeconomic concerns. These include:

Inflation, an increase in the overall price level

Output growth, the short-term ups and downs in the economy. And,

Unemployment, which is the percent of the labor force that is unemployed.

Macroeconomics is concerned with both long-run trends and with short-run

fluctuations in economic performance. Since 1970, the U.S. has seen three recessions

and large fluctuations in the rate of inflation.

Gross Domestic Product (GDP) is the key concept in the national income and product

accounts. It is the total market value of a country’s output, the market value of all final

goods and services produced within a given period of time by factors of production

located within a country.

There are other useful concepts besides GDP:

Gross National Product (GNP), GDP plus factor income earned by U.S. citizens

from the rest of the world and subtracting factor income earned in the United

States by foreigners.

NNP or Net National Product , which is GNP less depreciation.

National Income (NI), which is NNP less indirect business taxes plus subsidies.

Personal Income (PI), which is the total income of households, and is found by

taking NI and subtracting corporate profits minus dividends and social

insurance payments, and then adding personal interest income from the

government and consumers and transfer payments made to persons. Finally, Disposable Personal Income, which is PI after personal income taxes are paid.

You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.

Choose 4 cities west of the Mississippi River, each of a different size, and research the housing prices for a 3-bedroom, 2-bath condo for each city. Determine how supply and demand can affect the prices of these homes. In a PowerPoint presentation, submit data findings that include economic factors within that area that may influence your decision, or factors that have prohibited an area to be chosen.

Present the data in the following format:

· 1 slide of housing data findings. Provide the housing prices of each chosen city west of the Mississippi for a 3-bedroom, 2-bath condo or house.

· 2 slides of your preferred city to relocate with your reasoning for this choice

· 1 slides: Explain at least 2 reasons why housing prices vary from city to city

· 3 slides: Explain 3–4 ways in which supply and demand affect the prices of the homes

· 3 slides: Include any supply and demand figures or calculations to support your reasoning

· Cite sources using APA style.

Economic Systems

Every country has an economic system that is a complex combination of laws,

customs, and organizations including businesses and government. Economic systems

produce what the society wants and needs—sometimes effectively and often poorly.

Economic systems can be divided into two fundamentally different camps: demand

economies and command economies. Demand economies are driven largely by

consumer wants while command economies respond to the directives of the country’s

government, ruling party, or leader. Each country’s economic system, be it command or

demand, must answer three basic questions:

What is to be made (e.g., schools or prisons? airplanes or computers? how

many?) You cannot have everything, so you must choose some of both or all of

one and none of the other. For example, North Korea spends 80% of its gross

domestic product (GDP) on its military, leaving 20% for domestic needs. The

United States, by contrast, spends about 20% of its federal budget on defense

How are these products and services to be made and/or provided? That is, are

they made and/or provided by privately run or state-run enterprises or some

combination of the two? Most economic systems are some combination called a

mixed economy.

How are the benefits to be distributed or shared? A pure capitalist economy

says that he/she who makes the money keeps the money. A communist society,

by contrast, says that system is unfair. A communist government owns and

controls 100% of productive assets then redistributes the benefits to the people

equally. This practice, however, only works in theory.

Historically, capitalism was first launched by the steam engine and the Industrial

Revolution that occurred around 1750. Capitalism and the Industrial Revolution

forever changed how people worked and lived. Many of the changes were good, but

there was a dark side as well. Children worked fourteen or more hours a day in

extremely dangerous work environments. Karl Marx proposed that there must be a

better way; he called his proposed form of government socialism.

Socialism, Marx wrote, would eliminate the profit motive and therefore the need to

exploit those in the labor force who are the most vulnerable and powerless. Instead, he

said, mankind can live in harmony in a socialist economic system, where each person

gives what he/she can and is given what he/she needs. Then, Marx believed, the State

and the government would eventually wither away.

Socialism, the system that Marx envisioned in the 1850s, turned into something very

different when it was tried in Russia in 1917 with the Russian Revolution. Instead of

the dictatorship of the proletariat, where all people work for the common good, Russia

got a dictatorship of an elitist party, called Communists, who caused the death of more

than 50 million of their own people, not including the deaths related to World War II.

China, under Mao Tse-Tung, surpassed that staggering number by causing the death of approximately 74 million of its own people.

Modern socialism evolved from the need to create a third way that took the good

features of capitalism and communism and eliminated the major flaws. The important

element of modern socialism includes the idea that government should intervene in the

free-market systems whenever there are market failures such as pollution, widely

disparate incomes, recession, and/or depression.

John Maynard Keynes, an English economist and speculator, became the godfather of

modern socialism when he wrote one of the most influential books of the twentieth

century, The General Theory of Employment, Interest, and Money. When it was

published in the mid-1930s, the world was mired in one of the worst depressions in

history. Capitalism and free markets had not only failed but had failed catastrophically.

In a time when millions were unemployed, it would have been unconscionable, he

argued, even criminal, to sit back and wait (as classical economists argued) for the

economy to recover its balance. Government, he wrote, should intervene to generate

more demand for products and services that would trickle down to the need for

increased labor forces. Terms like aggregate demand and deficit spending began to

circulate. Governments were pleased with the idea of deficit spending: the U.S.

government has had only five surpluses in the last forty years. After all, it is hard to

argue against deficits when they are ostensibly being done for the good of the country.

The last of the isms is also a command economy: it is directed and dominated by the

state/government. Though typically placed on the right of the political spectrum,

fascism shares the most features with communism including—but not limited to—a

state-dominated economy, large armies, a high percentage of budget spent on defense,

and few civil rights: in other words, a police state. The most important differentiation

between the two is in the area of private property. Most fascist governments allow

ownership of private businesses and private property while most communist

governments own or control everything except the most marginal of personal effects.

Private ownership of businesses and property in a fascist country comes with a major

footnote. If the government wants you to do something with your business or property,

you had better do it. In other words, you own it, but they control it.

Basics Of Supply And Demand

The study of economics teaches the student a way of thinking that will help him or her

make tough, effective decisions in the future, help him or her to understand society and

global affairs and to become an informed voter. That is not bad for a much-maligned

topic.

Economists would say that economics is the study of how individuals and societies use

scarce resources most efficiently; this is just another way to say, “get the most value.”

Economics is the study of how societies deliver what people want when they want it.

All economic systems must answer three basic questions:

What will be produced?

How will it be produced?

Who will get what is produced?

U.S. Economic History: Revolution to Evolution

In 1776, during the Revolution, more than 90% of people lived on farms or in the

wilderness. During the next two centuries, our business economic system evolved from

an agrarian society to an industrial powerhouse to a largely service-marketing oriented

business environment to the present technology-information age. Many, if not most, of

the major developments during the last century and a half have been enabled by major

technologies. Once the steam engine and railroad were invented, it provided the muscle

for the nascent industrial revolution in the last 25 after World War II, the United States

and its people made up for lost time by building interstate highways and moving to the

suburbs. Today’s economy is fueled largely by innovation and technology.

An Economic Tool That You Can Use: Opportunity Cost

Opportunity cost is one of the important concepts in understanding economics, and it

will point you in the right direction when making a difficult choice between two

alternatives. Let’s say you can borrow $40,000, and you can spend it on either a new

car or a college education.

In many of these situations, we’d like to do both, but in the real world, when you do

more of one, you usually have to do less of the other. Generally, we must choose one

or another alternative. Both is not the correct answer.

Let’s go back to your car or school dilemma. Due to the fact that you spent the $40,000

on a nice car, you lost the opportunity to go to school and earn a degree. Latest

statistics show that the average college graduate will earn $1.8 million over a 40-year

work life; the average high school graduate earns about $800,000. Your new car has

then cost you about $40,000 plus $1 million in lost salary.

Concepts And Problems In Macroeconomics

Macroeconomics is a part of our everyday lives. If the macroeconomy is doing well,

few people do not have jobs who want one, people’s incomes are generally rising, and

profits of corporations are generally high.

Whereas microeconomics focuses on the factors that influence the production of

particular products and the behavior of individual industries, macroeconomics focuses

on the determinants of total national output. Macroeconomics is concerned with the

sum, or aggregate of industries’ performaence, including the consumption of all

households in the economy, the amount of labor supplied and demanded by all

individuals and firms, and the total amount of all goods and services produced.

Macroeconomics was born out of the effort to explain the Great Depression of the

1930s. Since that time, the discipline has evolved, concerning itself with new issues as

the problems facing the economy have changed. Through the late 1960s, it was

believed that government could “fine-tune” the economy to keep it running on an even

keel at all times. The poor economic performance of the 1970s however, showed that

fine-tuning does not always work.

There are three very important macroeconomic concerns. These include:

Inflation, an increase in the overall price level

Output growth, the short-term ups and downs in the economy. And,

Unemployment, which is the percent of the labor force that is unemployed.

Macroeconomics is concerned with both long-run trends and with short-run

fluctuations in economic performance. Since 1970, the U.S. has seen three recessions

and large fluctuations in the rate of inflation.

Gross Domestic Product (GDP) is the key concept in the national income and product

accounts. It is the total market value of a country’s output, the market value of all final

goods and services produced within a given period of time by factors of production

located within a country.

There are other useful concepts besides GDP:

Gross National Product (GNP), GDP plus factor income earned by U.S. citizens

from the rest of the world and subtracting factor income earned in the United

States by foreigners.

NNP or Net National Product , which is GNP less depreciation.

National Income (NI), which is NNP less indirect business taxes plus subsidies.

Personal Income (PI), which is the total income of households, and is found by

taking NI and subtracting corporate profits minus dividends and social

insurance payments, and then adding personal interest income from the

government and consumers and transfer payments made to persons. Finally, Disposable Personal Income, which is PI after personal income taxes are paid.