Reference no: EM131130633
Discussion
Cost-Benefit Principle
On what basis do you make economic decisions? One potential approach is to employ the cost-benefit principle, which suggests engaging only in those actions that create an economic surplus. Considering other criteria such as opportunity costs helps you to make a rational choice. For example, when budget crises occur, local or national governments may opt to cut back on critical programs, while many others may consider raising taxes.
Post by Day 3 a 250- to 300-word statement that addresses the following:
• What are the opportunity costs of reducing expenditures (such as on education and social services programs), compared to the option of raising taxes? Why?
• Explain what you think are the rational choices in such a situation, and what other options should be considered and why.
Read a selection of your colleagues' postings.
Respond by Day 6 to two or more of your colleagues' postings in one or more of the following ways:
• Ask a probing question.
• Share an insight from having read your colleague's posting.
• Offer and support an opinion.
• Make a suggestion.
• Expand on your colleague's posting.
Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained as a result of the comments your colleagues made.
Be sure to support your work with specific citations from the Learning Resources and any additional sources.
Required Resources
Readings
• Frank, R. H., & Bernanke, B. S. (2010). Principles of microeconomics, brief edition (2nd ed.). New York, NY: McGraw-Hill/Irwin.
o Chapter 1, "Thinking Like an Economist" (pp. 3-33)
Chapter 1 introduces the concept of scarcity and presents the unavoidable fact that our needs and wants are unlimited and that the resources available to satisfy them are limited. The chapter also explains that, in an environment of scarcity, making choices on the basis of a comparison of costs and benefits is a useful approach to decision making.
Focus on the inputs to the process of comparing costs and benefits. In addition, review the appendix, "Working with Equations, Graphs, and Tables." This appendix provides a review of some of the mathematical skills you need to use in this course.
Media
• Kahn Academy. (2014k). Marginal utility [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/marginal-utility-tutorial/v/marginal-utility
Note: The approximate length of this media piece is 12 minutes.
• Kahn Academy. (2014e). Equalizing marginal utility per dollar spent [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/marginal-utility-tutorial/v/equalizing-marginal-utility-per-dollar-spent
|
What is the nature and purpose of criminal law
: What is the nature and purpose of criminal law? In your response, identify commonalities of purpose within law enforcement, corrections, the courts, and social services.
|
|
The poisson process over the entire real line
: (c) Suppose now that we consider the Poisson process over the entire real line, that is, {N(t),t ∈ R}. What then is the distribution of A(t) + D(t)?
|
|
Calculate the arithmetic return and geometric return
: You are given the returns for the following three stocks: Year Stock A Stock B Stock C 1 14 % 14 % −19 % 2 14 14 34 3 14 22 37 4 14 7 14 5 14 13 4 Calculate the arithmetic return, geometric return, and standard deviation for each stock.
|
|
Current articles about nafta at the library
: Research some current articles about NAFTA at the library. Write an essay in which some of the current pros cons of this Agreement are discussed.
|
|
What are the opportunity costs of reducing expenditures
: What are the opportunity costs of reducing expenditures (such as on education and social services programs), compared to the option of raising taxes? Why?
|
|
What is the project sales for next year
: Gary’s Pipe and Steel company expects sales next year to be $700,000 if the economy is strong, $400,000 if the economy is steady, and $250,000 if the economy is weak. Gary believes there is a 20 percent probability the economy will be strong, a 50 pe..
|
|
What are same possible ways that corporate accountants might
: Free cash how is often considered a more reliable measure of a company's income than reported earnings. What are same possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?
|
|
Journalize the payment of bond interest on january
: Prepare the adjusting entry at December 31, 2011, to amortize bond premium and to accrue interest on the remainingbonds.
|
|
Discuss your mitigation plan in term of psychological trauma
: Discuss your mitigation plan in terms of psychological trauma. For instance, explain how it will reduce anxiety in knowing that preventative measures are in place and integrated with the plan's phases.
|