Economics

Who are the workers who earn minimum wage? The answer to this question sheds light on how we respond to the demand for higher wages. If they are teens, then they will presumably seek an education and better their lives. If they are moms who want to earn a little extra money for her household, then we don’t need to worry about her income as much. According to the BLS.gov, most workers are young, work in food service, and are single. See: Bureau of Labor Statistics Minimum Wage Report  (Links to an external site.) According to the LAO.org, in California, the minimum wage workers are also young but not teens, many of them are married with children, and work in retail and food service. See: LAO Article on minimum wage impacts  (Links to an external site.) The minimum wage is a price floor that sets a legal minimum that can be paid to low-skilled workers. In the standard economic model of supply and demand in the low-skilled labor market, a price floor would create a surplus of labor or unemployment. In the economics profession there have been many studies that actually illustrates that in unique markets (such as fast food in NY City or restaurant workers in Seattle, WA) when the minimum wage increases, there is very little unemployment causes by the increase. This is such a quandary that the Federal Reserve of San Francisco studies and then summarized all of these studies. The conclusion to this survey of the literature and the answer to the question above, can be determined by reading about the elasticity of the low-skilled labor market in the Fed’s article below: Federal Reserve Summary of the effect of raising the minimum wage  (Links to an external site.) (Pay close attention to the elasticities of the teen and younger persons-this ilustrates that the Supply of labor is very unique for low-skilled work.) If raising the minimum wage doesn’t cause much unemployment, are there other impacts such are on inflation, poverty or educational attainment? There are a few other impacts that raising the minimum wage can have on low-skilled workers. To learn more about the inflation and poverty impacts, read the following articles: Does Raising a Minimum Wage Cause Inflation? Dollars and Sense article on minimum wage impacts  (Links to an external site.) Does Raising the Minimum Wage Reduce Poverty? Federal Reserve article on how raising the minimum wage can reduce poverty  (Links to an external site.) 1. Does raising the minimum wage cause unemployment of low-skilled workers, in general? 2. Does raising the minimum wage cause inflation? 3. Does raising the minimum wage help to reduce poverty? 4. How does the cost of a Higher Education factor in to this discussion?

The Occupational Employment Statistics (OES) program under Bureau of Labor Statistics produces employment and wage estimates annually for nearly 800 occupations. Browse through the website and pick an industry of your interest and answer the following two questions in your main post: 1) What is the trend of the employment in this particular industry in a particular state/metropolitan area/local county in the last 5-10 years? 2) How has the industry been affected by public health crisis such as the covid-19 pandemic or natural disasters such as hurricane or tropical storms? Support your opinions with statistical evidence or relevant economic articles. In the end, don’t forget to raise a meaningful question to keep the discussion moving.  You are strongly encouraged to do research on your topic with at least one reference citation (web citation acceptable) in APA style. Please provide your citation/reference at the end of each post.

We will be looking closely at the characteristics of developing countries as compared to the rest of the world. We specifically will be looking at the following: 1. Lower levels of living and productivity  2. Lower levels of human capital 3. Underdeveloped financial and other markets.

Keep your own personal feelings and anecdotes out of it. If you are making a claim, provide evidence. Your experience is not evidence, so I do not want to hear your experiences on the issue. Stick to published research or sound economic analysis. Please watch the two videos and then, using economic analysis, please discuss where each video is correct and incorrect. The big problem with legalizing marijuana https://youtu.be/Xa6GpqxDWm4   Legal Weed So Far   https://youtu.be/8rbq8Nl9pvI

The “market system” is often touted as the best mechanism for producing the things that we want to have. Do you think, though, that this is true? Is it always true? More stringently, is it ideal? Are there examples of items that privately-owned markets don’t produce effectively? In other words, do you think the government should play a larger role (or a smaller role) in controlling productive activity in this country? Give supporting reasons and examples, not just opinions! In your subject line, include “Larger Role” or “Smaller Role”. DOES NOT HAVE TO BE A FULL PAGE…HALF PAGE IS FINE!!!!

Please complete the following two applied problems: Problem 1:  Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type of restaurant she is going to start. If she opens a restaurant in a suburban area of Los Angeles, then taste is the most important attribute, three times as important as location, and two times as important as price. If she opens a restaurant in the Los Angeles metropolitan area, then location becomes three times as important as taste and two times as important as price. She is considering two venues, respectively, a steak restaurant and a pizza restaurant, both of which are priced the same. She has rated each attribute on a scale of 1 to 100 for each of the two different types of restaurants. Steak Restaurant Pizza Restaurant Taste Location Price 80 55 65 70 80 50 Show all of your calculations and processes. Describe your answer for each question in complete sentences. Which of the two options should Patricia pursue if she wants to open a restaurant in a suburban area of Los Angeles? Calculate the total expected utility from each restaurant option and compare. Graph is not required. Describe your answer, and show your calculations. Which of the two options should she pick if she plans to open a restaurant in the Los Angeles metropolitan area? Describe your answer, and show your calculations. Which option should she pursue if the probability of finding a restaurant venue in a suburban area can be reliably estimated as 0.7 and in a metropolitan area as 0.3? Describe your reasoning and show your calculations. Provide a description of a scenario in which this kind of decision between two choices, based on weighing their underlying attributes, applies in the “real-world” business setting. Furthermore, what are the benefits and drawbacks, if any, to this method of decision making? Problem 2:  The demand function for Newton’s Donuts has been estimated as follows: Qx = -14 – 54Px + 45Py + 0.62Ax  where Qx represents thousands of donuts; Px is the price per donut; Py is the average price per donut of other brands of donuts; and Ax represents thousands of dollars spent on advertising Newton’s Donuts. The current values of the independent variables are Ax=120, Px=0.95, and Py=0.64. Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary. Calculate the price elasticity of demand for Newton’s Donuts and describe what it means. Describe your answer and show your calculations. Derive an expression for the inverse demand curve for Newton’s Donuts. Describe your answer and show your calculations. If the cost of producing Newton’s Donuts is constant at $0.15 per donut, should they reduce the price and thereafter, sell more donuts (assuming profit maximization is the company’s goal)? Should Newton’s Donuts spend more on advertising?

Please complete the following two applied problems. Show all your calculations and explain your results.   Problem 1:   A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end of Year 1, and another $7 million can be provided at the end of Year 2.   Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:   1. Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why?   2. How would your decision change if the opportunity interest rate is 12%?   3. Provide a description of a scenario where this kind of decision between two types of payment streams applies in the “real-world” business setting.   Problem 2: The San Diego LLC is considering a three-year project, Project A, involving an initial investment of $80 million and the following cash inflows and probabilities: Year 0 Year 1 Year 2 Year 3 Probability Cash Flow ($ mil.) Probability Cash Flow ($mil.) Probability Cash Flow ($ mil.) 0.2 50 0.1 60 0.3 70 0.3 40 0.2 50 0.4 60 0.4 30 0.3 40 0.1 50 0.1 20 0.4 30 0.2 40 Initial Investment $80 mil.             Discount Rate 8%                Describe your answer for each question in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points: 1. Describe and calculate Project A’s expected net present value (ENPV) and standard deviation (SD), assuming the discount rate (or risk-free interest rate) to be 8%. What is the decision rule in terms of ENPV? What will be San Diego LLC’s decision regarding this project? Describe your answer. 2. The company is also considering another three-year project, Project B, which has an ENPV of $32 million and standard deviation of $10.5 million. Project A and B are mutually exclusive. Which of the two projects would you prefer if you do not consider the risk factor? Explain.   3. Describe the coefficient of variation (CV) and the standard deviation (SD) in connection with risk attitudes and decision making. If you now also consider your risk-aversion attitude, as the CEO of the San Diego LLC will you make a different decision between Project A and Project B? Why or why not?

Understanding what leads to shortages and surpluses is helpful in any business. Just as we’ve seen with our winter jacket company, these concepts are particularly relevant when it comes to products that consumers don’t need year-round. Demand and supply shift depending on the time of year. For this assignment, create and upload at least a 10-slide presentation with speaking notes identifying and discussing three products that have seasonal fluctuations in supply and demand. In addition, explain how producers can fill a market need during periods of reduced demand. How can you determine if the price will increase or decrease in the next twelve months? Be specific and thorough in your answer. Your presentation should have a reference slide with at least 1 citation

Part 1: Read the articles Jessica Alba’s Triple Bottom startup raises $25 million (https://www.forbes.com/sites/causeintegration/2012/09/14/the-bottom-line-of-corporate-good/#2d09860d3576) and The bottom line of corporate good (https://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/#6e39618f4111).   In reference to the articles, discuss how firms incorporate the triple bottom line concept into traditional business concerns over profitability.   -In 300 words or more, please, provide your response to the above question. Comment on how customers can influence firms to pay more attention to the preservation of the natural environment.   Part 2: To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out that traffic jams on the highway can lead to long delays making the trip 45 minutes. He preferred to travel along Shea Boulevard, which was longer (35 minutes), but rarely had traffic jams. Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative. Neither of them knows the state of the highway ahead of time. After driving to work on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times. Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work?   How would your conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?   How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month (where on this day, the app showed no traffic jam, but a jam developed in the meantime as they were driving along the highway). – In 300 words or more, please, provide your response to the above question. Please, show all your calculations and explain your answers. Further, comment on how the conclusions of this problem will change if there was no uncertainty and the highway always had traffic jams, whereas Shea Blvd was always traffic jam free? Is this scenario realistic and why?

What do you think will be the most important debatable economic or social problem facing your field of work 20 years from now? Choose the problem, define it, and defend your position using credible research from the Rasmussen College library databases.