Exam 1 redo

1.The objective of this question is to help you understand how the critical ecosystem services are impacted by economic activity and some things we can do to solve those problems.
To a great extent, Economics is about connecting the dots (finding relationships between seemingly unrelated things).  
For now, Earth is the only place we can live. Our ability to live on this planet is supported by the many Ecosystems active on the planet. Our behavior disrupts those Ecosystems and all the Ecosystem Services. Those disrupted Ecosystem Services in turn have impacts on the people and economies of the global north and global south.  It is very important that you develop a good understanding of the interaction of our behavior and the environmental and economic consequences of that behavior. This question is part of the topic called Intro to some key concepts of Economics.
 Pick 5 Ecosystem Services from the list in slide13of the topic called Intro to some key concepts of Economics.
•For each of your 5 ecosystem services, please explain how each is supposed to work. This is key to answering the entire question, so please focus on this. Google can help with this!
•For each of your 5 ecosystem services, please thoroughly explain at least one human behavior that has disrupted of the operation of the service. Please be thorough. 
 •For each of your 5 Ecosystem Services, explain how the disruptions to the Ecosystem Service impact the two different parts of the world (the global north nations and global south nations).More specifically, explain how the lives of the people and the national economies are impacted.
•For each of your 5 ecosystem services, thoroughly explain 3things that we should start doing right now to repair or at least stop the damage to the 5 Ecosystem Services you selected.  Be sure you explain how each of your recommendations would actually lead to solution of the problem. Remember, you need 3 recommendations for each of your ecosystem services. 
 2.The objective of this question is to help you: 
•understand the real issues of scarcity of resources and the choices we must make.
•Understand the issues of rational behavior as it applies to a real life problem
•Understand utility concepts as they are applied to the Keystone Pipeline Project.
•Understand some of the basics of the theory of consumer behavior.
•Understand the concepts of marginal analysis as applied to the Keystone Pipeline project. 
 Planet Earth is our only home for the time being. As global populations grow and our resources dwindle, we should worry more about the issues of SCARCITYAND CHOICE.  All parts of this question are part of the topic called Intro to some key concepts of Economics. 
 i. There are 17 Rare Earth Elements. Pick any 5of them, and for EACH of the 5, explain in detail why they are so critical to us. Use Google to look the up.
Include in your answer:
a. what it used for,
b. why are those resources so critical? 
c. Where in the world the resource is located.
d. And approximately how much is left.  
e. For EACH of the 5, please explain3thingswe need to start doing today to avoid running out of that resource. It is very important that you provide thorough and complete explanations here. 
•The theory of rational behavior says that we humans act in our own self-interest.   Given our actual behavior and the decisions we have made and are continuing to make relative to the planet, please:
i. What does over-pumping of aquifers really mean? Use Google to gather info.
ii. Is continued over-pumping of aquifers around the world in our best interest? If yes, explain why. If no, explain why not. Please provide thorough explanations.
iii. Explain how the continued over-pumping of aquifers in America, China, and India, could impact our ability to survive on the planet. This will require that you find out what things these 3 nations have in common that are related to aquifers. Connect the dots and explain how our ability to survive on the planet could be impacted by continued over pumping of aquifers.  Please provide plenty of detail here. Google can help!
iv. Explain in detail 3 things we can do to stop the over-pumping problem. In your explanation, please talk about how your suggestion would actually lead to solution of the problem. Hint: Focus on the top uses of water in the world.
•Utility Concepts:
•Explain the 3concepts: Utility, Marginal Utility, and Diminishing Marginal Utility. this material is provided in the slides and audio lecture.
i. Provide explanation of 2examples of EACH of those 3concepts as they might be applied to the Keystone XL Pipeline project.
•The Theory of Consumer Behavior: this material is provided in the slides and audio lecture.
i. Explain EACH of the key assumptions of the Theory of Consumer Behavior and what the theory tells us. Read the slide and listen to the audio lecture.
ii. Does the theory of consumer behavior reflect reality?  If yes, then why.  If no, the why not. 
Marginal analysis is a decision-making tool. This material is provided in the slides and audio lecture.
i. Please define Marginal Cost
ii. Please define Marginal Benefit, 
iii. Explain thefollowing3 cases in terms of what you should do regarding the activity involved. Should we do more of the activity, less of the activity, or keep doing the same? Explain why in each case. 
 1.MB>MC
2.MC>MB
3.MC=MB
iv. Explain 3 examples of MC related to the Keystone XL Pipeline question.
v. Explain 3 examples of MB related to the Keystone XL Pipeline question. 
 3.The objective of this question is to help you understand and apply the various concepts related to the Production Possibility Model.   
 The Production Possibilities Model is one of the first Economic Models students learn about.  Please refer to the material covered in the topic called The Economizing Problem. 
 •Please explain what the model teaches us. 
 •Please explain each of the 4 assumptions of the model.
•Please explain Productive Efficiency and how it relates to the ppc.
•Please explain Allocative Efficiency and provide a thorough explanation of the 2-step process for finding the point of allocative efficiency on the PPC.
•On the topic of Economic growth: need to see some detail here.
i. What does it mean?
ii. How can it be graphically represented?
iii. What are the prerequisites to Economic growth? 
iv. GDP growth rates for the past 60 years show a steady downward trend. Explain why you should care about that.
v. Why is Economic growth good for you and your country?
vi. Why is Economic growth bad for you and your country?
vii. Please provide thorough explanation of 3factors that would tend to limit economic growth.  Be sure you explain how those factors would actually cause economic growth to be limited. 
 •The Present Ville –Future ville case:
1.Explain what motivated each group to make the decisions they made.
2.Explain the impact of those decisions on the future of each group.
3.Which group is most like America, and why?
4.What does this story teach you?  
 •Law of increasing opportunity cost:
1.Explain it.
2.What does it teach us?
3.How could it be explained graphically?
•Explain how you could use the Production Possibility Model to represent the US Economy during the Corona Virus pandemic. 
 4.The objective of this question is to help you begin to understand the basic elements of the economy and how they interact. 
 The Circular Flow Model with Government is another important model for students to understand. Please use the material covered in the topic called The Economizing Problem. For info on the Government sector use the material covered in the topic called The US Economy –Private and Public Sectors. 
 •Please explain what the model shows us.
•List and explain at least 3 of the characteristics of each component–be very thorough and provide plenty of detail!
•Thoroughly explain how each component of the model interacts with the other components–be very thorough –this requires lots of detail! Explain how all of the sectors and markets interact with each other. You can do this as part of your answer to part (b)if you like but understand that this will require significant detail! 
 5.The objective of this question is to help you learn how to ask hard questions of an economic system to determine what’s good and what’s bad about it. 
 Every country has its own unique type of Economic System.  Ours is called Capitalism.  Please consult the material covered in the topic called The Market System.  Google may also be of help here. 
 •Please list and explain 5 “good” things Capitalism has produced for us over the years. Make sure you provide thorough explanations of why you believe these are “good” things.  
        This is harder than it looks! Think carefully and be objective. Nothing is 100% good or bad, so you will need to be very thorough in you’re explanations. Don’t talk about pros and cons.  Focus only on good things that capitalism has produced. 
 •Please list and explain5 “bad” things Capitalism has produced for us over the years. Make sure you provide thorough explanations of why you believe these are “bad”.
•Capitalist Economic Systems typically require a steady flow of resources and expanding markets.  Please explain in detail what would happen to our capitalist system when these two conditions are absent and explain why those we would expect to see those results. 
 6.The objective of this question is to help you develop a good understanding of how our capitalist system answers the 4 fundamental questions. 
 The discussion of the Market System we talked about the characteristics of the Market system and 4 Fundamental Questions that every economic system must answer.  Please use the material covered in the topic called The Market System 
 •List and thoroughly and completely explain those 4 fundamental questions and how they are answered.  All the necessary information is provided in the slides and the audio lectures.  Be sure you provide thorough and complete explanations throughout.
i. What will be produced?(include explanation of all the concepts presented under this topic).
ii. How will the goods and services be produced?1.Why must firms try to employ the most economically efficient production techniques? 
2.For each of the following issues, please explain in detail, why they are important to a firm and how a firm might address each one(need to see the detail here):
a. Optimal plant location 
b. Resource Prices
c. Resource Productivity
d. Transportation Costs 
•Who will get the goods and services? 
•How will the system accommodate change? Be thorough! read the slides and listen to the lecture, then start writing. 
•Characteristics of the Market system. 
i. Select any 5 of the characteristics of the Market system that we covered, and explain each of them. Be thorough! 
 ii. Explain how each characteristic you selected impacts the 1% versus the 99%.
 7.The objective of this question is to help you develop a good understanding of demand, supply, and market clearing equilibrium. 
 Demand, Supply, Market Equilibrium. Please use the material covered in the topic called Supply and Demand.
•Demand: 
 i. Please Thoroughly and completely define demand.
ii. Please state the law of demand.  
 iii. List and thoroughly explain the 3 factors that support the law of demand. Be sure you explain how each actually supports the law of demand.
1.Don’t just copy from the slides, explain what they actually mean and how they support the law of demand. 
 iv. List and explain the determinants of demand and how each can cause an increase in demand and a decrease in demand.
1.List and explain each of the 5 determinants and how they impact demand. 
 v. Thoroughly and completely explain the differences between a change in demand and a change in quantity demanded along with the causes of those changes, and how each change is graphically represented. 
 •Supply .
i. Define supply.
ii. State the law of supply.
iii. List and explain the determinants of supply and how each can cause an increase in supply and a decrease in supply.
iv. Thoroughly and completely explain the differences between exchange in supply and a change in quantity supplied, the causes of those changes, and how each is graphically represented. 
 •Market equilibrium.   
 i. Please thoroughly and completely explain what market clearing equilibrium means.
1.Don’t just copy stuff, explain what this really means.  Please be thorough.
ii. Thoroughly and in detail, explain what happens when a price is above the equilibrium price, and why those things happen!!!Detail!
iii. Thoroughly and in detail, explain what happens when a price is below the equilibrium price, and why those things happen!!! Detail!
iv. Thoroughly and completely explain the two government intervention cases, price floors and price ceilings and give examples of each.
 8.The objective of this question is to help you understand the concepts of private goods, public goods, free rider problem, and quasi-public goods. 
  Public goods vs. Private goods.  Please use the material covered in the topic called The US Economy –Private and Public Sectors
•Private goods:
i. Please explain private goods.
ii. Please explain their characteristics. 
iii. Please give2 examples of private goods, including why those examples best fit your definition.
iv. Please explain how private goods impact income inequality.
•Public goods:
i. Please explain public goods.
ii. Please explain their characteristics.  
 iii. Please give 2 examples of public goods, including why those examples best fit your definition.
iv. Please explain how public goods impact income inequality. 
 •Free rider problem:
i. Please thoroughly and completely explain the free rider problem.
ii. Please give two examples of the free rider problem, and explain why they are good examples. 
 •quasi-public goods:
i. Please thoroughly and completely explain the presence of quasi-public goods.
ii. Please provide 3 examples of quasi-public goods and explain why they are good examples.  
iii. Explain how quasi-public goods are used by the 1% versus the 99%. 
 9.The objective of this question is to help you understand some of the details of market failure, spillover costs, and spillover benefits.   
 Market Failure. please use the material covered in the topic called The US Economy –Private and Public Sectors 
 •State the definition of a market failure, 
•List and explain the 4 causes of market failure included in the slides, including how they actually lead to over or under allocation of resources (market failure).Don’t miss this part! Must be very specific.
•State the definition of spillovers costs 
 •Give two examples of a spillover costsituation and explain why your examples are correct.
•Explain in detail, the economic effects of spillover costs. 
Explain why a firm would want to offload some of its production costs to a3rdparty.
•Explain how output decisions are affected.
•Explain how resource allocation is affected by the output decisions.
•Explain how the new resource allocations leads to market failure, defined as the over or under allocation of resources. 
 •Explain in detail, how spillover costs are corrected and how those two approaches would actually work to solve the problem.  Be very detailed.
•State the definition of spillover benefits.
•Give two examples of a spillover benefit situation and explain why your examples are correct. Be specific.
•Explain in detail, the economic effects of spillover benefits.
•Explain how the 3rdparty responds to receiving unexpected benefits.  
•Explain how the behavior of the 3rdparty impacts the producers’ perception of demand. 
•Explain how the producers’ perception of demand leads to changes in the output decisions of the firm.  
•Explain how those output decisions lead to solution of the market failure problem.   
 10.The objective of this question is to you develop a good understanding of the concepts of depreciation and appreciation of a currency.   
 International Trade Please use the material covered in the topic called The US in the Global Economy. 
 •Please thoroughly and completely explain how the US dollar might depreciate relative to another currency, and how that would impact U.S.GDP.
•Please thoroughly and completely explain how the US dollar might appreciate relative to another currency, and how that would impact U.S. GDP. 
 11.The objection of this question is to help you understand in some detail some of the various trade barriers.   
 Throughout the ages countries have implemented impediments to trade. Please use the material covered in the topic called The US in the Global Economy as well as Google 
 •What is a tariff?
•Why would America impose tariffs against another nation?
•Why would the U.S. impose steep tariffs on Chinese solar panels prior to 2016?
i. Explain how this would work to accomplish the U.S. objective. 
 •Given the current trade war with China and other nations, please explain
i. Which industries are being hurt by higher tariffs against foreign nations and how are they being hurt?
ii. Which industries are being helped by higher tariffs against foreign nations and how are they being helped?  
iii. Explain how and why the American customers of those industries are being impacted.  Please provide thorough explanations. 
 •What is an import quota?
•Why would America implement import quotas?
•Identify 3 cases where the U.S. has imposed import quotas on another country and explain why each were implemented.  Be thorough.
i. Google can help you. 
 •If America suddenly eliminated all trade barriers, explain what would happen to employment, national income, and GDP in America, and why those things would happen. What role would the concept of comparative advantage play in these events? Please provide lots of detail.