Economic Value Analysis

 

 

Document 1
Updated by Sonya Plater May 18th, 2020
Chapter Three Analytical Problems to look at: 1, 2, 3, 4 – I will be posting
answer keys for these questions in Week 2.
Chapter Four Analytical Problems to look at: 1, 2, 3, 4 – I will be posting
answer keys for these questions in Week 3.
Please read pp. 58 – 62 of your textbook.
Most of this section of the chapter is review….. you know from your Economics
201 course that when we set MB = MC we produce the right amount of this
product for society. This is important as we have limited resources and need to
use our resources in the most efficient way. Plus we need to use our resources
to produce what is most valued by society.
If we do this, social welfare (combined consumer surplus and producer surplus)
will be the largest it can be. But first let us make sure you remember consumer
surplus and producer surplus…and value versus price versus cost …..
Using the example on pp. 59 – 60 and Figure 4-1,
When the price of this product is $20,
i.) the value1 of consuming 40 units of this product is equal to $2,400.
ii.) the total expenditure on 40 units of this product is equal to $800.
iii.) consumer surplus on 40 units of this product is equal to $1,600.
1 This is all the value that society gets from our consumption of this product. Why? Because we
are part of society and all our value is equal to all society’s value. We will see later in this chapter
that this is not always the case.
2
vi.) the total revenue from selling 40 units of this product is equal to
_________.
v.) the total variable cost of producing 40 units of this product is equal to
_________.
vi.) producer surplus on 40 units of this product is equal to _________.
vii.) social welfare from 40 units of this product is equal to _________.
OR
i.) the value of consuming 40 units of this product is equal to ________.
ii.) the total variable cost of 40 units of this product is equal to
_________.
iii.) the net social value from 40 units of this product is equal to
_________.
BTW When you see a supply curve, you know that the market structure is
__________________________.
In your Economics 201 course and/or your Economics 202 course, you would
have looked at the trade-off between efficiency and equity. Societies that focus
on being very efficient tend to produce a lot of output but it is not evenly
distributed within their population (the ‘pie’ is big but some slices are bigger than
others). Societies that focus on being very equitable tend to distribute output
equally but there is less to go around (the ‘pie’ is small but everyone gets roughly
the same sized slice). As a society we decide how we want to live. Personally I
find that if I have to live in a cage (how I look at gated communities) to enjoy a
bigger slice, I am not interested. But that is my opinion.
In our next doc, we are going to look at what happens when there is value going
to others (besides the consumers of the product) when a product is consumed
and also when there is a cost being incurred by others (besides the producers)
when a product is produced.

Sample Solution

 

 

 

The word itself, “Brexit” is a blend of the words “England” and ‘leave.” It connotes Britain leaving the European Union. You have found out about it the news, and the word glides around in groups of friends. Be that as it may, what amount do you think about Brexit other than England attempting to sever with the European Union? On the off chance that one isn’t living in England, it tends to be hard to stay aware of all the report about this groundbreaking event. What’s more, what are the reasons for Brexit? The primary driver of Brexit is the debilitating of the EU, the feeling of national character in Britain, and the EU’s association with China.

The EU isn’t as solid as it used to be monetarily and furthermore regarding resolve. What’s more, with the consideration of 28 individuals, basic leadership is incredibly unpredictable. As per the Barcelona Center of International Affairs, “The EU of 2016 by differentiate has been hit by a progression of very harming blows: the monetary emergency of 2008; oneself exacted harm from inability to manage the defects of the euro following the emergency; Russian accomplishment in upsetting the post-cold war level of influence in Europe; psychological oppressor assaults from ISIS and huge movement streams into the Union” (“Brexit: Causes and Consequences”). The UK joined the EU in 1973 to be a piece of a powerful substance that would help countries in exchange and social guideline. However, presently the EU is troubled with issues that are esteemed to overload the UK.

Furthemore, Britain regularly thinks about itself as an unconquered country and is noted as a longstanding parliamentary vote based system. English individuals have generally been more related to being British than European. As expressed by the Barcelona Center of International Affairs, “It participated in 1973, rather on the grounds that there didn’t appear to be some other choice than joining the then progressively prosperous Western European majority rule governments. It is likewise evident that for a considerable length of time, the British political class and media played an enemy of EU game, where made up stories on the revulsions of the EU were put over the front pages of newspaper papers. The dribble trickle impact of forty years of negative media inclusion was hard to turn around in a multi month choice crusade” (“Brexit: Causes and Consequences”). This feeling of character likewise is being tested by the EU’s arrangement on migration. Average citizens in Britain in the greater part don’t feel slanted to open movement. As per Ian Jack of The Guardian, “… in 2004, Tony Blair’s administration chose to open the UK work market to the eight eastern and focal European nations that had joined the EU. Somewhere in the range of 5,000 and 13,000 vagrants were normal; inside the main year, 129,000 turned up. Blair and other senior Labor figures later surrendered they had committed an error” (“Who Do I Blame? Eight Reasons We Ended up in This Brexit Mess”). This political choice caused a ripple effect over the people about the feeling towards migrant specialists. Presently, as in numerous European nations, Britain’s patriotism is on the ascent on account of the purported ridiculous measure of outsiders.

Finally, a fundamental driver of Brexit is the UK’s abhorrence of how the EU has treated China and how globalization has influenced UK markets. Despite the fact that China has joined the World Trade Organization, it has not agreed to its standards. As indicated by the Barcelona Center of International Affairs, “The disappointment of the EU to perceive and manage Chinese reluctance to follow WTO gauges and apply vigorous exchange resistance quantifies accordingly has damagingly affected modern work across Europe” (“Brexit: Causes and Consequences”). Moreover, many contend that movement isn’t the essential driver of Brexit, however strategies on financial globalization are. Progressively, the British creation of merchandise have been moved abroad—particularly to China. The Washington Post expresses that, “… governments’ powerlessness to remunerate globalization’s washouts appears to have pushed voters toward political business visionaries who give themselves a role as independent and patriot, and who censure outsiders for troubles that likely have pretty much nothing, on the off chance that anything, to do with movement” (Colantone, Italo, and Piero Stanig). The issue is entangled, however it comes down to British organizations making some troublesome memories staying aware of the impacts of globalization inside their businesses.

At the point when the vote was settled for Brexit, it was a stun to the world. Be that as it may, to the individuals who were influenced by the EU’s approaches for quite a long time, it was less of an amazement. The primary driver of Brexit is the EU’s reduced economy, the quality of the national personality in Britain, and the impacts of globalization on business sectors in the UK.

Works Cited

“Brexit: Causes and Consequences.” CIDOB, www.cidob.org/publicaciones/serie_de_publicacion/notes_internacionals/n1_159/brexit_causes_and_consequences.

Jack, Ian. “Who Do I Blame? Eight Reasons We Ended up in This Brexit Mess | Ian Jack.” The Guardian, Guardian News and Media, 3 Mar. 2018, www.theguardian.com/commentisfree/2018/deface/03/brexit-migration occupations eton-europe.

 

 

 

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