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Macroeconomics

Published by admin at March 2, 2023
Categories
  • Accounting
Tags
  • Macroeconomics

 

Brainstorm common items that you think consumers pay too much for or that you think are overpriced (i.e. movie theater popcorn, brand name items, souvenirs,, etc.). Now think of something more specific, either something that you or someone who know has purchased. For example, I know someone with a baby who was traveling and purchased a small pouch of baby food for $2.00, when even more baby food could have been purchased in a jar for around $0.50.
Write about your example, then use the principles you’ve learned about (like scarcity, opportunity cost, rationality, and marginal analysis) to explain why a person would make the decision to purchase that good.
Post your initial response (minimum of 200 words) no later than Wednesday, 11:59 pm and reply to at least two of your classmates (minimum of 150 words)

 

Sample Solution

An example of something that is often perceived as overpriced by consumers is a small pouch of baby food. I know someone who recently traveled with their infant and purchased a 4-ounce pouch of baby food for $2.00, when the same amount in jar form would have cost around $0.50 (Shah & Smith 2016). This particular choice can be explained utilizing concepts such as scarcity, opportunity cost, rationality, and marginal analysis.

In terms of scarcity, this decision was likely made due to the limited availability or lack of access to inventory at that particular time thus forcing shoppers to pay higher prices (Mankiw 2015). In regards to opportunity cost, given the limited resources available and monetary constraints imposed on the family’s budget, they had to sacrifice spendings in other areas in order to purchase one item that would satisfy their familial needs (Tullock 1967). Additionally, this choice may also exemplify rational behavior since it was done in response to an immediate need without taking into consideration long term expenses associated with similar purchases (Becker et al., 2020). Furthermore, this situation reflects marginal analysis because both parents were able to compare costs between purchasing baby food pouches versus jars while weighing out potential benefits associated with convenience and price differences among these two options(Baron 2004).

pace Transition Theory concludes seven key postulates, (1) person, with repressed criminal behaviour (in the physical space) have a propensity to commit a crime in cyberspace which they would not commit in physical space, due to their status and position. Due to Rosica being an ex-cop restricted him committing a behaviour in physical space, as he had to maintain his status and position of being an ex-cop. (2) Identity flexibility, dissociative anonymity and the lack of deterrence factor in the cyberspace provides offenders with the choice to commit cybercrime. Rosica had the accessibility to create a fake online identity in which he did (Katy Jones), this was the identity flexibility factor. This meant that his real identity was hidden/anonymous (dissociative anonymity). And he also knew there is no certainty of punishment, especially with an unknown identity (lack of deterrence). (3) Criminal behaviour of offenders in cyberspace is likely to be imported into physical space, vice versa. Information was not given about Roscia’s physical stalking but he was charged five years for this being one of the reasons. (4) Intermittent ventures of offenders into the cyberspace and the dynamic spatiotemporal nature of cyberspace provide the chance to escape. Roscia knows that in cyberspace there is no continuous risk in getting caught, as the changing of space and time can contribute to the offenders’ escape. (5) (a) strangers are likely to unite together in cyberspace to commit a crime in the physical space and (b) associates of physical space are likely to unite to commit a crime in cyberspace. This claim does not apply to this case study, as Roscia was the only offender involved. (6) Persons from closed society are more likely to commit crimes in cyberspace than persons from open society. The fact that Roscia was an ex-cop meaning that he could have continued living in a closed society as being so used to it from his job; this theory can relate to the reasoning behind his offence. (7) The conflict of Norms and Values of Physical Space with the Norms and Values of cyberspace may lead to cybercrimes. The last key point is an overall statement of most online crimes.

 

 

There are five key postulates in ‘liquid modernity’ which are based on interactions online, four of which relate to this current study.

(1) A lack of morality, in this case, Rosica’s stalking behaviour is morally wrong.

(2) To promote instantaneous gratification, in order for Rosica to continue the harassment of his ex-girlfriend and several others suggest that he was receiving some pleasure from it, hence why his repetitive behaviour continued.

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