ECO-201

A:DQ1 Economic Models

One criticism often heard about economics is that the models we use are unrealistic: in seeking to keep the
scope of our work more manageable by making certain assumptions or ignoring certain details, we may
oversimplify the situation.

1. Write one paragraph on whether you agree or disagree with this criticism.

Why do we use models at all, and how should we balance the need for simplicity with the need for accuracy?

2. Write one paragraph explaining what makes a good model.

Find an example of a model (in economics or elsewhere) in the real world and explain if you think your example
strikes the right balance between details and simplification of use.

3. Using your model, found in an academic journal article, write one paragraph explaining the model and
the degree of usefulness (any strengths or weaknesses).

B- DQ2 Entrepreneur & Innovation

Discuss the role of the entrepreneur and innovation in the economy.

1. Write one paragraph discussing whether entrepreneurs are important to economic development, and, if
so, why.
2. Write one paragraph examining what motivates people to become entrepreneurs and what risks they
take as a result.
3. Write one paragraph reflecting upon an entrepreneur that you admire, and why. (Make sure you back-
up your opinion with academic resources such as journal articles)

C- 2 DQ1: Demand Influencers

Find an article about the demand for a product that interests you and post the link below your header. Write the
following discussion:

1. How is the demand for the product affected by some of the factors reviewed in Chapter Three (3)?
2. Personally reflect on how your demand is influenced by variables such as price, quality, and other
factors.
3. Scenario: If a new tax was put on your product, how would your demand change? Why?

D-Unit 2 DQ2: GDP Calculations

GDP is used by economists to measure a nation's total production, so clearly, they don't want the calculation of
GDP to miss any significant amounts of production that take place.

1. What are some production items that the typical measure of GDP might miss? Why?
2. Should these missed items concern us, and, if so, what should we do about it?
3. Scenario: You have a garden in your backyard/window flower box. Provide examples of when the
items you grow should or should not be counted in the GDP calculation?  Is it possible to have a
situation where both occur (count and not be counted)?

E-Unit 3 DQ1: Unemployment

Some people argue that the official unemployment rate understates true unemployment, while others argue that
it overstates true unemployment.
 1. Explain each of these positions, giving some examples of what might cause the official rate to be either
too high or too low.
2. Personally reflect on whether you think we should make any changes to how we calculate
unemployment. If so, what would you propose? (Support your answers with academic journal articles.)
3. Scenario: What if academic inflation caused the creation of a law that required an associate degree to
earn minimum wage. How would that affect the economy and You personally?

F-Unit 3 DQ2: Economic Stability

The volatility of economic activity in the United States has decreased over time, and especially since World War
II. Economists refer to this as the Great Moderation, and during this period expansions have gotten longer while
recessions have gotten shorter.

1. What are some causes of this Great Moderation (reflect on current economics in the past 10 years)?
2. Do you think this pattern can continue in the future (for the next 10 to 20 years)? (Support your
answers with academic articles)
3. Can you think of any potential drawbacks to this development, or alternative changes that will need to
be made in the future to continue the stability within the economy? Explain if these issues are even
possible or hypothetical within your answer, and why.

G-Unit 4 DQ1: Economic Comparison of Countries

The catch-up model predicts that relatively poorer countries should grow more quickly than richer countries
over time.

1. Write a paragraph explaining why this economic model would occur.

2. Have the predictions of the model been accurate? (Use an academic journal article to support your
answer.)
3. What are some reasons that countries might have failed to “catch-up” over time? (Utilize current laws,
politics, or economic conditions to explain.) (Use an academic journal article to support your answer.)
4. What, if anything, should those countries do differently in the future? (This can be a personal reflection
based on the academic journal article information already analyzed.)

H-Unit 4 DQ2: Economic Globalization

The increasing linkages of economies worldwide as a result of increased transnational flows in goods, capital,
and people is generally referred to as globalization.

1. How would you assess if globalization has been a positive development overall?
2. Find an academic journal article that offers a critique of some aspects of globalization and post the link
with your discussion. Do you find the author’s argument compelling to either side? Why or why not?
3. Personal reflection: How has globalization helped you and how do you think it will help you in the
future?

I-Unit 5 DQ1: Economics of Money

The average person thinks of the currency in their wallet or funds in their bank account when thinking of the
word “money,” but economists think about the concept of money in a much broader sense.

1. What are the key features that are required to be considered money?
2. What are some examples of things that have been used as money historically (you can explore different
economies as well, not just the USA)?
3. Bitcoin and other cyber-currencies are frequently in the news now; do you think they should be
considered money? Why or why not? (Explain all of your answers and provide academic journal
articles to support your answers.)
K-Unit 5 DQ2: Federal Reserve Bank

Some observers argue that the mandate of the Federal Reserve Bank should be changed to prioritize the control
of inflation over other goals.

1. Why do they think this (i.e. what problem are they trying to solve)?
2. What are some arguments for inflation targeting like this?
3. What are some arguments against inflation targeting?
4. Additionally, research the policies of a different central bank when it comes to balancing inflation
control versus other goals and share with the group what you found out. (When looking for different
countries' economic policies, everyone should research a different county. Therefore check the board as
people post before posting your answers in order to avoid duplication.)