Category: Economics

  • Discussion Question Forum 2

    Economic growth is generally measured by calculating the growth rate of Gross Domestic Product. Refer to the following two web articles, “Why GDP Fails as a Measure of Well-Being Links to an external site. ( )” and “Measuring Economies: The Trouble with GDP Links to an external site. ( ).” . The articles discusses the weaknesses of GDP as a measure of well-being and discusses several alternatives. Choose one of the alternative metrics discussed in the articles you favor. In 250 to 300 words, describe what it is, and explain why you believe it would be a better measure of well-being. What would measuring economic growth with your chosen metric mean? Explain why you would prefer using it to measure economic growth instead of GDP?
  • W7: Venture Capitalists

    In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?

  • W6: Economies of Scale

    The long run phenomena of economies of scale describes as the reduction in long-run average cost and hence, in efficiency sourced to increase in firm’s scale of operation. Discuss whether long-term phenomena of economies of scale have any relevance to Walmart.

  • Electricity Prices in China: A Demand and Supply Analysis

    This is an ISS201 (Demand and Supply) assignment.

    Write a 1500-word academic essay on Electricity Prices in China, following the structure and requirements below. Use simple, clear language suitable for a Bachelors level economics course.

    Required structure and word limits:

    • Introduction (100 words): Briefly introduce electricity as a good and explain why China is chosen.
    • Data (100 words): Present recent electricity price data for China (household or industrial). Include a table or graph and clearly state the data source (e.g., National Bureau of Statistics of China, IEA, World Bank). Briefly describe the price trend.
    • Background Research (400 words): Discuss key factors affecting electricity prices in China (e.g., demand growth, industrialization, coal prices, renewable energy transition, energy shortages, environmental policies). Use APA-style in-text citations and references.
    • #PriceDetermination Analysis (400 words): Use demand and supply analysis. Clearly identify which factors are demand shifters and which are supply shifters, explaining them one by one. Include and explain demand/supply graphs in words.
    • #Government Analysis (400 words): Analyze the role of the Chinese government in electricity pricing (e.g., price controls/price ceilings, subsidies, regulation). Evaluate how these policies affected prices and quantities.
    • Conclusion (100 words): Briefly summarize whether demand/supply forces and government intervention explain the observed price movements.

    Additional requirements:

    • Follow APA style for citations and references.
    • Use US English.
    • Keep explanations clear and straightforward (no advanced math).
    • Align with LO1 (Price Determination) and LO2 (Government Intervention).
    • Include a references list at the end.
  • Consumer rights

    The consumer in the market place

    Requirements:

  • Identify The Industries

    answer the main post:

    Directions:

    For this discussion, read

    After reading the document, complete the matching exercise and note why you made your decisions. Then post your answers to the discussion board for comment. This will count as your first post.

    Post an additional comment replying to a classmate’s answers to the case. This board closes at the end of the week 4.

    Meets Module Objectives 1 and 3.

    Professor will grade all assignments within 7 days of student submission.

    2.Comment on peer post:

    Reply from Stefany Guerra Gomez

    Company 1 corresponds to a bank (B) because most of its assets are tied up in investments at 67%, not physical items. There is no inventory at all and almost no PP&E that accounts 1%, which tells us this company is not producing or selling goods. The very high current and quick ratios 11.85 suggest the company keeps a lot of liquid resources available, which is important for banks that must be able to meet withdrawals and other short-term obligations. Overall, the companys structure is centered on managing money rather than operating facilities.

    Company 2 fits well as a department store (D) because it balances inventory at about 7% of total assets with a large investment in PP&E, which makes up roughly 49% and likely it represents store locations, fixtures, and in-store infrastructure. The receivables turnover of 15.13 suggests frequent customer transactions, often tied to store credit or short-term payment cycles. A gross margin close to 45% further supports this match, since department stores typically price higher than discount retailers while still relying on high sales volume through physical locations.

    Company 3 matches an airline (A) based on how asset oriented it is. PP&E accounts for about 64% of total assets, which strongly points to expensive equipment such as aircraft. The company holds no inventory, which makes sense given that airlines sell transportation services rather than physical products. A current ratio of 0.73 indicates tight liquidity, and profitability remains modest, reflecting the high operating costs and thin margins that are common in the airline industry.

    Company 4 aligns with an internet service provider (J) because it carries no inventory, very little in receivables, and relies heavily on debt. Long-term debt exceeds 250%, which suggests significant investment in network and infrastructure assets. The company is also unprofitable, with a net profit margin of negative 20.42%, which fits an industry where large upfront costs and intense competition often put pressure on earnings.

    Company 5 shows the classic signs of a fully integrated oil company (K). PP&E represents about 70% of total assets, reflecting major investments in drilling equipment, refineries, and transportation infrastructure. The presence of inventory supports the idea that the company handles physical commodities. Profitability is steady but not extreme, which is consistent with oil companies that are influenced by fluctuating energy prices but supported by large-scale, asset intensive operations.

    Company 6 matches a pharmaceutical manufacturer (L) because it generates a high gross margin of about 55.57%, reflecting strong pricing power from patented drugs. Intangibles account for roughly 8% of assets, supporting the importance of research, patents, and intellectual property. PP&E represents about 57% of assets, indicating investment in specialized manufacturing facilities. Even with lower liquidity, returns remain strong, which is typical in an industry driven by innovation and exclusivity.

    Company 7 is a strong fit for the software industry (N). It carries almost no inventory, relies minimally on physical assets, and generates extremely high gross margins of about 81.05%. Profitability is also very strong, with return on equity close to 68%, showing how software companies can scale revenue without significantly increasing costs. The business clearly creates value through ideas and code rather than physical production.

    Company 8 looks like an internet retailer (I) because inventory makes up about 34% of total assets while PP&E accounts for only about 1%, suggesting the company sells products without operating many physical storefronts. Days inventory outstanding exceed 270 days, pointing to large warehouses and a broad product assortment. This pattern is common for online retailers that prioritize product availability over fast inventory turnover.

    Company 9 fits a securities brokerage (M) because it holds high levels of cash and receivables, carries no inventory, and has minimal physical assets. The very high receivables turnover reflects frequent trading activity rather than traditional product sales. This balance sheet structure supports a business model focused on financial transactions, client accounts, and market activity.

    Company 10 aligns with an insurance company (H) due to the heavy presence of intangibles, which account for about 44% of total assets, along with low inventory and moderate physical assets. Insurance companies collect premiums, invest those funds, and manage long-term obligations, which explains this asset mix. Profitability appears steady but conservative, reflecting the long term and risk managed nature of insurance operations.

    Company 11 matches a discount retailer (E) because inventory represents about 19% of assets, while gross margins remain low at roughly 22.36%. Inventory turnover is relatively fast, suggesting a focus on selling high volumes at lower prices. This pattern reflects a business model built on efficiency, price competitiveness, and rapid movement of goods rather than premium pricing.

    Company 12 fits a cereal manufacturer (G) because it carries significant inventory, maintains strong PP&E, and shows stable but moderate margins. Food manufacturers typically operate with longer production and storage cycles, which explains the inventory levels. The asset structure supports large scale processing and packaging rather than direct consumer retailing.

    Company 13 aligns with a brewery (C), with inventory making up about 29% of assets, reflecting the need for aging and storage of product. Gross margins are around 38%, higher than basic food manufacturers but lower than software or pharmaceutical firms. Breweries require both production facilities and time-intensive inventory management, both of which are visible in the data.

    Company 14 stands out as a fast food retailer/franchiser (F) because it reports an extremely high gross margin of about 95.38 % while carrying minimal inventory. This suggests that most revenue comes from franchise fees and royalties rather than directly operating restaurants. The limited reliance on physical assets combined with strong profitability clearly supports a franchising-based business model.

    • No need to go in great details, answers do not have to be long. Straight to the point!

    Attached Files (PDF/DOCX): IdentifytheIndustries_ADA ready_revised2-1.docx

    Note: Content extraction from these files is restricted, please review them manually.

  • IBM Corporation

    Directions:

    Refer to the

    Use the financial statements to answer the questions in the case.Write your analysis in a Word document, embedding your calculations from Excel into this Word document and submit by the end of Week 4.

    You can embed parts of your spreadsheet by first copying the portion of your Excel spreadsheet that you want to copy to your document, then going to your Word document and selecting Edit/Paste Special/Microsoft Excel Worksheet Object. In answering any specific question, embed only those calculations that are specifically relevant to the question being answered in that portion of your document. I.e., when answering Question 1 embed only the calculations necessary to support your answers for Question 1 in that portion of the document. In answering Question 2, embed only the calculations necessary to support your answers for Question 2 in that portion of the document, and etc.

    Meets Module Objectives 1 and 2.

    Attached Files (PDF/DOCX): IBM Segments Case-2.docx

    Note: Content extraction from these files is restricted, please review them manually.

  • Econ analysis

    Lab 2: Medical Insurance, High vs Low Deductible

    Students around University of California, Riverside often compare health plans (e.g., via parents insurance, marketplace plans, or graduate student plans). Consider a local clinic that sees patients from two insurance plan types:

    • HD (High-Deductible plan): patients are more cost-sensitive when paying out-of-pocket. This plan is usually in HMO network.
    • LD (Low-Deductible plan): patients are less cost-sensitive (lower cost-sharing). This plan is usually in PPO network.

    The clinics resource cost per visit is the same regardless of plan:

    (Think: doctor time, labs, suppliessame cost on average.)

    The clinic can negotiate different patient copays (out-of-pocket price per visit) by plan type.

    You have weekly data on:

    • P= copay per visit (USD)
    • Q= number of visits per week (units: visits/week)

    You will need to prepare a report including the following information.

    1. (2 pts)Estimate demand separately for HD and LD by running two regressions:

    2. (2 pts) Calculate Price discrimination (two copays): choose

    and

    separately. What are the copays respectively? Calculate the profit.

    3. (2 pts) Decide One copay policy: choose one copay for both groups. Calculate the profit.

    4. (4 pts)Policy discussion: What if the clinic serves only the LD market (or only the HD market) by only be in PPO network? When might that be optimal?

    (Bonus 2 pts) Bonus Question:

    Incentive Compatibility via Importing Care (Out-of-network / cash-pay loophole)

    Some LD patients try to act like HD by using a workaround: cash-pay telehealth or out-of-network billing to face a lower out-of-pocket price.

    Let the clinic set two copays: and with .

    Suppose an LD patient can instead access the HD-priced channel but must pay:

    • Express admin fee (time + paperwork + portal fee)
    • Tax / surcharge rate applied to (copay + fee)

    Please justify the Express admin fee . Assuming Tax/surcharge rate is still 10%.

  • ECON discussion

    Here are the instructions: It should be 2 short paragraphs, one for each question.

    Find a business and explain what you see happening in relation to costs

    What changes have they made in the last two years? Find research on this or recount what activities you

    have watched unfold. For example, look to see how they have saved cost and that will likely lead you to

    uncover where a cost was too high thus limiting profit, so a decision was made to reduce costs