Syllabus

Course/Number ECO/561 Version 4, Group ID: WS10 - V2101 Course Title: Economics Dr. Guthlac Kirk Anyalezu

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Course Syllabus
Course Title: Course Schedule: Course Location/Times/Newsgroup: Instructors Name: Telephone: University of Phoenix E-mail Address: Alternative E-mail Address: Availability:

Course Number and Title: V2101. Economics

ECO/561 Version 4, Group ID: WS10 -

Start Date 09/30/2010 / End Date: 11/04/10 Campus WS / Weekday Thursday and Time: 18.00pm - 20.00pm Anyalezu, N. Kirk Guthlac, Ph.D. 832 893 - 8514 Guthlac1@email.phoenix.edu Ka2b1@hotmail.com 10:00am to 10:00pm every day. Contact me by either email or phone.

Welcome!

Hello and Welcome to my course. You will find that this course covers a tremendous amount of information during the term. I suggest that you follow the syllabus and lecture notes closely. My primary goal is to assist you through this course. If you meet all the requirements for this course, you should be successful. Im sure that you will enjoy this course classes.

Instructor Bio

I am Dr Anyalezu, N. Kirk Guthlac, Faculty, The School of Business, University of Phoenix. I am the Faculty instructor of economics for ECO/561 at the WS Learning Center, Houston Campus. Detail below is a brief summary of my biography for your perusal. Ph.D. Economics (University of Surrey), M.Phil. Economics and Political Science (SOAS University of London) M.Sc. Economics (Birkbeck College University of London) BA (Combined Hons) Accounting and Economics (London Metropolitan University) PGC Business Management and Information Technology (Middlesex University) P/Q ACCA (Thames Valley University UK) MABE, M.Inst.Am.

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Professional Organizations Member - The Royal Economics Society, Associate Member The Chartered Institute of Bankers P/Q Member - The Chartered Association of Certified Accountant Member The Honorable Society of Lincolns Inn of Court, London Member The Association of Business Executives Member The Institute of Administrative Management Member The British Institute of Management Specialization and Teaching Areas: Economics, Macroeconomics, Microeconomics, Econometrics, Business Economics, Development and Monetary Economics, Financial Economics, Financial and management Accounting. Research Interest Areas are: Total Factor Productivity Measurement, Technology Shocks and Contractionary Effects, Dynamic General Equilibrium Models (DGEM), RBC Models, Accounting and Regulatory Controls, Monetary Policy, Banking and Financial Regulations, Strategic Research and Social Policy Research.

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How points and percentages equate to grades 95 + A 74-76 C 70-73 C67-69 D+ 64-66 D 60-63 D- 59 F

90-94 A87-89 B+ 84-86 B 80-83 B77-79 C+

University of Phoenix Standard Policies and Procedures Please see the Policy link on your rEsource page for the standard policies and procedures for the University. Course Changes Please note that the instructors assignments may vary from the original syllabus you received from the student web page. Assignments in this document take priority. While the reading assignments and learning objectives remain the same, some of the assignments in this syllabus have been customized for this particular section. Your instructor will point out the changes. Course Standards The University of Phoenixs Adult Teaching and Learning Model is based on the assumption that, in preparation for every course, students will satisfy all prerequisites. During the course itself, students will achieve certain learning outcomes. All performance assessment depends upon the accomplishment of these outcomes. Students are graded on achievement, rather than effort. It is the responsibility of the student to come to class prepared for each workshop. Assignments are not accepted via e-mail. All assignments are to be posted in the OLS/Modality using the ASSIGNMENTS tab. Note: The University of Phoenix Assignment System will automatically mark all assignments as LATE after 6:00 PM on the day of class. Student Behavior Standards All students are expected to conduct themselves as mature adults and members of an academic community as defined in the Universitys Code of Student Responsibility. Note: Please put all pagers and cell phones on vibrate. Note: These items are allowed in class: 1. Laptops for class assignment use only 2. Blackberry/Treo/IPhone/etc.

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Late Arrival / Early Departure Breaks: Each class will be given a break period. Students are expected to return from the break on-time. If you return from the break more than 5 minutes after the allowed break time, you will be penalized 1 point. Late arrival and early departure: Students are expected to be punctual. Late arrival or partial presence will be recorded and may result in a reduction of class participation points as follows:

Entering class after 6:15 PM

1 point from participation 3 points from participation 2 points from participation

Leaving class before 8:30 PM Leaving class before 9:45 PM

Online Learning System Forums We will have a set of Online Learning System forums available to us during this class. To access the forums, click on the Go to class link on your student website. These web-based forums provide you with: y a common area solely for our class group (Main forum) where you can post questions between our on-campus workshop meetings y a Chat Room forum which you can use for non-class interactions with classmates (be sure to honor the Student Code of Conduct in this, and every, forum!) y electronic access to the course syllabus and grading rubrics which will be used in this class (see the syllabus in the Course Materials forum). Lectures, PowerPoint presentations, or other materials may be posted in this forum after it is covered in the classroom. For access to materials prior to the class, see my faculty webpage. y electronic venues for Learning Team meetings and team paper drafts to use as each team deems best (I will assign a specific Learning Team forum for each teams use during our first on-campus workshop meeting) y a personalized electronic drop-box Individual Forum - for returned assignments. Each student will be unable to access any individual forum except the one created for him or her individually. y Assignments are not accepted via e-mail. Please ensure that all assignments are submitted via the ASSIGNMENTS tab in OLS by the due date indicated in this document. NOTE: Assignments are only accepted via e-mail when the OLS forums are unavailable.

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There are no online attendance or participation requirements during this course. All attendance and participation activity will occur only during our on-campus workshop meetings. If you have any questions about the class forums, please let me know during our oncampus class time or by posting your question(s) in the Main forum. Student Effectiveness In order for students to be successful there must be a commitment to effective processes. The classroom environment is a cooperative experience that requires the student to be responsible for several matters, some of which are listed below: 1. A working University of Phoenix email address 2. The reading of materials intended for and provided for this course 3. Making sure of the attachment of documents placed in their individual forums, meant for meeting homework assignment goals 4. The checking of their individual forums for messages from the faculty member on a regular, at least once a week, basis 5. Students should be mindful that the OLS forums are representative of an academic community. Therefore, professionalism and respectful behavior is required by all students for the facilitator and co-learners during any online chat, team discussion, or individual forum. 6. The student is responsible for the above conditions. Writing Standards The American Psychological Association (APA) 6th Edition Publication Manual will serve as the primary reference materials for all students and faculty and will be required across all programs and colleges. All papers must be submitted in APA format as per UOP guidelines. The mechanics of student papers and work will be evaluated, as well as the content. It is imperative that guidelines be reviewed before an assignment is begun. It is also important that the required submission format be followed in compiling the final paper or assignment. Late Assignments Assignments must meet the deadlines established and late papers will not be accepted. Deadline for submission of assignments is 12.00 (midnight) C.T. Individual written work may be made up by prior arrangement with the instructor, without penalty. Presentations and group work cannot be accepted late. No assignments will be accepted after the conclusion of Workshop 6. Please Note: Facilitator will not request or remind students of missing or late assignments.

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Feedback on Assignments The faculty will return the student assignments by the next class with specific and objective feedback to facilitate student learning. Feedback will be posted in the Individual forums for both individual and team assignments. If there are concerns about the work or grade, the student may be contacted by the instructor, either by email or telephone, to resolve the concern. In addition, the student may contact the faculty to discuss concerns or schedule a conference. Withdrawals University policy does not permit the instructor to issue course grades other than a "W" to students with more than one class absence. Learning Teams Learning teams are an essential part of the academic experience of UOP students. In addition to providing a supplemental learning environment for mastery of course content, learning teams provide students an opportunity to develop and refine teamwork skills. Learning Teams may meet face-to-face, virtually, or telephonically. During the first learning team meeting, the team members should collaborate in completing the Learning Team Charter. This exercise will help the team plan for effective achievement of team tasks, establish ground rules, and minimize conflict in the team process. Team members will sign the charter, indicating that they contributed in the preparation of the form. Each team member should receive a copy and a copy should be submitted to the instructor at the second course class/workshop. Note: If a person/people on your team did/does not participate in a team assignment, that lack of participation must be note on the team log and each team member must sign the log. Note: Please treat the Team Charter as a contract. It should specify all of the agreed upon ground rules, guidelines and consequences for the various team assignments. Non-Participation in Team If it comes to my attention that someone has not carried his or her share of the load in the group project, I reserve the right to grade each student individually on that project. i.e., learning team members will be graded individually for every team assignment based on that team member's contribution. Team evaluations will play a key role in the grading process. Learning Team Standards The Learning Team Log is used to document objectives, resources and activities, accomplished tasks, and hours. The team should develop an effective team charter.

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Members should effectively manage conflict within the group and resolve problems, share workload equally, build consensus, and effectively share in decision making. Products of the team process (i.e., oral presentations, papers) are cohesive and should present the image of a single product rather than a collection of individual products. Tasks should be completed on time and meet established requirements. Grading for Team Assignments Everyone in the Learning Team generally receives the same grade for the team project. Sometimes, however, when it becomes apparent to me, either through other Learning Team members or through my own observations, that a Learning Team member is an uneven or non-contributor, I reserve the right to grade that team member individually, as it is not right for a non-participating member to receive the same grade as a student who has done all of his or her required work.

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Course Description This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand, profit maximization, market structure, macroeconomic measurement, money, trade, and foreign exchange.

Course Topics & Objectives Week One: Increasing Revenue y y 1.1 Choose methods to increase revenue in an organization. 1.2 Explain market equilibrating process.

Week Two: Cost Concepts y y y 2.1 Identify production level to maximize profits. 2.2 Explain how to balance fixed and variable costs. 2.3 Apply economic cost concepts in making business decisions.

Week Three: Market Structure y y y y 3.1 Determine pricing strategy to meet organizational goals. 3.2 Determine ways to create nonprice barriers to entry based on market structure. 3.3 Determine ways to increase product differentiation based on market structure. 3.4 Determine ways to reduce costs for an organization.

Week Four: Macroeconomic Conditions y y 4.1 Determine the economys stage in the business cycle. 4.2 Evaluate current macroeconomic condition based on key indicators.

Week Five: Credit Markets and Globalization y y 5.1 Project the effect of credit markets on the economy. 5.2 Project the effect of global economic conditions regarding trade and specialization business decisions.

Week Six: Improving Business Decisions y y 6.1 Apply economic concepts in making business decisions. 6.2 Integrate economic concepts and strategic planning.

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Course Materials McConnell, C. R. ,Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw-Hill Irwin. Pugel, T. A. (2009) International economics (14th ed.). New York: McGraw-Hill Irwin. Ball, L. (2009) Money, banking and financial markets. New York: Worth Publishers. All electronic materials are available on your student Web site.

Recommended Weekly Point Values

Week One Individual Assignment: MBA Exam Questions Individual Assignment: Market Equilibrating Process Paper Week Two Individual Assignment: MBA Exam Questions Week Three Learning Team Assignment: Milestone 1: Business Recommendations Based on Economic Projections Week Four Individual Assignment: MBA Exam Questions Individual Assignment: Revenue, Cost Concepts, and Market Structure Proposal Learning Team Assignment: Milestone 2: Business Recommendations Based on Economic Projections Week Five Individual Assignment: MBA Exam Questions Learning Team Assignment: Milestone 3: Business Recommendations Based on Economic Projections Week Six Individual Assignment: Final Examination Learning Team Assignment: Business Recommendations Based on Economic Projections All Weeks Participation & Discussion Questions Assignment Totals Individual Learning Team Point Total

5 6 5

5 5 5 5 5 5 15 15 24 70 30 100

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Week One Increasing Revenue y y 1.1 Choose methods to increase revenue in an organization. 1.2 Explain market equilibrating process.

Course Assignments 1. Readings Read Ch. 13 & 6 of Economics. 2. Individual Assignment: MBA Exam Questions Resources: MBA Web Prep link on the student Web site Complete Ch. 1 & 2 Lecture Exam Questions at the MBA Web Prep for Economics site. Submit the results to your faculty member. 3. Individual Assignment: Market Equilibrating Process Paper Write a 350- to 500-word paper in which you relate the concepts in this weeks readings to a prior real world experience. The experience does not necessarily have to be work experience. Discuss the market equilibrating process in relation to your experience. Format your paper according to APA standards. 4. Discussion Questions Different products have different elasticities. Heart medication, for example, is inelastic and corn is elastic. Find a product that has not already been selected and describe the price elasticity and income elasticity. How much control might an organization have over pricing based on a products elasticity? Discuss which of the elasticity rules you used to determine your answer. [Objective 1.1] The Bureau of Labor Statistics and Federal Reserve Bank in St. Louis both have a lot of economic information. Based on current economic information, for the industry you are familiar with, discuss the positive and negative effects of either a sudden increase or decrease in the number of competitors on prices in the long run. What would you recommend as a course of action, if any? For

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the industry you have chosen, discuss how price moves from today to the future. [Objective 1.2] 5. Learning Activities The instructor will divide students into groups. In your group, identify one product sold by an organization of one of your team and recommend a pricing strategy to increase revenue. Discuss what factors would affect the pricing strategy and how your recommendation may change depending on these factors. [Objective 1.1] The instructor will divide students into groups. Select a product of a team members organization. Choose a change in the environment that would affect supply, such as technology or a catastrophe. Describe how an organization may utilize the information about change to increase revenue. Create a chart to illustrate the relationship between the change in the environment and the supply of the product. [Objective 1.2]

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Week Two Cost Concepts y y y 2.1 Identify production level to maximize profits. 2.2 Explain how to balance fixed/variable costs. 2.3 Apply economic cost concepts in making business decisions.

Course Assignments 1. Readings Read Ch. 89 & 1213 of Economics. Read the Opportunity Cost Paper on your student Web site. Read the Clear Here Scenario on your student Web site. Read the Guillermo Furniture Scenario. 2. Non graded Activities and Preparation Complete the Economics for Managerial Decision Making: Cost and Revenue Curves simulation located on your student Web site. 3. Individual Assignment: MBA Exam Questions Resources: MBA Web Prep link on the student Web site. Complete Ch. 3 & 4 Lecture Exam Questions at the MBA Web Prep for Economics site. Submit the results to your faculty member. 4. Discussion Questions Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering the price. For some organizations, lowering prices might be an effective means for increasing revenue. Select an organization you work for or are familiar with that has not already been chosen by another student. Based on the Economics for Managerial Decision Making: Cost and Revenue Curves simulation and this weeks readings, could the organization you have chosen lower prices to increase revenue? Why or why not? [Objectives 2.1 and 2.3] Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs; for example, and an industry that utilizes manual labor for production will have low fixed costs and high variable costs. Read the Guillermo Furniture Scenario. Based on the Guillermo Furniture Scenario and this weeks

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readings, how would you describe the balance between the costs of automation, or fixed costs and the costs of labor, or variable costs? How has the Internet changed the balance between automation and labor? [Objectives 2.2 and 2.3] Choose an organization not previously selected that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How has the Internet changed this balance for organizations? [Objective 2.3] If you do not have cost data for each level of output, how may you still apply opportunity cost concepts to effective business decision making? After reviewing the Opportunity Cost Paper and Clear Here Scenario, how might you utilize the information provided to evaluate a business opportunity using cost concepts? [Objective 2.3] 5. Learning Activities The instructor will divide the students into groups. Several large well known organizations have lowered prices to increase revenue. View the Economics for Managerial Decision Making: Cost and Revenue Curves simulation. Select an organization you work for, or are familiar with, that has not already been chosen by another student. Create a list of the reasons why your organization should or should not lower prices to increase revenue. Make a decision as a group if the company should utilize this strategy. [Objectives 2.1 and 2.3] Choose two organizations not previously selected. One organization must have high fixed costs and low variable costs, and the other organization must have low fixed costs and high variable costs. Chart the relationship between total cost and the number of units for each of the two organizations. Plot two lines on the graph: one for the organization that has high fixed costs and low variable costs, and one for the organization that has low fixed costs and high variable costs. [Objectives 2.2 and 2.3] The instructor may divide students into groups or the existing Learning Teams. Choose one of the following three alternative decisions for the Clear Here Scenario and evaluate the decision based on incremental profitability [Objective 2.3]: o Take the order and increase production on another model to fill the order o Outsource production. o Do not take the order.

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Week Three Market Structure y y y y 3.1 Determine pricing strategy to meet organizational goals. 3.2 Determine ways to create nonprice barriers to entry based on market structure. 3.3 Determine ways to increase product differentiation based on market structure. 3.4 Determine ways to reduce costs for an organization.

Course Assignments 6. Readings Read Ch. 1011 & 11W of Economics. 7. Non graded Activities and Preparation Review the Economics for Managerial Decision Making: Market Structures simulation. 8. Learning Team Assignment: Milestone 1: Business Recommendations Based on Economic Projections The economic future of an industry may change depending on various economic conditions. Predicting economic futures is an essential skill when choosing between business alternatives. This Learning Team project prepares you to make informed management decisions based on what you know about the economy. For this project, your team must offer recommendations for a company to make business decisions based on potential changes that may occur in the economy over the next 5 years. Resources: Learning Team Final Project document located on your student Web site. Choose an organization for your final project. You may choose among the Larson Scenario located on your student Web site, the Big Drive Auto Scenario located on your student Web site, or an organization of your choosing in which you may obtain the same type of data as the provided scenarios. Review the data for the organization you have chosen. Provide pricing strategy recommendations, recommendations for nonprice barriers to entry, and ideas for product differentiation for the organization. Explain the evidence that supports these recommendations.

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Note: There is no word count guideline for this assignment. You must fully address all of the required components of Milestone 1. 9. Discussion Questions When making decisions about marketing, production, and cost sources, factors such as pricing, nonprice barriers to entry and product differentiation play a key role. Using Quasar, the organization from the Economics for Managerial Decision Making: Market Structures simulation, or an organization of your choice, determines what strategy you would recommend for the organization in terms of pricing, nonprice barriers to entry, and product differentiation? [Objective 3.1] Early on in the Economics for Managerial Decision Making: Market Structures simulation, Quasar had the advantage of being alone in the market. Select an organization not previously selected in a currently similar situation. What might that organization do to maintain that situation? [Objective 3.2] Run the Economics for Managerial Decision Making: Market Structures simulation. Within certain market structures, using price to compete is not an option. What may Quasar do to improve revenues under one of these structures? Select a company not selected by another team or student that has used this strategy. Describe the effects on the organization of using this strategy. [Objective 3.3] Identify an organization not previously selected and recommend methods to reduce costs. What effects do technologies have on costs? What are some lower cost sources the organization may utilize to reduce cost? [Objective 3.4] 10. Learning Activities Pricing strategy may affect an organization in terms of revenue. Use Quasar, the organization from the Economics for Managerial Decision Making: Market Structures simulation, or an organization of your choice to examine the current pricing strategy. Recommend a pricing strategy for Quasar or your selected organization. Create a list of the pros and cons for the recommended pricing strategy. [Objective 3.1] In using nonprice barriers, you may often encounter ethically challenging situations. How do you or your organization maintain a monopoly in keeping with current values and ethical standards? Locate an article pertaining to this topic and describe the ethical dilemma the organization faces. Based on the information in the article and class readings, suggest recommendations to the company about keeping current values and ethics intact. [Objective 3.2]

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It is important for organizations to determine product features and the use of advertising if using price to compete is not an option. Choose an organization not previously selected and provide a recommendation to the organization on the use of product differentiation as a means of competition. Create a list of reasons for your recommendation and include considerations of product features and use of advertising. [Objective 3.3] Based on the class readings and the Economics for Managerial Decision Making: Market Structures simulation, you should be familiar with different market structures and nonprice structures to increase revenue. Identify ways to reduce costs for Quasar. Which market structure would require Quasar to focus on reducing costs? Select a company that has not been selected by another team that has used this strategy. Describe the effects on the organization of using this strategy. Create a chart to illustrate the relationship between market structures and revenue. [Objective 3.4]

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Week Four Economic Conditions y y 4.1 Determine the economys stage in the business cycle. 4.2 Evaluate current macro economic condition based on key indicators.

Course Assignments 11. Readings Read Ch. 24, 26, & 2830 of Economics. 12. Individual Assignment: MBA Exam Questions Resources: MBA Web Prep link on the student Web site. Complete Ch. 5 & 6 Lecture Exam Questions at the MBA Web Prep for Economics site. Submit the results to your faculty member. 13. Individual Assignment: Revenue, Cost Concepts, and Market Structure Proposal Resources: Will Bury, Clear Here, or Thomas Money Service scenarios located on your student Web site. Select from the Will Bury, Clear Here, or Thomas Money Service scenarios located on your student Web site for this assignment. Create a 1,050- to 1,400-word business proposal in which you provide recommendations to the company for increasing revenue for the company, achieve ideal production levels, determine how fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs. Describe your process to make recommendations. Include economic concepts to provide support for recommendations. Answer the question: What assumptions did you make about the organization and its values? 14. Learning Team Assignment: Milestone 2: Business Recommendations Based on Economic Projections Resource: Learning Team Final Project document

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Discuss three alternative economic futures for the industry you have selected that might occur in the economy over the next 5 years. Explain the likelihood of the economic futures occurring. Update your recommendations from Milestone 1 to include how your recommendations would need to be modified for the alternative economic futures. Recommend an appropriate course for your chosen organization to make business decisions based on the projected economys stage in the business cycle and the projected macro economic condition. Explain the evidence that supports these recommendations and how your recommendations might need to be modified for the alternative economic futures. Note. There is no word count guideline for this assignment. You must fully address all of the required components of Milestone 2. 15. Discussion Questions What is the economys current stage in the business cycle? Support your answer with an article written within the last week from the popular press or blog. In light of the text readings, evaluate the article and the source of the article. Based on the information, determine where the economy fits in the business cycle. [Objective 4.1] Using the Bureau of Labor Statistics and Federal Reserve Bank of St. Louis, select a key economic indicator that has not been discussed by another student or team. Discuss how the indicator was created and its current value. What does this key indicator say about the current economic condition? [Objective 4.2] 16. Learning Activities Locate an article written within the last week from the popular press or blog that discusses the economys current stage in the business cycle. Based on this and other data you are familiar with, create a graph of the past 5 years of the business cycle. [Objective 4.1] The instructor may divide students into groups or existing Learning Teams. As a group, provide multiple perspectives on current economic indicators. Using the Bureau of Labor Statistics and Federal Reserve Bank of St. Louis, select two or three key economic indicators that have not been discussed by another student or team. Discuss how the indicators were created and their current value. What is the value of utilizing multiple key indicators to evaluate the economic condition instead of using only one key indicator? [Objective 4.2]

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Week Five Credit Markets and Globalization y y 5.1 Project the effect of credit markets on the economy. 5.2 Project the effect of global economic conditions regarding trade and specialization business decisions.

Course Assignments 17. Readings Read Ch. 27 & 3133 in Economics Read Ch. 1719 in International Economics Read Ch. 18 from Money, Banking and Financial Markets 18. Individual Assignment: MBA Exam Questions Resources: MBA Web Prep link on your student Web site Complete Ch. 7 & 8 Lecture Exam Questions at the MBA Web Prep for Economics site. Submit the results to your faculty member. 19. Learning Team Assignment: Milestone 3: Business Recommendations Based on Economic Projections Resource: Learning Team Final Project document Recommend an appropriate course for your chosen organization to make business decisions based on the projected credit markets. Describe the business decisions related to trade and specialization you would recommend based on the effects of future global conditions. Explain the evidence that supports these recommendations and how your recommendations might need to be modified for the alternative economic futures. Note. There is no word count guideline for this assignment. You must fully address all of the required components of Milestone 3. 20. Discussion Questions What new measures and tools has the Federal Reserve employed in the past 2 years that have not been employed in the past 2 decades? [Objective 5.1] Money makes the world go round. Money is created through a series of transactions involving Central Banks, financial intermediaries, businesses, and

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consumers. A failure of the process to work may cause the economy to freeze. Central banks may alter different rates and terms to increase or decrease the supply of money. Intermediaries may or may not react to the actions of the central bank. Describe the process through which money is created. Explain how current eventsevents less than 90 dayshave affected this process and the effect current events will have on the economy as a whole. [Objective 5.1] As was seen during the financial crisis of the 1930s, and in recent history, markets are interconnected globally. Aside from financial markets, different countries have different resources. Choose a country other than your own, which has not already been selected by another student or team, and research the EIU country data. Based on absolute advantage and comparative advantage, explain the effect of global economic conditions on the choices available to that country. You must include the current exchange rate of the countrys monetary unit. [Objective 5.2] 21. Learning Activities The text focuses on three tools that have been utilized by the Federal Reserve over the past 2 decades. In your team, select one tool and discuss why that tool is currently ineffective. Was the tool ever effective? [Objective 5.1] Locate an article about the current credit market. As a group, create a chart or graph depicting the key points of the article. Using the article and other class readings, discuss the effects that the current credit market has on the economy as a whole. [Objective 5.1] Utilizing multiple perspectives, examine the effects of global economic conditions on a chosen trading block. Select a trading block other than your own, which has not already been selected by another student or team, and research the ETU data. Based on absolute advantage and comparative advantage, explain the effect of global economic conditions on the choices available to that trading block. You must include the current exchange rate of the trading blocks monetary unit. As a group, discuss the value of examining the effects of global economic conditions using data from a trading block instead of using only one country to evaluate the global economic condition. [Objective 5.2]

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Week Six Improving Business Decisions y y 6.1 Apply economic concepts in making business decisions. 6.2 Integrate economic concepts and strategic planning.

Course Assignments 22. Readings Read Ch. 25 in Economics. Read the Big Drive Auto Scenario. 23. Non graded Activities and Preparation Review the Kuddler Fine Foods virtual organization found on your student Web site. 24. Individual Assignment: Final Examination Resource: Economics: Principles, Problems, and Policies and International Economics Complete the Final Examination. You have one attempt for the exam, which is timed and must be completed in 3 hours. Results are sent to your instructor. Note. Final Examination questions are adapted from Economics: Principles, Problems, and Policies and International Economics. 25. Learning Team Assignment: Business Recommendations Based on Economic Projections Resource: Learning Team Final Project document Write a memo of no more than 1,050 words. Complete the following in your memo: o Include a general description of three alternative economic futures within the next 5 years for the chosen organizations industry. o Provide a summary of your specific recommendations for the organization to make business decisions in relationship to these alternative futures. You must utilize your determinations in Milestones 1, 2, and 3 to complete this portion of the memo.

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o Include a visual representation, such as graphs or diagrams of Milestones 2 and 3 to support your recommendations. 26. Discussion Questions A businesss strategic choices are limited by economic conditions. When you arrive at strategy class, you will be asked to perform an environmental analysis. Read the Big Drive Auto Scenario. Research macroeconomic data that correspond to company data as reported by the Bureau of Economic Analysis. Perform an environmental analysis based on elasticities, a mix of fixed and variable costs, current market structure, pricing decisions, current economy as reflected in key economic indicators, the current credit market, and the global economy. Identify one opportunity for Big Drive Auto that requires a business management decision. [Objective 6.1] Businesses strategic choices are limited by economic conditions. When you arrive at strategy class, you will be asked to perform an environmental analysis. Using the Kuddler Fine Foods Virtual Organization, perform an environmental analysis based on elasticities, a mix of fixed and variable costs, current market structure, pricing decisions, current economy as reflected in key economic indicators, the current credit market, and the global economy. Identify one opportunity for Kuddler Fine Foods that requires a business management decision. [Objective 6.1] Based on your knowledge of strategy formation, how do the economic concepts in this course affect strategic planning? [Objective 6.2] 27. Learning Activities Read the Big Drive Auto Scenario. Identify three to five key business management decisions that may improve the revenue of Big Drive Auto. As a group, create a list of the key topics from the course that support these decisions. Determine your recommendations for implementation of these business decisions. Describe the anticipated outcome if Big Drive Auto implements your recommendations. [Objective 6.1] Review Kuddler Fine Foods virtual organization. Identify three to five key business management decisions that may improve the revenue of Kuddler Fine Foods. As a group, create a list of the key topics from the course that support these decisions. Determine your recommendations for implementation of these business decisions. Describe the anticipated outcome if Kuddler Fine Foods implements your recommendations. [Objective 6.1]
y

Locate a current article about the economys effect on business. Utilizing the article and other class readings, discuss the effects of the current economy on a businesss strategic planning. [Objective 6.2]