portfolio project
ECON195 - Macroeconomics Portfolio Project Directions and Rubric This assessment is worth 20% of your overall grade. Deadline Due by the end of Weeks 2, 3, 5, 6, and 7 at 11:59 pm, ET. Completing this Assessment will help you to meet the following outcomes: Course Outcomes: Apply macroeconomic theory and basic principles to economic data sets. Explain basic economic principles and theory. Institutional Outcomes: Information Literacy and Communication - Utilize appropriate current technology and resources to locate and evaluate information needed to accomplish a goal, and then communicate findings in visual, written and/or oral formats. Relational Learning - Transfer knowledge, skills and behaviors acquired through formal and informal learning and life experiences to new situations. Thinking Abilities - Employ strategies for reflection on learning and practice in order to adjust learning processes for continual improvement. Directions Each week, you will view a video that shows how to plot data in Excel. Upon viewing the video, use the following Excel template to complete your response to each question and submit. Make sure you incorporate the feedback from your instructor that you receive each week into your final version. Click the link below for the Excel template: ECON195 Portfolio Project Template.xlsx Week 2: Market Forces of Supply and Demand on: Surplus and Shortage Problem #1 Due Date: Due by the end of Week 2 at 11:59 pm, ET. In any market, demand is used to study the behavior of buyers, and supply is used to study the behavior of sellers and producers. In order to study the ECON195 - Portfolio Project Directions and Rubric 2 behaviors of buyers and sellers, you will use the beans market for your Homework Problem to determine the market demand and market supply. Demand and supply curves explain the relationship between price and quantity. Because there is a law that guides market demand and supply, the demand and supply curve shifts. This law of demand and supply assumes that every factor that affects market demand and market supply, other than price, is constant. Factors that are held constant for market demand are: income, price of related good, tastes, expectations, and number of buyers. For supply market, they are: input prices, technology, expectations, and number of sellers. In Problem #1, you need to plot graphs in Excel to show how the demand and supply curve shifts when quantity increases or decreases at given prices. Supply and Demand: The Beans Market View this video to complete the problem below: https://www.youtube.com/watch?v=w-R4BDNxSLU Answer the questions below by using the following schedule for the beans market: Price Quantity Quantity Demanded Supplied $5 50 20 $6 45 25 $7 40 30 $8 35 35 $9 30 40 $10 25 45 $11 20 50 $12 15 55 Use the Excel template to graph the demand and supply curves based on the values given in the table above. Assume that the quantity demanded for beans rises by 30 million pounds per month for specific given price. Plot the initial demand and supply curves on a single graph based on given values in the above table. Graph the new demand curve given by this change. Relative to the values given in the above table, let's assume that the quantity demanded falls by 30 million pounds per month between $5 and $10 per pound; between $10 and $12 per pounds, and the quantity demanded become zero. Plot initial the demand curve given by this change on a single graph. ECON195 - Portfolio Project Directions and Rubric 3 Graph the new demand curve given by this change. Assume that the quantity supplied for beans rises by 30 million pounds per month for specific given price, at the time the value for quantities supplied remain the same as shown in the table above. Plot initial demand and supply curves on a single graph based on given values in the above table. Graph the new supply curve given by this change. Relative to the values given in the table above, let's assume that, the quantity supplied falls by 30 million pounds per month at prices above $8, at a price of $8 or less per pound and the quantity supplied becomes zero. Plot the initial demand and supply curves based on the values given in the table above and new supply curve given by this change on a single graph. Week 3: Supply and Demand: Price Elasticity Problem #2 Due Date: Due by the end of Week 3 at 11:59 pm, ET. Price plays a significant role in quantity demanded and quantity supplied. Consumers and sellers respond differently to changes in the price of different types of goods and the situation. To measure the responsiveness of consumers and sellers to changes in the price of a good, some rules of thumb are given. These rules of thumb are said to influence price elasticity of demand and supply making the curves to vary. The rules of thumb that affect price elasticity of demand are: Availability of a close substitute Necessities versus luxuries Definition of the market Time zone For price elasticity of supply, they are: Flexibility of sellers to change in quantity of good produced Time period Consequently, price elasticity can be unit, elastic, and inelastic demand and supply. In Problem #2, you will need to plot graphs in Excel to determine price elasticity of demand and supply showing the varying demand and supply curve. ECON195 - Portfolio Project Directions and Rubric 4 View this video to complete the questions below: https://www.youtube.com/watch?v=MlEBmoPGJvo Answer the questions below by using the following demand schedule: Pri ce $1 3 $1 2 $1 1 $1 0 $9 $8 $7 $6 $5 $4 Quantit Quant y ity Deman Suppli ded ed 585 1305 635 1130 665 980 695 930 705 730 750 780 830 930 840 730 630 480 360 260 Use the Excel template to calculate and plot the graph of the elasticity of demand between one point and the next. That is, plot A-to-B, B-to-C etc. Upon plotting the graph, determine the price elasticity of each value. For instance, it could be price elasticity, price inelastic, or unit elastic. Using the same Excel template, calculate the arc elasticity of supply between one point and the next. That is, plot A-to-B, B-to-C, etc. Upon plotting the graph, determine the price elasticity of each value. For instance, it could be price elasticity, price inelastic, or unit elastic. Week 5: Supply and Demand: Government Policies Problem #3 Due Date: Due by the end of Week 5 at 11:59 pm, ET. As mentioned in Problem #2, price play a role in quantity demanded and supplied. Nevertheless, to regulate the economy, prevent inflation, and make certain goods and services affordable, the government regulates prices of certain goods and services. ECON195 - Portfolio Project Directions and Rubric 5 When the government set maximum prices, it is called \"price ceiling\". When minimum prices are set by the government, it is called \"price floor\". Hitting the \"price floor\" or \"price ceiling\" can cause shortage or surplus. When the government imposes either \"price floor\" or \"price ceiling\" below equilibrium price, a shortage has been created. However, when \"price floor\" or \"price ceiling\" is above equilibrium price, surplus has been created. In Problem #3, you will plot demand and supply curves in Excel to show whether shortage or surplus was created when government impose price floor. View this video to complete the questions below: https://www.youtube.com/watch?v=YWiuxFPEm4A Given this hypothetical demand and supply schedule for corn, in which all quantities are in millions of bushels per year, respond to the questions below: Price per bushel $ 3.00 $ 4.00 $ 5.00 $ 6.00 $ 7.00 $ 8.00 $ 9.00 Quantity Demanded 9 Quantity Supplied 3 8 4 7 5 6 6 5 7 4 8 3 9 Use the same Excel template to graph demand and supply curve for corn. Label the equilibrium quantity and price. Let's suppose that the government now imposes a \"price floor\" at $7 per bushel. Show the effect of this government policy graphically. Week 6: Supply and Demand: International Trade Problem #4A ECON195 - Portfolio Project Directions and Rubric 6 Due Date: Due by the end of Week 6 at 11:59 pm, ET. Aggregate demand and aggregate supply determine output level and employment in any country's economy at any given price level. Aggregate demand and aggregate supply curves show the relationship between price level and quantity of goods and services demanded by households, firms, consumers, and the government, and supplied by sellers and producers respectively. Note that quantity is referred to as output level. When there is a change in price level, the aggregate demand and aggregate supply curve shift either to be left or right. View this video to complete the questions below: https://www.youtube.com/watch?v=Ls3ZLYQ5NtE The table below shows a hypothetical aggregate demand (AD), aggregate supply (AS), and price level for Australia. PL 130 140 150 160 170 180 190 AD 680 670 660 650 640 630 620 AS 580 620 660 690 740 760 770 Plot the AD/AS diagram from the data shown on the Excel template you have been using. Identify the equilibrium. Let's supposed that at every price level, government tax cuts and aggregate demand increase by 40. Provide the new equilibrium due to increase by 40. Explain how the output will be altered by the new equilibrium? How will the price level be altered by the new equilibrium? Relate your answers to employment. Problem #4B - Extra Credit Like Problem #4A, note that aggregate demand and aggregate supply also ECON195 - Portfolio Project Directions and Rubric 7 determine whether there will be inflation or unemployment, as it determines output level and employment. In this Problem, plot aggregate demand and supply curve on excel to determine whether you expect inflation and unemployment to occur in Australia. You do not need to complete this Problem. However, if you do, your instructor will give you extra credit. https://www.youtube.com/watch?v=Y3hjuu1OJAM Below is another set of aggregate supply (AS), aggregate demand (AS), and price levels: Price Level 110 130 150 170 190 AD AS 775 675 575 460 355 350 425 575 667 768 Plot the AD/AS graph and identify the equilibrium. Do you expect unemployment to be relatively high or low in this economy? Explain why? Do you expect inflation to be relatively high or low in this economy? Is it a concern? Explain your rationale. Let's imagine that AD reduces by 250 at every price level because of loss confidence in the economy by consumers. Show the new aggregate equilibrium. Explain how the original output, price level, and employment will be affected by the shift in AD. Upload your final version to your ePortfolio to one of the three Institutional Outcomes listed on the first page of these directions. Week 7: Reflection Due by the end of Week 7 at 11:59 pm, ET. Directions In Weeks 2, 3, 5, and 6, you used Microsoft Excel to plot demand and supply curves to find equilibrium price and quantity. In the process of completing ECON195 - Portfolio Project Directions and Rubric these demand and supply graphs, you covered shift in demand and supply curve, price elasticity, government policies, aggregate demand, and aggregate supply. In approximately 150 of your own words and in a Word document, reflect on your understanding of plotting demand and supply curves to find equilibrium. You must address the following prompt in your reflection: Explain how and why businesses or our government determine demand and supply curve to find equilibrium price and quantity. Discuss how completing this Portfolio Project helped you gain the knowledge, skills, and capabilities to effectively employ the outcomes listed on the first page in the workplace. Upload and submit your final reflection in Blackboard. 8 ECON195 Portfolio Project Directions and Rubric Criteria Content 60 points Organizati on 30 points Grammar 10 points Instructo r Comment s Excellent 54 - 60 points Accurately completed all parts of the problem. Created accurate graphs per the data provided. 27 - 30 points The spreadsheet is formatted correctly. Font style and size is consistent throughout the spreadsheet. 9 - 10 points 1 or no spelling and/or grammatical errors. Average Needs Improvement 42 - 53 points Accurately completed most parts of the problem. Created somewhat accurate graphs per the data provided. 0 - 41 points Did not complete many parts of the problem. Created inaccurate graphs per the data provided. 21 - 26 points The spreadsheet is mostly formatted correctly. Font style and size is consistent throughout the spreadsheet. 0 - 20 points The spreadsheet is not formatted correctly. The Font style and size is not consistent throughout the spreadsheet. 7 - 8 points 2-3 spelling and/or grammatical errors. 0 - 6 points Contains 4 or more spelling and/or grammatical errors. Total Points Poin ts ECON195 - Portfolio Project Directions and Rubric 10 ECON195 Portfolio Project Reflection Directions and Rubric Criteria Content 80 points Mechanics 20 points Instructo r Comment s: Excellent 72 - 80 points Explained all demand and supply graphs as they relate to shortage, surplus, government policies, unemployment and inflation for each question. Responded to all assigned questions. 18 - 20 points 1 or no spelling and/or grammatical errors. Average 56 - 71 points Explained some demand and supply graphs as they relate to shortage, surplus, government policies, unemployment and inflation for each question. Responded to some assigned questions. 14 - 17 points 2-3 spelling and/or grammatical errors. Needs Improvement 0 - 55 points Did not explain demand and supply graphs as they relate to shortage, surplus, government policies, unemployment and inflation for each question. Did not respond to all assigned questions. 0 - 13 points Contains 4 or more spelling and/or grammatical errors. Total Points: Poin ts
