discouraged workers and the economy

Assignment 2: Discouraged Workers and the Economy

A “discouraged worker” is an individual without a job who has a desire to work; however, the worker has not actively searched for a job within the last six months, because the worker believes that there are no jobs available. Such a worker is not included in the official unemployment count.

Consider a scenario where discouraged workers are now included in the official unemployment rate during a recessionary period in the economy. Which of the three types of unemployment—frictional, structural, or cyclical—do you believe that these unemployed workers would most closely qualify for? How about during a period of economic expansion? Explain your answers and include examples.

Next, discuss and explain how including discouraged workers in the official unemployment rate would affect both the federal deficit and the national debt. Include examples to support your conclusions.

By Friday, January 11, 2013, post your initial discussion response in the M1: Assignment 2 Discussion Area. By Wednesday, January 16, 2013, read all of the other students’ postings, and post comments in the Discussion Area on at least two other responses.

Assignment 3: Supply, Demand, & Government in the Markets

A doctoral student has just completed a study for her dissertation and found the following demand and supply schedules for hand held computers to be as follows:

Price/Computer

Quantity Demanded

Quantity Supplied

$200

1000

2200

175

1250

2050

150

1500

1900

125

1750

1750

100

2000

1600

75

2250

1450

50

2500

1300

25

2750

1150

Questions:

  1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market.
  2. What is the equilibrium Price and Quantity in the market?
  3. Now suppose the government imposes a special tax on these computers. Describe what would happen in this market in terms of the supply and demand curve.
  4.  Disregard the new tax in part three.  Now assume that the government imposes a price ceiling of $100 in this market, as a result of protests of price gauging by the sellers.  What would happen to the price and quantity in this market?
  5. Disregard the events of part four.  Assume that the manufacturers of this product lobby the government’s lawmakers, in terms of this product being an essential for college students but they are considering halting production due to the lack of profits.  The lawmakers agree and now set a price floor at $150.  What would happen in this market?
  6. If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?

Present your analysis in Excel format. Enter non-numerical responses in the same worksheet using textboxes.

By Tuesday, January 15, 2013 deliver your assignment to the M1: Assignment 3 Dropbox.

 

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