Economic Concepts Worksheet

Economic Concepts Worksheet
MBA 501
University of Phoenix Online Economic Concepts Worksheet
Economic Concepts Worksheet

Concept Application of Concept from Personal Experience Reference to Concept in Reading
Microeconomics(McConnell and Brue #1)This is examining specific economic groups or units. One of the elements of microeconomics is positive economics. Positive economics is concerned with "what is." (McConnell, 2004) Our desire is to build a strong and stable business in one part of our area. Some of the factors that need to be investigated are: · How many employees are needed to sustain the business.· What education and skill is needed from employees.· How technology influences how the business is run. If one can manage these components of the business favorably, then the business can perform healthier. I am able to observe this in the hospital where I work. There has been much growth in our area and therefore there is a greater need for laboratory services in the area. Additional employees are needed to accommodate the additional A laboratory technologist needs to have a bachelor 's degree or equivalent certification to work in the lab. Because the need for employees has increased, the lab director needs to monitor the schools that have programs for Medical Technologist. Another option the director needed to look at is the increased technology and new instruments available. Our lab director is also monitoring the new technology that is becoming available and examines to see if different instruments or new instruments and help the current employees become more efficient in their duties. It is interesting to note that the increased business of the laboratory is not always reflected in the decrease of the hospital census. Therefore the macroeconomics of the hospital does not reflect the microeconomics of the laboratory. "Positive economics focuses on facts and cause-and-effect relationships. It includes description, theory development, and theory testing"McConnell, 2004 p 10.
Factors of Production(McConnell and Brue #1)Factors of production include:· availability of resources· amount of employment· productive efficiency, production of any particular mix of goods and services in the least costly way.· allocative efficiency, the lease cost of production of that particular mix of goods and services most wanted for society. In our laboratory setting some of the factors of production are:· the availability of instruments to perform the diagnostic testing and reagents needed for the testing.· Number of laboratory personal needed to staff the laboratory.· Performing laboratory test in a most efficient way and keeping cost down. We would like to keep our staff busy but not over burdened.· Performing laboratory test that is needed for the immediate use of the physician and sending other test to regional labs when the completion of the patient diagnosis is not as critical. Also we would desire to keep up with technology and not perform outdated testing. The factors of production include full employment, production efficiency, fixed resources, fixed technology, consumer goods and capital goods. (McConnell and Brue #1) Chapter 2, p 25
Law of Increasing opportunity cost: a greater amount of a product produced while rendering the opportunity of producing another type of product.(McConnell and Brue #2) I look at the opportunity cost of services in a given industry. In the medical field, nursing services are in great demand. New students observe the need for nurses and enter the nursing program. This could be pulling new students from other needed medical services such as respiratory therapist or physical therapist. This increase of nurses increases the opportunity cost of having more nurses than other types of medical specialist. "law of increasing opportunitycosts: The more of a product that is produced, thegreater is its opportunity cost"(McConnell and Brue)Chapter 2, p 27
Circular flow model is the movement of products are produced by businesses and sold to households, the product market. Also it is also the movement of resources from households to businesses. (McConnell and Brue) This is a complex model that shows the flow of goods and services from businesses to households. It also relates the flow of resources from households to businesses. If I want a new car I will give my time and talents or resources to a business. I receive money from that business and save my money. Then, I go to another business and spend the money that I have saved and obtain the car "circular flow model suggests a complex, interrelated web of decision making and economic activity involving businesses and households. Businesses and households are both buyers and sellers. Businesses buy resources and sell products. Households buy products and sell resources."(McConnell and Brue)Chapter 2, p 36
Money is the medium of exchange that is made by the households. Money represents the ability to obtain products and services. Money is not capital and money produces nothing, therefore; Money is not an economic resource, money is not capital.(McConnell and Brue) Money is used as a store of value in our market. However this store is volatile. This was expressed in Germany when inflation caused the value of money to decrease each day. Inflation and the strength of a country in the market place are some of the determining factors on the value of money.I can have a lot of money in the bank or under my mattress but the money does not mean much until I convert the money into capital, economic resources. Money produces nothing; it is not an economic resource. So-called money capital or financial capital is simply a means for purchasing real capital.(McConnell and Brue)Chapter 2, p 23Money is any marketable good or token used by a society as a store of value, a medium of exchange, or a unit of account. (Money. Widipedia 2006)

References
Money. (2006, November 17). In Wikipedia, The Free Encyclopedia. Retrieved 08:06, November 17, 2006, from http://en.wikipedia.org/w/index.php?title=Money&oldid=88321493

McConnell, C.R., S.L. Brue (2004). Economics: Principles, Problems and Policies, 16e. The McGraw-Hill Companies.

References: Money. (2006, November 17). In Wikipedia, The Free Encyclopedia. Retrieved 08:06, November 17, 2006, from http://en.wikipedia.org/w/index.php?title=Money&oldid=88321493 McConnell, C.R., S.L. Brue (2004). Economics: Principles, Problems and Policies, 16e. The McGraw-Hill Companies.