ECON545 Paper Project 2
ECON545 Paper Project 2
Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline will increase even further due to increasing high demand from India and China. Besides, Cousin Edgar thinks he will make a good profit on the sale of convenience items at each station. But before buying the gas stations, he decides to ask for your advice since you are taking this course in Business Economics.
You recall reading about making pricing decisions for gasoline on pages 173-174 of the textbook. You also recall reading about perfectly competitive markets in Chapter 12, and the need for differentiation in Chapter 13. Being skeptical of Cousin Edgar’s optimism on the profitability of selling gasoline and convenience items, you decide to research the significance of the influence that macroeconomic conditions can have on the success of a gas station. So you research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Cousin Edgar with the most informed advice possible. In addition to macroeconomic issues, you also evaluate the gas station idea from longer-term perspectives.
Macroeconomic Paper as a Professional Report
Your paper should be organized into five parts as listed below.
1. Title Page: Name, class, and date
2. Introduction to situation but do NOT copy the scenario. Briefly summarize the situation and identify the macroeconomic issue(s) to be decided from the perspective of the organization.
3. Business cycles, unemployment, inflation, international—comparative advantage, exchange rates, trade, etc., monetary policy and interest rates, and fiscal policy and unemployment.Identify the variables that are critical in addressing the issue(s). Gather and present the relevant data on the variables by searching the DeVry Online Library. Ask a librarian for help if needed. Use in-text citation to report the source(s) of the data. Graphs may be included here.
4. Recommendations and Economic Justification
Formulate and present your recommendations for addressing the issue(s) based on the relevant data and economic principles identified above. Justify your recommendations in terms of the economic impact on those affected.
List the full references for at least five sources alphabetically in APA format.
Section Points earned Points Description
10 Good format, citations, lack of spelling errors, etc.
Correct title page and reference page
GDP, Business Cycle, International, Monetary Policy, Fiscal Policy, Demographics
GDP (20 points)
Business cycles, unemployment, inflation (40 points)
Monetary Policy and interest rates (30 points)
Fiscal policy and unemployment (30 points)
Demographics (10 points)
What are your recommendations explained by your analysis?
Total 180 A quality paper meets or exceeds these requirements
1. DeVry Online Library:
• Data bases for related articles
• Data bases for industry reports; IBISWorld in particular.
• ProQuest Statistical Abstracts of U.S.: http://library.devry.edu/pdfs/STATISTICAL_ABSTRACTS__US.pdf
2. Industry Associations
• Association of American Medical Colleges: https://www.aamc.org/
• American Medical Association (AMA): http://www.ama-assn.org/ama
• Council on Graduate Medical Education (COGME): http://www.hrsa.gov/advisorycommittees/bhwadvisory/cogme/
• National Center for Health Statistics (NCHS): http://www.cdc.gov/nchs/
• Solar Energy Industries Association: http://www.seia.org/
• The Solar Foundation: http://www.thesolarfoundation.org/
• The National Restaurant Association: http://www.restaurant.org/
• NACS – The Association for Convenience & Fuel Retailing: http://www.nacsonline.com/Pages/default.aspx
3. Private Research Groups
• The Rand Corporation: http://www.rand.org/
• University of Michigan: http://css.snre.umich.edu/; http://www.sca.isr.umich.edu/
• The Conference Board: https://www.conference-board.org/data/bcicountry.cfm?cid=1
• OECD: http://www.oecd.org/eco/economicoutlook.htm
• IMF: http://www.imf.org/external/pubs/ft/weo/2015/01/
4. U.S. Government Websites:
• Statistical Abstracts of U.S.: https://catalog.data.gov/dataset/statistical-abstract-of-the-united-states
• International Trade Administration: http://www.trade.gov/
• National Renewable Energy Laboratory: http://www.nrel.gov/
• National Center for Health Statistics: http://www.cdc.gov/nchs/
• U.S. Department of Energy: http://www.energy.gov/
• U.S. Energy Information Administration: http://www.eia.gov/
• Bureau of Labor Statistics: http://www.bls.gov/
• Bureau of Economic Analysis: http://www.bea.gov/
• Lawrence Berkeley National Laboratory (Berkeley Lab): https://www.lbl.gov/
• U.S. Census Bureau: http://www.census.gov/; http://www.census.gov/econ/bes/; http://www.census.gov/economic-indicators/
• U.S. Department of Commerce: http://www.commerce.gov/; http://export.gov/; http://business.usa.gov/; http://www.esa.doc.gov/content/indicators
• Statistical Abstracts of U.S.: https://catalog.data.gov/dataset/statistical-abstract-of-the-united-states; https://catalog.data.gov/dataset?q=business+expense&sort=none&ext_location=&ext_bbox=&ext_prev_extent=-142.03125%2C8.754794702435617%2C-59.0625%2C61.77312286453146
Just be sure that the relevant economic principle is the main focus of the paper. We are asking you to research your chosen scenario, but the grading rubric is about the economic principles being studied in this class.
• Also remember that the macroeconomics part of the class is about how changes in macroeconomic variables for the whole economy can then affect a particular industry or business. Do not taketheseimmediately to a micro level.