Successful Leaders
To be successful leaders in the global business world of the 21st century, managers must consider economic trends, behavior, and ramifications of economic decisions. Managers must also balance the pressures to react in the short term and plan for the medium term and long term.
With this in mind, reflect on the economic theories, concepts, and strategies presented in this course.
Submit a 250- to 350-word paper that addresses the following:
• Briefly summarize and describe how the economic theories and principles you have studied in this course have deepened your thinking about economic behavior.
• Explain how the knowledge/insights from this course will be most useful in your own decision making from a personal and business perspective.
• Include a cover page and a list of references at the end.
In addition to fully answering the assignment's questions, each Assignment will be evaluated for clarity of writing, critical analysis of the issues, proper use of references to support the positions taken, and adherence to APA standards.
Required Resources
Readings
• Frank, R. H., & Bernanke, B. S. (2010). Principles of microeconomics, brief edition (2nd ed.). New York, NY:McGraw-Hill/Irwin.
o Chapter 9, "Externalities and Property Rights" (pp. 253-280)
Chapter 9 explores how many activities generate costs or benefits that accrue to people not directly involved in those activities. These costs or benefits are referred to as externalities. The chapter also covers how externalities affect resource allocation. In addition, the chapter covers how, because of an external reason affecting competitors, one person can get an advantage without an improvement in performance.
Focus on goods whose production generates a positive externality for consumers. Review the Coase theorem, which discusses how the situational inefficiencies resulting from externalities can be rearranged to create incentives for remedial actions.
o Chapter 10, "Using Economics to Make Better Policy Choices" (pp. 283-301)
Chapter 10 explores economic policies for dealing with specific problems in the environmental, safety, and health domains. The chapter also shows how careful application of basic economic principles can help society design policies that both expand the economic pie and make everyone's slice larger. In addition, this chapter investigates circumstances under which rational citizens may vest in the government the power to constrain their own behavior in various ways.
Focus on the cost-benefit principles and how they can help resolve trade-offs. Also, examine how the power that citizens vest in the government should be apportioned among local, state, and federal levels.
Media
• Kahn Academy. (2014m). Negative externalities [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/consumer-producer-surplus/externalities-topic/v/negative-externalities
Note: The approximate length of this media piece is 6 minutes.
• Kahn Academy. (2014s). Taxes for factoring in negative externalities [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/consumer-producer-surplus/externalities-topic/v/taxes-for-factoring-in-negative-externalities
Note: The approximate length of this media piece is 6 minutes.
• Kahn Academy. (2014p). Positive externalities [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/consumer-producer-surplus/externalities-topic/v/positive-externalities
Note: The approximate length of this media piece is 7 minutes 30 seconds.
• Kahn Academy. (2014t). Tragedy of the commons [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/consumer-producer-surplus/externalities-topic/v/tragedy-of-the-commons
Note: The approximate length of this media piece is 6 minutes 30 seconds.
Optional Resources
• Frank, R. H., & Bernanke, B. S. (2011). Principles of microeconomics, brief edition (2nd ed.) [Supplemental material]. Retrieved from https://highered.mheducation.com/sites/0077316770/student_view0/index.html