Theory of Consumer Choice and Frontiers of Microeconomics
Purpose of Assignment
Week 5 exposes students to subjects that are intended to whet their appetites for further study in economics. Students will use the theory of consumer choice and the impact of the concepts of asymmetric information, political economy, and behavior economics, to describe how consumers make economic decisions.
Scenario: You have been asked to assist your organization’s marketing department to better understand how consumers make economic decisions.
Write a 1,050-word analysis including the following:
- The impact the theory of consumer choice has on:
- Demand curves
- Higher wages
- Higher interest rates
- The role asymmetric information has in many economic transactions.
- People are not rational in behavior economics.
Be prepared to provide a two-minute recital of interesting and important lessons from this assignment.
Cite a minimum of three reliable and authoritative reference sources from the University Library in addition to your textbook or any other data sources. The textbook and data sources should always be cited and included in the reference list.
The student should do research of reliable and authoritative reference sources to generate either recent or historical “real world” examples of concepts, institutions, events, and trends that are relevant to the topics listed above. Hypothetical or simple story-like examples are welcome, but should be supplemented with “real world” examples.
Students should use research articles from peer-reviewed journals, trade periodicals, government reports, research institute reports, reliable blogs, newspapers and magazines with coverage of business and economics, and other worthwhile sources.
Some internet sources are to be avoided as primary reference sources: www.investopedia.com, www.wikipedia.org, and any other dedicated “economics information” website like www.khanacademy.org, www.amosweb.com, www.netmba.com, www.chegg.com, www.quora.com, www.tutor2.net, www.quickonomics.com, www.economicshelp.org, and other online economics and business encyclopedia or dictionaries. These can supplement the textbook only. (Of course, if you use these websites, you must cite them and include them in your reference list.) Penalties will be assessed if these are used instead of the textbook. (As you can see, the instructor is familiar with these and others. Please read the Mankiw textbook (he is in the top 40 worldwide which is the top 10% of all economists; see https://ideas.repec.org/top/top.person.all.html ).)
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Theory of Consumer Choice and Frontiers of Microeconomics Grading Guide