Part B: Introductory Skill Self-Assessment: This Course Assu ✓ Solved

Part B. Introductory skill self-assessment: This course assumes student proficiency in general math problem solving techniques, as well as general statistical and graphing concepts

This assessment is designed to gauge your foundational skills in mathematics, statistics, and graphing concepts essential for success in this course and subsequent business classes. Questions cover understanding correlation, interpreting supply and demand charts, creating and analyzing graphs, calculating average growth rates, and determining weighted averages. You should review relevant concepts if unsure, as instruction on these skills is not part of the course. Assistance and tutorial resources are available outside scheduled class sessions, including through Student Services and course Canvas resources. Successful completion requires performing calculations and creating graphs, so early identification of gaps is crucial for effective support and progress in the course.

Sample Paper For Above instruction

The integration of fundamental quantitative skills into economic analysis is pivotal for understanding market behaviors and making informed decisions. This paper explores key mathematical concepts such as correlation, graph interpretation, growth calculations, and averages, with a focus on their application within economic and business contexts.

Understanding Correlation and Impact of Economic Factors

Correlation measures the relationship between two variables, indicating how one affects the other. In economic models, positively correlated factors move in tandem; hence, if one factor declines, the other is expected to decline as well. Conversely, negatively correlated factors move in opposite directions; thus, an increase in one leads to a decrease in the other. For instance, consider the relationship between consumer income and luxury goods demand. If income rises (a positive correlation), demand for luxury goods likely increases. Conversely, the price of a substitute good is negatively correlated with demand for the original; if the substitute's price rises, demand for the original might decrease.

Interpreting Supply and Demand Charts

Supply and demand graphs visually depict market dynamics. At a given market price, the quantity demanded and supplied determine market equilibrium. For example, at a price of $5, if the quantity demanded is 8,000 units and supplied is 6,000 units, the market experiences a shortage. The equilibrium price occurs where quantity demanded equals quantity supplied, say, at a price of $6 with both quantities at 7,000 units. A market surplus is identified where the quantity supplied exceeds demand, such as a 2,000-unit surplus at a specific price. When prices decrease from $8 to $7, typically, the quantity demanded increases, and the quantity supplied decreases, impacting market balance and potentially leading to a new equilibrium.

Graphing Supply and Demand

Constructing graphs involves plotting data points on axes representing price and quantity. For example, a graph with prices on the vertical axis and quantities on the horizontal axis can be created by plotting initial data. When quantities increase by specific increments, the demand or supply curves shift accordingly, illustrating economic responses to market changes. These visual tools are vital for analyzing policy impacts, market shocks, and pricing strategies.

Calculating Average Annual Growth Rate

Assessing a company's growth over time involves calculating the average annual growth rate (AAGR). Using given sales figures over five years (e.g., Year 1: $100,000; Year 5: $145,000), we compute the year-to-year growth rates and average them. The growth rate for each year is calculated as:

(Ending value - Beginning value) / Beginning value

For example, Year 1 to Year 2: (110,000 - 100,000) / 100,000 = 0.10 or 10%. Continuing similarly for subsequent years, the average of these annual rates provides the overall growth trend.

Weighted Average of Gas Prices

To determine the average price paid for fuel over multiple days, use the weighted average formula, considering the total gallons purchased. For example, buying 10 gallons at $3.50, 6 gallons at $3.00, and 4 gallons at $3.25 results in the total expenditure divided by total gallons:

Weighted Average Price = (Sum of (price per gallon * gallons)) / Total gallons

Calculating this yields a representative cost per gallon over the period, useful for cost analysis and budgeting.

Conclusion

Proficiency in these fundamental quantitative skills enables students to efficiently interpret economic data, create meaningful graphical representations, and perform critical calculations essential for analyzing market trends and making strategic decisions. Developing mastery in these areas supports success across coursework and professional applications.

References

• Blanchard, O. (2017). Macroeconomics (7th ed.). Pearson.
• Mankiw, N. G. (2020). Principles of Economics (8th ed.). Cengage Learning.
• Krugman, P., & Wells, R. (2018). Economics (5th ed.). Worth Publishers.
• Parkin, M., Powell, M., & Matthews, K. (2014). Economics (12th ed.). Pearson.
• Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill Education.
• Hubbard, R. G., & O'Brien, A. P. (2018). Microeconomics (6th ed.). Pearson.
• Frank, R., & Bernanke, B. (2018). Principles of Economics (6th ed.). McGraw-Hill Education.
• Case, K. E., Fair, R. C., & Oster, S. M. (2019). Principles of Economics (12th ed.). Pearson.
• Soderberg, M. (2019). Graphing Skills for Economics. Journal of Economic Education, 50(4), 388-403.
• Wooldridge, J. M. (2019). Introductory Econometrics: A Modern Approach. Cengage Learning.