Share
Explore BrainMass

Applied Economics

Applied Economics focuses on economic theories and econometrics (mathematical and statistical methods used in economics) and how they can be used to address and improve economic issues. Applied economics looks at real-world problems in the public and private sectors through an economic perspective, in order to determine the weaknesses and how to improve a company, country, or household. Generally speaking, applied economics is the empirical study of economics.

Applied economics is relevant to our own lives because it gives us a clear, concise image of an economic situation, without the influence of bias. This helps us determine a way to improve how our economy functions. Economic theories are formed by looking at how historical events have impacted the economy and how the economy rebalances itself. Applied economics tests these theories against empirical evidence to see if they actually hold true. The main goal is to distinguish between correlation and causality; economics is interested in causal relationships but these are easily confused with correlations. 

This area of economics covers a wide array of topics and the categories that fall under applied economics relate to how our lives are affected by changes in the economy. The topics that fall under applied economics are as follows: labour economics, monetary economics, nature resource economics, and public economics.

Categories within Applied Economics

Labour Economics

Postings: 155

Labour economics is the study of the interaction between firms, workers, and the government and is analyzed by employment and wages.

Natural Resource Economics

Postings: 32

Natural resource economics focuses on the supply, demand, and allocation of natural renewable and nonrenewable natural resources.

Public Economics

Postings: 36

Public economics studies how the government impacts the public market by looking at how the production of good and services are affected by government policies.

Monetary Policy, Enron, and Business Ethics

Discussion 1 -What is monetary policy? How does the Fed increase money supply? -What is the effect of an increase in money supply? -Explain how government deficits lead to increases in the money supply. -How does monetary policy affect a company's financial status? Answer this question from both a profitability and balance s

Demand and Supply Equations with Equilibrium and Graphing

1. It has often been said that craft unions (electricians, carpenters, etc.) possess considerably greater power to raise wages than do industrial unions (automobile workers, steel workers, etc.). How would you explain this phenomenon in terms of demand elasticity? 2. What would you expect to happen to spending on food at h

Supply and Demand

1. The following function describes the demand condition for a company that makes caps featuring names of college and professional teams in a variety of sports. Q = 2,000 - 100P where Q is cap sales and P is price. a. How many caps could be sold at #13 each? b. What should the price be in order for the company to sell 1,0

Calendar for Product Pricing

Staff members and the board of the Knotfer Prophet Agency have decided to express the dramatic side of well-known and respected community and agency supporters with a calendar that each month displays one of them in a costume that reflects the happenings of that month. The photographs are funny and tasteful. For instance, the ma

Inelastic demand and increased prices

If the demand for a product is inelastic, what will happen to total revenue if price is increased? Below is my response but I need more words. The total revenue will increase. When demand is inelastic, a given percentage increase in price corresponds to a smaller percentage decrease in quantity demanded. Thus total revenue

Hospital administrator

You are the hospital administrator, and this situation has been brought to your attention. The mother of a pregnant minor seeks to obtain the daughter's medical records because she wishes to see if the daughter indicated to hospital personnel the identity of the father of her unborn child. The patient is a 12-year-old, unmarried

Debate the use of lowest-cost combination of workers.

Lobo Lighting Corporation currently employs 100 unskilled laborers, 80 factory technicians, 30 skilled machinists, and 40 skilled electricians. Lobo feels that the marginal product of the last unskilled laborer is 400 lights per week, the marginal product of the last factory technician is 450 lights per week, the marginal produc

Big companies' needs are identified.

Hello! Do you think you can answer this question ins a easy short way, that an average person can understand? What are the needs of big companies currently? Do you think it is less outsourcing, bringing the jobs back home to the United States, do you think it is re-training workers instead of letting them go, do you thin

Economics: Demand and price, product elasticity, big ticket items

1. What would happen if prices were lowered when demand was inelastic is that this would make the product elastic and the demand would increase for it. A real-world example is that of computer. If it is at $399, but if it becomes higher than $899, people may stop buying it. Furthermore, if prices were raised, then the demand

Economics Questions

1.a) Does the following graph, show an increase in supply or an increase in quantity supplied? What factor(s) might cause this change? Please see attachment above title "DQ1 A.gif" b) Does the following graph, show an increase in supply or an increase in quantity supplied? What factor(s) might cause this change? Please

Human Capital

1. (Question 5.5-ish) Theodore is considering a 1-year training pro- gram, which charges $40,000 in tuition, to learn how to install airport-screening equipment. If he enrolls in the program, his op- portunity cost in forgone income is the $100,000 per year he can now earn. After completing the program, he is promised a job

Macroeconomic factors that influence the operations of the company

Describe, discuss, and analyze the four factors listed below: 1. Macroeconomic factors that influence the operations of the company 2. Microeconomic considerations relative to the company 3. Legal considerations relative to equipment leases and e-contracts 4. Employment and labor law influences as the company grows both dom

Marginal Rate of substitution

Answer the following questions based upon the information given below Q = K^(1/2)L^(1/2), WK = $20 WL = $5 1. What relative amounts of capital and labor will be employed to maximize output? a. equal amounts of capital and labor b. four times as much labor as capital c. twice as much capital as la

Cournot Duopoly - Reaction Functions

Starting with the reaction functions of duopolists A and B from Problem 4, find the Cournot solution algebraically. Given the reaction function of duopolist A, QA = (12-QB)/2 (1) and the reaction function of duopolist B, QB= (12-QA)/2 (2), find the Cournot solution , that is to find QA and QB by substituting (1) into (2).

Pricing Strategy

A market has only two sellers. They are both trying to decide on a pricing strategy. If both firms charge a high price, then each firm will experience a 5% increase in profits. If both firms charge a low price, then each firm will experience a 3% increase in profits. If Firm 1 charges a high price and Firm 2 charges a low price,

Statistical Quality Control

Small boxes of NurtraFlakes cereal are labeled "net weight 10 ounces." Each hour, random samples of size n = 4 are weighed to check process control Five hours of observations yielded the following: Weight Time Box 1 Box 2 Box 3 Box 4 9 a.m. 9.8 10.4 9.9

MBA economics

In a particular region, there are two lakes rich in fish. The quantity of fish caught in each lake depends on the number of persons who fish in each according to Q1= 10N1-.1N1^2 and Q2=16N2-.4N2^2 where N1 and N2 denote the number of fishers at each lake. In all, there are 40 fishers. Suppose N1=16 and N2=24. At which lake i

Present value

When the net present value is positive: a) the internal rate of return equals the cost of capital b) the internal rate of return exceeds the cost of capital c) the internal rate of return is less than the cost of capital d) the internal rate of return equals zero

GDP

I am wondering if GDP per capita in a country like Switzerland can have a low GDP per capita but still have a high standard of living, as compared to say the US GDP per capita. If this were true, what could we say further about GDP per capita.

Cost of Running a Store

Bob runs a hardware store in Montana. His inventory costs him $75,000. Prior to opening his hardware store, Bob worked as an investment banker earning $175,000 per year. He pays his employees $150,000 per year. Economists would say Bob's cost of running the hardware store is $225,000 per year. True False

Competitive Market

In a perfectly competitive market, individual firms can not impact the market price of their good or service. True False

Ozone Depletion

Other than financial assistance, how might industrialized countries help developing countries to control ozone depletion?

Total revenue exceeds peak

I know that when Total Revenue reaches its peak (TR=1), then the Marginal Revenue =0, but when Total Revenue exceeds its peak, what does the Marginal Revenue reach?