Application Exercises


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Should your restaurant shut down?
Mark Maier, Glendale Community College
Acting as a restaurant owner students use data on fixed and variables costs, including an unspecified implicit cost of owner's time, to determine if the restaurant should stay open over the weekend before ...

Economics Topics: Microeconomic Topics:Firm production and costs

Should a merger be approved in US ice cream market?
Mark Maier, Glendale Community College
Given data on the US ice cream market (for premium and all store-bought ice cream) teams evaluate a proposed merger between Nestle and Dreyers.

Economics Topics: Microeconomic Topics:Regulation and antitrust

Pricing at Panamint Valley Gas: A contestable monopoly
Mark Maier, Glendale Community College
Teams use cost and revenue data to determine the best price for a contestable monopoly, a gas station in Panamint Valley, California, 50 miles from the nearest gas station.

Economics Topics: Microeconomic Topics:Monopoly and other market structures

Elasticity and tax incidence
Mark Maier, Glendale Community College
This is a two part application exercise. In the first part groups estimate the impact of a property tax on an individual's rent. In the second part groups analyze the impact of a sugar tax on the price of soft ...

Economics Topics: Microeconomic Topics:Taxes, Competitive markets

How can we adjust student college benefits for the cost of living?
Mark Maier, Glendale Community College
Student teams predict the impact of college proposal to adjust financial aid based on inflation measured by the CPI. Students must use concepts related to the construction of price indices.

Economics Topics: Macroeconomic Topics:Inflation, Measurement

Impact of the Federal Deficit
Mark Maier, Glendale Community College
Using a fable about "King Big Debt" teams examine four possible outcomes of deficit spending: monetizing the debt; external debt; crowding out; and Keynesian crowding in. Teams must select which outcome ...

Economics Topics: Macroeconomic Topics:Fiscal policy

Macrosimulation: What to do in stagflation?
Mark Maier, Glendale Community College
Based on an online macroeconomic simulation for an economy with stagflation, teams choose from a selection of fiscal and monetary policies for one year. The simulation then shows the results of the choice that can ...

Economics Topics: Macroeconomic Topics:Fiscal policy, Monetary policy

The Tax Game: What are fair and effective tax rates?
Mark Maier, Glendale Community College
Based on an online simulation teams choose from five tax regimes that each collect the same tax revenue but do so with different tax rates. Teams predict the impact of their tax choices and then, based on the ...

Economics Topics: Microeconomic Topics:Taxes

Game theory between TBL teams
Mark Maier, Glendale Community College
Using a game theory one-time pay-off matrix, student teams first predict the outcome and then play the game to see what occurs.

Economics Topics: Additional Topics:Game theory

What are effective public policies for the heroin market?
Mark Maier, Glendale Community College
Based on a supply/demand model with inelastic demand, student teams evaluate policy options for government intervention in the heroin market.

Economics Topics: Microeconomic Topics:Competitive markets

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