Explain the theory of 3rd-degree price discrimination using a graphical model.

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This assignment is designed to show how the economic theory of 3rd-degree price discrimination is implemented in the airline industry and reflected in airline pricing.

To obtain some limited price data, choose any city-pair and two competing airlines. A network and low-cost-carrier make an interesting comparison, but any airlines of interest are acceptable. For each airline, obtain the 4 prices for a typical round-trip itinerary with bookings 1 day in advance, and then for 1, 2 and 4 weeks in advance of the departure date. Itineraries with closer departure dates are more likely to be purchased by business travelers. Leisure travelers, on the other hand, usually book well in advance of the travel date.

To isolate the effects of advance purchase, the itineraries should depart and return the same days of the week at approximately the same times of the day. Try to avoid the influence of holidays or other seasonal effects on demand. Use the airlines’ websites for all fare information.

In a short paper, first explain the theory of 3rd-degree price discrimination using a graphical model. Use the model to explain how the airline determines the price and quantity of seats for passengers traveling for business and leisure. Next, discuss how airlines actually practice price discrimination. Then, present your hypothesis, your specific expectation of what the price data will show as evidence of the practice of price discrimination. Follow this with your research methodology including the choice of airlines, the itinerary, class of service and fares, and sources of data. Then, present the data. A simple table or a graph may be the best method for showing the itineraries and fares. Finally, discuss whether the data provide evidence of price discrimination (because of small sample size, the data may be conflicting). Draw appropriate conclusions. An introduction should begin the paper with the conclusion demonstrating how the objective was met. Incidentally, this organization is typical of a research paper.

There is no page limit, but 3 to 4 pages not including the title page, reference page, and any appendices, should be sufficient. Incorporate the standard elements of APA style including running head, page numbers, section headings, citations, and references.

Format

There is no page limit, but three to four pages, not including the title page, reference page, and any appendices, should be sufficient. Incorporate the standard elements of current APA style including running head, page numbers, section headings, citations, and references.

 

 

Explain if globalisation today has rendered global governance ever more essential than in the past?

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You are required to: Provide a detailed and critically assessment of the above statement. In doing so, your views should insightfully develop the following: Show how global governance has changed and how it has imposed itself differently compared to the earlier period. Discuss if compared to the past, there is a clear gap between the weight of economic governance and political governance. Also, explain if globalisation today has rendered global governance ever more essential than in the past? Is global governance moulding and creating a future architecture that will surely change the world of politics, international organisations and the role of the nation-state?

 

Examine how historical events in US history have contributed to economic inequality in the U.S.

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This paper is going to examine how historical events in US history have contributed to economic inequality in the U.S.
Introduction has to include a clear thesis statement.
There should be 4-6 bodyparagraphs,  so DROP the conclusion and focus on the arguments. Causes you should focus on is de-unisation, tax policies, federal monetary policies (unemployment). AVOID causes like globalisation (this is related to Asia and not American history). You can present anything as long as it is connected to the past.
Focus on historic events like the Great Depression, the Great recession. This is IMPORTANT. Also, mention how WW2 got them through the Great depression, and the effects of it on income inequality today.
It is important that you link the past to the present. Therefore, you have to use Trump’s slogan “Make America great again”. Trump refers to the 1950s, 1960s, 1970s, when people where able to rise from poverty and had good wages.
Also, write about the 1970s, a decade characterized by slow growth, high unemployment, and high inflation. This dismal economic situation provided the impetus for new policies that promised to stimulate more economic growth. Write about these policies and how they affected today’s American society. Use the fact that American dream starts to become less achievable here, how is it today?
When presenting arguments for the present, write about how poverty and affluency and some of the trends in exonomic inequality today. Also, argue around the ‘all men are created equal’ constituion. Is this right, wrong, why? Link reasons to historical events. Statistics are important, so emphasise on the income gap. Check sources.
Use APA 6th when citing. You have to have a good topic sentence and a good concluding sentence in every paragraph that answers the “so what?” question.
As for the body paragraphs, the topic sentence should be followed by a sentence that explains it a bit further. Then, you should introduce 3 evidences, like facts and examples, to back it up, it is IMPORTANT you use statistics in some and that you have solid arguments.
Also, you have to use sources when stating your evidence. This is essential.
And avoid repetition.
Here are some sources you have to use:

6 facts about economic inequality in the U.S.

Is it true that we’re putting our whole economy at risk by keeping restaurants, retail and other business closed?

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The primary argument for “reopening” the economy in the last few months has been that, if we do not, the U.S. could enter an economic depression that would be worse for the country than the spike in COVID-19 cases. Do some research and decide whether this is a reasonable gamble or not. Is it true that we’re putting our whole economy at risk by keeping restaurants, retail and other business closed?

Explain well what behavioral finance is, and what is the pre-crisis reference literature.

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Explain well what behavioral finance is, and what is the pre-crisis reference literature.

Compare Egypt to the following countries: Saudi Arabia, Israel, Algeria, and Morocco.

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The main country for the paper is Egypt. Compare Egypt to the following countries: Saudi Arabia, Israel, Algeria, and Morocco.

Compare and contrast these markets to a non-standardized market where consumers do not perceive sellers as all being the same.

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You stop by a crafts fair and you notice consumers haggling with vendors over prices. What does this tell you about the competitiveness of this market? Suppose you plan to go to a farmers’ market next. Do you expect to find more or less haggling at this market than you did at the crafts fair? Why?
Also, compare and contrast these markets to a non-standardized market where consumers do not perceive sellers as all being the same. Provide two example of a non-standardized market.

Develop an Excel spreadsheet with 5-year trend data on a variety of key performance indicators and budget items showing the financial status of the selected institution.

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You will develop an Excel spreadsheet with 5-year trend data on a variety of key performance indicators and budget items showing the financial status of the selected institution. The US Department of Education’s National Center for Education Statistics coordinates the Integrated Postsecondary Education Data System (IPEDS) surveys every year. The IPEDS surveys are federal requirements of all institutions that receive Title IV aid. IPEDS data are especially helpful for enrollment and budget analysts to compare their own institutions with comparative peer institutions. Use link: Retrieving IPEDS Data for Selected Institutions in the Learn section for a helpful video tutorial with the step-by-step instructions. In this assignment, you will download data that are publicly available from IPEDS (if you cannot locate the information from your own institution’s website). Use the most recently available 5 years of reported data for the following most important key performance indicators and budget data that must be included in the spreadsheet: 1.Fall Enrollment Enrollment of first time in college (FTIC) students Enrollment of new transfer students Total undergraduate enrollment Total graduate enrollment Full-time enrollment Part-time enrollment Grand total enrollment 2.Retention Rates Full-time retention rate Part-time retention rate 3.Completions Bachelor’s degrees Master’s and doctoral degrees combined Grand total completions 4.Graduation Rates 150% of normal time 5.Student Financial Aid and Net Price Number of undergraduate students awarded federal, state, local, institutional or other sources of grant aid Percent of undergraduate students awarded federal, state, local, institutional, or other sources of grant aid Average amount of federal, state, local, institutional, or other sources of grant aid awarded to undergraduate students Number of undergraduate students awarded federal student loans Percent of undergraduate students awarded federal student loans Average amount of federal student loans awarded to undergraduate students 6.Frequently Used/Derived Variables

Page 2 of 2 Total price for in-state students living on campus Total price for out-of-state students living on campus 7.Finance Revenues i.Tuition and fees ii.Sales and services of auxiliary enterprises iii.Total operating revenues iv.Gifts, including contributions from affiliated organizations v.Total nonoperating revenues vi.Capital grants and gifts vii.Total all revenues and other additions Expenses and salaries and wages by function and total expenses by natural classification i.Instruction current year total ii.Research current year total iii.Public service current year total iv.Academic support current year total v.Student services current year total vi.Institutional support current year total vii.Auxiliary enterprises current year total Endowment assets i.Value of endowment assets at the end of the fiscal year Assets and liabilities i.Total assets ii.Total liabilities Plant, property, equipment i.Total for plant, property and equipment ii.Other capital assets – ending balance You are welcome to provide additional information as a means of preparing broader context about the institution. Because of the amount of details required for this budget assignment, it is recommended that you use multiple worksheets within the same Excel file instead of placing all the data into the same worksheet.

What is your opinion on these factors that contribute to income inequality? Provide necessary justifications to support your arguments.

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One of the long-term economic challenges faced by Malaysia is to achieve a more inclusive growth. Inclusive growth is defined as an economic growth that is sustainable in the long term as well as broad based, benefitting a large share of the labour force, thus increasing employment opportunities and reducing income inequality. Malaysia has been recording a high economic growth since 1970s averaging around 6.3% from 1970 to 2018 due to the various economic policies implemented under the various Malaysian Plans which have enabled it to almost eradicate absolute poverty and reduce income inequality between races. The absolute poverty level in 1970 for Malaysia was very high with almost half of the population living under the poverty income level compared to under 1% recently. The income gap between races has also been on the declining trend due to the high-income growth experienced by all races in Malaysia.

Malaysia has achieved huge achievement in almost eradicating poverty as well as reducing income inequality measured by Gini coefficient; however, gap between income groups is increasing. Therefore, the focus of the government under the 11th Malaysian Plan is to make growth more inclusive such as by reducing the income inequality between the top earners and bottom earners, that is, the top 20% of income group (T20) and bottom 40% of the income group (B40). Another aspect of income inequality that policymakers would like to address is the income inequality between the developed states such as Kuala Lumpur and Selangor with the least developed states such as Kelantan dan Sabah.

Some of the factors that contributed to this income inequality in economies among others are development of new technology, globalisation, lack of educational opportunities, high healthcare cost and lack of social protection system. This income inequality could be detrimental in achieving macroeconomic stability and growth. Fiscal policy has been identified as one of the main policy tools that can be used to reduce income inequality, through redistributing efforts using taxation and public spending to increase capacities of lower income groups. In addition, social safety nets programmes are very important to protect the income of the poor and ensure equal access to healthcare and education services that provide increased productive capabilities.

The new challenge of fiscal policy in emerging and developing economies is to create adequate fiscal space. This was due to the large fiscal stimulus implemented to overcome the impact of fiscal crisis in 2008. The current fiscal policy in many emerging and developing economies is inadequate for effective future countercyclical measures and facing new fiscal challenges such as achieving inclusive growth. Due to rise in income and population ageing, public spending over GDP will increase from 2.4% in 2010 to 7.3% in 2050, while for social security and welfare, the increase is 2.5% and 5.6%. This would require for governments to increase their fiscal revenue to ensure fiscal sustainability.

In addition to inadequate fiscal space, other issues concerning the role of fiscal policy in the economy especially in achieving inclusive growth are how does fiscal policy reduce inequality and is it effective? Some of the approaches taken by fiscal policymakers to achieve inclusive growth include revisiting the tax and public transfer policy, increasing the public service delivery, enhancing the role of business dynamism and public spending pro-poor and better targeted. This is important because there is a widening income gap in economies, for which the most effective tool identified is fiscal policy. Fiscal policy is the most effective public tool because it promotes equal opportunities for all level of society through public spending in education and healthcare as well as through better income distribution. However, this would require increasing public spending and could affect fiscal sustainability if revenue is not increased. In addition, the increasing population ageing could result in fiscal pressure due to the rise in healthcare and social protection cost.

Inclusive growth can be measured by income growth and distributions which can be observed by looking at the GDP per capita growth and income inequality Gini coefficients. The concept of inclusive growth includes increasing the pace and size of the economy through equal access for investment and employment opportunities for all social groups in the economy. The United Nations Development Programme (UNDP) stressed that inclusive growth is growth with low and declining inequality, increasing participation of the poor in the economic and political process which will contribute higher benefits to them.

[Source: Wan Sulaiman, W.F. (2019). The Role of Fiscal Policy in Inclusive Growth in Malaysia, Issues and Challenges in the Malaysian Economy. Emerald Publishing Limited, 95-108.]

  1. Referring to the above article, “Some of the factors that contributed to this income inequality in economies among others are development of new technology, globalisation, lack of educational opportunities, high healthcare cost and lack of social protection system.” What is your opinion on these factors that contribute to income inequality? Provide necessary justifications to support your arguments.

(350 words)

  1. From the above article, it is understood that “Fiscal policy has been identified as one of the main policy tools that can be used to reduce income inequality, through redistributing efforts using taxation and public spending to increase capacities of lower income groups.” Evaluate the effectiveness of fiscal policy in reducing income inequality.

(250 words)

Part (B) – Economic Report Writing

Considering the relevant information and examples from various sectors of the economy, as well as an extensive review of literatures, you are required to critically assess a manager’s demand decision which is determined by:

(i) market size for a good/service

(ii) the composition of the customer base

(1000 words)

 

Do you believe the lockdown is the best response to the pandemic? Explain your position

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Governments across the world responded aggressively to the COVID-19 outbreak by imposing extensive lockdowns. Do you believe the lockdown is the best response to the pandemic? Explain your position