Question

Assignment 1: Economic Brief Due Week 5, worth 150 points

This assignment is aligned to these course outcomes: Explain economic principles and their applications in the real world. Summarize the different types of market structures and the role of government in economics.

In the workplace, we are often asked to create “briefs.” A brief provides a snapshot, or short, written summary, of a situation or event that has occurred. It is generally just a few pages long and may include additional visuals like a graph, chart, or table. In this assignment, write a brief about economic concepts in an industry that interests you.

An example economic brief, template, and resources are provided below.

Example Economic Brief, Assignment 1 Template, Strayer Writing Standards (SWS) Review an example brief. Use the optional template to help you get started. Get familiar with the Strayer Writing Standards (SWS). (See Instructions below.)

Industry Selection

Use this resource to select an industry and learn about the products and services it provides: NAICS (North American Industry Classification System) Select the number next to the industry to see its subsectors, e.g., select 52 to see Finance and Insurance. Select that same number again to read about the industry as a whole or select a sub-category. For example, Mining is 21, and Oil and Gas Extraction, a sub-category, is 211.

Instructions

Review your previous chapter readings and use the resource above to develop an economic brief that is two to three (2-3) pages long in which you:

1. Select an industry and describe the goods and/or services this industry produces. Use the NAICS resource above to help you select an industry (and/or subsector) for your brief.

2. Identify this industry’s market structure and at least two or more market characteristics that support this market structure. (Market structures are covered in Weeks 3 and 4.)

3. Describe any notable microeconomic relationships, market outcomes, and/or trends in this industry. Include a graph, chart, or table containing related data. (Microeconomic relationships and market outcomes are covered in Weeks 2 through 4.) How might government impact this industry’s market prices, output, and/or market structure? (Government intervention through price controls, industry regulations, and antitrust enforcement is covered in Weeks 2 and 4.)

5. This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.) Your brief should include a cover page. Your brief should be two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font. Your brief should include a minimum of one (1) reference/citation in the text.

Answer 1

Let us discuss the Motor Vehicle industry. Motor vehicles are the necessity of almost household now. Although these items are clubbed under lavish goods, however, in the practical economic scenario, vehicles have more or less become the necessity of the people. The Vehicle industry initially gained its birth growth from Japan in the early 1950’s, when Japan produced some of the best vehicles at very cheap prices. The products of the industries of Japan were so good that they soon became the demand of the International market. A huge number of people were employees of this industry worldwide. For a long period of time, the vehicle industry remained the esteemed source of wages for a huge number of laborers.

The Vehicle industry has various sectors within it , namely the development sector, which creates the designs of the vehicles that needs to be created , then there is the manufacturing sector, which takes care of the collection of raw materials , assimilating them to the construction table and finally giving shape to the vehicle hey desire to produce, then there is the sector that takes care of giving the final touches to the vehicles in terms of the market demand for the color and styling of the vehicle and then packaging it with other accessories, then there is the marketing sector which takes care of the promotional activities of the firm in to the market, promoting various advertisements and offers which would increase the appeal of the new vehicle among the people, and finally is the distributer and seller, which take the vehicles from the manufacturers and bring them to the road.

If we see the above diagram, we can figure out the demand for the various kinds of vehicles in the market. The S curve shows the supply of the vehicles in the market, the AD1 curve shows the supply of the luxury vehicles in the market, the AD2 curve shows the supply of the high-end cars in the market, and the AD3 curve denoted the supply of the low prices or mid ranged cars in the market. The point at which these curves interest the supply curve is the point of equilibrium of the curves. Therefore, point P is the equilibrium point of the luxury vehicles, it shows us that the demand for the luxury vehicles is lesser in comparison to the other vehicles, and therefore their supply is also less. The Point Q denotes the equilibrium point of the high-end cars in the market, and that they are the ones which have a generalized and sophisticated demand and supply functions. The Point R denotes the equilibrium point of the mid-range or low-priced cars, which face tremendous demand, and therefore their supply also has to be higher in comparison to the other types of vehicles. The outcome and performance of the mid-range vehicles have traditionally been very good, as they are the reliable ones. They are never out of demand as the general people always look forward to cheap products with some durability.

  In the recent few years, due to proper regulations on the vehicle industry, it has been observed that the prices of the mid-range vehicles have gone down considerably. This is resulted in to even the lower middle class being able to purchase these cars. However, the high range car marker faces the stiff competition, and in the process of reducing the prices the vehicle manufacturing companies are coherently depleting the quality of the vehicles. This compromise on the quality have already been the cause of the casualty of many human lives. The Government should take stringent measures to ensure that the quality of the manufactured product should be at par with the segment in which is boasted to be in. Moreover, strangest n quality checks should be done on the cars to ensure that the Cars pass the various tests, so that it does not prove to be fatal in the course of an accident. Moreover, the prices of the vehicles also should be under control, as some of the manufacturers have been seen violating the vehicle safety measure even in the blower segment cars to make them cheaper. Therefore, the Government should keep a strict vigil on the manufacturing and quality of the product of the sector.