Applied economic analysis questions. The questions contain our assignment details., Exercises of Applied Economics

Download Applied economic analysis questions. The questions contain our assignment details. and more Exercises Applied Economics in PDF only on Docsity! Write a brief report (500 words) discussing your takeaway from the course lectures and assignments so far. Being a student of this course has given me an insight of how economics is not just numbers and data but how it is also a bit similar to physics, applicable to all spheres of life. This course focuses towards improving our comprehension of the real world by putting the concepts of economic analysis into practice. In the course till now we have tackled a variety of issues using an integrative approach with the ultimate goal of understanding economics application in real life. We have also come to understand why applied economic analysis is important. Applied economics applies the conclusions drawn from economic theories and empirical studies to real-world situations with the desired aim of informing economic decisions and predicting possible outcomes. The purpose of applied economics is to improve the quality of practice in business, public policy, and daily life by thinking rigorously about costs and benefits, incentives, and human behavior. Applied economics can involve the use of case studies and econometrics, which is the application of real-world data to statistical models and comparing the results against the theories being tested. Till now this course has taught us how economics may show the possible results of people's financial decisions. For instance, if a consumer wants to acquire a luxury good but has limited financial means, a comparison between the predicted benefit of the good and the estimated cost and long-term impact on assets might be made. In our first lecture it was taught to us that Economics is essentially a toolkit to help us understand the way of society and helps us understand the market. Later we had discussed how everything's an argument. How every thought is either a premise or a conclusion of an argument. Premise being a set of assumptions and conclusion being deduction drawn from premise. Both premise and conclusion can be true as well as False. Economics plays a role here and tries to establish methods and benchmarks for making ‘good’ arguments. We further also learnt about fallacies, Logical errors in argumentation are called logical fallacies and every area, including politics, advertising, and interpersonal interactions, is rife with logical fallacies. With the knowledge of these we were given our first assignment which made me understand how articles and different journals portray certain things with the help of fallacies. As we progressed in the course many new concepts were introduced, from argument to data sets to types of data, one of them being the idea of auctions and how it's done. Being someone who has never witnessed an auction or known its working this was a very interesting topic and very engaging as well. It teaches how a rational person bids and how sometimes the rule of rationality does not apply. Being given the assignment on the same topic made me understand how much work goes when bidding for something and it's not just about raising the money. In conclusion, this course has been a great way to help us understand the real world and how economics can be applied to solve real life applications and can be used to manipulate the market. Outline a research question that you would want to address using the tools of economics. Research Question: "How do the tools of economics help to analyze and solve real- world problems in society?" Economics is a social science that examines how products and services are produced, distributed, and consumed. It offers insightful information about how markets operate, how individuals make decisions, and how governments might step in to address economic issues. In order to address societal problems like poverty, inequality, and environmental degradation, economics is also essential. This question seeks to examine how the tools of economics can be applied to address such issues. One way in which economics can be used to address societal problems is through the analysis of market failures. When the market fails to distribute resources effectively, a less-than-ideal result results. Externalities, public goods, and unsatisfactory competitiveness are a few more reasons why this might happen. Market failures are identified by economists using tools like cost-benefit analysis and game theory, who then suggest fixes like taxation, subsidies, and regulation. Another way economics can be used to address societal problems is by examining the distribution of resources and income. In many countries, economic inequality is a serious problem since it results in the rich getting richer while the poor stay impoverished. The Gini coefficient and poverty thresholds are two tools economists use to quantify inequality and suggest remedies like progressive taxation and income redistribution. Economics also plays a vital role in addressing environmental problems such as climate change. Fossil fuel consumption results in pollution and greenhouse gas emissions, which have serious negative effects on the environment and the economy. To