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Style:
APA
Subject:
Mathematics & Economics
Type:
Essay
Language:
English (U.S.)
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Topic:
Three basic Economics Questions
Essay Instructions:
Topic 1:
Apple has chosen to have the components for the iPhone manufactured by more than 30 companies around the world, as opposed to producing everything itself.
- Address the three basic economic questions: How does this choice determine what, how, and for whom these goods and services are produced?
- Does the fact that Apple outsources so much of its labor affect your decision to buy Apple products?
- For U.S. consumers and producers, what are the pros and cons associated with Apple's decisions to outsource production?
Topic 2:
Use the Internet to research a product that is created by the cooperation of different markets, such as a pencil.
Answer:
- What is the product you researched?
- How do markets operate to bring this product into existence?
- Think about how these different markets work together to create a new product. How does that relationship affect supply and demand for the various markets involved?
- In what ways has the change in supply and demand affected the market?
- What enabled the many participants in the production of this product to cooperate, and how has this affected the production of the product?
Topic 3:
- Describe three different methods of allocating scarce resources.
- Explain how these allocation methods may affect quantity demanded, equilibrium price, and quantity supplied.
- Are these allocation methods more or less efficient than other methods?
- Explain your arguments using relevant course material and personal experience.
Essay Sample Content Preview:
Microeconomics
Student’s Name
Institution of Affiliation
Topic 1
Three basic Economics Questions
Apple Inc has opted to outsource the production of its iPhone’s components from 30 independent companies across the globe. The first economic question is what they will produce. The 30 companies will produce all the components that Apple uses to manufacture iPhones, for example, the batteries, phone screens, sound speakers among other components. The second question relates to how the 30 companies will produce the components for the iPhones. They will produce the components based on the demand by Apple. The production would also depend on their specialization. They will as well produce them in mass to enjoy the economies of scale. The third question is for whom they will produce the components. They will produce the components for Apple, which will in turn produce the iPhones for the final consumers that prefer the iPhone to other types of phones.
Does the outsourcing move by Apple affects the consumer decision?
The move by apple to outsource the largest proportion of its labor might affect the consumers’ decision to buy its products. For example, since the Apple products might become cheaper than before, following the division of labor, the demand for the products might go up. However, outsourcing might compromise the quality of the products, which might make the consumers not to buy the company’s products.
Pops and cons of outsourced production by Apple
One of the key advantages for both consumers and producers relates to the lower costs. For example, it would be cheaper for the companies to manufacture the components because of specialization compared to Apple doing the production. This would translate to lower cost of production for the companies and affordable prices for the consumers. Outsourcing as well ensures high-quality products because of the skilled labor from the outsourced companies. However, a key disadvantage of outsourcing is the controlling concern. Since Apple will not be in control of production, it might affect the quality of the products (Carbaugh, 2013).
Topic 2
Production of an item through co-operation of different markets
Product
No one can possess all the knowledge and skills necessary in the production of items including those as simple as a pencil. As a result, it requires co-operation of different participants to ensure that the product is in the market and is of high quality. A key example of a product that requires co-operation is a car.
How markets operate
Different markets must cooperate to bring the product in existence. One of the key participants includes the manufacturers of the auto parts. Others include the assembler of the automobiles, the dealers that participate in...
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