Review the Competency 1 Resources: Economic Fundamentals.
Write a 500- to 750-word analysis (Part 1 of your report) assessing how 2 of the following major economic events influenced supply, demand, and economic equilibrium in U.S. economic activity:
- Rapid price increases, such as those caused by the 1973 oil embargo or the aftermath of a major hurricane
- Dramatic employment drops, such as the combined impact of the 2006 housing bubble burst and the subsequent Great Recession
- Crippling interest rates imposed by the Federal Reserve, such as those during the 1975–1985 time period
- Collapse of the Soviet Union in 1991 and the end of the Cold War and the “peace dividend”
- The dot-com bubble from 1994 to 2000, and the subsequent dot-com crash
Cite at least 2 academically credible sources. The use of charts and tables to illustrate data is highly encouraged.
Select 1 of the economic concentrations (clusters) below:
- Seattle-Tacoma-Olympia, WA aerospace / defense industry
- Central California winemaking industry
- Hollywood movie industry
- Silicon Valley Technology hub
- Texas / Louisiana Gulf Coast crude oil and natural gas production and refining
- Pre-1994 vs Post-1994 US auto and light truck production and the reasons for the change in economic concentration
Write a 700- to 1,050-word evaluation (Part 2 of your report) of economists’ assessments of the role the 4 factors of production played in determining how the economic concentration you selected has evolved. Complete the following in your evaluation:
- Analyze how the economic concentration in the area you chose was influenced by competition and pricing.
- Analyze how the economic concentration in the area you chose influenced the supply chain.
- Analyze which of the 4 factors of production were the most and least important in determining the economic concentration of the area you chose.
- Predict changes you anticipate for the area of economic concentration you chose. Support your predictions.
Consider the resources provided and other academically appropriate sources.
Cite at least 2 academically credible sources. The use of charts and tables to illustrate data is highly encouraged.
Compile Parts 1 and 2 into one report.
