Econ 2 Term Paper

Bailey McHugh

Foldvary 9:15

5-30-12

Term Paper

Choose a real residential community of more than one person.

I chose the 5th floor of Swig for my residential community. On floor 5, there are 42 students residing there.

Describe its macro-economy.

The economy on floor 5 is made up of undergraduate students. Because this community consists of students, some do not have a job and are supported by their parents; however, some of these students are employed part-time to help with school related expenses during the year.

What kind of governance does your community have?

There are rules throughout the Cyphi community, governed by the residential directors and community facilitators. Floor 5 has also created its own rules to make the community a more respectful living place. Some rules throughout the community include such things as fines for messes in community areas.

The residential directors make financial decisions and the dorm administrators for dorm related spending, however, individuals make their own financial decisions for books, food, entertainment, and transportation.

Income, annual

Wages | $50,400 |

Foreign interest income | $3570 |

Scholarship | $615,000 |

Parents gift | $42,000 |

Total Income | $710,970 |

Less: Transfers, foreign income receipts | $625,000 |

GDP Income | $85,970 |

Spending Consumption

Tuition, education | $655,370 |

Food and Room | $35,000 |

Books and Supplies | $13,000 |

Parties and Entertainment | $4000 |

Transportation | $3600 |

Total Consumption | $710,970 |

Imports | -$710,970 |

Labor Exports | $85,970 |

Net Exports | $625,000 |

GDP Spending | $85,970 |

Describe the labor of the community.

Is there any unemployment? If so, what kind, and why?

There is a low rate of unemployment because students who are seeking employment can easily obtain a job either through student services or through off-campus establishments. Students who are not actively seeking jobs are...