# Discuss benefits and costs of unemployment benefits to individuals and to the economy.

Upon successful completion of this module, you will be able to:

� Perform demand forecasting using qualitative methods.
� Apply quantitative techniques in demand forecasting.
� Analyze optimal combination of inputs in production.
� Understand the innovation process and global competition.

In 550-word count, answer the following questions:
1. The table below shows the demand for gadgets (they’re like widgets, only they’re more mechanical) over a 5-month period. Calculate exponential smoothing forecasts for each month and for July. Use a coefficient of 0.5 and assume that the forecast for January was 8. Also, evaluate the quality of the exponential smoothing model by calculating the root-mean-square error for the data set. Note: Round all intermediate calculations to 2 decimal places (see table at bottom).

2. Discuss benefits and costs of unemployment benefits to individuals and to the economy.

3. Comment on the following statement: “A company should produce and sell any product as long as there is a market for it.”

� “It [the wood] is man’s fuel for burning; some of it he takes and warms himself, he kindles a fire and bakes bread. But he also fashions a god and worships it; he makes an idol and bows down to it” (Isaiah 44:15�17, NIV).

o Cigarettes cause cancer. Smoking is the number one cause of deaths due to lung cancer, emphysema, and other serious diseases.
o For every person who dies of smoking-related illness, 20 more suffer from a chronic disease due to smoking.
o Smoking doesn�t just hurt you. Second-hand smoke from your cigarettes is a serious danger to your children, family, and friends” (www.ffsonline.org).

� “Alcohol Facts: Alcohol is created when grains, fruits, or vegetables are fermented, a process that uses yeast or bacteria to change the sugars in the food into alcohol. Alcohol has different forms and can be used as a cleaner or antiseptic; however, the kind of alcohol that people drink is ethanol, which is a sedative. When alcohol is consumed, it’s absorbed into a person’s bloodstream. From there, it affects the central nervous system (the brain and spinal cord), which controls virtually all body functions. Alcohol actually blocks some of the messages trying to get to the brain. This alters a person’s perceptions, emotions, movement, vision, and hearing” (www.abovetheinfluence.com).

Month Demand Table (Question 1)
Jan. 10
Feb. 5
Mar. 10
Apr. 8
May 5
Jun. 10

The paper must fully meet the following: