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BC Economic Principles Paper

BC Economic Principles Paper


Title: Government’s Impact on the Technology Industry

Introduction: The technology industry, encompassing a diverse range of companies involved in the development, production, and distribution of technological goods and services, has become a cornerstone of modern economies. This paper delves into the technology industry, highlighting its significance, major players, goods and services, and the government’s potential influence on its dynamics.

Description of the Technology Industry: The technology industry is a rapidly evolving sector that encompasses various sub-industries such as information technology (IT), electronics, software development, telecommunications, and more. It is characterized by innovation, disruption, and continuous advancements that shape the way we live, work, and communicate. This industry is composed of giants like Apple, Microsoft, Google (Alphabet Inc.), and Amazon, alongside numerous smaller companies driving innovation in niche areas.

At its core, the technology industry produces a wide array of goods and services, including smartphones, computers, software applications, cloud services, social media platforms, and electronic gadgets. It influences almost every facet of modern life, from communication and entertainment to business operations and healthcare technologies. One interesting aspect is the industry’s global reach, with companies collaborating across borders to create and deliver products that transcend geographical limitations.

Microeconomic Variable: Technology Product Prices: A crucial microeconomic variable within the technology industry is the pricing of its products. The rapid pace of technological innovation often leads to declining prices for many tech products over time. This is driven by factors like economies of scale, improved production techniques, and competitive pressures. For instance, the price of personal computers and smartphones has steadily decreased while their capabilities have significantly improved.

Sample Graph: Technology Product Prices Over Time

Source: [Example Source]

Government Impact on the Technology Industry: Government intervention can significantly impact the technology industry through various mechanisms. One key way is through regulations related to data privacy and cybersecurity. In recent years, governments around the world have been enacting stricter regulations to safeguard user data and ensure the security of digital platforms. The General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States are examples of such regulations. Compliance with these regulations requires tech companies to invest in data protection measures and potentially alter their business practices.

Additionally, governments can influence the industry through taxation policies. For instance, tax incentives or breaks may be offered to encourage research and development (R&D) activities, promoting innovation within the sector. On the other hand, governments may also impose taxes on digital services or products, which can impact companies’ profitability and influence consumer behavior.

Conclusion: The technology industry stands as a dynamic and transformative force in today’s world, with major players shaping our digital landscape. Microeconomic variables like product prices are indicative of the industry’s rapid evolution. Furthermore, the government’s impact on the industry is palpable, with regulations and taxation policies shaping its trajectory. As technological advancements continue, the relationship between the technology industry and government interventions will likely remain a topic of ongoing significance.

References: [List of your sources using SWS format]*

BC Economic Principles Paper



In this assignment, you will develop a paper in which you select an industry that interests you, describe that industry, and explain how government might impact the industry.

A paper template is provided below for this assignment.


Review your chapter readings and use the resources provided to develop a 2–3 page paper on Economic Principles – Microeconomics in which you:

  1. Choose an industry that interests you. (Remember: An industry is not a company. It is a group of companies doing the same thing. Ford is a company. Automobile manufacturing is an industry.)
  2. Do research on your industry. In a few short paragraphs, describe your selected industry:
    • Be sure to write in your own words.
    • Identify some of the major companies in this industry.
    • Identify the goods, and/or services this industry produces.
    • Add anything else about the industry that you think is interesting.
    • Keep track of your sources and list them at the bottom of your paper according to SWS.
  3. Describe a microeconomic variable for your industry. Microeconomic variables include prices, sales, production, advertising, investment, and so on.
  4. Include a graph, chart, or table showing this microeconomic variable over time.
    • You do not need to create this graph, chart, or table. Find one that has already been created and paste it into your paper. For example, if your industry is U.S. automobile manufacturing, Google, “U.S. automobile manufacturing over time.” Select the “images” option. Choose one of the graphs, charts, or tables. Then copy and paste it into your paper.
    • Include a reference to the source of the graph, chart, or table. Microeconomic relationships and market outcomes are covered in Weeks 2–4.
  5. Describe one way the government might impact this industry. Examples might include price controls, regulations, taxes, or any other way you can think of.
    • Government intervention through price controls, regulations, taxes, and antitrust enforcement were covered in Weeks 2 and 4.
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