Economics Assignment | Online Assignment
Article Report 3 (Paper Three) is a 500 – 700 report about an article from a current (not older than 1-1-2020) online magazine or newspaper.
You must explain and analyze the article using one of the following theories/official US government policies
) Public Goods, Negative Externalities, Energy and Conservation
This topic is to be analyzed using supply and demand to show the cost of negative externalities, and the impact of correcting these externalities on price and quantity. And/or you can use MC, MB analysis to assess the degree of cleanliness that is feasible.
For example if the article is about fossil fuel, the you can use supply and demand for fossil fuel energy and how the full cost of using this type of energy is not fully paid by the producer and consumer. Then how the suggested solutions to clean up the environment would change the price and quantity of fossil fuel.
2) Agriculture Subsidy
First find/summarize an article dealing with a subsidized agriculture commodity. Then use supply and demand and/or elasticity theories to analyze the problem.
The goal can be to reduce the high cost of the subsidy to the taxpayers and consumers and still support the “small” farmers while keeping in mind previous attempt of the government to reduce the subsidy and still support the farmers.
3) Income Distribution and Poverty
First find/summarize an article dealing with income inequality, then use the Lorentz Curve to assess if inequality is increasing or decreasing so that in part III you can use the Lorentz again to suggest a solution/criticism to narrow the inequality gap
4) International Trade and Foreign Exchange
First find/summarize an article dealing with international trade and/or exchange rate then use comparative advantage, and/or absolute advantage argument to analyze the summarized information.
Note that:
When country specializes in an industry that it has comparative advantage in, then this same country must have a comparative disadvantage in another industry—therefore the necessity of trade.
When a country currency is determined in a free floating exchange market then the value of the currency would decrease if it imports more then it exports.
Countries trade because of comparative advantage. This comparative advantage can be cancelled by manipulating the exchange rate therefore a free floating exchange rate will give all trading partner an equal and fair trade. For example:
If US. Demand Chinese goods they Supply $ which means decrease in the price of the $ which make USA export cheaper and Chinese import more expensive. This will also cause an increase in Demand of the RMB which means increase in price of the RMB which make Chinese export more expensive and USA import less expensive
Part I. Summary
First, you must find an article that contains an issue that lends itself to analysis by one of the assigned theories. Once you have decided that the article is appropriate, you must then summarize it using your own words. The information you summarize in Part I will be used in your analysis in Part II.
Part II. Analysis
Second, you must explain and analyze the article using one of the asigned theories:
Part II analysis is essential to be able to draw inferences in part III.
do not use the pronoun I, use the appropriate theory to just analyze the information stated in the summary.
do not add more information in part II, all information should be in the summary.
do not explain/define any theory, you need to use the theory to analyze the information that you placed in the summary.
Part III. Drawing Inferences
Third, draw inferences (also known as making projections and/or providing criticism) based on the issues summarized in Part I and analyzed in Part II using the same economic theories as mentioned in part II above.
do not use the pronoun I, use the appropriate theory to just analyze the information stated in the summary.
do not add more information in part II, all information should be in the summary.
do not explain/define any theory, you need to use the theory to analyze the information that you placed in the summary, and then in the inference and based on the analysis you are to use one of the assigned theory again to give solution or criticism.
