Economics 251 – Essay #1 – Summer 2004

These topics cover subjects addressed in Chapters 1 to 3, and 20 in the text. Choose any two the ten topics, which are introduced as news clips in the “In the News” and “World View” segments, or are defined in the text. Next find an article for each that is consistent with the topic. Then write an essay for each topic, summarizing the article as it addresses the theme and the discussion in the article. Your submission should be typed and no more than 3 pages double-spaced in total. As before, please attach your articles to your submission. The due date is June 23 at the beginning of the class.

Pages 5 and 6. The concept of opportunity costs is defined. Find an article that uses this concept, and discuss it.

Page 30 – The changing mix of output in the US economy is profiled. Find an article that discusses this phenomenon in greater detail, and discuss it.

Page 33 – 36. Productivity is defined and explained in this section. Find an article that explains productivity growth in the US or another country during the 1990s.

Page 40 – The “World View” article displays the income share of the rich among selected countries. Find an article that discusses income distribution over time, or among selected countries, and concludes something about its implication for economic growth.

Page 50 – The “In the News” article illustrates an example of the law of demand. Find and describe another article that describes the effects of price reductions on quantity demanded (and sold).

Page 65 – 66. The price ceiling on electricity in California, and resulting shortages are discussed in this section. Find another article that describes the effect of imposed price ceilings by government, and describe the impacts on such regulated markets.

Page 421 – Price elasticity estimates for various goods and services are described. Find an article that profiles the price elasticities for some other goods and services. Outline the reasons for the size and type of elasticities that are reported.

Page 422 – The “World View” article describes the impact of price elasticity on cigarette smuggling. Find an article that illustrates the same issue among states with different tax rates on cigarettes.

Page 428 – The concept of income elasticity of demand is profiled in the “In the News” article for restaurant meals. Find another example of a good or service that has been affected by the downturn in the economy.

Page 434 and 435 – The “World View” article and following discussion indicates that advertising can have a significant impact on demand for a product or service. Find an article that documents the impact on demand of an advertising program.