1. Consider the application of economic principles that you learn by reading Chapter 1 of your textbook in this question. First, read the following statement below. Then, state whether this statement is true or false. Finally, explain your reasoning using the concepts you have learned from chapter 1 of your textbook.
“The government should provide such goods as health care, education, and highways because it can provide them for free.”
2. In this question, consider the application of demand and supply in real life by analyzing a news article. You will learn how to analyze a news article by responding to questions about demand and supply.
First, find a news article published within the last two years that discusses changes in demand and supply of particular goods/services. Post your article or a link to your article. Next, summarize the key points of the article by answering the following questions:
A. What changed in this market? (You may answer “no” to some of the following questions)
Identify the market or the good/service you are analyzing the determinants of demand and supply.
Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market.
Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market.
Has there been a movement along the demand curve? The price of the good itself is the only factor that could make a movement along the curve.
Has there been a movement along the supply curve? The price of the good itself is the only factor that could make a movement along the curve.
B. Which curve shifts?
C. What happens to the equilibrium price and quantity?
Remember to use economic vocabulary within the summary (e.g., demand, quantity demanded, determinants of demand, shifts in the demand curve, supply, quantity supplied, determinants of supply, and shifts in supply curve). Elaborate on changes in equilibrium quantity and equilibrium price. The article may not use these exact terms; therefore, use the terms you have learned throughout your response as appropriate.
3. Consider the application of tools economists have that you learn by reading chapter 2 of your textbook in this discussion.
First, watch the video below:
Let’s Allow a Fair Trade in Kidneys | Frederike Ambagtsheer | TEDxAmsterdamLinks to an external site.
Next, read the questions below. Then, state your side. Finally, explain your reasoning using the concepts you have learned from chapter 2 of your textbook.
a. Selling your organs is a violation of federal law, a felony punishable by up to five years in prison, or a $50,000 fine. A few years ago, eBay intervened when a person put one of his kidneys up for sale on eBay (the bidding reached $5.7 million before it was pulled).
b. If you were largely incapacitated because of the failure of your kidneys, how much would you be willing to pay to receive a healthy kidney? Is the United States a better place to live because such transactions are prohibited?
c. How about ethical issues? Based on economic and ethical considerations, what is your position on this discussion? Should there be a market for organs?
