Sunday, September 30, 2007
Myths about the rich
The 2007 edition of the Forbes 400 wealthiest Americans was released last week. As in years past, it's one of the more useful economic annuals when it comes to laying bare the folly of antitrust, worries over the wealth gap, and perhaps silliest of all, the assumption that the rich became that way for exploiting the non-rich
A lesson in supply and demand
The ethanol boom of recent years — which spurred a frenzy of distillery construction, record corn prices, rising food prices and hopes of a new future for rural America — may be fading.
Only last year, farmers here spoke of a biofuel gold rush, and they rejoiced as prices for ethanol and the corn used to produce it set records.
But companies and farm cooperatives have built so many distilleries so quickly that the ethanol market is suddenly plagued by a glut, in part because the means to distribute it have not kept pace. The average national ethanol price on the spot market has plunged 30 percent since May, with the decline escalating sharply in the last few weeks.
Shift your demand curve to the right and watch equilibrium price and quantity rise. Then, push your supply curve to the right far enough so that price falls (by 30%).
Outsourcing; Is it really a problem?
Saturday, September 22, 2007
Every Breath You Take
Columbia Business School's Dean Glenn Hubbard sings about wanting Alan Greenspan's job that went instead to New Fed Chair Ben Bernanke. Parody created by Columbia Business School students.
Is a new tax the answer to Global warming?
U.S. Farmers Rediscover The Allure of Tobacco
In economics its called the law of unintended consequences. The government tries to pass a law that is beneficial and the law has the totally opposite effect. The U.S. Government ended subsidies to U.S. tobacco farmers hoping that they would start growing some other crop. Now they are growing more tobacco than ever. What do you think other nations are saying about U.S. tobacco growers exporting the evil weed to their countries?
Saturday, September 15, 2007
Determinants of Supply and the Market for Pork in China
Thanks to Jason Welker for this timely article and idea. Since we just studied Supply Determinants, remember:
S - Subsidies and Taxes
T - Technology
O - Other goods
N - Number of sellers
E - Expectations
R - Resources, raw materials
Using your knowledge of the determinants of supply, analyze what is happening to the market for pork in China. Several of these determinants are at work here. Which way is the supply curve for pork shifting, and why? Also since the price of pork is going up, what effect will it have on the demand for other items? Remember substitutes and complements.
Is the U.S. ready for Universal Healthcare?
Monday, September 10, 2007
Sunday, September 09, 2007
First the Oil companies and now Baby names, What will Venezuela and President Chavez regulate next
Wednesday, September 05, 2007
Week 2 assignment
Go to Reffonomics website. Read through powerpoints over Unit 2 (Production Possibilities Curve/Frontier). Take multiple choice quiz. Print out score and bring to class on Friday Sep 7.
Monday, September 03, 2007
American Productivity
In honor of Labor Day, let's hear it for the American worker. Fox News reports:
"The average U.S. worker produces $63,885 of wealth per year, more than their counterparts in all other countries, the International Labor Organization said in its report. Ireland comes in second at $55,986, followed by Luxembourg at $55,641, Belgium at $55,235 and France at $54,609."
Something to ponder, What is it about our society and culture that makes us want to work so hard?
Saturday, September 01, 2007
Will trips to the mall become a thing of the past?
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