Assignment:
1. Briefly describe a few activities that a typical student might do on any given day that reflect the effects of globalization.
2. Explain why an increase in demand for a good does not lead to an increase in supply. What does an increase in the demand for a good lead to?
3. Discuss the effectiveness of the slave redemption programs in Sudan when it is assumed that the elasticity of the supply of slaves is perfectly inelastic. Use a supply and demand diagram to help illustrate your response.
4. Explain in your own words why the imposition of a tax results in a deadweight loss. Given this, should we eliminate all taxes on goods/services because they result in deadweight losses? Explain why or why not.
5. Oil futures prices are a noisy signal of war in the Middle East. Explain whether this statement is true or false.
6. Many times after natural disasters such as hurricanes, prices are controlled so that it is illegal to charge any price greater than "pre-hurricane" levels. For consumers who value these goods very highly, is this a good policy? If prices were allowed to increase, what do you think would happen to supply of these highly valued goods? Explain.
7. Briefly discuss any benefits of "protectionism".
8. Is a market that generates external benefits considered economically efficient? Explain why or why not .
9. The National Football League (NFL) has long been accused of benefiting from monopoly power. Explain how the NFL protects its monopoly power, and what would you expect to happen to the number of teams and ticket prices if the NFL lost its monopoly?
10. Explain the two basic principles of successful price discrimination.
11. iTunes is an online digital media store operated by Apple. Songs may be purchased individually, and each song has a popularity meter that keeps track of how many consumers have downloaded the song. What information does the popularity meter on iTunes give to consumers, and does the meter itself influence how many consumers download songs? Explain.