Description
Q1. Suppose you are an airline company manager. The total cost of a flight is $100,000.
(fuel, food, beverage, etc.) and 200 seats are installed in the plane. So the average cost of
each seat is $500. The flight is about to take off and there are 10 seats empty. Now a
customer wants to take the flight but only want to pay $300. Should you let this customer
board? Use one of the ten principles we have learned in the class explain your answer.
Q2. read the article “Comparative Advantage and American Jobs” from Wall
Street Journal in 2011. According to this article, Former president Obama created a
Council on Jobs and Competitiveness to address the job crisis in the U.S. As pointed out
by the author, one of the principles that can guide the council away from repeating past
errors is that “A competitive America does not mean competitive success for every
American industry.” Based on what we have learned in the class about comparative
advantages and given the globalization of our economy, what is your suggestions to
Former President Obama if you were in the council? What industries are important to us
in which we need to be competitive?
Link:
an%20Jobs.pdf?dl=0
Q3. Read the article “Oil Prices: What’s Behind the Drop? Simple Economics” from
New York Time. In the section “Why did the price of oil drop in the first place?”, the
author explained some reasons for why the oil price dropped. Please use the language
and diagrams we have learned in the class to interpret these reasons. In the section “Who
benefits from the price drop?”, the author mentioned that natural gas price has fallen as
well. Use the diagrams we have learned in the class explain why so.
Link:
Behind%20the%20Drop_%20Simple%20Economics%20-%20The%20New%20York%20Ti
mes.pdf?dl=0
Q4. Please read the article “Taiwan Tries to Revive Its Banana Export Industry”. What kind of
impact does the banana industry make to the banana market? Which shifter of the demand or
supply curve they are trying to use?
Link:
nana%20Export%20Industry%20-%20The%20New%20York%20Times.pdf?dl=0
