Assignment:
The paper is to be a properly formatted (APA) paper that I expect will take at least five pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your own life. The basic format is:
Q.1 Explain the issue, problem or observation
Q.2 analyze it using the economic way of thinking – possible approaches include ( you do not need to use them all and these are only some you may consider)
a. Cost-benefit analysis
b. Externalities and unintended consequences analysis
c. Asymmetric and information problems
d. Perverse incentives
Q.3 Conclusion
a. This is where you allow for your own judgment to come in
Ideas can come from church, school, home, personal life and such. Try to avoid big national issues, that is not the focus of this class and we are looking to apply these ideas, theories and concepts in every day life.
A brief example:
Problem:
Some schools have decided to eliminate trays on their cafeterias as an environmental move to save on washing and use of water and soap and so forth.
Analysis:
(this is an externality and unintended cost approach). The cost of this move is more spills on the floor, more foot traffic as people make more trips to the serving area, possibly more broken dishes, dirtier tables, and maybe other things.
Conclusion:
Seems like management may be trading in one sort of cleaning (dirty trays) for others (tables and floors) and pushed some of the costs onto others, diners, as they take more time making trips back and forth. Hard to monetize and compare these but these trade offs are real.