Assignment:
Discussion 1
Should college tuition in Texas be free?
• Explain the pros and cons of free college tuition, including the costs and benefits to society.
• Since there definitely is a cost to providing a college education, who would pay for these costs if tuition is "free'?
• College education results in a positive externality for society. Explain whether the market failure that results from this externality is already being addressed with respect to college tuition in Texas.
• What would happen to the number of students enrolled in college, and how would this impact college campuses?
• Would free tuition decrease the value of a college education? Explain why or why not.
• The above points are just a few relating to the topic of free college tuition. What other points not mentioned above do you think should be considered when discussing the possibility of free college tuition, and why?
Discussion 2
On March 8, 2018, President Trump used his authority granted under the Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, effective March 28, 2018. Initially, Canada, Mexico, and members of the European Union were exempt from these tariffs, but this exemption was taken away on June 1. Tariffs, or taxes on imported goods, are the most widely used type of trade barrier and are often considered economically inefficient. Do some research on these tariffs and then address the following:
a. What official reason was given for the implementation of these tariffs?
b. Who will receive the most benefit from these tariffs and who will be harmed by them?
c. Relate these tariffs to the economic principle of comparative advantage and discuss what will happen to production and prices of those products that use steel and aluminum.
d. Explain why some American companies might be opposed to these tariffs.
e. What do you think will be the economic consequences of these tariffs, both domestically and globally?
f. Do you believe the implementation of these tariffs was a good idea? Why or why not?