Assignment
1. Rising wages in China.
a. Read the article and watch the video:
i. https://www.tutor2u.net/economics/blog/wages-soar-as-china-reaches-the-lewis-turninkpoint
ii. Why are wages in China rising?
1. Draw a supply and demand graph
2. List some of the possible reasons.
3. How is this impacting the Chinese economy?
iii. Describe the "Lewis turning point" (look it up)
iv. Why are wages in other countries falling?
v. What is happening to US wages? (look it up)
1. Why?
2. Fish farmers in Nigeria
a. Watch the video:
i. https://www.tutor2u.net/economics/blog/new-paths-to-profit-for-nigerian-fish-farmers
ii. Describe the Nigerian market for fish.
iii. Is the fish farming Business profitable? Explain
1. Calculate the profit margin over a year's time.
iv. What does "adding value" mean in this context?
1. How have the changes in fish productions affected
a. Scale
b. Shelf life
c. Capital investment
d. Profitability in the short term?, long term?
2. How competitive is the fish business in Nigeria? Explain
3. Free trade:
a. Read article from the library of economics and Liberty:
i. https://www.econlib.org/library/Columns/y2017/Hooperprotection.html
ii. Describe the argument in favor of free trade. Do you agree? Explain.
b. President Donald Trump claims that Germany, with exports of more than 1.2 trillion Euros and imports of some 900 billion Euros is being unfair. He proposes a tariff of 35 percent goods from Germany, claiming that the Euro is undervalued, along with the Chinese Yuan.
i. Is that revenue or a protective tariff? Explain.
ii. How would free traders, like Henry George Respond?
iii. One Euro trades for about 1.07 dollars; One Yan trades for about 15 US cents; draw a demand and supply graph that illustrates an undervalued, or cheap, currency.
4. EXTRA CREDIT: For the above Redding:
a. Describe Henry George's position on land
i. Where does land get its value?
ii. Why is a tax a way of abolishing private ownership of land.