Assignment:
1. Discussion Question
An argument can be made that the Government could improve consumer welfare by requiring companies to provide accurate information to consumers about their products. We already see this intervention by the government in the labeling requirements on food, warnings on packages of cigarettes, and prohibition of false advertising but do warning labels really deter consumers from eating or engaging in "unhealthy" behaviors? Should companies like McDonald's be "required" to label coffee with the caution that the content is hot?
• Should the Government increase, decrease or remain the same in its level of intervention when it comes to mandating that companies provide product information to consumers? What happened to "caveat emptor" (buyer beware)?
• Can you think of examples where the government does not intervene enough when it comes to consumer safety and product information? Examples where too much intervention is the case? Explain your answers.
• How can consumers become better educated about the products they are considering for purchase? To what extent do you personally go to acquire the best information available?
2. Summary (has to be 2 pages)
In The News: Agricultural markets are often cited as exhibiting the characteristics of the perfect competition market structure. Does farming fit this model?
1. Use the key word ECONOMIC NEWS in an Internet search engine (Google, Bing etc.) to locate online news sources such as CNN News, the NYTimes, Chicago Tribune, Forbes, US News and World Report, or any of the various other nationally recognized news providers.
• NOTE: Make sure the story you select reflects the material covered in the chapter. This is best accomplished by using the ADVANCED SEARCH option and also choosing appropriate categories such as "Business" or "Economics" when the option exists. Also choose sort by "RELEVANCE" to further refine the search process.
Select a news provider and use their search feature to locate a news story on one of the following suggested concepts, or on a topic of interest to you that is appropriate to this chapter.
Possible search terms:
• Maximizing profits
• Industry supply
• American farmers
• Market failure
• Commodities
• Perfect Competition
Write a 1-2 page summary of the information and also explain how it relates to what you have just learned.
3, Review Questions
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
1. Select the top ten most important ideas / concepts you learned in chapters 23 & 24 of your textbook.
2. Number your list and write a three to four sentence explanation of why each idea / concept is important to you and how it affects your life.