Assignment:
1. U.S. TRADE POLICY: FREE TRADE VERSUS PROTECTION (12-11-19 version)
A. What are the basic elements of the neoclassical economic argument that "trade creates value"?
B. Describe a potential set of "advantages" and a set of "disadvantages" to international trade when the economic policy analysis moves into the context of an actual nation-state such as the United States as it trades with other actual nations in the world.
C. Use elements of public choice theory and political economy to describe how American society will reach a decision about the degree of free trade (trade liberalization) which is in its best interest?
D. Is it irrational for anyone to care about what happens to the United States of America in thelfuture? Explain.
2. NHERE TO LOCATE (revised 12-1-19)
Consider the decision about where to live from an economic standpoint. Suppose that any particular location has a variety of features - the variety of public services offered by the local government I crime rate, the employment possibilities (number of jobs) the quality of the public schools, the amount of pollution in the area, the vitality of culture, the amount of property taxes, and so forth. Assume some places are better than others, but that it is generally true that in many ways, different community features "trade-off' against each other; meaning that places with better schools also have higher property taxes, or that places with more vital culture (stadiums, bars, museums, restaurants, shopping centers) also have higher crime rates, or that places with greater employment possibilities also have increased pollution. There are great big cities, large cities, small towns, bedroom suburbs, rural (farm) counties, and everything in between.
A. According to microeconomics, is it a sound decision to try to find the best location for one community feature while ignoring all the other features? Explain.
B. Using microeconomics, describe how a person would go about deciding where to live.
C. In economics, does it matter that you already are located in a particular place? That you come from a place (or places), and already have a history there? Explain.
3. STUDENT LOAN DEBT FORGIVENESS
From the official campaign website of U.S. Senator Bernie Sanders [Independent Democrat - Vermont]:
College For All - Today, we say to our young people that we want you to get the best education that you can, regardless of the income of your family. Good jobs require a good education. That is why we are going to make public colleges and universities tuition free, and cancel all student debt.
A. From the standpoint of the principles of microeconomic thinking, evaluate the behavioral consequences which might be predicted from implementing the suggested policy of Senator Sanders. What will happen?
B. Should Senator Sanders actually be elected the 46th President of the United States, would he actually cancel all student loan debts? Explain.
C. What ideas/standpoints of the principles of public choice theory and/or the principles of political economy are the most important to keep in mind in determining what will actually happen with regard to the student loan debt policy of the U.S. Government, when it is made in Washington. D.C.? Explain and Describe.