Total Pages: 3 Words: 1055 Works Cited: 5 Citation Style: APA Document Type: Essay
Essay Instructions: An economics paper
-discuss how Obamacare is inefficient economically for the USA.
-The focus of the paper is to: make a coherent, well supported argument for (1) why the market is or is not allocatively inefficient and (2) what policy makers should do to correct it or, if addressed by a policy, a critique of the effectiveness of the policy in improving allocative efficiency and economic surplus
Introduce the problem and tell the reader on why it is an important problem. Preview of how economists do or should think about it.
Explain how the problem works. Give examples to illustrate. Include cites!
3. Theory & Evidence
Identify the type of market failure or government failure. (i.e. is it a problem of either positive or negative externalities, public goods, poor information, or lack of competition?). Explain why this (or the government?s policy) is inefficient in a market setting. Include graphs! Then, provide some evidence that the outcomes are consistent with the theoretical predictions.
4. Policy Recommendations/Critiques
If the government has already taken action to try and correct a non-existent market failure then explain what this action was and how it worsens economic efficiency. If no government action has been taken as of yet and it needs to be, suggest a way in which the government could intervene to improve economic efficiency. Hint: Think about alternatives and argue why yours is the best and think about assumptions.
Excerpt From Essay:
Essay Instructions: Economic Analysis Paper
Economic Analysis Paper
The economic analysis paper requires you to select an article from the popular media (newspaper, news magazine, media web site, and/or trade publication), and then both summarize the economic issue presented in the article and critique the economic analysis contained in the article. The article summary should be brief (1 ? 1.5 pages) and should provide a synopsis of the issue presented in the article. This synopsis should be in your own words rather than citing and or copying the author?s words directly. The most important part of the economic analysis paper is the critique, in which you evaluate the author?s understanding of economic theory relevant to this particular issue: Is the author?s analysis supported by economic theory or inconsistent with the predictions of theory? Is the author?s analysis superficial, ignoring important economic dimensions of the question. You are not required to use external sources and ?research? the issue; the economic analysis paper is meant to demonstrate your ability to apply economic theory to a real-world issue. I am most interested in how you present and structure your analysis, and I want to read your critique rather than the analysis of others (e.g. from external sources).
A useful format for the paper is the following
Introduction (1/2 page in length) The introduction should clearly state the economic issue(s) addressed in the article and why they are of interest.
Synopsis (1 pages in length) In your own words, characterize the economic analysis contained in the article. Ideally, the synopsis should provide me with an overview of the article sufficient to understand your subsequent critique.
Critique ( 3 pages in length) The critique is the most important part of the paper, in which you present your own analysis of the economic issue(s) presented in the article, noting points of agreement and/or disagreement with the author?s analysis? If you support the author?s analysis, cite what economic theory and/or theories buttress the author?s arguments. If you disagree with the author?s analysis, indicate what economic theory predicts, and how these predictions are at various with the analysis provided by the author.
Conclusion (1/2 page in length) Provide a brief summary of the issue you analyzed, and conclude with a brief observation on what your critique of this article implies more largely for the quality of economic analyses in the popular media.
The paper must be typed, 5pages in length, using a typeface no larger than 12 point Times New Roman. All margins should be set at 1.25 inches. The paper should include a title page, indicating your paper?s title, your name and the course number and title. All pages of the paper should be paginated, and the last page should include the citation of the paper (Author, article title, publication title, date, page number(s).) Within the body of the text, indirect and direct citations can be handled using the inline citation method. For example:
Varian characterized Amazon?s 2001 pricing experiment as ?clear evidence that Amazon believes pricing strategies ?too low? to be consistent with static models of pricing under market power might suggest dynamic strategies to build market share.? (Varian, p. D1) If this is accurate, we would expect Amazon to implement price increases over time.
Please be careful to attribute all ?borrowings,? either direct quotations or indirect paraphrasings of the author?s ideas. Please submit a photocopy of the article along with your paper.
You DO NOT need to reference other authors or seek out the writings of others on this topic. Again, I am not interested in what others have to say about the issue, but rather how you structure and present your economic analysis through the form of critiquing the author?s economic analysis. In simple terms, reading and citing outside works won?t improve your grade.
The article must discuss some facet of microeconomic theory. You cannot write a paper about the Fed?s decision to change interest rates, or discussions of other macroeconomic aggregates.
The article that the paper is based on.It's from the Economist.
SINK OR SCHWINN
> Nov 11th 2004
> Sourcing from low-cost countries works only in open and flexible
> labourmarkets. Europe's are neither
> WHEN Hal Sirkin was growing up in 1960s America, the bicycle that
> everyregular American child wanted was a Schwinn. In 1993, Schwinn
> filed for
> bankruptcy. The firm had been overtaken by imported Chinese bicycles.
> In 2001, a company called Pacific Cycle bought the Schwinn brand
> out of
> bankruptcy. Pacific Cycle, now owned by a Canadian consumer-goods firm
> called Dorel Industries, says the secret of its success is "combining
> its powerful brand portfolio with low-cost Far East sourcing." Schwinn
> bicycles now line the aisles at Wal-Mart.
> Mr Sirkin is a consultant with the Boston Consulting Group who helps
> his customers do what Pacific Cycle has done to Schwinn: move
> production to East Asia, especially to China. Wal-Mart buys $15
> billion-worth of Chinese-made goods every year. Obtaining goods and
> services from low-cost countries helps to build strong, growing
> companies, such as Dorel Industries, and healthy economies. But the
> Schwinn story also contains the opposite lesson: failing to buy in
> thisway can seriously damage a company's health.
> Sourcing from low-cost countries brings many economic benefits.
> Cheaper labour brings down production costs. This keeps companies
> competitive, raises profits and reduces prices as firms pass their
> lower costs on to their customers. Higher profits and lower prices
> liftdemand and keep inflation in check. Companies spend their
> profits on
> improving existing products or introducing new ones. Customers buy
> moreof the things they already consume, or spend the money on new
> goods and
> services. This stimulates innovation and creates new jobs to replace
> those that have gone abroad.
> Moving work abroad may also help to speed up innovation directly, as
> American, European and Japanese companies get some of their R&D
> done by
> Chinese, Russian or Indian engineers. Randy Battat, the boss of
> Airvana, a telecoms-equipment start-up, has spent the past 18 months
> setting up an R&D centre for his company in Bangalore. This will
> complement the work of Mr Battat's engineers in Chelmsford,
> Massachusetts. The ones working in America will develop the next
> generation of the company's technology. The Bangalore centre will
> elaborate Airvana's existing technology. "They are adding bells and
> whistles that could not be added otherwise because it would not be
> cost-effective," says Mr Battat.
> By making IT more affordable, sourcing from cheaper countries also
> spreads the productivity-enhancing effects of such technology more
> widely through the economy. Ms Mann of the Institute for International
> Economics calculates that globalised production and international
> tradehas made IT hardware 10-30% cheaper than it would otherwise
> have been.
> She reckons that this price reduction created a cumulative $230
> billion-worth of additional GDP in America between 1995 and 2002 as
> more widespread adoption of IT raised productivity growth.
> Sourcing IT
> services (which account for 70% of overall corporate spending on IT)
> from countries such as India will create a "second wave of
> productivitygrowth", predicts Ms Mann, as cheaper IT spreads to
> parts of the
> economy that have so far bought less of it, such as the health-care
> industry and smaller companies.
> McKinsey calculates that for every dollar American firms spend on
> service work from India, the American economy receives $1.14 in
> return.This calculation depends in large part on the ability of
> America'seconomy to create new jobs for displaced workers.
> America's labour
> market is a miracle of flexibility: it creates and destroys nearly 30m
> jobs a year.
> However, in countries such as Germany, France and Japan a combination
> of social legislation, stronger trade unions, regulations and
> corporate-governance arrangements make employment practices more rigid
> and sometimes keep wages higher than they would otherwise be. This
> reduces demand for labour and pushes unemployment higher.
> According to
> McKinsey, in Germany, the re-employment rate for IT and service
> workersdisplaced by sourcing from low-cost countries may be only
> 40%. As
> unemployment at home rises, that process could actually make Germans
> poorer (see chart 7).
> RELUCTANT EUROPEANS
> Udo Jung of the Boston Consulting Group says that, by and large,
> Germans accept that manufacturing companies such as Hella, Bosch and
> Siemens must get supplies from China. Degussa, a chemicals
> manufacturer, recently invited its workers' council on a trip to
> China.The idea was to take emotion out of the debate, says Mr
> Jung. Nor do
> continental Europeans seem bothered about white-collar work being done
> in low-cost countries. But that may be because they are doing so
> littleof it.
> At present, perhaps 80-90% of the service work being done remotely in
> India comes from either America or Britain, with which the country has
> linguistic and cultural links. Such links are absent from its
> relationship with Germany or France. Germany, like America, introduced
> a special visa programme for Indian IT workers in the 1990s as its
> domestic supply of engineers ran dry. But most Indians that went to
> work in Germany failed to learn the language and came back again, says
> Infosys's Mr Murthy. The opposite is true of Indians in America. Those
> who have gone there to work or study are often reluctant to return
> hometo their families.
> Cultural ties appear to be important in forming business
> relationshipsin remote-service work, says Rajendra Bandri of the
> Indian Institute of
> Management in Bangalore. Mr Bandri has studied five examples of
> European firms outsourcing white-collar work to Sri Lanka. In each
> case, they chose that country because a well-placed Sri Lankan worked
> for the European firm, says Mr Bandri.
> Eastern Europe and Russia, which brim over with skilled,
> underemployedengineers, present fewer cultural barriers for
> European companies.
> French is spoken in Russia, German in Hungary and elsewhere. Yet
> neither German nor French firms have yet shown much appetite for
> buyingservices work from their neighbours, either. Arkadiy Dobkin,
> the boss
> of Epam, which claims to be the largest supplier of IT services from
> eastern Europe and Russia, is based in Princeton, New Jersey, rather
> than in Paris or Berlin.
> BEYOND ECONOMICS
> A survey of 500 European firms last summer by IDC, a research firm,
> found that only 11% of its sample were sourcing IT work from low-cost
> countries, and that nearly 80% would not even consider doing so.
> Attitudes were hardest in Italy, where 90% of firms were against the
> idea, followed by France and Germany. An American study released
> at the
> same time by Edward Perlin Associates, a consulting firm, found that
> around 60% of the companies it surveyed had some of their IT work done
> in low-cost countries.
> In continental Europe, companies may outsource for reasons that have
> little to do with favourable economics, says Francis Delacourt, the
> head of outsourcing at Atos Origin. In what he describes as "social
> outsourcing", firms such as Atos Origin may take on surplus IT
> employees from companies that no longer need them. Europe-wide social
> legislation requires the new employer to provide the same wages and
> benefits as the old one. The alternative is costly redundancy. Mr
> Delacourt says this works for his company, up to a point, because
> demand for IT workers in Europe is growing, and Atos Origin has found
> ways to re-employ such people profitably. But he concedes that his
> company needs to be careful not to take on too many.
> How well this system stands up to competition from India is anybody's
> guess. A manager at one firm in Europe privately muses that Germany,
> France and other countries might introduce barriers to IT imports to
> counter the threat to their domestic employment. If McKinsey is right
> and sourcing from abroad does make unemployment in Germany and
> elsewhere worse, protectionist sentiment will grow.
> In the end, Europe's big service firms are likely to get round to
> sourcing production from abroad, as its manufacturing companies have
> already done. But by that time, says Andrew Parker of Forrester,
> British and American companies will already have developed much
> stronger ties with India and other cheap countries, and costs will
> haverisen. This will especially hurt Europe's big financial firms: the
> biggest banks spend billions of dollars a year on IT. Mr Parker
> speculates that some European financial firms could be so badly
> damagedby this loss of competitiveness that they may fall into the
> arms of
> fitter American and British rivals. Schwinn could tell them all about
One of my drafts:
In the article ? Sink or Schwinn? of the Economist, the author makes several interesting points as to why outsourcing is not popular in certain Continental European countries.
As a preliminary matter, it is not self-evident, at least from an economic perspective, why outsourcing has not been enthusiastically adopted by countries like Germany, France and Japan. Basic economic theory assumes that economic actors are motivated by the pursuit of profit. Under this maxim, one would assume every country would be flocking to outource. Cheaper labor brings down production costs, maximizes profits and stimulates economic growth. Prices go down, resulting in inflation keeping in check. New jobs are created to fill the gap for the jobs that are outsourced. In addition, innovation is encouraged because of the cost of the overhead is lowered so that new products can be developed. In turn, information Technology is more affordable because lower production costs have speeded up innovation and kept prices low.
Further, according to Ms. Mann of the Institute of International Economics, ??.globalised production and international trade has made IT hardware 10-30% cheaper than it would otherwise have been.?(p.18) We can see that technological changes like the IT revolution create new possibilities for productivity growth. These new technologies allow labor to be used more efficiently so it can produce better quality goods. Higher profits from growth in labor productivity create capital that is used in better and more machinery and thus makes productivity even greater. With this, I agree.
All firms in industry have goals to maximize profits. In perfectly competitive markets the firms produce until prices are equal to marginal cost. We know that the amount of labor and capital depends on the prices of inputs.
Industries are so large in scale that workers can specialize at work and be more productive. A big industry like Wal-Mart can negotiate better prices because it is buying in big quantities so some production inputs have lower cost.
Small changes in price create big changes in output. When quantity goes up the purchasing price goes down.
However, the author notes at least one possible economic reason for the lack of outsourcing?s popularity in these countries ? government and union intervention in the local labor pool. For example, the author notes that in countries like France, Germany and Japan, because of government intervention through social legislation and strong labor unions, the cost of labor is greater and more stable thus discouraging the hiring and firing of new people. Because the labor costs of companies in these countries is essentially ?fixed,? such companies would not achieve any significant labor cost savings by outsourcing to foreign countries. In other words, outsourcing would not be profit maximizing as companies in these companies would still need to pay for their otherwise fixed local labor costs.
In addition, the author also describes how cultural phenomenon can amplify or entrench conduct that can otherwise be explained in purely economic terms. For example, the author also gives a number of other ?cultural? reasons for why outsourcing is unpopular in countries like France and Germany. First, business relationships between these European countries and countries such as India are more complicated because of cultural barriers. India shares many similarities with England and the US, especially in language, resulting from years of English rule. Most people in the world learn English as a second language as opposed to French, Italian, German or Japanese. People are more likely to stay in a country where they can already speak the language than staying in a country where they must learn another.
The importance of such cultural, non-economic, factors is illustrated by the fact that government intervention in the labor pool does not encourage profits. This is illustrated in the western European countries by the high unemployment rate. Even if the consumer surplus and the producer surplus are in equilibrium there will be a net loss from government policies that shift surplus from one group to another. Labor costs erode a higher profit margin and result in higher prices for the products. If Europe doesn?t change labor and social legislation it may no longer be able to compete with the countries involved in outsourcing. it may not always be bad, especially in countries whose primary goal is not economic efficiency.
Excerpt From Essay:
Essay Instructions: This is a paper on Production in Economics and Free Enterprise. There are six social goals and I need any one of the six that you would feel would be the most important and give an example of something the government does to protects and or promotes this social goal and explain why you think this policy is beneficial. Also pick another social goal that is least important and do the same thing with it. This just needs to be a short opinion paper. NO MORE THAN 5 PARAGRAPHS. If it will not fit on 2 pages than shorten the paragraphs please I only want 2 pages. The following are the 6 social goals.
Please choose any two you want
Excerpt From Essay:
Essay Instructions: In the first chapter of the text we discussed the 10 principles of economics. Two principles that
help explain how wages are determined in a market economy are #1, People Face Tradeoffs, and
#7, Governments Can Sometimes Improve Market Outcomes (Mankiw, 2004). Consider these
principles when completing your assignment. Think of how they apply to the labor market for
· Research the labor market for any state to determine how nursing wages are calculated.
Use the Internet for this research.
· Write a 900-word paper in APA format, in which you:
o Cite the state and the URL of the Web site used in your research.
o Address which factors may influence the supply and demand for nurses.
o Discuss how a nurse’s pay is determined and how the salary is structured.
o Discuss what your chosen state can do to increase the supply of nurses.
o Include at least one appropriately cited and documented quotation to support a point.
o Include at least one appropriately cited and documented paraphrase to support a
Below are a detailed explanations of the 2 principles of economics (and it's reference)that you will need to consider.
Principle #1: People Face Tradeoffs
The first lesson about making decisions is summarized in the adage: “There is no
such thing as a free lunch.” To get one thing that we like, we usually have to give
up another thing that we like. Making decisions requires trading off one goal
Consider a student who must decide how to allocate her most valuable resource—
her time. She can spend all of her time studying economics; she can spend
all of her time studying psychology; or she can divide her time between the two
fields. For every hour she studies one subject, she gives up an hour she could have
used studying the other. And for every hour she spends studying, she gives up an
hour that she could have spent napping, bike riding, watching TV, or working at
her part-time job for some extra spending money.
Or consider parents deciding how to spend their family income. They can buy
food, clothing, or a family vacation. Or they can save some of the family income for
retirement or the children’s college education. When they choose to spend an extra
dollar on one of these goods, they have one less dollar to spend on some other good.
When people are grouped into societies, they face different kinds of tradeoffs.
The classic tradeoff is between “guns and butter.” The more we spend on national
defense (guns) to protect our shores from foreign aggressors, the less we can spend
on consumer goods (butter) to raise our standard of living at home. Also important
in modern society is the tradeoff between a clean environment and a high level of
income. Laws that require firms to reduce pollution raise the cost of producing
goods and services. Because of the higher costs, these firms end up earning smaller
profits, paying lower wages, charging higher prices, or some combination of these
three. Thus, while pollution regulations give us the benefit of a cleaner environment
and the improved health that comes with it, they have the cost of reducing
the incomes of the firms’ owners, workers, and customers.
Another tradeoff society faces is between efficiency and equity. Efficiency
means that society is getting the most it can from its scarce resources. Equity
means that the benefits of those resources are distributed fairly among society’s
members. In other words, efficiency refers to the size of the economic pie, and equity
refers to how the pie is divided. Often, when government policies are being
designed, these two goals conflict.
Consider, for instance, policies aimed at achieving a more equal distribution of
economic well-being. Some of these policies, such as the welfare system or unemployment
insurance, try to help those members of society who are most in need.
Others, such as the individual income tax, ask the financially successful to contribute
more than others to support the government. Although these policies have
the benefit of achieving greater equity, they have a cost in terms of reduced efficiency.
When the government redistributes income from the rich to the poor, it reduces
the reward for working hard; as a result, people work less and produce
fewer goods and services. In other words, when the government tries to cut the
economic pie into more equal slices, the pie gets smaller.
Recognizing that people face tradeoffs does not by itself tell us what decisions
they will or should make. A student should not abandon the study of psychology
just because doing so would increase the time available for the study of economics.
Society should not stop protecting the environment just because environmental
regulations reduce our material standard of living. The poor should not be
ignored just because helping them distorts work incentives. Nonetheless, acknowledging
life’s tradeoffs is important because people are likely to make good
decisions only if they understand the options that they have available.
Principle #7: Governments Can Sometimes
Improve Market Outcomes
If the invisible hand of the market is so great, why do we need government? One
answer is that the invisible hand needs government to protect it. Markets work
only if property rights are enforced. A farmer won’t grow food if he expects his
crop to be stolen, and a restaurant won’t serve meals unless it is assured that customers
will pay before they leave. We all rely on government-provided police and
courts to enforce our rights over the things we produce.
Yet there is another answer to why we need government: Although markets are
usually a good way to organize economic activity, this rule has some important
exceptions. There are two broad reasons for a government to intervene in the economy—to promote efficiency and to promote equity. That is, most policies aim
either to enlarge the economic pie or to change how the pie is divided.
Although the invisible hand usually leads markets to allocate resources efficiently,
that is not always the case. Economists use the term market failure to refer
to a situation in which the market on its own fails to produce an efficient allocation
of resources. One possible cause of market failure is an externality, which is the
impact of one person’s actions on the well-being of a bystander. For instance, the
classic example of an external cost is pollution. Another possible cause of market
failure is market power, which refers to the ability of a single person (or small
group) to unduly influence market prices. For example, if everyone in town needs
water but there is only one well, the owner of the well is not subject to the rigorous
competition with which the invisible hand normally keeps self-interest in check. In
the presence of externalities or market power, well-designed public policy can enhance
The invisible hand may also fail to ensure that economic prosperity is distributed
equitably. A market economy rewards people according to their ability to
produce things that other people are willing to pay for. The world’s best basketball
player earns more than the world’s best chess player simply because people are
willing to pay more to watch basketball than chess. The invisible hand does not ensure
that everyone has sufficient food, decent clothing, and adequate health care.
Many public policies, such as the income tax and the welfare system, aim to
achieve a more equitable distribution of economic well-being.
To say that the government can improve on market outcomes at times does not
mean that it always will. Public policy is made not by angels but by a political
process that is far from perfect. Sometimes policies are designed simply to reward
the politically powerful. Sometimes they are made by well-intentioned leaders who
are not fully informed. One goal of the study of economics is to help you judge when
a government policy is justifiable to promote efficiency or equity, and when it is not.
Mankiw, N. G. (2004). Principles of economics (3rd ed.). Chicago, IL: Thomson South-Western.
Excerpt From Essay:
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