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Econ Essay

1519 words - 7 pages

Chapter 1: What is Economics?
The Economics of the Super Bowl
Thinking Critically Questions
1. Why is the Super Bowl such an attraction for advertisers?
Advertisers are attracted to the Super Bowl because of the amount of people that watch the game. The big budget commercials are also part of the experience. "According to a survey recently conducted by the Retail Advertising & Marketing Assn., 36.3 percent of consumers will tune in primarily to watch the commercials."
2. What makes this year’s Super Bowl more attractive?
The article addresses the fact that the New England Patriots were looking to make history by becoming the first team to go 19-0. Also, there will be ...view middle of the document...

Chapter 2: Key Principles of Economics
Jump in Rice Price Fuels Fear of Unrest
Thinking Critically Questions
1. What supply shift contributed to the price of rice increasing?
The supply shift that contributed to the price of rice increasing was a ban on rice exports by top exporters Egypt, India, and Vietnam. These countries account for roughly one third of the world's rice exports.
2. What demand shift contributed to the price of rice increasing?
The demand for rice increased because the supply of rice decreased. The increase in demand has driven prices higher.
3. Why would the price of rice contribute to social unrest?
Rice is a staple for some countries and rising food prices in poor countries will cause people to resort to drastic means to feed their families.
Voluntary Exchange
The principle of voluntary exchange relates to this article by showing how the countries that imposed an export ban on rice disrupted the rice market globally. To control prices and inflation within their own country, Egypt, India, and Vietnam imposed a ban on rice exports. While their intentions were good, they were self-serving. These countries account for one-third of the global supply of rice. The ban on exports drove the supply of rice down causing the price per ton to double in three months. Voluntary exchange between two countries benefits both countries. By eliminating exports of rice, these governments have caused countries that relied upon them for rice, to take drastic measures to feed their population. The Philippines, the world's largest importer of rice, now must tap into emergency stocks while smaller countries, such as Cameroon and other African countries that cannot be self sufficient, are at risk of social unrest due to rising food prices. When Egypt, India, and Vietnam were exporting rice to sell to other countries such as the Philippines and Cameroon, these countries were able to feed the population while exporting their own goods stimulating their economy. Without the rice imports, these countries must now pay the rising prices or produce the shortfall themselves.

Chapter 2: Key Principles of Economics
The world's most expensive whiskeys
Thinking Critically Questions
1. Why the sudden interest in premium whisky?
The article states the soaring interest in whiskey was due to a strong economy. This would translate into more money for consumers to spend on luxury items.
2. Why is speculation in this market risky?
This is a risky market because of the fact that some distillers could flood the market with limited edition bottles aimed at being rare and put on the market for high prices. Also, the economy could turn and investors would be left with a bottle of whiskey for which they will not get their return on investment.
3. What type of individual should buy these whiskies?
People who buy these expensive whiskies should be independently wealthy due to the fact that this market...

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