1. Due Wednesday Sept. 27; 3-5 pages. Source: The Worldly Philosophers.

Explain the meaning of the term “invisible hand” which Adam Smith used to describe the market system. How did David Ricardo and Malthus differ from Adam Smith’s optimistic view of the market?

2. Due Friday October 20

Using as your sources The New York Times, The Wall Street Journal, The Internet or other  economic magazines find three examples of the working of supply and demand. For each example write a paragraph describing the market situation and draw a supply and demand diagram that fits the article. Specify axes, units of measurement, meaning and shapes of the curve, what is held constant, what shifts and why, and what happens to price and quantity.

Note:

a. Be careful to select examples of competitive markets; supply and demand analysis does not work for non-competitive markets.

b. Introduce and explain the concept of elasticity if it should arise in the article you have chosen.
 
c. You may not use the stock market for your example- look for competitively produced goods or services.

d. Good writing, correct grammar and spelling and neat presentation of the work all count.

e. Please attach copies of each article you used to each essay so that I may check your analysis.
 
 

3. Due Monday, November 20   Sources: The Choice and O/S Chapter 20; 3-5 pages.

Describe the theory of comparative advantage and identify the benefits and costs of free trade to each trading country. Explain why protectionism in the form of tariffs and quotas will lead to a lower standard of living in the long run.