Category: Microeconomics

1) What is meant by the term ‘opportunity cost’? What mistakes might we make if we do not properly account for opportunity costs in our own decision making? Illustrate with examples. (375 words) use diagrams and graphs
2) Use indifference curves and budget constraints to analyse why a standard individual demand curve is downward sloping. (375 words) use diagrams and graphs

Like almost everything, gasoline prices are determined by supply and demand. You will write about this in some detail. The paper should be well organized and should answer 3 questions:
• What are the market structures of the wholesale and retail gasoline markets?
Hint: Are the wholesale markets perfectly competitive, oligopolistic, monopolistic, monopolistically competitive? Is the retail gasoline market perfectly competitive?
• How do these market structures at various stages of the gasoline supply chain affect gasoline prices?
More hints for questions 1 & 2: what is OPEC and what does it try to do? Is it successful in its goals? Why or why not?
• What are some other factors affecting gasoline prices?
Questions 1 & 2 have to do with the supply side of gasoline. You may talk about demand side and more supply side effects on gasoline prices in question 3. The paper is due on the last day of class. You may hand in the paper earlier and I will give you feedback on how to improve the paper for a better grade. I will not accept any papers after the last day of class and you will receive a “zero” for the paper.
GUIDELINE: Your paper must be typed, double-spaced, and around five pages in length. Margins should be 1” to 1½” on all sides; font size should not exceed 12 points. (This paper is in 12 font.) Staple together the pages of your paper. Your essay should be in your words. If you must use a quotation, please make sure that it is short. Please use endnotes to cite the source of the material that you use in your paper. Your work will be assessed based on the following considerations: how well you focus on and answer the questions asked in the topic of the paper, specific evidence provided to support your argument, clarity, organization, grammar, spelling, and punctuation.
You may go to the website eia.gov (http://www.eia.gov/petroleum/) to do research for the paper. You may want to go to the FAQ section of crude oil (http://www.eia.gov/tools/faqs/) to begin your research. You may use other source material. Make sure to cite the source of the material by using endnotes.

Write an essay in the Stye of an Op-Ed on an issue regarding International Trade v. Protectionism.
The issue should be informed by some current event or policy (i.e. Huawei bans in the US, restrictions on trade of Russian oil, export tariffs on wine in Argentina, import tariffs on goods from some countries (North Korea, Cuba, Belarus) being higher than others, restrictions on US investment in China, the sugar importation quota, etc.) and clearly express your position on the topic, as informed by course content.
Op-Ed
Below are a few guidelines to help you write your op-ed.
Please also refer to the grading rubric to make sure you hit all the goals.
Format: Your op-ed must be formatted in the following way:
• Font size: Times New Roman, Size 12.
• Line Spacing: 1.5 or 2 (double space).
• A title that communicates to the reader clearly, accurately, and concisely your opinion on the topic you’re addressing. Your title should be in Times New Roman, Size 12, and Bold.
• Your full name below the title. Your name should be in Times New Roman, Size 12, and Italic. This is what we call the byline.
• At the end of your op-ed, you should state something like: [Insert Full Name] is a [Insert Major] student at Metropolitan State University of Denver.
A Few more Tips (borrowed from Duke University Office of Communications and Earth Institute at Columbia University)
• Word Count: An op-ed is generally 500-750 words (in the grading rubric, to achieve the highest score in this area, you must not exceed 900 words).
• Make a single point well: You cannot solve all of the world’s problems in 750 words or even 1,500 words. Be satisfied with making a single point clearly and persuasively. If you cannot explain your message in a sentence or two, you are trying to cover too much.
• Put your main point on top: Focus on one issue or idea, briefly express your opinion in your opening paragraph, and be clear and confirmed in your viewpoint. The following paragraphs should back your viewpoint with factual, researched, or first-hand information. A good op-ed is not just an opinion; it consists of fact put into well-informed context.
• Tell readers why they should care. Put yourself in the place of the busy person looking at your article. At the end of every few paragraphs, ask out loud: “So what? Who cares?” You need to answer these questions. Will your suggestions help reduce readers’ taxes? Protect them from disease? Make their children happier? Explain why. Appeals to self-interest usually are more effective than abstract punditry.
• Offer specific recommendations. An op-ed is not a news story that simply describes a situation; it is your opinion about how to improve matters. In an op-ed article you need to offer recommendations. How exactly should North Carolina safeguard its environment, or the White House change its foreign policy? You’ll need to do more than call for “more research!” or suggest that opposing parties work out their differences.
• Showing is better than discussing. You may remember the Pentagon’s overpriced toilet seat that became a symbol of profligate federal spending. You probably don’t recall the total Pentagon budget for that year (or for that matter, for the current year). That’s because we humans remember colorful details better than dry facts. When writing an op-ed article, therefore, look for great examples that will bring your argument to life.
• Use short sentences and paragraphs. Look at some op-ed articles and count the number of words per sentence. You’ll probably find the sentences to be quite short. You should use the same style, relying mainly on simple declarative sentences. Cut long paragraphs into two or more shorter ones.
• Avoid jargon. If a technical detail is not essential to your argument, don’t use it. When in doubt, leave it out. Simple language doesn’t mean simple thinking; it means you are being considerate of readers who lack your expertise and are sitting half-­‐ awake at their breakfast table or computer screen.
• Use the active voice. Don’t write: “It is hoped that [or: One would hope that] the government will . . .” Instead, say “I hope the government will . . .” Active voice is nearly always better than passive voice. It’s easier to read, and it leaves no doubt about who is doing the hoping, recommending or other action.
• Acknowledge the other side. People writing op-ed articles sometimes make the mistake of piling on one reason after another why they are right and their opponents are wrong, if not idiots. They would probably appear more credible, and almost certainly humbler and more appealing, if they took a moment to acknowledge the ways in which their opponents are right. When you see experienced op-ed authors saying, “to be sure,” that’s what they’re doing.
• Make your ending a winner. You’re probably familiar with the importance of a strong opening paragraph, or “lead,” that hooks readers. But when writing for the op-ed page, it’s also important to summarize your argument in a strong final paragraph. That’s because many casual readers scan the headline, skim the opening column and then read only the final paragraph and byline. In fact, one trick many columnists use is to conclude with a phrase or thought that they used in the opening, thereby closing the circle.

Please follow Rubric and use game simulation results. Use Section 2 of word document only. Please let me know if anything else is needed.

1) Imagine you have the choice one Sunday night between taking an extra shift at work or studying for a Monday morning exam. Describe the opportunity cost of making each decision – that is, describe the opportunity cost of working and the opportunity cost of studying (remember: opportunity cost extends beyond money). How does scarcity affect this decision?
2) Next, give an example of a decision you recently made in your own life between two outcomes. What was the opportunity cost of the decision you made? What would the opportunity cost be for the alternative decision? How did scarcity affect your choice?
3) Finally, consider supply and demand for bread. Describe what will happen to the market in the following scenarios. Discuss whether supply or demand is affected, which direction the curve will move, and the resulting change to market price and quantity (i.e., increase or decrease for each).
a) A gluten-free diet becomes popular with consumers. (Note: bread contains gluten)
b) The cost of wheat increases. (Note: wheat is an ingredient in bread)
c) What will happen to the market price and quantity if both changes (a & b) happen simultaneously?
Your response should reflect your understanding of opportunity cost, scarcity, supply and demand, and their applications. Make sure to answer all aspects of the prompt and to thoughtully respond to at least one of your peers.

Select one of the four documents below or research on internet something similar, and elaborate an essay based on the theory of Chapter 9, Figures 2, 3 and 4:
The controversy over free trade. The gap between the economists and the general public.
Is free trade passé? Paul Krugman.
SMEs and international competition.
After 20 Years, NAFTA Draws Praise and Controversy.
The Contentious U.S. China Trade Relationship. Council on Foreign Relations.
Use the theory of the week to confront the different views with critical thinking; personal opinions are not welcomed. Explain the benefits of free trade. You must summarize the readings of the week; you must provide real life examples and explain them using the theory. Explain the controversies over free trade, who are the winners and losers, and why. You must summarize the readings of the week; you must provide real life examples and explain them using the theory. Explain the pros and cons of tariffs to restrict imports. You must summarize your conclusions.
Your assignment should be submitted as a Word document, so remember to use paragraphs and a report structure to your report.
Your research paper this week should be between 250 and 350 words. Shorter submissions will be penalized. Longer assignments are acceptable only if the extra words add substance to your report. At the bottom of your assignment, you should include a word count (how many words are in your post).
Structure your paper as a report.
You must cite all the information used in your report and include the sources in your reference listing.
Remember: you should not “copy and paste” information. Plagiarism Click for more options Plagiarism – Alternative Formats is penalized with a zero in the assignment the first time, and a zero in the course the second time. Use your own words and quote only facts or numbers)
Remember to include citations to your sources in the body of your assignment and to provide the references at the end of your post. Where possible, please make the links to any web information clickable links. Remember the references and links must be to the article you used, not just to the web site. Be sure to include the full URL, otherwise your link will not be clickable.