Microeconomics Unit 2- Assignment

AB224 Unit 2 Assignment:

Name:                        –

Course Number:    –

Section Number:    –

Unit Number:           – 2

Date:                          –          

 

———————————-General Instructions for all Assignments———————————–

1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_sectionnumber_LAST_FIRST_ unit number

 

2. At the top of the template, insert the appropriate information: Your Name, Course Number, Section Number and Date

 

3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font).Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

 

4. Provide a list of references at the end of the last page of your assignment.

 

5. Upload the completed assignment to the appropriate dropbox.

 

6. Any questions about the assignment, or format questions, should be directed to your course instructor.

——————————————-Career Competencies —————————————–

 

In this assignment, you will engage in developing the following career competencies:

 

Analyzing Quantitative Data

Analyzing Qualitative Data

Improving Global Awareness

 

——————————————-Assignment——————————————-

 

1. A representative of the American clothing industry recently made the following statement: “Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low – wage Asian clothing.”

 

1. Which parts of this quote are positive statements? Which parts are normative statements?(Be sure to identify all three statements in the quote.)

 

 

 

1. Is the policy that is being advocated consistent with the preceding statements about the wages and productivities of American and Asian workers?Why?

 

 

 

1. Would such a policy make some Americans better off without making any other Americans worse off? That is, would this policy be efficient from the viewpoint of all Americans?Why?

 

 

 

 

1. Would low – wage Asian workers benefit from or be hurt by such a policy?Why?

 

 

 

 

 

Instead of legislation banning the imports(considered a quota), assume that the government enacts a special tax on imported clothing that is so high that the selling price of the imports would be equal to the selling price of the same clothing made in America. This kind of tax is called a tariff and is enacted to protect domestic producers of the same items that can be imported at much lower costs. Answer the following:

 

1. What would shoppers see when they shopped in Wal-Mart and the other “big box” stores that sell so many imported items?

 

 

 

1. Would this tax policy have a better effect, worse effect, or no different effect on American workers than the legislation banning the imports discussed in question 1? What kind of effect would the tax have on the Asian workers?(This question is often missed by students. Please compare a tariff to a quota for the answer.)

 

 

 

 

2. In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, the Tivoli and the Frivoli. By themselves, the Tivoli each month can produce either 30 pounds of spaghetti and no meatballs, or 50 pounds of meatballs and no spaghetti, or any combination in between. The Frivoli, by themselves, each month can produce 40 pounds of spaghetti and no meatballs, or 30 pounds of meatballs and no spaghetti, or any combination in between.

 

 

Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Which tribe has the comparative advantage in spaghetti production? Why?

 

 

1. Which tribe has the comparative advantage in meatball production?Why?

In A.D. 100 the Frivoli discover a new technique for making meatballs that doubles the quantity of meatballs they can produce each month.Examine the new monthly production possibility frontier for the Frivoli.

 

 

1. After the innovation, which tribe now has an absolute advantage in producing meatballs? Why?

 

 

 

1. Which tribe now has an absolute advantage in producing spaghetti? Why?

 

 

 

1. Which has the comparative advantage in meatball production? Why?

 

 

 

1. Which has the comparative advantage in spaghetti production?Why?

 

 

 

3. According to the U.S. Census Bureau, in July 2006 the United States exported aircraft worth $1 billion to China and imported aircraft worth only $19,000 from China. During the same month, however, the United States imported $83 million worth of men’s trousers, slacks, and jeans from China but exported only $8,000 worth of trousers, slacks, and jeans to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions.

 

 

 

1. Which country has the comparative advantage in aircraft production? Which country has the comparative advantage in production of trousers, slacks, and jeans?Why?

 

 

 

 

 

1. Can you determine which country has the absolute advantage in aircraft production and which country has the absolute advantage in production of trousers, slacks, and jeans?Why?

 

 

 

 

 

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References:

 

 

 

 

Unit  _2_  Practice Assignment Grading Rubric
Content	Percent Possible	Points Possible
Full assignment	100%	40
Overall Writing:	20%	8
correct coversheet information at the top of 1st page	5%	2
APA format for answers	3%	1
correct citations	3%	1
standard English no errors	4%	2
At least ONE, or more, references	5%	2
Answers:  provides complete information demonstrating analysis and critical thinking:	80%	32
Individual Questions:
1. a. – Which statements are positive, which are normative?	7%	3
1. b. – Is the policy consistent with the	7%	3
1. c. – Would Americans be better, or worse off?	7%	3
1. d. – What would be the impact on Asian workers?	5%	2
1. e. – What would shoppers see, if import tax created?	7%	3
1. f. – Is tax  better, or worse than ban?	7%	3
2. a. – Which has comparative advantage in spaghetti?	5%	2
2. b. – Which has comparative advantage in meatballs?	5%	2
2. c. – With innovation who has absolute advantage in meatballs?	5%	2
2. d. – Who has absolute advantage in spaghetti?	5%	2
2. e. – Who has comparative advantage in meatballs?	5%	2
2.f. – Who has comparative advantage in spaghetti?	5%	2
3. a. – Who has comparative advantage in aircraft and clothes?	5%	2
3.b. – Who has absolute advantage in aircraft and clothes?	5%	2

 

 

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