Recently in Blog Entries Category

At this time, you are supposed to have read at least a part of Chapter 2, "The Ten Forces That Flattened The World ." We also have talked about the ten flatteners in class. Your blog entry #2.5 should do the following: Choose one of the write ups on the "flatteners" that are posted as comments on Blog Entry #2. (Don't pick your own.) After reading that entry, and perhaps the Friedman section on it as well, discuss how significant (or in what ways) that "flattener" is in shaping our/your world of today and tomorrow. (That's not worded very well. Just make it clear that you're discussing/assessing/evaluating/whatever, and not just repeating.) I'll expect a comment of one good paragraph or more.

YOUR COMMENT SHOULD BE POSTED BY CLASS TIME ON FRIDAY IN ORDER TO GET FULL CREDIT.

Here is the place to post your group's summary of the "flattener" from Chapter 2 that you chose. I'm thinking that the range of 200 - 300 words would probably be sufficient. You need not offer an opinion on the flattener. Instead, focus on providing a summary of what Friedman is saying in this section. (You will get a chance to evaluate these ideas later.)

THIS COMMENT NEEDS TO BE POSTED BY CLASS TIME ON TUESDAY.

Please begin the post with an identification of your "flattener," both by name and by number. Second, include the names of those in the group.

For example:

Flattener #11 - %$(&%&^)
Mike V. and Kordo

"Blah, blah, blah..." 200 - 300 words of blah. You can use full sentences or bullet points or whatever makes sense for your group.

So, let's get started... By Monday's class, you are supposed to have read Chapter 1, "While I was Sleeping." You should post a response of at least one good paragraph to one or more of these questions before the start of class time on Wednesday. (You can also react to other posts.)

A. "I think the world is flat." (page 5) After reading this chapter, what do you think of Friedman's choice of title and controlling idea for this book? If you agree, tell me why. If you don't, tell me why and suggest another theme or slogan that you think might have been more appropriate.

B. On pages 9 through 11, Friedman characterizes "three great eras of globalization." I'm curious as to what you think about his categorization of these eras. Draw upon what you've learned in other classes or on your own to assess the validity of his depiction of "three eras."

C. I found this book to be full of lines, facts or examples that made me think, "Wow!" I want you to identify the three most surprising, interesting or memorable things that you learned in this chapter. (In other words, what three things are you most likely to share at the dinner table when you're asked, "So, what have you learned lately at MPA?")

D. This is your chance to do some prognosticating (look it up...). Imagine that, ten years from now, you win a trip to Bangalore and Dalian. How do you think things will have changed? From a provincial perspective, will these changes have strengthened or weakened the United States of America?

E. What do you think of Friedman as a writer? Use specific examples to support your assessment of his style and/or his effectiveness as an author so far in The World is Flat.

A final fifteen minutes with Hans Rosling - I can't resist showing you one more. He's at a TED:India conference in 2009, basically covering much of the World History 10 material on India and China you guys were the second MPA class to get. He also mentions Friedman's book by name. Can you ask for a more relevant clip?

>>>>>>>>>>>>

I wanted to carve out a few moments to talk about The World Is Flat's Chapter 1, "While I Was Sleeping." As another sign of my own nerdiness, I've come up with my ten "talking points" from the chapter, but I'd also like to know what you found most memorable.

>>>>>>>>>>>>

The World Is Flat - Chapter 2 - "The Ten Forces That Flattened the World" - As you might have noticed, this is a LOOOOOONG chapter. We'll divide it up. 2 or 3 of you will claim each of the ten flatteners. We'll have you do that today.

The last 30 minutes of the period are yours to work with your "flattener" group on your reading and write-up. Remember that I am thinking 200-300 words is about the right range. You can simply post it to the blog for us to make use of them tomorrow during class. (There is the "Flattener Blog Entry" created for this purpose.) Please post there and clearly identify both which "flattener" you are describing and the members of your group as well. Obviously, posts not made by class time are too late to be of much use to us.

Reminders:
Flattener #1:
Flattener #2:
Flattener #3:
Flattener #4:
Flattener #5:
Flattener #6:
Flattener #7:
Flattener #8:
Flattener #9: 
Flattener #10:


HOMEWORK for tomorrow - Tuesday, May 8th

We'll go over the ten "flatteners" in class tomorrow, so be ready to present on yours. The entry for you to post your blog summary is also ready.

Please try to make up the Macroeconomics and International Economics Quiz ASAP if you need to. Remember to finish up any missing Naked Economics Blog Entries as well. (There is also an Extra Credit Blog Entry posted if you are interested in that.)

Your first blog entry for The World Is Flat is posted and due before class on Wednesday.

Remember that the three "short essay" questions from last Thursday's exam should be turned in this week. (Either print out or email as an attachment.) You can choose any three of the ten questions listed on last Thursday's blog.

On Wednesday, we'll do the quiz on the 40 countries. (There is a word bank for you to use.)

Please "introduce" yourself here in advance of our MPA Globalization Forum on Wednesday.

Here, you are limited to 150 words maximum. You should use the blog entry to advocate for any causes, aspects of globalization, etc. that would be of the most benefit to your character. This is your chance to rant against your enemies, blow your own horn, or do a combination of these. You, of course, are bound by the need to not be obscene and totally inappropriate, but think of this as your billboard, letter to the editor, protest sign, bragging sheet, or whatever it is. Be creative, be outspoken, but also be appropriate...

Here's a review page for Thursday's quiz on Macroeconomics and International Economics. You can again bring a page of notes to the exam if you find that helpful.

The format will be: (You can bring a single sheet of notes again if that is helpful to you.)

• 25 multiple choice (25 points)
  
• 3 problems - components of GDP, calculating GDP, effects of Federal Reserve actions on the money supply (10 points total)
• 3 "short essay" - You choose from a list of options and can write outside of class. Due by Friday, May 11th. (5 points each)

We didn't get a chance to dissect the Fed's "real" meeting that took place last week along with our simulation. Here are a couple of articles you might find interesting.

First, here is the Fed's press release from Wednesday:

"Fed stands pat but says will act if needed" - Rueters, April 25th, 2012
"Bernanke news conference on Fed policy" - Rueters, April 25th, 2012
"Bernanke Takes on Krugman's Criticism Ignoring Own Advice" - BusinessWeek, April 26, 2012

>>>>>>>>>>>

Development Economics: This will be more discussion oriented than "lecture" based. You know a lot about inequality and the problems of poverty and related issues. For us, I'd like the bigger questions to be these:

• What CAN be done to foster economic development?
• What SHOULD be done to foster economic development?

There are a few terms and concepts that will be useful in this discussion:

World Bank: The World Bank is owned by 184 countries. In 2002, almost $20 billion in loans were provided to clients in more than 100 countries. The World Bank's focus is on development assistance.

Work your way through this overview of the World Bank's functions at "10 Things You Never Knew about the World Bank."(Click on a region of the world to start the 10 items...)

Here are the "Quick Reference Tables" from the World Bank. You can find a lot of information here.

International Monetary Fund: According to its own web page, the IMF "works for global prosperity by promoting the balanced expansion of world trade and stability of exchange rates..." Its functions complement those of the World Bank.

Structural Adjustment Programs (SAP): The IMF and World Bank at times require nations to "adjust" their economies in order to assure debt repayment. Many critics believe this only deepens the poverty of the people. Nations may be required to encourage foreign trade, shift to a cash crop focus, or otherwise be directed to act in a particular way. These are also referred to as "economic austerity" plans.

>>>>>>>>>>

MPA Globalization Forum: Wednesday, we will come together for the Eighth Annual Mounds Park Academy Globalization Forum. Each of you will represent a different interest.

We will need:

4 United States representatives: 1 from "big" business, 1 environmental activist, 1 worker whose job has been "outsourced," 1 college student

3 Europeans: 1 owner of a multinational corporation, 1 worker "displaced" by foreign competition, 1 immigrant from North Africa working outside Paris

3 Africans: 1 person existing on less than $1 a day, leader of poor nation that exports coffee, teen living in urban area

7 Asians: 1 "sweatshop" laborer, Chinese peasant, 1 Chinese governmental official, 1 Indian service-industry worker, 1 recent migrant to Shanghai from Chinese countryside, 1 elderly Japanese citizen, Indian peasant

3 Latin Americans: 1 manager of a foreign-owned factory, 1 worker in eco-tourism industry, 1 illegal immigrant to United States

3 Middle Easterners: 1 leader of oil-rich nation, 1 Islamic fundamentalist, 1 young woman

Obviously, you will need to "create" much of your own detail. Think about how your life has changed over the past decade. What are the advantages/ drawbacks of globalization in your world? What will the future hold?

• You will be expected to deliver an introductory statement of not less than sixty seconds. In this statement, you will tell other participants of your "situation," and you will offer your preliminary comments on events associated with globalization.
  
  
• You will post on the Globalization Forum Blog Entry. Here, you are limited to 150 words maximum. You should use the blog entry to advocate for any causes, aspects of globalization, etc. that would be of the most benefit to your character. This is your chance to rant against your enemies, blow your own horn, or do a combination of these. You, of course, are bound by the need to not be obscene and totally inappropriate, but think of this as your billboard, letter to the editor, protest sign, bragging sheet, or whatever it is. Be creative, be outspoken, but also be appropriate...
  
  
• Do whatever research in class that might help you create your "perspective" and better understand the issue of globalization.

Here are some resources that you might consult:

• The Lexus and the Olive Tree There are some excerpts and reviews here that you might find interesting.
  
• Globalization: Threat or Opportunity? This is an IMF report addresses many of the central issues in globalization.
• The International Forum on Globalization This is the site of a group critical of many of the effects of globalization.
• The World is Flat: A Brief History of the Twenty-First Century This is a talk by Thomas Friedman about his most recent book.
• Globalization and Its Discontents - Joseph Stiglitz (He won a Nobel Prize for Economics...)
• In Defense of Globalization - Professor Jagdish Bhagwati

HOMEWORK for next session - Tuesday, May 1st

We will have our Macroeconomics and International Economics quiz Thursday. There's a review page for you to use.

We'll hold the 7th Annual MPA Globalization Forum on Wednesday. Try to post on the MPA Globalization Forum blog by then.

(I've posted the final required Blog #7 for Naked Economics, but I'll have you read the Epilogue as well. There will be a bonus blog entry there you can do for extra credit if you want.)

Blog Entries #1 - #5 can still potentially receive full credit if posted before next Monday's class time. After that, you will only be able to receive a maximum of 4 out of 5 for any of those.

Have your copy of The World Is Flat ready to go for Friday's class, please.

Since you've made it this far, you might as well finish reading the Naked Economics book with the "Epilogue:  Life in 2050." Since you are reading it anyway, you might as well post one last blog entry that gets you five points of extra credit... These need to be posted by the end of Friday, March 25th if they are going to count.

From "Epilogue: Life in 2050"

One question here, with seven variations: You've got your own crystal ball. Take any one of the "seven questions worth pondering about life in 2050" and give me your prediction/forecast for what the reality will be when you all are contemplating retirement (or traveling the nation in your RV) in 2050.

You are expected to read Chapter 12, "Trade and Globalization," and Chapter 13, "Development Economics." You should post a response of at least one good paragraph to one or more of these questions by the end of Wednesday. (You can also react to other posts.)

CHAPTER 12

1. That "machine" that converts corn into things like stereos and cars has reappeared. (page 270) Is this just too simple an allegory for trade? Is it effective? Explain why or why not.

2. Did the discussion on economic sanctions on page 279 lead you to any new conclusions or positions on that topic? (If so, explain. If not, I'd recommend answering a different question.)

3. We've talked about sweatshops a number of times. It's your turn. You've read the section about the "comparative advantage" of workers in poor countries. As the quarter's end approaches, give us your answer. "Should we sweat about sweatshops?" Why or why not?

4. "Preferences change with income, particularly with regard to the environment." (page 289) Discuss.

CHAPTER 13

1. It's a pretty good question on page 295. "At a time when we can split the atom, land on the moon, and decode the human genome, why do 2.8 billion (2 billion in the new edition - that's progress) people, or roughly half the world's population, live on less than $2 a day." What do you think?

2. From page 296 onward, Wheelan (in bold type) lists a "sample of the kinds of policies that make the difference between the wealth and poverty of nations." Choose the one factor that you find most significant and explain your rationale for that choice.

3. There are a ton of interesting statistics and examples in this chapter. Select the three you found most interesting and/or surprising and explain why you chose them.

4. Wheelan likens the World Bank and International Monetary Fund to the world's "welfare agency" and "fire department," respectively. Based on what you've learned, are those characterizations accurate? How well do you feel that they do "their jobs?"

At this time, you are supposed to have read Chapter 10, "The Federal Reserve," and Chapter 11, "International Economics." You should post a response of at least one good paragraph to one or more of these questions by the end of Monday. (You can also react to other posts.)

CHAPTER 10

1. Does the quote from Paul Krugman on page 219 fairly summarize the role of the Federal Reserve Chairman? Why or why not?

2. How did reading this chapter change or reinforce the impressions of monetary policy and/or the Federal Reserve you held after our Federal Reserve simulation?

3. The latter part of the chapter deals with inflation and deflation. Which do you think poses the more realistic threat to the American economy over the next decade? Why?


CHAPTER 11

1. After reading the George Soros story at the beginning of the chapter, do you think the ability to "speculate" in currency markets is a good or bad thing? Explain.

2. On page 251, Wheelan writes, "In general, a weak currency is good for exporters and punishing for importers." Assuming the US government has some influence over the value of its currency, would you advise them to weaken or strengthen it at this time?  Why? 

3.  You read about the decline of Iceland's economy in "three acts." Where do you think blame should be placed for what happened in Iceland?  Why?

4. Does reading more about the relationship between the US and Chinese economies make you more or less confident about our economic future?  Why"

By Wednesday, you are supposed to have read Chapter 6, "Productivity and Human Capital," and Chapter 7, "Financial Markets." You should post a response of at least one good paragraph to one or more of these questions by class time on Thursday. (You can also react to other posts.)

CHAPTER 6

1. (pp. 126-127) "Meanwhile, one in five American children - and a staggering 40 percent of black children - live in poverty." Should our federal government be doing more to change these numbers? If so, what? If not, why not?

2. "Human capital is an economic passport." (p. 128) Provide an additional example/examples of where this is/has been the case. It can be someone specific or a more general case that illustrates what you believe Wheelan means by this.

3. Given the recent controversy over outsourcing and the on-going process of globalization, what do you make of the "lump of labor fallacy" that Wheelan introduces? (p. 132) Do we need to rethink this? Why or why not?

4."There is a striking correlation between a country's level of human capital and its economic well-being." (p. 135) Assuming this is true, give at least three specific nations around the world where you think this will prove very positive or very harmful in the near future. Give a reason why for each nation.

5. Is rising inequality a price worth paying if it is accompanied by rising productivity? You can answer as an economist, a moralist, a patriot, or whatever... (This is most directly addressed beginning on page 141.)

6. "Take" Cornell economist Robert Frank's survey on page 144. What would you select? What do you think that says about you? Ask three people not in the class and report on which they picked.

CHAPTER 7

1. Wheelan explains that there are four functions for all "financial instruments": raising capital; storing, protecting, and making profitable use of excess capital; insuring against risk, and speculation. Project yourself two decades into the future, and assume that you are in a good, but not great, financial situation, maybe with a family. Prioritize these functions in terms of how you would anticipate using "financial instruments" at that point in your life. Explain why you ordered them that way.

2. Are you more "risk adverse" or "risk tolerant" when it comes to financial issues? React to one or more of the insurance anecdotes (or another with which you are familiar) in this chapter.

3. Later in the chapter, Wheelan shares some "lessons" about the markets. Comment on anything you "learned" in the anecdote about the "brownstone" or anything else.

4. On pages 164 and 165, Wheelan talks of a monkey picking stocks. (OK, a fictional monkey, maybe Curious George?) What do you make of this story? Does it change your level of "confidence" in financial markets?

5. In the section entitled "Diversify" (page 171), Wheelan urges his students to flip coins. Do you think this is a valuable activity here? Can you think of another that you would recommend for students learning about financial markets?

By this time, you are supposed to have read Chapter 4, "Government and the Economy II" and Chapter 5, "The Economics of Information." You should post a response of at least one good paragraph to ONE or more of these questions. (You can also react to other posts.)

Chapter 4

1. Take a crack at the "Goldilocks" question (page 100). "Is the role that government plays in the United states economy too big, too small, or just about right?" Explain.

2. Wheelan writes on page 102 that, "The United States is a richer but more unequal place than most of Europe." Should we be satisfied with that distinction? Why or why not?

3. Wheelan talks a good deal more about taxation and regulation in this chapter. If you'd like to react to any of those points, you can do that here...

Chapter 5

1. Can you propose a way to "save" the Hope Scholarship program proposed by the Clinton Administration from the problem of "adverse selection?" (pp. 105)

2. "More important, they [professional women taking maternity leave and/or quitting] impose a cost on other women." (page 107) I'm simply asking you to react to this analysis. You can do this at an economic level, an equality level, a moral level, or whatever combination of levels that work for you.

3. What would you do to clean up the problems of information in the used-car market? (pp. 108) Does technology like "Car Soup" and the like help or hurt with this effort?

4. On page 116, a quote from The Economist magazine explains the "looming quandary" genetic testing may pose for the health care industry. What should we do?

5. Most of you are headed off to college next year. Take a crack at the "chicken/egg" question about the value of a "Harvard-like" education that is introduced on pp. 121. (You can also react to the results of the Krueger study.)

6. Jump into the racial profiling debate started on pages 123 - 125. "Does race or ethnicity... convey meaningful information? If so, what do we do about it?"

REMINDER: In order to receive full credit, these comments need to be posted before class time on Wednesday. Remember that this is a public site, and you are responsible for the content of your postings. These questions are for Chapter 2, "Incentives Matter" and Chapter 3, "Government and the Economy." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

NOTE:  As of now, there may be a lag between your submitting a post and its appearance on the blog.  Don't resend. 

We can use the blog to hold "conversations" about reading in Naked Economics.  We"ll certainly talk about some of the readings in class, but this gives you another chance to share your ideas.

Here's how we'll do this. I'll post several questions by the day a chapter is due to have been read.  Each of you will be expected to post a comment. You may respond to one or more of the questions, and you can also react to comments posted by others.  I'll expect a comment of one good paragraph or more.  (To me, that means 5-6 sentences at a minimum.)  You do not need to worry about perfect grammar, spelling and punctuation, but they should be understandable.  Remember that this is a public site, and you are responsible for the content of your postings.

Assume that each comment is worth 5 points.  (5 points for solid or better comments, 4 for comments somewhat short of expectations, 3 for last-minute, little to no effort postings, and no points for those who have not posted.)

So, let's get started. By Thursday, you are supposed to have read the Foreward, Introduction and Chapter 1, "The Power of Markets." You should post a response of at least one good paragraph to one or more of these questions BEFORE the start of class time on Thursday, April 5th. (You can also react to other posts.)


From the Foreward by Burton Malkiel:

A. "Why should we study economics?  In other words, why do you believe an understanding of economic principles and theories is or is not necessary in our world?"


From the Introduction:

B. Charles Wheelan uses a number of interesting examples here to begin his case for "naked" economics.  React to one or more of these examples.


From Chapter 1, "The Power of Markets":

C. "To what degree do you agree or disagree with this quote from page 8:  'Maximizing utility is not synonymous with acting selfishly.'  Give an example to support your position.

D. "On pages 12-13, Wheelan writes that 'Firms attempt to maximize profits.' What are the ethical and/or moral limits (if any) that you believe apply to firms in this pursuit of profits? 

Since you've made it this far, you've got to finish reading the book with the Epilogue:  Life in 2050. Since you are reading it anyway, you might as well post one last blog entry that gets you five points of extra credit... These need to be posted by the end of Friday, January 9th if they are going to count.

From "Epilogue: Life in 2050"

One question here, with seven variations: You've got your own crystal ball. Take any one of the "seven questions worth pondering about life in 2050" and give me your prediction/forecast for what the reality will be when you all are contemplating retirement (or traveling the nation in your RV) in 2050.

As of now, you are supposed to have read Chapter 12, "Development Economics." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.) This is due before the final Tuesday's class begins.

From Chapter 12 - "Development Economics"

1. It's a pretty good question on page 207. "At a time when we can split the atom, land on the moon, and decode the human genome, why do 2.8 billion people, or roughly half the world's population, live on less than $2 a day." What do you think?

2. From page 208 onward, Wheelan (in bold type) lists a "sample of the kinds of policies that make the difference between the wealth and poverty of nations." Choose the one factor that you find most significant and explain your rationale for that choice.

3. There are a ton of interesting statistics and examples in this chapter. Select the three you found most interesting and/or surprising and explain why you chose them.

4. Wheelan likens the World Bank and International Monetary Fund to the world's "welfare agency" and "fire department," respectively. Based on what you've learned, are those characterizations accurate? How well do you feel that they do "their jobs?"

As of now, you are supposed to have read Chapter 11, "Trade and Globalization." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.) This is due before Friday's class begins.

1. That "machine" that converts corn into things like stereos and cars has reappeared. (page 187) Is this just too simple an allegory for trade? Is it effective? Explain why or why not.

2. Did the discussion on economic sanctions of page 194 lead you to any new conclusions or positions on that topic? (If so, explain. If not, I'd recommend answering a different question.)

3. We've talked about sweatshops a number of times. It's your turn. You've read the section about the "comparative advantage" of workers in poor countries. (page 201) As the quarter's end approaches, give us your answer. "Should we sweat about sweatshops?" Why or why not?

4. "Preferences change with income, particularly with regard to the environment." (page 203) Discuss.

Please "introduce" yourself here in advance of our MPA Globalization Forum on Monday.

Here, you are limited to 150 words maximum. You should use the blog entry to advocate for any causes, aspects of globalization, etc. that would be of the most benefit to your character. This is your chance to rant against your enemies, blow your own horn, or do a combination of these. You, of course, are bound by the need to not be obscene and totally inappropriate, but think of this as your billboard, letter to the editor, protest sign, bragging sheet, or whatever it is. Be creative, be outspoken, but also be appropriate...

REMINDER: In order to receive credit, these comments need to be posted by class time on Monday. Remember that this is a public site, and you are responsible for the content of your postings.

At this time, you are supposed to have read Chapter 9, "Keeping Score." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. After you finishing reading the joke on page 149 you tell yourself, "I can be funnier than that." Here's your chance. Write an anecdote, story, joke that makes a commentary about our current economy. Keep it clean, and no stealing someone else's material.

2. After reading about the Gross Domestic Product, assess its usefulness as a measure of economic progress. Is there another measure you think we should use?

3. During the Great Depression, FDR once said that we have "nothing to fear but fear itself." (page 157) Is that good economic advice for today? Explain why or why not using a specific example or examples.

4. We've spent time talking about both monetary and fiscal policy. (pp. 159-160) Assume that an economic recession is on the horizon. (OK, this year you can assume it is already here...) Which of these tools, or what combination, would you want government to use?

REMINDER: In order to receive credit, these comments need to be posted by class time on Tuesday. Remember that this is a public site, and you are responsible for the content of your postings.

At this time, you are supposed to have read Chapter 8, "The Power of Organized Interests." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. "When it comes to interest group politics, it pays to be small." (page 140) Imagine that your world is limited to the MPA community. Give an example that you think supports this claim made by Wheelan. (You should avoid mentioning names if it might be controversial or hurtful in any way.)

2. What SHOULD we do when it comes to ethanol?

3. How do we keep interest groups from using/abusing the political process to "generate regulation that either helps them or hobbles their competition?" (page 142) Should we even try to control this? Why or why not?

4. Is giving a president "fast-track authority" desirable? (page 146) Why or why not?

5. "Creative destruction" is a term coined by Joseph Schumpeter. (page 144) Using examples from today's world, comment on the desirability and/or drawbacks of such a process from your perspective.

At this time, you are supposed to have read Chapter 7, "Financial Markets." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.) To receive full credit, your response should be posted before class time on Wednesday

1. Wheelan explains that there are four functions for all "financial instruments": raising capital; storing, protecting, and making profitable use of excess capital; insuring against risk, and speculation. Project yourself two decades into the future, and assume that you are in a good, but not great, financial situation, maybe with a family. Prioritize these functions in terms of how you would anticipate using "financial instruments" at that point in your life. Explain why you ordered them that way.

2. Are you more "risk adverse" or "risk tolerant" when it comes to financial issues? React to one or more of the insurance anecdotes (or another with which you are familiar) in this chapter.

3. Later in the chapter, Wheelan shares some "lessons" about the markets. Comment on anything you "learned" in the anecdote about the "brownstone" or anything else.

4. On pages 130 and 131, Wheelan talks of a monkey picking stocks. (OK, a fictional monkey, maybe Curious George?) What do you make of this story? Does it change your level of "confidence" in financial markets?

5. In the section entitled "Diversify" (page 134), Wheelan urges his students to flip coins. Do you think this is a valuable activity here? Can you think of another that you would recommend for students learning about financial markets?

REMINDER: I had trouble getting this one posted. Now, obviously, it works. So, in order to receive full credit, let's say these comments need to be posted by class time on Thursday. Remember that this is a public site, and you are responsible for the content of your postings.

At this time, you are supposed to have read Chapter 6, "Productivity and Human Capital." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. (pp. 98-99) "Meanwhile, one in five American children - and a staggering 40 percent of black children - live in poverty." Should our federal government be doing more to change these numbers? If so, what? If not, why not?

2. "Human capital is an economic passport." (p. 100) Provide an additional example/examples of where this is/has been the case. It can be someone specific or a more general case that illustrates what you believe Wheelan means by this.

3. Given the recent controversy over outsourcing and the on-going process of globalization, what do you make of the "lump of labor fallacy" that Wheelan introduces? (p. 103) Do we need to rethink this?  Why or why not?

4."There is a striking correlation between a country's level of human capital and its economic well-being." (p. 106) Assuming this is true, give at least three specific nations around the world where you think this will prove very positive or very harmful in the near future. Give a reason why for each nation.

5. Is rising inequality a price worth paying if it is accompanied by rising productivity? You can answer as an economist, a moralist, a patriot, or whatever... (This is most directly addressed beginning on page 111.)

6. "Take" Cornell economist Robert Frank's survey on page 114.  What would you select? What do you think that says about you? Ask three people not in the class and report on which they picked.

REMINDER: In order to receive full credit, these comments need to be posted by class time on Friday. Remember that this is a public site, and you are responsible for the content of your postings.

At this time, you are supposed to have read Chapter 5, "Economics of Information." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. Can you propose a way to "save" the Hope Scholarship program proposed by the Clinton Administration from the problem of "adverse selection?" (pp. 80-81)

2. "More important, they [professional women taking maternity leave and/or quitting] impose a cost on other women." (page 83) I'm simply asking you to react to this analysis. You can do this at an economic level, an equality level, a moral level, or whatever combination of levels that work for you.

3. What would you do to clean up the problems of information in the used-car market? (pp. 84-85) Does technology like "Car Soup" and the like help or hurt with this effort?

4. On page 90, a quote from The Economist magazine explains the "looming quandary" genetic testing may pose for the health care industry. What should we do?

5. Most of you are headed off to college next year. Take a crack at the "chicken/egg" question about the value of a "Harvard-like" education that is introduced on pp. 93-94. (You can also react to the results of the Krueger study.)

6. Jump into the racial profiling debate started on pages 95 and 96. "Does race or ethnicity... convey meaningful information? If so, what do we do about it?"

REMINDER: In order to receive credit, these comments need to be posted by the beginning of class time on Tuesday, November 18th. Remember that this is a public site, and you are responsible for the content of your postings.

By this time, you are supposed to have read Chapter 4, "Government and the Economy II." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

1. Take a crack at the "Goldilocks" question (page 77). "Is the role that government plays in the United states economy too big, too small, or just about right?" Explain.

2. Wheelan writes on page 79 that, "The United States is a richer but more unequal place than most of Europe." Should we be satisfied with that distinction? Why or why not?

3. Wheelan talks a good deal more about taxation and regulation in this chapter. If you'd like to react to any of those points, you can do that here...

REMINDER: In order to receive full credit, these comments need to be posted by the start of class on Thursday. Remember that this is a public site, and you are responsible for the content of your postings. You are supposed to have read Chapter 3, "Government and the Economy," by class time on Wednesday You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

NOTE: As of now, there is a lag between your submitting a post and its appearance on the blog. I have to "approve" them by clicking on them. Don't resend. I'll try and get that preference changed. REMINDER: In order to receive full credit, these comments need to be posted before class time on Thursday. Remember that this is a public site, and you are responsible for the content of your postings. These questions are for Chapter 2, "Incentives Matter." You should post a response of at least one good paragraph to one or more of these questions. (You can also react to other posts.)

NOTE:  As of now, there may be a lag between your submitting a post and its appearance on the blog.  Don't resend. 


We can use the blog to hold "conversations" about reading in Naked Economics.  We"ll certainly talk about some of the readings in class, but this gives you another chance to share your ideas.

Here's how we'll do this. I'll post several questions by the day a chapter is due to have been read.  Each of you will be expected to post a comment before the NEXT session. You may respond to one or more of the questions, and you can also react to comments posted by others.  I'll expect a comment of one good paragraph or more.  (To me, that means 5-6 sentences at a minimum.)  You do not need to worry about perfect grammar, spelling and punctuation, but they should be understandable.  Remember that this is a public site, and you are responsible for the content of your postings.

Assume that each comment is worth 5 points.  (5 points for solid or better comments, 4 for comments somewhat short of expectations, 3 for last-minute, little to no effort postings, and no points for those who have not posted.)

So, let's get started. By Friday, you are supposed to have read the Foreward, Introduction and Chapter 1, "The Power of Markets." You should post a response of at least one good paragraph to one or more of these questions BEFORE the start of class time on Monday, November 3rd. (You can also react to other posts.)


From the Foreward by Burton Malkiel:

A. "Why should we study economics?  In other words, why do you believe an understanding of economic principles and theories is or is not necessary in our world?"


From the Introduction:

B. Charles Wheelan uses a number of interesting examples here to begin his case for "naked" economics.  React to one or more of these examples.


From Chapter 1, "The Power of Markets":

C. "To what degree do you agree or disagree with this quote from page 7:  'Maximizing utility is not synonymous with acting selfishly.'  Give an example to support your position."

D. "On page 11, Wheelan writes that 'Firms attempt to maximize profits.' What are the ethical and/or moral limits (if any) that you believe apply to firms in this pursuit of profits?"

E. "Do you believe Wheelan is too positive in his defense of the role of markets?  Use specific arguments and/or examples to explain why or why not."