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1. Article: Find three or more articles of your choice that describe an event th
1. Article: Find three or more articles of your choice that describe an event that you will
analyze. You may use newspaper articles, the short papers on bCourses in the Files ->
E_Readings folder, or other reliable sources (that is, not an undocumented webpage).
Briefly summarize the main information in the articles (similar to the Applications in the
textbook). Properly cite your sources in a bibliography at the end of the paper. In the text,
reference these sources: e.g., (Friedman, 2013, p. 7).
2. Positive Analysis: Formally analyze how this event affects a market, a typical consumer’s
choice, or another topic. That is, use graphs or math to interpret or predict the effects
described in the article. If the article mentions numbers (a price rose from $x to $y, the
quantity increased by 10%, …), show these numbers in your figure. In short, do the sort of
analysis that we have done many times in class. Be sure to fully label your graph and interpret
what happened or is predicted to happen in words.
3. Normative economic analysis: Share your opinion on the topic and defend your position
using your positive analysis. Discuss whether additional information would be helpful for you
to form a definitive opinion. Propose an alternative policy that could be adopted to address
issues related to your topic, perhaps to promote efficiency or equity. Possible policies are to
add (or remove) taxes, subsidies, quotas, government-provided information, and price
controls. Use your analysis to predict the effects of these policy changes. Some things you
could mention: discussion of welfare gains/losses; incidence; tradeoff between equality and
efficiency; or potential heterogeneous effects among various groups of people.
4. Length: This paper should be short — only two to three single-spaced pages — but it needs
to be clear and complete. This assignment is supposed to be easy. Its purpose is to convince
you that you are now a skilled economist who can use the tools we’ve learned to analyze a
new question.
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