Spring 2003
Updated 02/17/2003
1. Consider the article from The Economist . Suppose you were a professor giving grades in an economics principles class. What grade would you assign based on the authors application of the ideas of comparative advantage and mutually beneficial voluntary exchange to NAFTA?
2. Consider debate between Vice President Al Gore and Ross Perot. Does Al Gore the make the correct economic argument if he wants to increase support for the passage of NAFTA? Explain. What about Ross Perot? If he wishes to increase opposition to NAFTA, which portions of society should he appeal to? Does correctly apply economic principles?
2. Consider the article from the Los Angeles Times and your answer to question 1 and 2. Do the events described in the article correspond to those predicted by economic theory? Consider two articles about the closing of the Price Pfister plant in Pacoima and the subsequent hunger strike. Who is benefiting from the closure of the Price Pfister plant? Can economic theory predict the events described in the articles.?
Note: It is not required for the assignment but if you are interested in addtional background on the debate and Al Gore' s debating skills read a Commentary from Gore/Perot Debate from the Atlantic.
The assignment is be worth 10 points and should be submitted by email. Failure to submit assignment is worth minus 5.
Note: The Gore/Perot transcript is long. Do not try to print it in the lab. It will exhaust your print quota and tie up the print server. Read it online.
Don't forget to put your name somewhere on the assignment.