Look at today's Wall Street Journal. What is the leading economic news story? With which of the big economic questions does it deal and what tradeoffs does it discuss or imply?
What will be an ideal response?
On May 6, 2014, the top economic news story discussed a report claiming that climate change is already harming the economy. The report asserted that climate change is already bringing extreme weather such as floods, drought, and other weather-related disasters, all of which harm the nation's economy.
This story implicitly discusses the "how" question: Will goods and services be produced in ways that limit climate change or not? It also discusses the "what" question: Will goods and services that limit climate change, such as solar panels, be produced?
The story implicitly illustrates a tradeoff: If choices are taken to limit climate change, such as reducing carbon emissions from generating power, consumers will pay higher prices but the extent of climate change will be decreased.
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Under the current managed float exchange rate regime, countries with ________ in their balance of payments frequently do not want to see their currencies ________ because it makes their goods more expensive abroad and foreign goods cheaper in their
countries. A) surpluses; depreciate B) deficits; depreciate C) surpluses; appreciate D) deficits; appreciate
Suppose there are 100 people with identical demand curves. When the price of a movie ticket is $8, the quantity demanded by each person is 5 tickets. When the price is $4, the quantity demanded by each person is 9 tickets. Which of the following is the most likely quantity demanded for the market as a whole when the price is $6?
a. 700 b. 1,200 c. 400 d. 1,000 e. 100
A firm that has substantial monopoly power
A. confronts a perfectly-elastic demand curve. B. can sell as much as it wants at the price it chooses. C. can strongly influence the price that it charges for its output. D. is one of only a few firms in the industry.
Which of the following Fed actions increases the money supply?
A. Increasing reserve requirements B. Selling government securities in the open market C. Decreasing the amount of loans made to commercial banks D. Buying government securities in the open market