Ec 2100 -Tansey July 17, 2016 ASSIGNMENT 2 (due *** Mar 22***) (Done by each individual alone) LEARNING OBJECTIVE: This assignment will give you the skills to: 1. Demonstrate written communication skills by articulating and supporting ideas using appropriate economic terminology. 2. Develop the capability for studying and turning in assignments PAPERLESSLY. 3. Evaluate the role and effectiveness of government in the economy. 4. Articulate differing value systems and their relevance to different economic paradigms. 5. Acquire the habit of reading quality media often and critically. 7. Collect and analyze data on markets and industries. 13. Effectively grasp appropriate economic methodology. 15. Evaluate the impact of micro and government policy on the firm. 16. Apply microeconomic theory and models to current events. 17. Consider and discuss social justice issues, and how they relate to the firm. PART I. MARKET FAILURES. Choose four from the list of possible types of market failure (see the list of market failures in chapter 17 at the website cte.rockhurst.edu/tanseym) to illustrate with newspaper articles. For each of the four types of market failure you choose, find a single example from the media which mentions the market failure, a form of government intervention to correct the market failure, and an example of government failure. At least one of the articles should be about market failure in a foreign country. For each of the four articles (although if you can find one with four different types of market failure that will be fine too): 1. List above the article, the type of market failure you are illustrating with the article. 2. Underline and paint letters in blue (no more than one sentence) evidence of that market failure. 3. Under the market failure you listed at the top of the article in #1, list the type of government intervention, designed to correct the market failure, that is illustrated in the article. 4. Circle and paint letters in red (no more than one example and no more than one sentence) of that government intervention. 5. Under the government intervention you listed above the article in #3, list one type of government failure, resulting from the government interrvention, that is illustrated in the article. 6. [Place brackets and paint letters in green] around that example of the government failure mentioned in the article. 7. In a page or less, weigh the pros and cons of government involvement to correct the market failure. (MAKE SURE YOU WEIGH AND MENTION THE MARKET FAILURE, GOVERNMENT INTERVENTION, AND GOVERNMENT FAILURE IN YOUR ANSWER) 8. What kind of study would be used to weigh whether or not the government should intervene? Alternatively you can examine the issue from a company’s point of view to see what action a company should take to accommodate itself to actions by the government. Choose from the following list of the kinds of studies we have examined this semester: a) industry study b) cost effectiveness study c) cost benefit analysis d) forecast e) business plan f) regulatory impact analysis g) closure study h) economic impact analysis i) fiscal impact analysis j) regulatory impact analysis k) environmental impact analysis Your four articles (there must be four and they must each illustrate a different market failure) must have a citation (page, date, title of news source or internet address), should be neat, and must be available (and sent to me) as part of your homework in a word file. PART II. SCHOOLS OF THOUGHT Following are the class assignments of economists to be analyzed. Assigned Economist Last name First name Arrow Berle BohmBondon, Briana M. Bawerk buchanan Borders, Nicholas T. Clark Carroll, Austin L. Connely, Katherine A. Commons Friedman Curran, Michael K. Galbraith Elias, Timothy P. Greenspan Fanara, Timothy F. Hayek Greco, Joseph J. Keynes Hoerr, Stephen P. Stein Kinney, Temeka L. Tyson Lee, Matthew Y. Marx Manning, Kelsey C. McCormack, Molly J. Mill Mclaughlin, Matthew Rousseau S. Quesnay Messmer, Nathan J. Rand Neel, Rachel M. Baker, Mathew S. Beckett, Samuel L. Kenneth adolf Eugen von James M. John Bates JohnR Milton John Kenneth Alan Friederich John Maynard Herbert Laura Karl John Stuart Jean Jacques Francois Ayn O'Connor, Margaret M. O'Connor, Robert A. Olson, Derec T. Ostertag, Christopher J. Perry, Trenton D. Ramelb, Christopher R. Ruiz, Alan G. Shannahan, David M. Shepard, Emily C. Steele, Luke G. Sullivan, Matthew S. Weber, Brandon W. reich robert Stiglitz Marshall Joseph Alfred Kornai Janos owen robert Ricardo David Rivlin Say Schumpeter Shultz Smith Tullock Ward von Mises Mueller Okun Veblen Alice Jean-Baptiste Joseph George Adam Gordon Frank ludwig Willard Arthur Thorstein Answer the following questions and put those answers in Part II of your homework #1 wordfile entitled “Mic11flastnameAssn02” 1. Name your assigned economist. 2. Which of the following schools of thought BEST characterizes this economist’s work (choose just one answer)? (a) Classical Economics, (b) Neoclassical Economics, (c) Socialism, (d) Communism, (e) Laissez-faire ideology-Chicago School, (f) Institutionalism, (g) Heterodox Economics (h) Austrian Economics (i) Physiocrats (j) Industrial Organization. (k) Keynesianism. 3. What, if any, market failures does your assigned economist believe exist? a. If the assigned individual believes there are market failures, are they serious enough to justify government intervention? What kind of intervention? b. If the assigned individual does not believe there are any market failures, how do they explain either the depression which began in 1929 or the recession of 2008? 4. Make sure you give documentation on any sources that you use. If you use the internet, give the website so that I can click on it and get your source. Also give the date you clicked on the site. Give full bibliographic reference (author, title, publisher, date) for any hard copy sources. This will be an important part of your grade. You must use at least two sources for your material. Send the Word Document with both parts I and II answered under the subject “Mic12SLastnameAssn02” and label the file “Mic12SLastnameAssn02”.on the due date above by the beginning of class.