Homework Assignments: printer-friendly version

These assignments are normally due by Friday; your TA will give you specifics of where/how. You can hand them in during your regular discussion section earlier than Friday if you like. These will not be graded in any detail, but your TA will assess your overall effort level and treat it as a measure of your participation in the class.

Numbered problems are in the back of the Frank/Bernanke textbook. You do not need to write on or tear out the page. Using your own paper will preserve the resale value of the book.

Remember: you can substitute a discussion group presentation for one of these homeworks, but you will need to check with your TA. This is on a first-come, first-serve basis.

Assignment 1: Due to your TA Friday, February 7.

From Chapter1, Problems # 1, #2.

From Chapter 2, #2, #5.

Short thought piece (at least one paragraph, no more than one page): Pick one of the situations from "Capitalism Among Consenting Adults" below and write a brief response to the following two questions: Do you approve or disapprove? Should this transaction be prohibited?

For Assignment # 1: Capitalism Among Consenting Adults

1. A very complicated medical procedure has been discovered which cures cancer in patients who would otherwise almost certainly die. Staff shortages make it impossible to treat all those who would benefit, and the hospital has established a policy that the procedure will be made available on a first-come, first-serve basis. A wealthy patient who is last on the waiting list offers to pay a million dollars and all future medical expenses to a poor patient on the top of the list; in return, the two will exchange places and the well-to-do patient will get the treatment while the other almost certainly will not get it. If the poor patient dies (which is very likely) the money will be inherited by her children. The poor patient voluntarily agrees to the transaction.

2. Tired of making choices all the time, a person decides to sell himself to another person, receiving a large sum of money and promising to obey the new owner, who promises not to mistreat the slave.

3. Having considered alternative jobs (their wages, working conditions, availability, etc.), a woman selects prostitution as her occupation, taking all possible measures to safeguard her own health and that of her sexual partners.

4. You are waiting in line to buy tickets to a movie that is just about sold out. Someone from the back of the line approaches the person in front of you and offers to pay her $25 to exchange places in line.

5. A politically apathetic person who never votes agrees to vote for a particular candidate in return for a sum of money.

6. Wealthy parents who give birth to a child with a minor birth defect sell their child to another wealthy but childless family and buy a "perfect" newborn child from a family badly in need of cash.

Assignment 2: Due to your TA by Friday, February 14.

Chapter 3, Problems #5, #6, #7.

Short thought piece: On many college campuses, students have rallied around anti-sweatshop campaigns. Why? What are their concerns about free trade. Do you think they are justified?

Assignment 3: Due to your TA by Friday, Feb. 28.

Chapter 4, Problems # 1, # 2, # 3, and # 9.

Chapter 5, Problems # 3, # 6, and # 9.

Short thought piece: If market forces are efficient, why we would we ever want to interfere with them?

Assignment 4: Due to your TA by Friday, March 7.

Chapter 6: # 2, # 3

Chapter 7: #2, #3.

Chapter 8: #2, #6.

Assignment 5: Due to your TA by Friday, April 4.

Chapter 9: # 2, # 3, and # 9.

Short thought piece: Describe a company that you deal with that can be described as a monopoly. How does it maintain its market share? How are you affected by its behavior?

Assignment 6: Due to your TA by Friday, April 18.

Chapter 10: # 1, # 9

Chapter 11: # 2, # 5.

Short thought piece: Pick an "externality" that you think has important implications for social welfare. Offer some evidence of its empirical significance. What kinds of public policies would you recommend to deal with it?

Assignment 7: Due to your TA by Friday, May 2.

Chapter 12: # 1, # 2.

Chapter 13: # 3, # 5.

Short thought piece: Many of the jobs that women choose to enter pay less than the jobs than men choose to enter (same pattern applies to choice of college majors). What explains these choices? Is this pattern likely to change?

Assignment 8: Due to your TA by Friday, May 9.

Chapter 14: # 1, # 2.

Chapter 15: # 6.

Short thought piece: describe a situation in which you have been forced to deal with a free rider problem.

Assignment 9: Due to your TA by Friday, May 16. Extra credit, if you’re good. Fill in the Utopia Survey and write a brief explanation of your opinion. Follow your TA’s instructions about how to turn it in.