econ essay

197 Topic List #2

1. Explain to an environmentalist why application of cost benefit analysis will do more to protect the environment than it will to harm it. (There are a few articles on this topic linked in Piazza)

2. Of the developed countries, the United States is widely considered to be the most religious. One explanation for this involves invoking the theory of markets and competition. Most countries have an established, state-sponsored religion. The United States does not. How could you explain the flourishing of religion(s) in the United States in the context of monopolies and perfectly competitive markets?

3. Attention has been focused recently on the increasing levels of student debt from college and graduate school among recent college graduates. Some critics argue that many of these borrowers will not be able to pay off their loans, and that major choice is partially to blame. Should Universities be required to disclose an ROI (Return on Investment) by major? Would this disclosure correct a market failure caused by informational asymmetry? Do you think this is a good idea? Would it make higher education and loan markets more efficient?

4. The pharmaceutical industry has been in the news lately after some firms have increased prices so much that they have been accused of price gouging. Discuss the trade-offs between the need for patents and the need for competition in this context.

5. Can charities solve the problem of poverty and the social safety net? Explain.

6. Bernie Sanders ran his campaign on a promise of free universal health care that he described as a “human right.” Is this a good paradigm for health care? How will free health care have an effect on both users of health care and health care markets? Does this make good policy? Do you have another idea?

7. Why do economists always talk about optimization? What does it mean to optimize? How does marginal analysis play a role?