CO2013U MACROECONOMICS ENHANCED 582051
Chapter 3 Assignment
A) Choose one (1) concept from the Chapter Section Titled “Key Concepts,” and:
1. Illustrate (in words) the concept by using it in an analogy or a metaphor. Your response must contain at least 2 elements;
- The analogy or metaphor
- A brief explanation of why you see a parallel between the two things you are comparing
2. Use the concept in a question. In other words, you are being asked to compose a question using the concept. The question may be preceded or followed by a brief statement, but your response must have at least 5 elements;
- It must contain a question
- The question must explicitly use the concept
- It must be a question that inquires about the relevance or importance of the concept
- It must ask about an specific situation from the real world
- It must use data or information (numerical figures, dates, names, locations etc.) from one or more the following sources;Textbook Section Titled “Issue”
- Textbook Section Titled “By the Numbers”
- News Article from http://www.economist.com/
- News Article from https://www.bloomberg.com/
B) If a strong economic recovery boosts average incomes, what would happen to the equilibrium price and quantity for a normal good? How about for an inferior good?
Helpful Hints and Information on composing analogies:
- When you draw an analogy between two things, you compare them for the purpose of explanation. For example, when a scientist explains that the earth’s forests function as its lungs, we understand the analogy to mean that both trees and lungs take in important elements from the air. Just as our lungs absorb carbon dioxide from the blood and infuse it with oxygen, forests, which are full of trees, function as the lungs of the earth, essentially breathing in carbon dioxide and exhaling oxygen.
Helpful Hints and Information on composing specific and meaningful questions:
- Provide context. Context allows for more precise responses, which is the purpose of most questions. In other words, when you provide context in your question, it is easier to find an exact response. It is much better to say, “According to an article in the Economist, during the summer of 2013 the world price for the arabica type coffee bean decreased, from $106 for a 60 kg bag, to around $50. This change happened, in just two years. Which factors contributed to this rapid price decrease? Then to say, “Why did the price of coffee decrease?
- Questions of relevance often sound like this;How does … relate to the problem of … ?
- How does … bear on the question of … ?
- How does … help us with the issue of … ?
- What are the implications of this … in that … ?
- How significant is … to … ?
- In general, questions are designed to solicit a response. For the purpose of this assignment, students may or may not know the response to the question they are composing. However, students need to respect the spirit of asking a question in the first place, which is to solicit an answer. To achieve this, you need to have an understanding of the scope, or the reach of the concept you are composing the question about. For example, it would be meaningless, to ask the following question, “How is the increase in the overall level of prices, also known as inflation related to the gravitational force of the planet Jupiter?”