Answer Questions 3, 4, and 5 based upon the following editorial in the New York Times:

The Autoworkers' Pain Published: February 16, 2007

"American autoworkers are suffering through another round of layoffs, factory closings and buyouts. This time DaimlerChrysler has announced that it will cut 13,000 jobs in North America. Ford Motor and General Motors offered buyouts to a total of nearly 200,000 hourly workers in 2006. These losses stoke fears that America's manufacturing base is disappearing, that the country is 'de-industrializing'. With the loss of three million American factory jobs since the end of 2000 and the trade deficit at an all-time high, it's easy to see China's spectacular growth and assume that American factories are being gutted by foreign competition. But global competition is not the whole cause for the car manufacturers' problems, just as the answers are not to be found in protectionism. Many of the car companies' difficulties stem from some bad decisions by management and some uninspired car designs. Chrysler lost $1.48 billion last year and Ford lost $12.7 billion, the most in more than a century in business, while Toyota reported record profits and sales. The plight of the workers who have lost their jobs is real and has to be addressed, but the U.S. manufacturing sector is far more robust than the struggle of the carmakers suggests. According to the United Nations, the United States accounted for 21.2 percent of world manufacturing in 2000. As China surged ahead in recent years, the American share of world manufacturing barely budged, falling to 21.1 percent by 2005, the most recent year available. American factories produced a record $1.5 trillion in goods that year. In part, that's because foreign companies have invested so much in factory capacity in America. In a recent report, a Democratic research organization, the Progressive Policy Institute, cited government figures showing that foreign manufacturers invest billions more in the United States than American manufacturers invest abroad. Toyota provides over 29,000 manufacturing jobs in this country. Many of the jobs that have disappeared did not drain off to foreign competition, but to technological change on the shop floor. Robots and computers have allowed far fewer workers to produce more than ever. That kind of high-tech manufacturing is one reason successful American companies like Boeing and Caterpillar can compete with companies in countries where the labor costs are low. This is not to ignore the human dimension. It is too easy for free trade advocates to blame the robots and then ignore the pain of the blue-collar workers they have sidelined. The suffering in places like Ohio, Indiana and Michigan is very real, and so is the political backlash that results. The long-term answer is the vexing question of training American workers for a new world of jobs. But there are more short-term issues as well, starting with taking care of those Americans, middle aged and older, who suddenly find themselves without jobs right now. The burden falls on pro-trade politicians and those who support them, unless they want to see high tariffs and duties, which will ultimately choke global and domestic growth. Just to start, pro-trade politicians have to make sure that a lost factory job does not mean a drastic and lasting decline in living standards, with no access to health insurance and no hope for a college education for that worker's children. As the tide rises, this country cannot allow millions to drown. ---------------------------------------------------------------------------------------------- Develop a hypothesis that will help to explore a causal relationship suggested by The Autoworkers' Pain editorial.  Explain in detail the causal relationship that your hypothesis above is attempting to show.  How would you operationalize this hypothesis? Be specific on what the units of analysis are attempting to depict. Using the website for the U.S. Senate [www.senate.gov],

Write a definition of economics ?

Economic Question 1.Suppose a school is having a bake sale. When cupcakes cost $0.50 a piece, I buy 5. When the price is reduced to $0.25 I buy 7 cupcakes. What is my price elasticity for cupcakes (use the arc elasticity method)?

As the price of gasoline reaches an all time record high, so too are the profits of the major petroleum companies. Is it proper for companies such as Exxon to post record earnings at the cost of the consumer?

I have to answer this in 50 words. What might be my opportunity cost of not going to school and not getting a degree?

I have three questions on macroeconomics? Reagan grows flowers and makes ceramic vases. Jayson also grows flowers and makes vases, but Reagan is better at producing both. In this case, trade could:  A. benefit both Jayson and Reagan; B. benefit Jayson, but not Reagan. C. benefit Reagan, but not Jayson. D. benefit neither Jayson nor Reagan. Which is the correct answer? Question 2 - Ben bakes bread and Shawna knits sweaters. Ben likes to eat bread and wear sweaters, and the same is true for Shawna. In which of the following cases is it impossible for both Ben and Shawna to benefit from trade? A. Ben cannot knit sweaters and Shawna cannot bake bread. B. Ben is better than Shawna at baking bread and Shawna is better than Ben at knitting sweaters. C. Ben is better than Shawna at baking bread and at knitting sweaters. D. None of the above is correct. Question 3- Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Justin to benefit from trade? A. Shannon does not like vegetables and Justin does not like cookies. B. Shannon is better than Justin at baking cookies and Justin is better than Shannon at growing vegetables. C. Justin is better than Shannon at baking cookies and at growing vegetables. D. all of the above are correct.

1. A country 's consumption possibiities frontier can be outside its production possibilities frontier if  A. the country's technology is superior to the technologies of other countries. B. the citizens of the country have a greater desire to consume goods and services than do the citizens of other countries. C.the country engages in trade. D.. all of the aboove are correct.  

2. Consider a shoemaker and a vegetable farmer. Potenially, trade could benefit both individuals if  A. the shoemaker can produce only shoes and the vegetable farmer can produce only vegetables. B.the shoemaker is capable of growing vegetables, but he is not very good at it. C. the vegetable farmer is better at growing vegetables and better at making shoes than the shoemaker. D. all of the above are correct.

3 A production possibilities frontier will be a straight if  A. increasing the production of one good by x units entails no opportunity cost in terms of the other good. B. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. C. the economy is producing efficiently; D. the economy is engaged in trade with at least one other economy.

A marcoeconomics question for my test. Without trade, A. a country is better off because it will have to learn to be self-sufficient.  B. a country's production possibilities frontier is also its consumption possibilities frontier. B. a country can still benefit from international specialization. D. interdependence is more extensive than it would be with trade. The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in  A. .performing an experiment in an economic system; B. applying mathematical methods to economic analysis; C. analyzing available data; D.formulating theories about economic events. Elasticity improves our understanding of supply and demand by adding  A. measures of equity; B .measures of efficieny; C.a quantitative element to our anaylsis; D .a qualitative element to our anaylsis. Which of the following statements is true A. economists almost always find it easy to conduct experiments in order to test their theories B.economics is not a true science because economists are not usually allowed to conduct experiments to test theories. C.economics is a social science rather than a true science because it cannot employ scientific methods. D. economists are usually not allowed to conduct experiments, and so they must rely on natural experiments offered by history.  A market is always characterized by  A a high degree of organization; B an individual or small group of individuals who set the price for the product for all buyers and sellers. C.the presence of buyers and sellers; D.all of the above are correct. Hhow does the concept of elasticity allow us to improve upon our understanding of supply and demand? A. elasticity allows us to analyze supply and demand with greater precision than would be the case in the absence of the elasticity concept; B.elasticity provides us with a better rationale for statements such as " an increase in x will lead to a decrease in" y than we would have in the absence of the elasticiy concept; C. without elasticity , we would not be able to address the direction in which price is likely to change more in response to a surplus or a shortage. D. without elasticity , it is very difficult to assess the degree of competition within a market.