Saturday, April 28, 2012

Do Americans REALLY buy the "Buy American" mantra or has globalization said bye-bye to that notion? The survey SAYS....

Nice example of looking at what what people DO instead of what they SAY. 

According to the survey below, Americans care much more about the price, quality and ease of purchase of a good oppose to where it is made. 

Look at the first column where people express the strongest positive feeling for the question.

How about you?  If you honestly assess yourself, does this jive with your behavior?

Source: The Economist/YouGov
HT: Marginal Revolution

Kidney Disease does not kill people, government policies on the sale of kidneys kills people....

Ok, maybe my rhetoric is a little harsh---or is it?

Nice example of how a price ceiling imposed by law creates a shortage of a good. Federal Law sets a price of $0 dollars for the price paid to the donor of a kidney.  Hence, the quantity supplied is going to be much less than it otherwise might/would be. 

The graph below shows the quantity demanded for kidneys is much greater than the quantity supplied at a price of $0.  I have a more detailed posting (with Supply and Demand graphs!) HERE.

If people were allowed  compensation for kidney donations would the quantity supplied increase? Would this be a more socially desirable outcome? What are some additional positive and negative implications of allowing the sale of kidneys? 

Keep in mind, the gap between the lines represent people NOT getting a transplant. 
Source: Carpe Diem

Thursday, April 26, 2012

Nice graphic illustrating the web of firms in a Monopolistically Competitive Market. Look for your favorite brand(s)...

In AP Microeconomics we study market structures.  The graphic below is a nice illustration of firms that compete in a Monopolistically Competitive market, or as I like to call it "The NASCAR Market"---look at a NASCAR race car (and the driver) and you will see most of the logos below.

Monopolistically competitive firms MUST advertise heavily and differentiate their products in order to gain/maintain market share.  While the firms are relatively few in number they are highly competitive and have to offer a quality product at a competitive price. 
Source: Chart Porn

Only two industries are back at pre-recesssion employment levels. See them and the laggards here...

Only two industries have fully regained the jobs (and then some) lost during the recent recession.  Leisure and Hospitality has 4.2% more jobs and Mining has more than doubled the number of jobs that existed at the beginning of the recession.  Professional Services is the next closest to being back at 100%, but it is still 17.4% below pre-recession employment levels.  Food for thought...

Source: Business Insider
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