Chapter 3

What is your opinion about International Trade? Is it good or bad? Why?

Last semester for Macroeconomics I choose to do my final paper on International Trade. WOW! It was a huge topic with so many micro topics. Its like a 500 piece puzzle! But overall, I feel trade is good for the economy both national and international. The main reason I believe that trade is good and beneficial to people and animals is because we can share one another's unique goods or services that is desired by or needed by the consumer. 

Did your opinion about trade change after reading the chapter?

No, my opinion has not changed since I read the Chapter. It was a good refresher from last semester. I am a trade advocate although I feel our policies need to be changed, seems that they are rather outdated, but something to help our national market improve and/or we need to make our goods and services desirable to other countries to improve our GDP.

Chapter 2

How does the use of a very simplified model of the economy such as those found in a production possibilities frontier help you to understand the economy?

When I studied the model and read Chapter 2;  I put the information into my perspective as a consumer, and citizen. Basically I compared it to my own personal finance, shopping habits etc. Then once you take it from your own personal experience and perspective you can see how it relates starting in your own community and expanding outward into the sate, country, world etc. 

Give an example of a positive and normative statement about the economy. Why does it matter which is which?

An example of a positive statement would be: 

"Buying produce from Farmers Markets support small, local businesses". 

A positive statement attempts to describe things that are factual.

An example of a normative statement would be:

"Everyone should shop at Farmers Markets, to minimize pollution, increase their health benefits and put big grocery chains out of business".

A normative statement attempts to describe things as we think that they ought to be based on our personal beliefs, morals and opinions. 

So when economists make normative statements they can be acting more as policy advisers rather than going off of factual data. 

What in this chapter made you think about an economic concept differently than your previous beliefs? 

Principle 3. Rational People Think at the Margin
The examples that I read in Chapter 1 such as airlines and cell phone companies made sense to me, and the marginal decision making that companies use to make a profit and sell their product and or services. 

What new questions do you have now about the US economy based on this chapter?

I am interested in learning more about the US governments role in the economy. 
What does the government do help boost the economy?
What government programs effect the economy? 
What do economists think about the role the government plays/effects of economy?