| REACTION PAPERS |
| The object of the papers are for you to demonstrate that you understand and can apply an economic concept that you have learned in this class, to an issue that you have read about in the public press. |
| 1. The paper should be no longer than three typed double spaced pages. Edit and spell check your papers. Poorly written papers will be returned with a 0 to be redone. Include the clipped article with the paper. |
| 2. Find an article in the New York Times, Wall Street Journal, The Economist, or Business Week on a topic that pertains to something covered in class to date. These topics could include helth care, the environment, poverty, housing, agriculture, or an article that you think describes a concept such as elasticity, shifts of demand or supply in a particular market and so on. |
| 3. The paper should include three parts: |
| a. Briefly desribe the contents of the article-- do not rewrite the article, highlight the important points. |
| b. Identify and explain the economic concept(s) that you think are important in the article. You should base your explanation on the presentation of the concept in the textbook. The idea is to demonstrate that you understand the concept. Use your own simple examples to support your explanation. |
| c. Refer back to the article and demonstrate how the concept is illustrated by the article. |
| Example: You find an article that presents an interview with the president of an automobile company where the president is quoted as saying: "We have increased the price of our automobiles, but because we have such a reputation for high quality, we do not anticipate a drop in sales." You would highlight the key points of the article and then say, the president assumes that the demand for his/her company's automobiles is inelastic. Inelastic demand means...(use your textbook to explain the concept). A good is inelastic when...and maybe include your own simple example(s). Then go back and demonstrate how this concept underlies the president's statement. |
| Hint: Do not pick an article that has a long, complicated argument, or that deals with many difficult concepts. The simpler the better. There are many articles that pertain exactly to things studied in class. |
| Grading Scheme: 100 if you include everything stated above and all is correct; 90 if you make a few small mistakes in your analysis; 0 (to be redone) if you skip a part or your explanation of the concept is incorrect or misapplied. If you have to redo the paper, you have one week after they are returned to hand in the new version. |