Assignment:

In "30,000 Pounds of Bananas," Harry Chapin tells the story of a truck driver that is delivering bananas to Scranton, PA and crashes because he was going too fast down a hill. Using the lyrics, explain the idea of opportunity costs for the driver. What were the opportunity costs of the company that the driver worked for? Do the marginal benefits of moving so much produce at one time outweigh the marginal costs of having a tired and inexperienced driver out on the road for so long that he sacrifices his own safe driving so he can go home to his wife? How might the incentives of the company and the driver be mis-aligned? Is this an example of a principle-agent problem? Why or why not?

[Provided by Matt Olson, Beloit College]

Assignment:

In "Silas Stingy", The Who describe a man so in love with his money that he cannot bear to be away from it. Silas even denies himself basic necessities, such as food, to keep as much money as possible. The song ends with a description of how Silas goes to great lengths to protect his existing money from thieves, only to discover that he spent it all in the process. Putting aside Silas' unhealthy obsession with currency, explain how the fractional reserve banking system can help him expand his supply of money through the system of required and excess reserves and loans. On the other hand, explain to Silas why FDIC insurance is necessary to guarantee his money, and how these conditions may make his money safer in a bank than under his mattress. Be sure to also explain inflation and how it can gradually erode the real purchasing power of Silas' money when stored in a bank, even when the money is protected by FDIC insurance and being expanded by the fractional reserve banking system. Finally, make a case for Silas to deposit his money in an FDIC-insured banking institution or keep his hard assets, based on your own opinion of the pros and cons for Silas of fractional reserve banking, FDIC insurance, and the accompanying inflation.

[Provided by Derek Lyndes, Beloit College]

Assignment:

In "Silas Stingy", The Who describe a man so in love with his money that he cannot bear to be away from it. Silas even denies himself basic necessities, such as food, to keep as much money as possible. The song ends with a description of how Silas goes to great lengths to protect his existing money from thieves, only to discover that he spent it all in the process. Putting aside Silas' unhealthy obsession with currency, explain how the fractional reserve banking system can help him expand his supply of money through the system of required and excess reserves and loans. On the other hand, explain to Silas why FDIC insurance is necessary to guarantee his money, and how these conditions may make his money safer in a bank than under his mattress. Be sure to also explain inflation and how it can gradually erode the real purchasing power of Silas' money when stored in a bank, even when the money is protected by FDIC insurance and being expanded by the fractional reserve banking system. Finally, make a case for Silas to deposit his money in an FDIC-insured banking institution or keep his hard assets, based on your own opinion of the pros and cons for Silas of fractional reserve banking, FDIC insurance, and the accompanying inflation.

[Provided by Derek Lyndes, Beloit College]

Assignment:

Conor Oberst sings about a man who has lost his job and is now doing “anything to serve a function or to occupy some time” because he feels he must make a living somehow. Opportunity costs, as well as marginal costs and benefits must be weighed against each other to decide if the subject has made a rational decision. The lyrics indicate that the cost of his new lifestyle is a loss of income from his day job. The benefits are more leisure time and a new attitude.

Think further on what marginal benefits and the marginal costs might be for the subjects’ change of lifestyle. What are the opportunity costs? Is the subject being a rational decision maker?

Oberst also mentions the man as being in a group of unemployed individuals. One can presume that the subject is working odd jobs, or at the very least not working a stable job. Under these conditions is the subject correctly classified as unemployed?

[Provided by Emillea Cohen, Beloit College]

Assignment:

Conor Oberst sings about a man who has lost his job and is now doing “anything to serve a function or to occupy some time” because he feels he must make a living somehow. Opportunity costs, as well as marginal costs and benefits must be weighed against each other to decide if the subject has made a rational decision. The lyrics indicate that the cost of his new lifestyle is a loss of income from his day job. The benefits are more leisure time and a new attitude.

Think further on what marginal benefits and the marginal costs might be for the subjects’ change of lifestyle. What are the opportunity costs? Is the subject being a rational decision maker?

Oberst also mentions the man as being in a group of unemployed individuals. One can presume that the subject is working odd jobs, or at the very least not working a stable job. Under these conditions is the subject correctly classified as unemployed?

[Provided by Emillea Cohen, Beloit College]

Assignment:

The Clash sings about the angst of decision making in their song “Shall I Stay or Should I Go?” Economic theory states that rational decision makers weigh the marginal benefit one receives from an option with its marginal cost, including the opportunity cost. The lyrics give us a rough assessment of the costs (“If I go there will be trouble, and if I stay it will be double”). However, little is mentioned regarding the marginal benefit. In fact, the singer tells us that he needs additional information (“Darling you gotta let me know”) and fears that he must make a decision under conditions of imperfect information.

Speculate on what the marginal benefits and the marginal costs might be for staying and going.
What are the opportunity costs? How does knowing that the cost of staying is double influence the decision? Is the singer being a rational decision maker attempting to make a decision under conditions of uncertainty, or is he irrational, unclear of his preferences, and waiting for someone else to make the decision for him? Stay? Go?

[Provided by Jim Davis, Santa Rosa Junior College]

Assignment:

Bruce Springsteen sings about the demand and supply of sex and the subsequent equilibrium prices of different acts in "Reno". Why might some activities result in a higher price than others? Steven Levitt and Stephen Dubner in SuperFreakonomics provide some evidence that the price of vaginal sex with prostitutes in Chicago is about $80 and oral sex is $37. Why, if Springsteen can be believed, might sex more expensive in Reno than Chicago?

[Provided by Simon Medcalfe - Augusta State University]

Assignment:

The Specials sing about "all the clubs have been closed down". What has caused this? That is what factors have shifted demand for clubs and which have shifted supply? Draw representative demand and supply curves. In the introduction to the video the announcer says it is "1981 and a song that conjures up the era". How does this song reflect that time? (P.S. The Specials are a British band and Top of the Pops was a British music show on TV).

[Provided by Simon Medcalfe - Augusta State University]

Assignment:

The singer in the song enjoys the glamorous life of expensive things, however she still likes going to Taco Bell. Does this imply that Taco Bell is not an inferior good for Fergie? What about for the average wealthy person.

Ludacris says, "I've got enough money in the bank for the two of us". While they are "taking trips from here to Rome" what is the bank doing with their money? In order to make the actual deposit expansion multiplier get closer to it's potential, would the bank want to maximize or minimize the excess reserves it is holding?

[Provided by Dillon Hess - Beloit College]

Assignment:

The singer in the song enjoys the glamorous life of expensive things, however she still likes going to Taco Bell. Does this imply that Taco Bell is not an inferior good for Fergie? What about for the average wealthy person.

Ludacris says, "I've got enough money in the bank for the two of us". While they are "taking trips from here to Rome" what is the bank doing with their money? In order to make the actual deposit expansion multiplier get closer to it's potential, would the bank want to maximize or minimize the excess reserves it is holding?

[Provided by Dillon Hess - Beloit College]

Assignment:

This song makes it seem like all rappers have enough "money to blow". Using economic reasoning, explain whether you think Birdman is the exception or the average? What is the problem with only analyzing the lifestyles of rappers you see on television?

What is the opportunity cost of becoming successful enough to have "money to blow?" Does it vary across industries? Your answer should include a discussion of industry specific human capital.

[Provided by Ulysses Smith - Beloit College]

Assignment:

In "The Fear," Lily Allen sings about a young woman who lives in a trailer but dreams about living with unlimited resources in a large estate. The narrator's utility for some costly but tangible goods (such as clothes and diamonds) is high. On the other hand, her utility for some intangible but costless goods (qualities of cleverness and funniness) is very low. Are these bundles of goods comparable? If not, why not? Why doesn't the narrator care about the clever/funny bundle, especially if it does not have a traditional market value? How does the narrator view clothes and diamonds? Does some of their value come from something other than their market price? What are the trade offs between these two bundles? Also, what is a weapon of massive consumption anyways?

[Provided by Katharine Bigott - Beloit College]

Assignment:

In "The Fear," Lily Allen sings about a young woman who lives in a trailer but dreams about living with unlimited resources in a large estate. The narrator's utility for some costly but tangible goods (such as clothes and diamonds) is high. On the other hand, her utility for some intangible but costless goods (qualities of cleverness and funniness) is very low. Are these bundles of goods comparable? If not, why not? Why doesn't the narrator care about the clever/funny bundle, especially if it does not have a traditional market value? How does the narrator view clothes and diamonds? Does some of their value come from something other than their market price? What are the trade offs between these two bundles? Also, what is a weapon of massive consumption anyways?

[Provided by Katharine Bigott - Beloit College]

Assignment:

This song outlines three different scenarios in which people use illegal means in order to get money. The chorus of the song explains these actions by mentioning a couple popular cliches such as: "Money don't grow on trees," and " There ain't nothing in this world for free." What do you think the economic advantage is to engaging in illegal activity? Do you think that it is their economic state that drives people to commit crimes? Is partaking in illegal activity a never- ending cycle? In other words, is there really "no rest for the wicked" as long as their is scarcity?

[Provided by Jerrica Zaric - Beloit College]

Assignment:

This song outlines three different scenarios in which people use illegal means in order to get money. The chorus of the song explains these actions by mentioning a couple popular cliches such as: "Money don't grow on trees," and " There ain't nothing in this world for free." What do you think the economic advantage is to engaging in illegal activity? Do you think that it is their economic state that drives people to commit crimes? Is partaking in illegal activity a never- ending cycle? In other words, is there really "no rest for the wicked" as long as their is scarcity?

[Provided by Jerrica Zaric - Beloit College]

Assignment:

The subject of the song states that he wants to be a paperback writer but he "needs a job." How would you classify his employment status? Is he unemployed? Actively seeking new work? Do you think self-employment creates a measurement problem for the Bureau of Labor Statistics? Also if it took him "years to write," does this suggest anything about the opportunity cost of his time?

[Provided by Xilong Zhu - Beloit College]

Assignment:

The subject of the song states that he wants to be a paperback writer but he "needs a job." How would you classify his employment status? Is he unemployed? Actively seeking new work? Do you think self-employment creates a measurement problem for the Bureau of Labor Statistics? Also if it took him "years to write," does this suggest anything about the opportunity cost of his time?

[Provided by Xilong Zhu - Beloit College]

Assignment:

Does money have any intrinsic value? What are the functions of money? How does demand for money affect its supply? How do you think the supply of money versus the supply of diamonds has changed since the since the Beatles wrote this song? What's the reason for the difference? Although money can’t buy love, money can buy a diamond ring. How does the money supply change today if you pay for the diamond ring with credit as opposed to a debit card?

[Provided by Marlie Pykelny - Beloit College]

Assignment:

Does money have any intrinsic value? What are the functions of money? How does demand for money affect its supply? How do you think the supply of money versus the supply of diamonds has changed since the since the Beatles wrote this song? What's the reason for the difference? Although money can’t buy love, money can buy a diamond ring. How does the money supply change today if you pay for the diamond ring with credit as opposed to a debit card?

[Provided by Marlie Pykelny - Beloit College]

Assignment:

What is the singer saying about economics? What is his financial situation and why is he in such an intense pursuit of cash? What are the problems and reasons of bank and family for not lending him the money? What is your point of view on money in such desperate situations? Is "money too tight to mention?"

[Provided by Ilija Bojovic - Beloit College]

Assignment:

In the song, the narrator insists that he has to “catch ‘em all.” How elastic is the narrator’s demand for pokémon? Considering the law of diminishing marginal utility and the six factors that change the demand for a good, how realistic is his stated elasticity? In other words, is it usually efficient to “catch ‘em all”?

[Provided by Rhiannon Roselle - Beloit College]

Assignment:

In the song, the narrator insists that he has to “catch ‘em all.” How elastic is the narrator’s demand for pokémon? Considering the law of diminishing marginal utility and the six factors that change the demand for a good, how realistic is his stated elasticity? In other words, is it usually efficient to “catch ‘em all”?

[Provided by Rhiannon Roselle - Beloit College]

Assignment:

“It’s better than yours/…/I can teach you/But I’d have to charge.” What sort of market structure is Kelis operating in: price taker, price searcher with low entry barriers, or price searcher with high entry barriers? How would competition affect Kelis’s market and what is she doing to protect her profits?

[Provided by Rhiannon Roselle - Beloit College]

Assignment:

“It’s better than yours/…/I can teach you/But I’d have to charge.” What sort of market structure is Kelis operating in: price taker, price searcher with low entry barriers, or price searcher with high entry barriers? How would competition affect Kelis’s market and what is she doing to protect her profits?

[Provided by Rhiannon Roselle - Beloit College]

Assignment:

The speaker is consoling a friend who can’t quite cut it in show business. He makes light of the situation by telling his friend, “You got the kitchen hand job easily/ You'll be king of this here town.”

Is “the friend” better off for taking this job right away and making some money? If this person were to remain unemployed, how long would they be considered part of the workforce? What type of unemployment is this: frictional, structural, cyclical?

[Provided by Shelley Quade - Beloit College]

Assignment:

What is the main purpose of the money according to the song? Is money really that powerful? Can it replace happiness in your opinion? What is the purpose of the money if not to afford happiness? Is the song being realistic about the role of money? Why or why not?

[Provided by Ilija Bojovic - Beloit College]

Assignment:

In the song "Slow Motion" we see a young man appearing to make several bad decisions. To many, these decisions are irrational. But are they? Explain the young man's actions as a rational. Your answer should discuss the marginal benefits of conducting the violence, drug intake, and sex as compared to the marginal costs of each action.

[Provided by Rajeev Viswanathan - Beloit College]

Assignment:

In the song "Slow Motion" we see a young man appearing to make several bad decisions. To many, these decisions are irrational. But are they? Explain the young man's actions as a rational. Your answer should discuss the marginal benefits of conducting the violence, drug intake, and sex as compared to the marginal costs of each action.

[Provided by Rajeev Viswanathan - Beloit College]

Assignment:

What was the economic advantage to engaging in slavery? Why did they choose to engage in economic ventures in Barbados rather than remaining in their home country, especially given the high start up costs (ship construction, supplies for the voyage, etc)? What are the opportunity costs of starting up a overseas economic venture? Given the high levels of unemployment in Enlightenment-era Europe, why didn’t more Europeans join colonization efforts in order to escape
their economic plight? What could be some long term costs of natural resource consumption associated with such “ghostly crimes?”

[Provided by Tim Schutt - Beloit College]

Assignment:

What was the economic advantage to engaging in slavery? Why did they choose to engage in economic ventures in Barbados rather than remaining in their home country, especially given the high start up costs (ship construction, supplies for the voyage, etc)? What are the opportunity costs of starting up a overseas economic venture? Given the high levels of unemployment in Enlightenment-era Europe, why didn’t more Europeans join colonization efforts in order to escape
their economic plight? What could be some long term costs of natural resource consumption associated with such “ghostly crimes?”

[Provided by Tim Schutt - Beloit College]

Assignment:

In "Day Job," Gin Blossoms lead singer Robin Wilson sings about the disillusionment that greets many college graduates, and wonders whether he should return to college and complete his degree. When might the marginal benefits of a greater possibility of graduating and finding a better job be exceeded by the marginal costs of spending time and money at college instead of being fully employed? Should the singer return to college due to the sunk costs of already having attended for some time? What are the opportunity costs of completing college?

[Provided by Kevin Axe - Beloit College]

Assignment:

In "Day Job," Gin Blossoms lead singer Robin Wilson sings about the disillusionment that greets many college graduates, and wonders whether he should return to college and complete his degree. When might the marginal benefits of a greater possibility of graduating and finding a better job be exceeded by the marginal costs of spending time and money at college instead of being fully employed? Should the singer return to college due to the sunk costs of already having attended for some time? What are the opportunity costs of completing college?

[Provided by Kevin Axe - Beloit College]

Assignment:

The narrator expresses his decision not to put the effort into trying to win the girl’s love because the more time he spends the less energy he has. How do the marginal benefits and the marginal costs of this effort influence his decision? Keeping the concept of sunk costs in mind (“…I’ve done it before”), should the amount of time he has already invested in the girl influence his decision? Why or why not?

[Provided by Emory Nelms - Beloit College]

Assignment:

The narrator expresses his decision not to put the effort into trying to win the girl’s love because the more time he spends the less energy he has. How do the marginal benefits and the marginal costs of this effort influence his decision? Keeping the concept of sunk costs in mind (“…I’ve done it before”), should the amount of time he has already invested in the girl influence his decision? Why or why not?

[Provided by Emory Nelms - Beloit College]

Assignment:

In "10 Dollar" M.I.A. sings about a young child who had her sights set on better things but is stuck in the sex industry. What are the costs and benefits of this girl engaging in the underground economy? How are the opportunities for this girl different since she comes from a developing country? Is her choice rational to charge 10 dollars for sex?

[Provided by Sophie Kaufman - Beloit College]

Assignment:

In the song, Clash lead singer Joe Strummer sings about job opportunities available and how he doesn’t want any of them. Does this mean he is unemployed? If so, what type of unemployment is it? What is the opportunity cost of him not taking the job? Can it be beneficial for the economy if citizens don’t take jobs offered to them? In the song, Strummer mentions many of his “career opportunities”, many which are jobs with the government; do you think it is beneficial for the government to offer low-paying jobs to jumpstart the economy? Weigh both the pros and cons for of Strummer's decision to not join the labor force.

[Provided by Bebe Santa-Wood - Beloit College]

Assignment:

In the song, Clash lead singer Joe Strummer sings about job opportunities available and how he doesn’t want any of them. Does this mean he is unemployed? If so, what type of unemployment is it? What is the opportunity cost of him not taking the job? Can it be beneficial for the economy if citizens don’t take jobs offered to them? In the song, Strummer mentions many of his “career opportunities”, many which are jobs with the government; do you think it is beneficial for the government to offer low-paying jobs to jumpstart the economy? Weigh both the pros and cons for of Strummer's decision to not join the labor force.

[Provided by Bebe Santa-Wood - Beloit College]

Assignment:

According to the song, what is Harvey's reservation price for an evening with his friend the narrator, as illustrated by his behavior? What are the opportunity costs of Harvey's activities? Why do people partake in what to outsiders seems like risky behavior? Put yourself in Harvey's shoes and justify his behavior in cost-benefit terms. Are his costs really that "the misses will kill me/I'll surely be done"?

[Provided by Alex Ebner (Student - Beloit College)]

Assignment:

Put yourself in the shoes of the "girl". Should she be pleased at the line "with each passing minute your marginal cost goes up?" Why or why not?

Assignment:

Most people interpret “Refugee” as a song about a woman who’s had a rough go of it in life. But, embedded in the song is a message of the role freedom plays in NOT living like a refugee. Petty, in some sense, is telling listeners that freedom promotes a better life. This message is one that is consistent with many of the findings in macroeconomics: more open and economically free societies prosper; societies that are less free struggle. How would you define economic freedom? How does this differ than your definition of political freedom? How, specifically, does freedom tend to make people more prosperous? Finally, what can policymakers do to increase freedom in a society?

[Provided by Scott Beaulier (Mercer University)]

Assignment:

Many rock stars like Neil Young get a maid. Why don’t they do their own cleaning and fix their own meals? If you were thinking about getting a maid what information would you need to make that decision? For example, if you could hire a maid for $100 per day to cook and clean, would you hire her? Does your answer differ if you are a successful lawyer or a burger flipper? Why?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

James Dean Bradfiled sings about a war veteran that has to sell his medal to pay a bill. Economics textbooks tell us about winners and loosers from inflation. How does inflation destroy buying power? Why are war veterans more affected by this than other members of society to such an extent that they have to sell their medals? What policy solutions would help veterans combat the affects of inflation?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Are motorcyclists that ride without helmets – with their long blonde hair flyin in the wind - rational? What are the costs and benefits of not wearing a motorcycle helmet? Thaler and Sunstein in their book Nudge (2008) suggest that motorcycle riders who want to “have their long blonde hair flyin in the wind” should take an extra driving course and submit proof of health insurance (this suggestion is based on a New York Times column by John Tierney in 2006). How would such a proposal affect the costs and benefits of not wearing a helmet? Is this proposal better than government mandated universal helmet laws? Why?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Based off of the James Hetfield lyrics in the song Master Of Puppets, describe why someone would continue to engage in behavior that is self-damaging, expensive, and time consuming. What effect does past consumption have in an addictive setting? How does an addiction make sense economically? Your might want to refer to the article "A Theory of Rational Addiction" by Gary S. Becker and Kevin M. Murphy.

[Provided by Noah Watenmaker (Student - Beloit College)]

Assignment:

How does the government calculate the unemployment rate? If Liam Gallagher decides it is not “worth the aggravation to find yourself a job when there’s nothing worth looking for” how does this affect the unemployment rate? Is Liam classified as unemployed? Should he be? What is the number of discouraged workers in the US at the current time (use www.bls.gov)?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Economists use GDP to measure the total production in an economy. Sometimes GDP is used as a measure of well-being. However, as Neil Young points out, GDP is not a perfect measure of well being. For example, it is not adjusted for inequality (the homeless man), crime (a kinder, gentler, machine gun hand), and pollution (Styrofoam boxes for the ozone layer). What other factors affect our well being but are not calculated in GDP? If we included these other factors that affect our well being, does GDP over estimate or underestimate our well being?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Economists divide unemployment into three categories: frictional, structural, and cyclical. What type of unemployment does Bruce Springsteen suffer from? What is today’s unemployment rate? How much of today’s unemployment is frictional unemployment? How much is structural unemployment? How much is cyclical unemployment?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

What is the effect of emigration on the country of origin? What is the effect of immigration on the host country? Do you think most immigrants work (for example on the railroad, or as police officers) or do you think they take government assistance (dollars from the White House)? How quickly do immigrants assimilate into a new country: is it “months and years” or do their teardrops quickly dry?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Draw a supply and demand diagram that shows the boss receiving “the lions share bliss” while someone who scrubs floors gets much less. In other words, what factors would affect supply and demand such that CEO’s receive 300 times the compensation of average workers? Are CEO’s paid too much?

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

Mark Knopfler claims that musicians get money for nothing. Do you agree with this statement? Can you get anything for nothing? What are the costs of being a musician? Make sure you discuss the opportunity costs.

[Provided by Simon Medcalfe (Brenau U.)]

Assignment:

In this excerpt, Coolio suggests that he would rap for no money. Draw a representative labor supply curve.

[HT: Julianne Treme]

Assignment:

From the movie "Gentlemen Prefer Blondes," Marilyn Monroe sings about diamonds being a girl's best friend. Interpret the lyrics "Men Grow Cold/As Girls Grow Old/) in light of "Rings and Promises" by Margaret Brinig (Journal of Law, Economics, and Organization 1990). Why might diamond wedding rings persist given that increased career opportunities for women have eliminated much of the need for a 'wedding bond'? Do you see the diamond engagement ring disappearing over time? Why or why not?

[HT: S. Yopp]

Assignment:

This song is an ode to open borders. List some of the benefits of open borders described in the song. Do you think you could live without "fine Darjeeling?" How might truly closed borders affect your consumption?

[HT: Carl Oberg]

Assignment:

Thinking like an economist usually involves invoking phrases like 'on the other hand.' This excerpt from Bruce Springsteen's song "Youngstown" suggests that he is owed something for making the plant owners rich. According to economists Paul Gomme and Peter Rupert, labor's share of value-added in the nonfinancial corporate sector is around 74%. Are these perspectives at odds with one another? Please explain.

Assignment:

Generally, profit accrues to individuals when the value of a good produced and sold is greater than the value of other goods that could have been produced with those same resources. From this perspective, the pursuit of profits adds value to society. Why do think people might be against profit-making? Who do you think made the world a better place, Bill Gates or Mother Teresa? Explain your answer with reference to what you mean by 'a better place.'

Assignment:

What does this song have to do with sunk costs? Explain in your own words.

Hat tip: Bryan Caplan

Assignment:

Billy Joel laments the loss of the way things were in Allentown. At one time it was a boom town, but now "they've taken all the coal from the ground." Assume that the presence of coal is the primary reason Allentown exists at all (like mining towns in the old west). (See here for a more complex history of Allentown). If coal and water access for easy shipping brought people flooding to the area upon its initial discovery, why don't people leave as quickly as they came once the coal is gone? Which do you think will decline faster: population or housing prices? Why? Based on your answer, can it be utility maximizing to stay in a declining city?

Assignment:

The song "Fat Cats, Bigga Fish" is about hustling. The rapper Boots thinks he is a hustler, but quickly realizes that he is the one being hustled in the game of life. From a public choice perspective, does the story Boots tells about Mr. Coke and Mr. Mayor's conversation sound compelling? Why does Mr. Mayor care about Mr. Coke's plans since the campaign donations do not directly go into his pocket? Do you think campaign finance reform will solve this type of problem? Why or why not?

Assignment:

What does it mean to be 'unemployable'? Is the person who is 'unemployable' more likely to be frictionally unemployed or structurally unemployed? The lyrics state that "this life is sacrifice ... to a stranger's bottom line." To what extent do you think this statement is generalizable? What makes some occupations more rewarding than others?

Assignment:

In "The Day the Dollar Die", Peter Tosh appears to be longing for a world without money. What would a world without dollars look like? Do you think there would be less corruption or that scarcity would be eliminated in a world without money? What other problems would arise? Your answer should address the coincidence of wants.

What if Tosh is only talking about fiat money? Do you think his lyrics can be read to be anti- fiat money? Give an example.

Assignment:

Lots of people want to be entertainers because they place a high value on fame. What effect might placing a positive value on fame have on wages for the average entertainer? Alabama states "the fruits of their labor are worth more than their pay?" Discuss the correctness of this statement from an economic perspective. Your answer should mention the marginal revenue product of labor.

Assignment:

When I was growing up my mother said not playing with a toy I purchased was wasteful. The lead singer of Blues Traveler, John Popper, is saying that using the land is causing it to go to waste. Which, if either, perspective is correct from an economic perspective? Your answer should discuss the role of property rights in efficient resource usage. Would your answer change if people owned the buffalo?

Assignment:

In the basic theory of consumer demand, an individual tries to maximize their utility subject to their budget constraint. Increases in income or wealth thus allow individuals to move to a higher indifference curve and a higher level of utility. In the song, Spearhead wants to help the panhandler by increasing his budget constraint, but is concerned about what is in the man's utility function. How could Spearhead structure his giving so as to alleviate his concerns? Is an alternative form of giving likely to increase the panhandler's utility as much as cash?

Assignment:

Boots, the lead rapper in the Coup, is making a social commentary when he says, "If everybody in the hood had a Ph.D., You'd say hey Dr. flip that burger, hell it good for me." In a world where everyone had Ph.D.'s would we observe Dr.'s flipping burgers? What value does a college education provide? Is there such a thing as too much education?

What does Riley mean when he says that "its inflation that's doing this taking?" Taking implies that someone benefits. Who benefits from inflation?

Assignment:

In "Black Steel in the Hour of Chaos," Chuck D describes going to jail for refusing to report when drafted - otherwise known as conscription. Is conscription less costly from society's viewpoint than a volunteer draft? What role do opportunity costs play? Why might a government choose conscription? How might conscription change the allocation of resources between labor and capital in the production of defense?

Assignment:

The song "Signs," originally performed by the Five Man Electrical Band and also covered by Tesla, takes a stand for communal ownership of property. What are the costs and benefits of communal ownership of property? Assume that "keeping mother nature in" is purely selfish - does the invisible hand principle still apply? How about in a situation where fences are illegal?

Assignment:

In the song “Moneytalks” by AC/DC, lead singer Brian Johnson is providing a list of financial inducements to a young lady urging her to “listen to the money.” Do you think people think about money when choosing their mates? Explain. Can you speculate as to why prostitution is illegal in most places?

Assignment:

In “Piece of Crap,” Neil Young sings about how everything he buys is junk. With reference to the song, under what conditions do you think consumers are more likely to be disappointed in their purchases? What market mechanisms help to alleviate these problems? Does Neil Young think these mechanisms work well (use examples from the song)?

Assignment:

In “My Summer Vacation,” Ice Cube describes selling drugs in St. Louis. Why were financial profits so much higher in St. Louis in the short-run than in Los Angeles? What happened to the profitability (loosely defined) of this activity in the long-run? Does the illegality of the market change anything about the incentives to enter and the required profit rates needed to stay in business?

Assignment:

In the song “Scarecrow” by John Mellencamp, he decries the loss of the family farm. Over the last 100 years, the percentage of the population engaged in farming has declined from over one-third to less than 3 percent. Why do you think this has occurred, and what impact has this had on the overall well-being of Americans? What is the role of bankruptcy in a market economy? If banks do not foreclose on bankrupt farmers, why might this be bad for farmers in general?

Assignment:

In the song "Rock Island Line," Johnny Cash discusses the transportation of materials through New Orleans. Why do you think they charged different prices for different prices for different types of transported goods? What do we call this practice in economics and why would firms engage in this? Why did it break down in this case?

Assignment:

In markets, resources tend to move to their highest valued use. Evaluate the statement that "they have a value you can't see..." in light of what you know about resource allocation. Construct an economic argument of why apartment residents might not be able to purchase the apartment from the landlord before its demolition, assuming that they value it higher than in an alternative use. (Hint: liquidity constraints)

Assignment:

The principle of substitution says that a consumer is willing to give up some of one good to get more of another good. This principle is implicit in indifference curve analysis since the indifference curve represents this trade-off of one good for another. One violation of this principle is lexicographic preferences. A person having lexicographic preferences will always prefer to have more of good x - so much so that she will be unwilling to trade for a different bundle with slightly less x but a lot more y. Is MeatLoaf saying he has a lexicographic preference against "that"? Suppose that he is unwilling to do "that" - what does that imply for the marginal rate of substitution of love for "that"?

Assignment:

A good economist, to paraphrase Bastiat, observes both the seen and the unseen. On its face, a bus ride costs only 80 cents. What costs are unseen? Illustrate with examples from the song.