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"JEL Codes" Archives30,000 Pounds of Bananas - Harry ChapinJEL: a dHe passed a sign that he should have seen, Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesAmerican Saturday Night - Brad PaisleyJEL: f o rShe’s got Brazilian leather boots on the pedal of her German car It’s a French kiss, Italian ice Full Lyrics · Click to ListenAssignment:By reflecting on the lyrics in the songs, explain how free trade, limited limited trade barriers, liberal immigration policies, and broader markets, increase human welfare. "JEL Codes" ArchivesWelcome To The Future - Brad PaisleyJEL: oMy grandpa was in World War 2 Full Lyrics · Click to ListenAssignment:How does technological progress make us better off? Comment by using the two examples provided in the lyrics. "JEL Codes" ArchivesSilas Stingy - The WhoJEL: eSilas didn't eat, which was just as well Full Lyrics · Click to ListenAssignment: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.
"JEL Codes" ArchivesLight Pollution - Bright EyesJEL: jHe got a nightlife, lost his dayjob Full Lyrics · Click to ListenAssignment: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.
[Provided by Emillea Cohen, Beloit College] "JEL Codes" ArchivesShould I Stay Or Should I Go? - The ClashJEL: a dShould i stay or should i go now? Full Lyrics · Click to ListenAssignment: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. [Provided by Jim Davis, Santa Rosa Junior College] "JEL Codes" ArchivesReno - Bruce SpringsteenJEL: a d iShe took off her stockings Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesGhost Town - The SpecialsJEL: aThis town, is coming like a ghost town Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesGlamorous - Fergie feat. LudacrisJEL: a d rWear them gold and diamonds rings Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesMoney To Blow - BirdmanJEL: a d iThey can't help it, and I can't blame em Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesThe Fear - Lily AllenJEL: a dI want to be rich and I want lots of money And I am a weapon of massive consumption Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesAint No Rest For the Wicked - Cage the ElephantJEL: a d rOh, there ain't no rest for the wicked, Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesPaperback Writer - The BeatlesJEL: jDear Sir or Madam, will you read my book? Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesCan't Buy Me Love - BeatlesJEL: jI'll buy you a diamond ring my friend if it makes you feel alright I'll give you all I got to give if you say you love me too Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesMoney's Too Tight To Mention - Simply RedJEL: jI been laid off from work my rent is due Money's too tight to mention Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesOriginal Pokémon Theme - Billy CrawfordJEL: a dPokemon! Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesMilkshake - KelisJEL: aMy milkshake brings all the boys to the yard, Full Lyrics · Click to ListenAssignment:“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] "JEL Codes" ArchivesVoodoo Economics - FakerJEL: jYou got the curtain call It's all about danger Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesMoney, Money, Money - Joel GrayJEL: a eIf you happen to be rich and you feel like a night's entertainment If you happen to be rich and you find you are left by your lover Money makes the world go round Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesSlow Motion - Third Eye BlindJEL: dMs. Jones taught me English, but I think I just shot her son Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesTobacco Island - Flogging MollyJEL: d j nAll to hell we must sail Full Lyrics · Click to ListenAssignment: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 [Provided by Tim Schutt - Beloit College] "JEL Codes" ArchivesDay Job - Gin BlossomsJEL: dHas it been eleven years I should've been a whole lot father Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesPretty Girl From Cedar Lane - The Avett BrothersJEL: d“I could stand right underneath the window of your room Full Lyrics · Click to ListenAssignment: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] "JEL Codes" Archives10 Dollar - M.I.A.JEL: dChina Girl is a little girl What can I get fo' 10 dollar? Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesCareer Opportunities - The ClashJEL: j dThe offered me the office, offered me the Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesShipbuilding - Elvis CostelloJEL: dIs it worth it Its just a rumour that was spread around town Full Lyrics · Click to ListenAssignment:After reading the reading the lyrics describe the sacrifices (opportunity costs) of going to and preparing for war. [Provided by E. Frank Stephenson - Berry College] "JEL Codes" ArchivesDon't Go For The One - Gaelic StormJEL: dI bumped into Harvey back home last year "I was down in the snail shop she told me to go the one, the one, don't go for the one. Full Lyrics · Click to ListenAssignment: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)] "JEL Codes" ArchivesGirl Your Marginal Benefits... - Mike ToomeyJEL: dNow girl being with you has always been so tough Cause girl your marginal benefits far outweigh your marginal costs Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesRefugee - Tom Petty & The HeartbreakersJEL: e oSomewhere, somehow, somebody must have Honey, it don’t make no difference to me Full Lyrics · Click to ListenAssignment: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)] "JEL Codes" ArchivesLa Tristesse Durera - Manic Street PreachersJEL: eI sold my medal Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" ArchivesUnknown Legend - Neil YoungJEL: d iSomewhere on a desert highway Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" ArchivesCigarettes and Alcohol - OasisJEL: jIs it worth the aggravation Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" ArchivesThousands are Sailing - The PoguesJEL: d f rThe island it is silent now Did you work upon the railroad Did the old songs taunt or cheer you Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" ArchivesSupply and Demand - The HivesJEL: d jMy boss he's a probable bore. Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" ArchivesMoney for Nothing - Dire StraitsJEL: a dNow look at them yo-yo's, that's the way you do it Full Lyrics · Click to ListenAssignment: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.)] "JEL Codes" Archives1 2 3 4 (Sumpin' New) - Coolio - CoolioJEL: j1 2 3, it's like A B C Full Lyrics · Click to ListenAssignment:In this excerpt, Coolio suggests that he would rap for no money. Draw a representative labor supply curve. [HT: Julianne Treme] "JEL Codes" ArchivesDiamond's Are A Girl's Best Friend - Marilyn MonroeJEL: a d zThe French were bred to die for love Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesOpen Up The Border - ClutchJEL: fWon't you open up the border I know folks in Wichita as well as Santa Fe Open it up. Living for the trade. Full Lyrics · Click to ListenAssignment: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] "JEL Codes" ArchivesYoungstown - Bruce SpringsteenJEL: a jFrom the Monongaleh valley Full Lyrics · Click to ListenAssignment: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. "JEL Codes" ArchivesCapitalism - Oingo BoingoJEL: a pThere's nothing wrong with making some profit Full Lyrics · Click to ListenAssignment: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.' "JEL Codes" Archives5150 - Tsunami BombJEL: aForget your torment, Full Lyrics · Click to ListenAssignment:What does this song have to do with sunk costs? Explain in your own words. Hat tip: Bryan Caplan "JEL Codes" ArchivesAllentown - Billy JoelJEL: a j rWell we're waiting here in Allentown Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesBetween Angels and Insects - Papa RoachJEL: b pI just want to be heard loud and clear are my words Full Lyrics · Click to ListenAssignment:Self-regarding behavior is the cornerstone of economic analysis. Recall Adam Smith's famous quote, "It is not from the benevolence of the butcher, baker, or brewer that we expect our dinner, but from their own self interest." Would a world full of "Angels" work as well at providing what people want? What about a world full of "Insects?" Papa Roach seems to be saying that "greed" is a problem. Comment. "JEL Codes" ArchivesWhy Don't You Get a Job? - The OffspringJEL: a e i jHe works his hands to the bone I won't pay, I won't pay ya, no way Full Lyrics · Click to ListenAssignment:Researchers have questioned whether you can design a welfare system that provides a generous safety net, but not so generous that the effective marginal tax rate that the poor face when contemplating leaving welfare is too onerous. Explain why creating the right incentives to get productive people to leave welfare is so difficult. "JEL Codes" ArchivesSatisfaction - The Rolling StonesJEL: a dWhen I'm drivin' in my car I can't get no satisfaction Full Lyrics · Click to ListenAssignment:Mick Jagger dropped out of the London School of Economics to pursue a career with the Rolling Stones. His decision to quit proves that he learned something about opportunity cost! However, in the song he is never satisfied which is atypical. Most people become satisfied as they do more of something. Explain the theory of diminishing marginal utility and how it is applied throughout the song. "JEL Codes" Archives20 Dollars - Angie StoneJEL: a d h iCan you loan me 20 dollars Now I'm suppose to take from the child, oh Lord What do you do when you're through Full Lyrics · Click to ListenAssignment:This song places the listener in the uncomfortable position of questioning whether or not they should help someone who asks to borrow a small amount of money. This is what is referred to as the Samaritan’s dilemma. Why does the dilemma have important policy ramifications? What does the song say about the dependency created by charitable handouts? Finally, giving is not costless. What are some of the things that are foregone in order to help others? "JEL Codes" ArchivesLike A Rolling Stone - Bob DylanJEL: a jOnce upon a time you dressed so fine How does it feel Full Lyrics · Click to ListenAssignment:Losing it all is pretty rare; likewise, striking it rich is rare. But how rare? Go to your textbook or the internet (use a reputable source!) to find out how much income mobility exists in the U.S. economy. How common is it for someone in the top quintile of the income distribution to fall to the bottom quintile within (say) a decade? Is this more income mobility or less than you would have expected? What are some common explanations for such a decline in income? "JEL Codes" ArchivesSome Days You Gotta Dance - The Dixie ChicksJEL: a It was about five 'til five on Friday Some days you gotta dance Full Lyrics · Click to ListenAssignment:While most people think of jobs as good things, economists are more likely to think of them as "bads". After reading the lyrics to this song, can you see why? "JEL Codes" ArchiveseBay - Weird Al YankovicJEL: a d A used ... pink bathrobe Full Lyrics · Click to ListenAssignment:In this Weird Al parody of The BackStreet Boys' "I Want It That Way", he sings about buying and selling on eBay. In what way does eBay lower the transactions costs to buyers and sellers? eBay's feedback system allows buyers and sellers to rate each other. Why is this kind of information important to the functioning of the market? In other (non eBay) markets, how do buyers and sellers get this kind of information? "JEL Codes" ArchivesThe Taxman - The BeatlesJEL:Let me tell you how it will be; Should five per cent appear too small, Full Lyrics · Click to ListenAssignment:What is the implied rate of taxation in this Beatles song? Does this seem high to you? For comparison, what was the top marginal tax rate in the U.S. federal income tax code in 1960? In 1980? What incentives do you think are created when tax rates are this high? Why might lower tax rates be better from the standpoint of generating more government revenue? "JEL Codes" ArchivesFly Like An Eagle - Steve Miller BandJEL: aFeed the babies Full Lyrics · Click to ListenAssignment:Economics is sometimes dubbed the dismal science, in part because it emphasizes that there are costs/tradeoffs associated with everything we do. Why, according to economists, is getting people enough food, shoes, housing, etc. actually not as easy as the song suggests? If we could get everybody all the food, shoes, and housing they wanted, would we have any economic choices facing us? "JEL Codes" ArchivesShare The Land - The Guess WhoJEL: hShake your hand, share the land Full Lyrics · Click to ListenAssignment:This classic 1969/1970 song advocates that we "share the land." Do you think simply sharing the land is likely to lead to the good results suggested in the song ("no more sadness, no more sorrow...")? In writing your answer you might want to consider the idea of the "tragedy of the commons". "JEL Codes" ArchivesThe Trees - RushJEL: a jSo the maples formed a union Full Lyrics · Click to ListenAssignment:In this song the maples are upset about the "greedy" oaks and demand equality. Do you see any parallels between this song and policy issues such as anti-discrimination laws, affirmative action, set-asides, etc.? In your discussion be sure to highlight the notions of efficiency and equity/equality and the trade-offs that may exist in achieving these goals. "JEL Codes" ArchivesFat Cats, Bigga Fish - The CoupJEL: a d hMr. Coke said to Mr. Mayor, "You know we got a process like Ice T's hair. Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesUnemployable - Pearl JamJEL: a jHe's got a big gold ring what says "Jesus Saves" ... Yeh Oh yeh Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesThe Day The Dollar Died - Peter ToshJEL: a e I see Johnny with his head hanging down Bills and budgets are waiting The day the dollar die Full Lyrics · Click to ListenAssignment: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. "JEL Codes" Archives40 Hour Week (For A Livin') - AlabamaJEL: j There are people in this country who work hard every day Hello Detroit auto workers, let me thank you for your time Full Lyrics · Click to ListenAssignment: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. "JEL Codes" ArchivesWhoops - Blues TravelerJEL: d h Take a look at the horizon that's right so we can eat well Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesHole In The Bucket - SpearheadJEL: a iThe day is pickin' up cause I'm hummin' his song Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesHip 2 Tha Skeme - The CoupJEL: e jI'm steady mobbing ... If everybody in the hood had a Ph.D Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesBlack Steel in the Hour of Chaos - Public EnemyJEL: a oI got a letter from the goverment Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesSigns - TeslaJEL: hAnd the sign said anybody caught trespassing would be shot on sight Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesMoneytalks - AC/DCJEL: a d Hey lil' girl, CHORUS: Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesPiece of Crap - Neil YoungJEL: a pGot it from a friend Full Lyrics · Click to ListenAssignment: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)? "JEL Codes" ArchivesMy Summer Vacation - Ice CubeJEL: k l Damn G, the spot's gettin hot Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesRain on the Scarecrow - John MellencampJEL: d o qThe crops we grew last summer weren't enough to pay the loans Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesRock Island Line - Johnny CashJEL: d Now, this here’s the story about the Rock Island Line Full Lyrics · Click to ListenAssignment: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? "JEL Codes" ArchivesOpen Letter (To A Landlord) - Living ColourJEL: a d rNow you can tear a building down Full Lyrics · Click to ListenAssignment: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) "JEL Codes" ArchivesThe Road Not Taken - Bruce HornsbyJEL: aDown in the southwest Virginia town of Richlands Full Lyrics · Click to ListenAssignment:The song title is borrowed from Robert Frost’s poem of the same name. Read the full lyrics and then read Frost’s The Road Not Taken, both works evoke a sense of loss. Formally transfer this idea into economic language by relating each to opportunity cost and sunk cost. "JEL Codes" ArchivesBeverly Hills - WeezerJEL: a d rWhere I come from isn't all that great Full Lyrics · Click to ListenAssignment:Beverly Hills, and other affluent communities, are examples of rich enclaves (Forbes, 2005) with markedly higher property values than surrounding areas. What explains why some areas are affluent and other areas nearby are not as well to do? Use substitution and income effects to explain your answer. "JEL Codes" ArchivesBaby Girl - SugarlandJEL: a dblack top, blue skies big town full of little white lies, Dear Mom and Dad please send money, Full Lyrics · Click to ListenAssignment:This country hit from 2005 highlights the risks associated with venturing out on your own. How credible are the promises of “fancy cars and diamond rings and all sorts of shiny things” when you are new in town? What would make these promises more believable? Who can the singer trust in the song? Why is this trust credible? Use game theory to support your answer. "JEL Codes" ArchivesI'd Do Anything For Love (But I Won't Do That) - Meat LoafJEL: a b cAnd I would do anything for love But I'll never forget the way you feel right now-- Full Lyrics · Click to ListenAssignment: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"? "JEL Codes" ArchivesStuff - Diamond RioJEL: a dDelivery truck coming up 'round the bend Stuff (stuff) stack it on stack it on up Full Lyrics · Click to ListenAssignment:How much is enough? This is the question that Diamond Rio asks in Stuff. The singer keeps buying and does not get very much additional utility from the new purchases. What economic theory can be used to explain this? "JEL Codes" ArchivesThe Wacky World of Mass Transit - Del tha Funkee HomosapienJEL: a d When oh when is the bus gonna reach its destination Full Lyrics · Click to ListenAssignment: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. "JEL Codes" ArchivesStick Shifts And Safety Belts - CakeJEL: a kStickshifts and safetybelts, Full Lyrics · Click to ListenAssignment:The singer of this song doesn't like safetybelts because they make it harder to get close to his loved one in the car. Of course, safety belts are a highly effective safety device. Using the language of economics, make the case that laws mandating the use of seatbelts are not beneficial to this person. Are there any exceptions or other circumstances that should be considered in the analysis besides this one person's well being? "JEL Codes" ArchivesBoys & Girls - Good CharlotteJEL: aPaper or plastic. Vacations and shopping spreez Full Lyrics · Click to ListenAssignment:There is “no such thing as a free lunch” is one of the first lessons in economics. Explain how this principle is applied throughout the song. What are the short-run and long-run trade-offs from accepting financial favors in a relationship? "JEL Codes" ArchivesBig Yellow Taxi - Counting CrowsJEL: a qThey paved paradise and put up a parkin' lot They took all the trees, and put em in a tree museum Full Lyrics · Click to ListenAssignment:Big Yellow Taxi was originally written and performed by Joni Mitchell but covered by many other artists such as Bob Dylan, Amy Grant, and the Counting Crows. What trade-offs can you find in the lyrics? Define opportunity cost and give at least three examples found in the song. Finally, many of the problems mentioned in the song could be addressed through the assignment of property rights and an exploration of externalities. Explain how properly-defined property rights create incentives to minimize externalities. "JEL Codes" ArchivesThe Way It Is / Changes - Bruce Hornsby / Tupac ShakurJEL: a d lThe Way It Is (1986) – Bruce Hornsby Full Lyrics · Click to ListenAssignment:Bruce Hornsby’s original lyrics point to discrimination as a fact of life. Tupac added his own take on the issue of discrimination when he made the claim that “the way it is” forces black society to make poor choices just to survive. How do markets combat discrimination? Do markets reward businesses that discriminate or are they penalized? What happens to the profits of a business if it decides not to hire a qualified worker based on their race? "JEL Codes" ArchivesDowneaster Alexa - Billy JoelJEL: a d hNow I drive my Downeaster "Alexa" I was a bayman like my father was before Full Lyrics · Click to ListenAssignment:What barriers to entry exist in the fishing industry? Are these barriers significant enough to create firm-specific pricing power? Ocean waters also present a common property problem. If competitors in the fishing industry cannot prevent new entrants into the market and all of the competitors fish the same waters, what are the prospects for long-run profits? |