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 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:

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:

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 "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 "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:

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:

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]

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:

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:

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:

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:

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.

Assignment:

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?

Assignment:

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?

Assignment:

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?

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:

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 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:

Because income is scarce people must trade current consumption for for future consumption. Since 1950, the average age for retirement has fallen for both men and women. In 1940, the average retiree lived for ten years after retirement. Today, the average retiree lives 18 years in retirement.

Comment on how these demographic changes make financing the Social Security system so difficult beyond 2020. Would raising the retirement age for future Social Security recipients be enough to balance the expected shortfall in revenues?

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:

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.

Assignment:

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.

Assignment:

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?

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.

Assignment:

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?

Assignment:

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?