Your Day Off

I hope you enjoyed your day off! Sorry I was unable to make it to class.

We shall skip the test scheduled for Wednesday. Would you like it Friday or Monday?

J. J.

Homework issues

For problem #2, I'm very accepting of reasonable approximations. I think you can approximate each initial MRT using the consumption point and the point to the nearest axis. Calculate a "slope" from those two points. One should be a small fraction, the other a bigger number over 10. When doing the later part where MRT=1. Just find a production point from those given for each country that "looks" like it has a slope of 1. Then from there make the trade and calculate how much of each good each country consumes.

Comments from Wednesday's class

The link to the news article discussed in class on Wednesday is below. To read stories in the LA Times and some other sources, you will need to register. It doesn't cost anything except you have to give up some personal information for some news. There is no free lunch.

http://www.latimes.com/business/la-fi-trade1sep01,1,1917793.story?coll=la-headlines-business

Here's another link to a similar story. You may not need to register.
http://www.financialexpress.com/fe_full_story.php?content_id=67597


BTW, when I'm writing and talking I sometimes don't spell very well. Writing on the board is and keeping track of all the words and details is not the easiest task. (E.g., I know border is not spelled b-o-a-r-d-e-r.) I apologize in advance. (Yeah, you try to get up there and achieve perfection.)

I am an economic girly man

On Tuesday at the Republican National Convention, Arnold said "To those critics who are so pessimistic about our economy, I say: 'Don't be economic girlie-men!"'

If seeing the realities of a less-than-stellar economy makes one a girly man then I am a girly man. So go ahead and be a manly man and believe words that have little backing. Stick to your talking points. People might believe you. True Lies.

Read this: www.fool.com/News/mft/2004/mft04090118.htm

and this: http://news.yahoo.com/news?tmpl=story&u=/usatoday/20040827/ts_usatoday/censuspovertyrosebymillion

oh, and this: http://money.cnn.com/2004/09/02/news/economy/jobless_claims/index.htm?cnn=yes

Read the news

Read the news at

http://www.cnn.com/

and/or

http://www.christiansciencemonitor.com/ (yeah, really)

Analyse the news at

http://www.slate.com/

Watch the Daily Show with Jon Stewart (yeah, really)