Related Web Links – Module 7 - Supply and Demand: Changes in Equilibrium |
A good application of market economics is covered
in one of Paul Krugman’s New York Times columns, “Dealing With the Dragon.”
Krugman looks at the reasons for rising gasoline and oil prices. Combining the
economic boom in
China
with improved global economic conditions led to the growth of demand racing
ahead of the ability to increase supply. |
Go to: http://www.nytimes.com/2008/01/04/opinion/04krugman.html |
In one of his New York Times columns, Paul
Krugman considers alternative health care proposals. One would deny coverage
based on prior medical conditions resulting in less coverage than is available
today. Krugman considers the Veterans Health Administration as one of the few
American success stories in the struggle to contain health care costs. The V.A.
is “an integrated system — a system that takes long-term responsibility for its
clients’ health — to deliver an impressive combination of high-quality care and
low costs.” |
Go to: http://www.nytimes.com/2008/04/04/opinion/04krugman.html |
Krugman analyzes the increase in food prices in global markets and even
the scarcity of food in some locations that has resulted in increased social
tension. Emerging market countries like
China
have seen an increase in
wealth, driving up the demand for meat. This, in turn, increases the demand for
grains used to feed cattle, pigs, and chickens. In addition, the rising price
of oil and gasoline results in higher production costs for famers who run
machinery. |
Go to: http://www.nytimes.com/2008/04/07/opinion/07krugman.html |