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Economic Analysis Essay
Due Date: December 11th, 5 pm Where: Canvas as pdf file
The due date is a deadline – not a time of suggested submission. Submissions made after December 11th 5 pm will not be accepted.
As educated readers, we must learn to read newspaper and press articles critically. Your study of economics should help you in completing this task. This exercise is intended to get you to use some of the tools of economics in analyzing an economic event, policy, or decision that you observe in the “real world.” The most important aspect of this exercise is that you correctly use some (but not all!) of the economic tools you have learned.
Select and analyze a recent news story from The Economist, The New York Times, The Wall Street Journal, and Austin American-Statesman. These are some examples but you are not limited by these, using microeconomic tools you learned in this class. If you are in doubt about the chosen story, feel free to discuss your topic with me. Your paper must make clear what the issues are, and demonstrate a good use of the tools that you learnt in this course to explain, analyze, and/or make recommendations regarding one or more aspects of the story.
Step 1. Introduction/Background: Provide a one paragraph summary of the news story or article which emphasizes the important details that will be the focus of your analysis, articulates a clear and nuanced description of the issues to be analyzed in the paper. There is no need to provide large “quotations” or continual references to the article. The article essentially serves as a jumping off point for your analysis. Also, discuss the market type (competitive, monopoly, oligopoly or monopolistic competition) clearly. Step 2. Economic Analysis: Identify and apply the appropriate tools (at least 4 different microeconomic tools) to the economic issues discussed in your introduction. Illustrate your analysis with a graphical presentation (at least 3 graphs) if appropriate. If your graphs are not incorporated into the text of your paper, please provide a clear connection between graphs and text.
Step 3. Policy Implications: Based on your analysis, discuss who gains and who loses from the event or policy discussed in the article. You may also suggest an appropriate policy action.
Step 4. Conclusions: Provide a succinct conclusion paragraph to your paper which summarizes your basic analysis. Please remark on any potential inconsistencies or potential exaggerations you find in the article based on your examination of the issue. Feel free to be critical!
? The expected length of this paper would be 6-7 pages (double-spaced – Times New Roman 12pt) including graphs. Graphs can be handwritten on a separate sheet and attached to the paper. Be sure to appropriately cite your article and resources used in your analysis (including the textbook).
? Attach a copy of the article which is the basis of your paper.

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