The United States will remove a 25 percent tariff that former President Donald Trump imposed on imported European and Japanese steel.—New York Times, and U.S. News and World Report by Associated Press How does removing the Trump tariff on steel imports change the U.S. price, production, consumption, and imports of steel? This table documents data … Continue reading Removing Trump Tariffs
Category: Eye On–Macro
Inflation a Worry for Most Economies, but Not Japan
Surging prices are haunting consumers in the United States and other countries, but not in Japan, where inflation was 0.1 percent in October 2021. By contrast, U.S. consumer prices grew 6.2 percent in October 2021 over the previous 12 months.—The Associated Press What is a CPI reference base period? A CPI reference base period is … Continue reading Inflation a Worry for Most Economies, but Not Japan
The Market for Maple Syrup
This table provides data on the quantity of maple syrup traded and its price: Between 2020 and 2021, the quantity of maple syrup traded decreased from 1.95 million gallons to 1.54 million gallons. Over the same period, the price of a gallon of maple syrup rose from $40 to $52. What is the relationship between … Continue reading The Market for Maple Syrup
The Market for Copper
This table provides data on the quantity of copper traded and its price: Between 2020 and 2021, the quantity of copper traded increased from 25 million tons to 25.5 million tons. Over the same period, the price of a ton of copper rose from $6,000 to $10,000. What is the relationship between green technology and … Continue reading The Market for Copper
U.S. GDP in 2021 Q4
U.S. Economy Grew Faster Than Expected In 2021 U.S. real GDP grew at a 6.9 percent annual rate in the fourth quarter of 2021. The economy was likely producing around its economic potential in the fourth quarter but was still below its pre-pandemic trend.—Peterson Institute for International Economics By how much did real GDP grow … Continue reading U.S. GDP in 2021 Q4
With Cotton Prices Surging, Clothing Prices Climb
T-Shirts and Jeans May Get More Expensive as Cotton Prices Hit 10-Year High Severe drought in China and extreme heat in the United States have hit the market for cotton. Speculators have also jumped into the market and the price has risen to a 10-year high. Makers of clothing are facing higher cotton prices and … Continue reading With Cotton Prices Surging, Clothing Prices Climb
Wildfire Prevention Possibilities
Climate change has made wildfires larger, more frequent, and more difficult to extinguish. California’s devastating wildfires in 2020 and 2021 convinced the state’s lawmakers to increase the budget for wildfire prevention services. In this post, we look at the economic problem faced by California lawmakers arising from wildfires and climate change using a production possibilities … Continue reading Wildfire Prevention Possibilities
The Economics of Covid Testing
After waiting in line for hours to get a Covid-19 test at a test center, Patrick tried to buy a test kit at a pharmacy. Unable to find one, he turned to the Internet and bought five kits online for $20 each from his former classmate, Joey. In this post, we use the economic way … Continue reading The Economics of Covid Testing
Difficult Choices for California’s Hospitals
As the virus spreads, the number of Covid-19 patients in hospitals rises and the number of healthcare workers available falls. Hospitals must make difficult choices about which patients to treat—those with Covid-19 or those wanting elective surgeries. In this post, we use the economic way of thinking to analyze this problem in California. What do the data … Continue reading Difficult Choices for California’s Hospitals
Brewing a Fresh Pot of Price Changes
The International Coffee Organization tracks lots of data about coffee worldwide, and one trend is clear: coffee prices are rising. In this post, we use the demand and supply model to understand the market for coffee. What do the data tell us? Consider the following data table looking at the quantities traded and prices of … Continue reading Brewing a Fresh Pot of Price Changes