Are you for or against free trade?

QUESTION 1: Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource differences. What are some examples of goods that the U.S. has comparative advantage in producing? Take a look at the tag of the shirt/dress/pants you are wearing today. Where was it made? Anyone wearing “Made in America” items of clothing today? We sometimes hear people say “Buy American.” Why don’t we? What is the basis of international trade? What are the benefits and the costs? Under what conditions would you advocate for trade restrictions?
QUESTION 2: What effect does a tax have on a market? Explain how elasticity impacts the tax burden?
QUESTION 3: What effect do price ceilings and price floors have on the market equilibrium price? Which leads to shortages and which leads to surpluses? Why?
A common example of a price ceiling is rent control. Is your initial reaction in favor or opposed to rent control policies? When the government creates rent control policies, who are they trying to help?
Here is a clip from one of my favorite shows, Seinfeld. How is the issue of rent control displayed in this episode? What is the outcome?
http://www.yadayadayadaecon.com/clip/12/
QUESTION 4: What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What are freely floating exchange rates all about, and how do they work? How can the falling U.S. dollar impact your travel expenses? Why would a cheap dollar relative to other nations’ currencies be good or bad for U.S. trade?
QUESTION 5: What are externalities? Give an example of a positive externality and a negative externality. In each case, explain the difference between the private market outcome and the socially optimal outcome.
QUESTION 6:
Here is a clip from one of my favorite shows, Seinfeld. How is the issue of negative externalities displayed in this episode?