Ask an Economist

Some of the highest paid pro athletes today are paid $30-40 million per year. For example, Lebron James (NBA) just signed a two-year extension with the Lakers at over $40 million/year.

There are many reasons a student might choose to study economics, and consequently many different types of extra-curricular activities you might want to pursue.

A negative externality often describes a situation where a power plant or a farmer's production led to pollution and lost ecosystem services.

Increases in the minimum wage tend to cause firms to raise wages for those whose wages were initially above the new minimum in order to maintain the former pay hierarchy. The biggest effect is on workers closest to the minimum wage.

Florida is putting a minimum wage to a referendum of voters. The proposed minimum wage policy would raise the minimum wage from its current $8.86 to $10.00 per hour effective September 30th, 2021.

Economists are said to know the price of everything and the value of nothing. I actually think that's backward. Figuring out the price is tough.

The easiest way to respond to this question is to answer in the context of custom feedyards that are included in the ISU Beef Feedlot Monitor - https://st

China mainly cuts corporate tax and fees (no tax cut for individuals) during the COVID-19 epidemic period so that firms could have incentive to increase the production compared to the scenario without tax and fee cuts.  

1.  A mainstream neoclassical synthesis economist would say that this system can be doable but it has what we would call a lot of incentive compatibility problems.

If the principle has a name, I suppose it would be DIVERSIFICATION.

Individual consumers have different preferences and information, which guide those individuals to choose what is best for themselves.

The idea underlying diversification is to achieve a desired expected rate of return at the smallest possible risk.

Traditional economics tells us that price ceilings lead to shortages. A lower price encourages sellers to reduce the quantity they supply to the market. A lower price also encourages buyers to increase the quantity they demand.

I think you are using the term "nationalize" to mean the US government buying US farm products. The US is a major exporter of meat and grains and these products are typically more expensive in other countries than they are in the US.

It seems there are two markets for condominiums: units that allow dogs (Market Dog) and units that do not (Market Sad). My black lab mentioned that the latter group are probably sad folks. OK – my econ jokes in class aren’t any better.

I think the basic mechanism you describe could well be part of the complex story of how the H1-B visa affects domestic workers in IT.