http://divisionoflabour.com/music/ en Copyright 2011 Sun, 01 May 2011 11:27:01 -0500 http://www.sixapart.com/movabletype/ http://blogs.law.harvard.edu/tech/rss In "30,000 Pounds of Bananas," Harry Chapin tells the story of a truck driver that is delivering bananas to Scranton, PA and crashes because he was going too fast down a hill. Using the lyrics, explain the idea of opportunity costs for the driver. What were the opportunity costs of the company that the driver worked for? Do the marginal benefits of moving so much produce at one time outweigh the marginal costs of having a tired and inexperienced driver out on the road for so long that he sacrifices his own safe driving so he can go home to his wife? How might the incentives of the company and the driver be mis-aligned? Is this an example of a principle-agent problem? Why or why not? [Provided by Matt Olson, Beloit College] http://divisionoflabour.com/music/2011/05/30000_pu.php http://divisionoflabour.com/music/2011/05/30000_pu.php A Author Archives D JEL Codes Joshua Hall Pop MB/MC Analysis Sun, 01 May 2011 11:27:01 -0500 By reflecting on the lyrics in the songs, explain how free trade, limited limited trade barriers, liberal immigration policies, and broader markets, increase human welfare. http://divisionoflabour.com/music/2010/04/american_saturday_night.php http://divisionoflabour.com/music/2010/04/american_saturday_night.php Author Archives Country Dirk Mateer F JEL Codes Musical Genres O R Comparative Advantage Free Trade Policy Fri, 30 Apr 2010 15:15:12 -0500 How does technological progress make us better off? Comment by using the two examples provided in the lyrics. http://divisionoflabour.com/music/2010/04/welcome_to_the_future.php http://divisionoflabour.com/music/2010/04/welcome_to_the_future.php Author Archives Country Dirk Mateer Dirk Mateer JEL Codes Musical Genres O Development Fri, 30 Apr 2010 15:08:26 -0500 In "Silas Stingy", The Who describe a man so in love with his money that he cannot bear to be away from it. Silas even denies himself basic necessities, such as food, to keep as much money as possible. The song ends with a description of how Silas goes to great lengths to protect his existing money from thieves, only to discover that he spent it all in the process. Putting aside Silas' unhealthy obsession with currency, explain how the fractional reserve banking system can help him expand his supply of money through the system of required and excess reserves and loans. On the other hand, explain to Silas why FDIC insurance is necessary to guarantee his money, and how these conditions may make his money safer in a bank than under his mattress. Be sure to also explain inflation and how it can gradually erode the real purchasing power of Silas' money when stored in a bank, even when the money is protected by FDIC insurance and being expanded by the fractional reserve banking system. Finally, make a case for Silas to deposit his money in an FDIC-insured banking institution or keep his hard assets, based on your own opinion of the pros and cons for Silas of fractional reserve banking, FDIC insurance, and the accompanying inflation. [Provided by Derek Lyndes, Beloit College] http://divisionoflabour.com/music/2010/04/silas_stingy.php http://divisionoflabour.com/music/2010/04/silas_stingy.php Author Archives E JEL Codes Joshua Hall Joshua Hall Rock Mon, 26 Apr 2010 15:20:09 -0500 Conor Oberst sings about a man who has lost his job and is now doing “anything to serve a function or to occupy some time” because he feels he must make a living somehow. Opportunity costs, as well as marginal costs and benefits must be weighed against each other to decide if the subject has made a rational decision. The lyrics indicate that the cost of his new lifestyle is a loss of income from his day job. The benefits are more leisure time and a new attitude. Think further on what marginal benefits and the marginal costs might be for the subjects’ change of lifestyle. What are the opportunity costs? Is the subject being a rational decision maker? Oberst also mentions the man as being in a group of unemployed individuals. One can presume that the subject is working odd jobs, or at the very least not working a stable job. Under these conditions is the subject correctly classified as unemployed? [Provided by Emillea Cohen, Beloit College] http://divisionoflabour.com/music/2010/04/light_pollution.php http://divisionoflabour.com/music/2010/04/light_pollution.php J JEL Codes Joshua Hall Joshua Hall Musical Genres Unemployment Fri, 23 Apr 2010 11:15:03 -0500 The Clash sings about the angst of decision making in their song “Shall I Stay or Should I Go?” Economic theory states that rational decision makers weigh the marginal benefit one receives from an option with its marginal cost, including the opportunity cost. The lyrics give us a rough assessment of the costs (“If I go there will be trouble, and if I stay it will be double”). However, little is mentioned regarding the marginal benefit. In fact, the singer tells us that he needs additional information (“Darling you gotta let me know”) and fears that he must make a decision under conditions of imperfect information. Speculate on what the marginal benefits and the marginal costs might be for staying and going. What are the opportunity costs? How does knowing that the cost of staying is double influence the decision? Is the singer being a rational decision maker attempting to make a decision under conditions of uncertainty, or is he irrational, unclear of his preferences, and waiting for someone else to make the decision for him? Stay? Go? [Provided by Jim Davis, Santa Rosa Junior College] http://divisionoflabour.com/music/2010/04/should_i_stay_or_should_i_go_1.php http://divisionoflabour.com/music/2010/04/should_i_stay_or_should_i_go_1.php A Author Archives D JEL Codes Joshua Hall MB/MC Analysis Opportunity cost Utility Wed, 21 Apr 2010 14:08:43 -0500 Bruce Springsteen sings about the demand and supply of sex and the subsequent equilibrium prices of different acts in "Reno". Why might some activities result in a higher price than others? Steven Levitt and Stephen Dubner in SuperFreakonomics provide some evidence that the price of vaginal sex with prostitutes in Chicago is about $80 and oral sex is $37. Why, if Springsteen can be believed, might sex more expensive in Reno than Chicago? [Provided by Simon Medcalfe - Augusta State University] http://divisionoflabour.com/music/2010/02/reno.php http://divisionoflabour.com/music/2010/02/reno.php A D I JEL Codes Joshua Hall Musical Genres Rock Advanced Human Capital Price Discrimination Thu, 11 Feb 2010 11:33:20 -0500 The Specials sing about "all the clubs have been closed down". What has caused this? That is what factors have shifted demand for clubs and which have shifted supply? Draw representative demand and supply curves. In the introduction to the video the announcer says it is "1981 and a song that conjures up the era". How does this song reflect that time? (P.S. The Specials are a British band and Top of the Pops was a British music show on TV). [Provided by Simon Medcalfe - Augusta State University] http://divisionoflabour.com/music/2010/02/ghost_town.php http://divisionoflabour.com/music/2010/02/ghost_town.php A Author Archives JEL Codes Joshua Hall Musical Genres Pop Principles Thu, 11 Feb 2010 11:28:44 -0500 The singer in the song enjoys the glamorous life of expensive things, however she still likes going to Taco Bell. Does this imply that Taco Bell is not an inferior good for Fergie? What about for the average wealthy person. Ludacris says, "I've got enough money in the bank for the two of us". While they are "taking trips from here to Rome" what is the bank doing with their money? In order to make the actual deposit expansion multiplier get closer to it's potential, would the bank want to maximize or minimize the excess reserves it is holding? [Provided by Dillon Hess - Beloit College] http://divisionoflabour.com/music/2009/12/glamorous.php http://divisionoflabour.com/music/2009/12/glamorous.php A Author Archives D JEL Codes Joshua Hall Joshua Hall R Advanced Money Utility Fri, 11 Dec 2009 11:13:01 -0500 This song makes it seem like all rappers have enough "money to blow". Using economic reasoning, explain whether you think Birdman is the exception or the average? What is the problem with only analyzing the lifestyles of rappers you see on television? What is the opportunity cost of becoming successful enough to have "money to blow?" Does it vary across industries? Your answer should include a discussion of industry specific human capital. [Provided by Ulysses Smith - Beloit College] http://divisionoflabour.com/music/2009/12/money_to_blow.php http://divisionoflabour.com/music/2009/12/money_to_blow.php Author Archives JEL Codes Joshua Hall Advanced Human Capital Opportunity Cost Fri, 11 Dec 2009 10:35:34 -0500 In "The Fear," Lily Allen sings about a young woman who lives in a trailer but dreams about living with unlimited resources in a large estate. The narrator's utility for some costly but tangible goods (such as clothes and diamonds) is high. On the other hand, her utility for some intangible but costless goods (qualities of cleverness and funniness) is very low. Are these bundles of goods comparable? If not, why not? Why doesn't the narrator care about the clever/funny bundle, especially if it does not have a traditional market value? How does the narrator view clothes and diamonds? Does some of their value come from something other than their market price? What are the trade offs between these two bundles? Also, what is a weapon of massive consumption anyways? [Provided by Katharine Bigott - Beloit College] http://divisionoflabour.com/music/2009/12/the_fear.php http://divisionoflabour.com/music/2009/12/the_fear.php A Author Archives D JEL Codes Joshua Hall Joshua Hall Musical Genres Pop Self-Interest Utility Wed, 09 Dec 2009 12:53:33 -0500 This song outlines three different scenarios in which people use illegal means in order to get money. The chorus of the song explains these actions by mentioning a couple popular cliches such as: "Money don't grow on trees," and " There ain't nothing in this world for free." What do you think the economic advantage is to engaging in illegal activity? Do you think that it is their economic state that drives people to commit crimes? Is partaking in illegal activity a never- ending cycle? In other words, is there really "no rest for the wicked" as long as their is scarcity? [Provided by Jerrica Zaric - Beloit College] http://divisionoflabour.com/music/2009/12/aint_no_rest_for_the_wicked.php http://divisionoflabour.com/music/2009/12/aint_no_rest_for_the_wicked.php A Author Archives D JEL Codes Joshua Hall Joshua Hall R Scarcity Urban Decline Wed, 09 Dec 2009 12:42:11 -0500 The subject of the song states that he wants to be a paperback writer but he "needs a job." How would you classify his employment status? Is he unemployed? Actively seeking new work? Do you think self-employment creates a measurement problem for the Bureau of Labor Statistics? Also if it took him "years to write," does this suggest anything about the opportunity cost of his time? [Provided by Xilong Zhu - Beloit College] http://divisionoflabour.com/music/2009/12/paperback_writer.php http://divisionoflabour.com/music/2009/12/paperback_writer.php Author Archives J JEL Codes Joshua Hall Joshua Hall Opportunity Cost Unemployment Wed, 09 Dec 2009 12:08:37 -0500 Does money have any intrinsic value? What are the functions of money? How does demand for money affect its supply? How do you think the supply of money versus the supply of diamonds has changed since the since the Beatles wrote this song? What's the reason for the difference? Although money can’t buy love, money can buy a diamond ring. How does the money supply change today if you pay for the diamond ring with credit as opposed to a debit card? [Provided by Marlie Pykelny - Beloit College] http://divisionoflabour.com/music/2009/12/cant_buy_me_love.php http://divisionoflabour.com/music/2009/12/cant_buy_me_love.php Author Archives J JEL Codes Joshua Hall Joshua Hall Musical Genres Pop Money Utility Wed, 09 Dec 2009 11:56:43 -0500 What is the singer saying about economics? What is his financial situation and why is he in such an intense pursuit of cash? What are the problems and reasons of bank and family for not lending him the money? What is your point of view on money in such desperate situations? Is "money too tight to mention?" [Provided by Ilija Bojovic - Beloit College] http://divisionoflabour.com/music/2009/11/moneys_too_tight_to_mention.php http://divisionoflabour.com/music/2009/11/moneys_too_tight_to_mention.php Author Archives JEL Codes Joshua Hall Money Unemployment Sun, 15 Nov 2009 15:47:29 -0500