Ochall !1
Newspaper Applications
Economics is all about understanding people’s behavior. In these assignments I want you
to read through the newspaper and choose an article that discuss a person’s, a firm’s or a
government’s behavior.
Paragraph 1
Briefly describe the article and discuss the behavior and action that took place. Also
identify the outcome of the behavior.
Paragraphs 2-4
Identify the choices the person (firm or government) had prior to the action/behavior
taken. Then identify the opportunity cost of that action.
Discuss the behavior by identifying the incentive that was present for the actor to
undertake this behavior.
Weigh the marginal benefit from the action and the marginal cost from the action/
behavior….this implies that you must identify both.
Finally, does the behavior or action make sense too you? Was the actor being rational?
(normative side of the coin).
Ochall !2
Matthew Ochall
Professor Hunt
ECON-1110
16 June 2018
Newspaper Application Response
The article I selected from The Economist, “The Trump administration imposes
tariffs on America’s closest allies” details the specific effects of the proposed tariffs, as
well as retaliation efforts by America’s key allies. The article explains how the new taxes
on steel and aluminum imports will aid in the use of American metal by other American
companies to promote economic growth. Although by deciding to implement these new
