Tidbits

Watching the Obama Press Conference following the election a reporter asks "What can the government do to create jobs?"

If you have not done so go to youtube and find Linda McMahon asking Richard Blumenthal how you create a job. Amazing and to think Blumenthal won.

At the beginning of every MBA course (and often other courses) I teach, I have them fill out a survey. The survey is noted below:
Part 1
The following asks for your opinion. A scenario describing a problem is presented and four possible ways to solve the problem are provided. For each of the possible solutions to the problem listed under each scenario, choose which of the following five options best represents your attitude.
a. Completely agree
b. Agree with slight reservations
c. Neither agree nor disagree
d. Disagree with slight reservations
e. Completely disagree

SCENARIO 1:
At a sight-seeing point, reachable only on foot, a stand selling bottled water has been established. The bottled water is sold to thirsty hikers. The price is one dollar per bottle. Early each morning 100 bottles are carried up the hill. On a particularly hot day 200 hikers want a bottle of water. How do you evaluate the following means to distribute the water among the hikers.
Raising the price on the water until the number of hikers willing and able to purchase the water equals the water available.
Allocating the water on a first come first serve basis at $1 per bottle.
The government decides who gets the water.
Having the hikers enter a lottery to see who gets the water.


SCENARIO 2:
The normal number of consumers purchasing gas at the Mobil station is 1000 per day. The station could handle no more than 1200 per day. The day following a news report of possible gas shortages, 3000 cars show up to purchase gas. Using one of the five listed choices above, please indicate how you feel about the following ways to allocate the gas.
.An increase in the price until the number of people willing and able to purchase the gas equals the amount offered for sale.
Selling the gas at the same price on a first-come-first-served basis.
The government buys the gas and distributes ration coupons according to its own judgment.
Selling the gas following a random procedure such as a lottery to determine who receives the opportunity to purchase the gas.

SCENARIO 3:
Hot dog vendors at the local baseball stadium have limited ability to cook hot dogs and they keep running out of hot dogs before the 7th inning. Using one of the five listed choices above, please indicate how you feel about the following means to solve the hot dog shortage at ballgames.

Increase the selling price of hot dogs until sales drop enough so that the vendors stop running out of hot dogs before the end of the game.
Pass out just the same number of coupons as there are hot dogs to fans when they enter the stadium and require a coupon to purchase a hot dog.
Have the vendors start selling later in the game, that is, prohibit the vendors from selling hot dogs until the 5th inning.
Limit the number of vendors who are walking through the stands selling hot dogs.



SCENARIO 4:
A huge snowstorm in upstate New York causes the demand for snow blowers to increase dramatically. So many people want snow blowers that stores begin to run out and many people who say they really need this equipment are having trouble obtaining it. This problem should be solved by:
Allowing the price to rise so those who are willing and able to pay the highest prices get the limited number of snow blowers.
Require that snow blowers be sold only to those people who have snow blower coupons issued by the local government.
Require that stores selling snow blowers not raise prices and use a lotter to decide who gets to buy one.
Require that stores not raise prices and use a first come first serve rule until sold out of snow blowers.


SCENARIO 5:
A doctor is able to handle 30 patients per day on a normal day. One day the flu has sent more than 60 patients to the doctor. Evaluate the following ways to decide who gets to see the doctor.
the doctor raises the price until the number the doctor can see equals the number willing and able to pay the price.
the first patients to show up at the office get to see the doctor – later arrivals don’t get to see the doctor
the government decides who is to see the doctor.
a lottery takes place and the winners get to see the doctor.

SCENARIO 6
There are many more kidney patients needing new kidneys than there are kidney donors. Using one of the listed five choices above, please indicate how you feel about the following means to distribute the kidneys among the patients.
Allow the patients to pay donors a price sufficient to equalize the number of kidneys needed or demanded and the number provided.
Allocate the organs on a first-come-first-served basis.
The government pays for the operations and provides the organs according to its own allocation system.
Provide the organs according to a random procedure such as a lottery to see who receives the organs.


SCENARIO 7
The internet is becoming so popular worldwide that access is congested; many people are unable to sign on when they want. How would you evaluate each of the following solutions to the congestion problem?
Allow internet users to pay a fee to obtain access to the internet. The fee would rise or fall as the number of users rose or declined.
The government decides who gets access to the internet.
Each person simply attempts to get access – those attempting to obtain access first would get access while those attempting later might be denied.
A lottery is held and the winners receive access for a given period of time.

Part 2
Who is John Locke?



Who is Adam Smith?



Who is John Keynes?



Who is Milton Friedman?



What are natural rights?



What are rights? List as many as you can.


Try it and see what your outcome is. Out of 85 students none chose the market in every scenario and only 6 chose it when dealing with health care. Only 3 students got the second part correct.

No wonder a reporter asks "How does the government create jobs?"