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Florida University Economics Planet Money Podcast Worksheet

Florida University Economics Planet Money Podcast Worksheet

ANSWER

Quiz 1: A. The 2020 pandemic led to a temporary breakdown of collusion in OPEC+ due to a significant drop in global oil demand. As countries around the world implemented lockdowns and travel restrictions, the demand for oil plummeted, causing oil prices to crash. This situation forced OPEC and its allies to consider production cuts to stabilize prices. However, Russia initially disagreed with these cuts, leading to a breakdown in the agreement and a brief price war.

B. The breakdown of collusion among major petrol-states can negatively impact smaller private producers in the oil market. Collusion among major oil-producing countries, such as OPEC+, often involves production quotas that help maintain higher oil prices. When this collusion breaks down, an increase in oil supply from major producers can lead to a surplus in the market, causing oil prices to drop. Smaller private producers, who may have higher production costs, can struggle to compete in such a price-sensitive environment, potentially facing financial challenges or even bankruptcy.

Quiz 2: A. The EU’s anti-trust case against Google revolved around the suspicion that Google was illegally deterring competitors by using its dominant position in the search engine market to favor its own comparison shopping service. Google was accused of manipulating search results to prioritize its own shopping service over competitors, thereby stifling competition and restricting consumer choice.

B. Google’s defense against these anti-trust charges centered on the argument that their search results were designed to provide the best user experience and not to intentionally harm competition. Google maintained that their search algorithm updates were aimed at improving the quality of results for users, and any changes in rankings were not intended to favor their own services. They argued that competition was just a click away on the internet, and users had the freedom to choose other services if they preferred.

Quiz 3:

  1. Professional licensing economically benefits currently practicing cosmetologists by creating barriers to entry for new entrants. Licensing requirements, such as education, training, and exams, can limit the number of individuals entering the cosmetology profession. This reduced competition allows licensed cosmetologists to maintain higher prices for their services, as consumers have limited choices due to the restricted supply of providers.
  2. When deciding to increase or decrease professional licensing regulations in a particular industry, government officials and policymakers should ideally consider factors such as consumer safety, the potential for innovation, market competition, and the overall economic impact. However, lawmakers’ decisions are often influenced by lobbying efforts from industry associations, existing businesses, and regulatory capture, where industry players shape regulations to their advantage. Additionally, public perception and pressure can also play a role in shaping regulatory decisions.

Florida University Economics Planet Money Podcast Worksheet

QUESTION

Description

quiz 1

Listen to “Episode #978: Coronavirus, Oil, and Kansas” of NPR’s Planet Money podcast. Write a short response (2-4 college-level sentences will do) to the following questions.

A. How did the 2020 pandemic lead to a temporary break down of collusion in OPEC+?

B. What consequences does the breakdown of collusion among major petrol-states have on smaller private producers in the oil market?

quiz 2

Listen to “Episode #787: Google is Big. Is that Bad?” of NPR’s Planet Money podcast. Write a short response (2-4 college-level sentences will do) to the following questions. A. Briefly outline the EU’s anti-trust case against Google. (Why were they suspected of illegally deterring competitors?)B. Briefly outline the Google’s defense against these anti-trust charges. (Why does Google say that they have not violated anti-trust law?)

quiz 3

Listen to “Episode #381: When Businesses Love Regulation” of NPR’s Planet Money podcast. Write a short response (2-4 college-level sentences will do) to the following questions. 1. How does professional licensing economically benefit currently practicing cosmetologists? 2. Ideally, what factors would government officials/policy makers consider when deciding to increase/decrease professional licensing regulations in a particular industry? What often influences lawmakers decisions?

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