Init Refl Paper II

Again I have some general comments on the initial papers. You need to talk to me if you are confused...I can't read minds:

1. In addition to the current rules you can write about a current intervention which you think is good and explain why
2. Made up situations can't be vague or far-fetched. You need to explain why they are realistic and what the root cause of the issue (a monopoly) for example is.
3. About prices: what does it mean for a market to be inefficient? Why point to higher prices? Are higher prices neccesarily bad? what should prices communicate (or what knowledge are they communicating, think about the connection to the definition of econ)?
4. You ought to be referencing scarcity...are things under your situation more or less scarce than we'd like....why?

I also don't need descriptoins of free-markets or for you to tell me that free markets are usually efficient. That is fluff, it's unneccesary and it obscures the things you ought to be focused on. Here is an example structure, it could just as well be written in paragraphs or in bullet format:

• Claim: Market X is inefficient
• Premise 1: Efficiency exists when A occurs
• Premise 2: Because of B, A is not occuring and/or is distorted from reality
• explanation of why the distortion is occuring
• Solution: We want A to occur, We might intervene by doing C or D.
• C will cause _____________changes. (how will it address the root problem or issue of incentives? are there costs? are the costs greater than the benefits?)
• D will cause ______________ changes (same as above)