Pick the Penny Up

 
 

About

 

The video is a remake of Luke Bryan’s “Kick the Dust up”. The song is about an individual who is experiencing creative destruction in the agriculture industry. She decides to enter the service industry. Her transition is made easier due to the Internet reducing frictional unemployment. The video also shows her exemplifying normal and inferior goods along with the concept that high demand results in high prices.

 

 

Topics

·      Demand

·      Prices

·      Frictional Unemployment

·      Creative destruction

·      Structural Unemployment

·      Industries

·      Unemployment insurance

·      Inferior goods

·      Normal goods

 

Questions

1.     Consider the current economy and identify any industries that might soon undergo technological change? 2.Which industry experienced creative destruction in this video?

3.     The video discusses normal and inferior goods. Give examples from the video that fit in each category.

4.     Unemployment insurance has benefits and costs. Provide examples of the benefits of unemployment insurance and examples of the costs.

4.     The video suggests that the internet reduces frictional costs. Explain how that may be possible.

Related