In Horton Hears a Who by Dr. Seuss, Horton the Elephant hears ...

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In Horton Hears a Who by Dr. Seuss, Horton the Elephant hears voices coming from a speck of dust. He soon learns that the speck is actually a tiny planet where the Whos live.
 
  None of the other animals in the jungle can hear the Whos and they threaten to boil the speck in Beezelnut Oil. The only way the Whos can save themselves is by making so much noise that the other animals in the jungle can hear them. Horton and the Mayor of Whoville have trouble convincing all of the Whos to contribute to the noise making effort. Finally, a very small shirker named JoJo joins in and together all of the Whos make enough noise to avoid disaster. Dr. Seuss (whose real name was Theodor Seuss Geisel) took two economics classes at Dartmouth College while he was an undergraduate. Do you think he did well in those classes?

Question 2

Refer to Figure 2-7. Assume that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles. This is best represented by the
 
  A) movement from H to J in Graph B. B) movement from K to L in Graph C.
  C) movement from J to G in Graph B. D) movement from E to F in Graph A.

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Answer to Question 1

Probably so. Horton Hears a Who is wonderful illustration of the free rider problem. Recall that a free-riding problem occurs when an individual who has no incentive to pay for a good does not pay for that good because non-payment does not prevent consumption. Each of the Whos had an incentive to be a free rider. Each hoped to avoid the cost of making noise but still enjoy the benefits of not being boiled in Beezelnut Oil. But if all of the Whos acted as free riders then the Whos efforts were doomed. Fortunately, Horton, the Mayor, and the other Whos were able to persuade JoJo to join in.
See Oh, the Economics You'll Find in Dr. Seuss (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1364412)

Answer to Question 2

B

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Excellent

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