Show that the construction given in the text for constructing a square equal to the difference of 2 squares is correct. Here, ABCD is the larger square with side equal to “a” and PQRS is the smaller square with side equal to “b”. Cut off AK=b from AB and draw KL perpendicular to AK and intersecting DC at L. With K as a center and radius KL, draw an arc meeting AD at M. Show that the square on AM is the required square.

Question 4. Short Essay: While exports are good for the U.S. economy (e.g. raising demand for U.S. products and wages of American workers), imports are bad: they destroy American industries and American jobs and lower our standards of living. Comment. 20 points.

 

Hints: It is critical that you: 1. clearly state your main points; and 2. support your main points with theory (i.e. logic/reasoning, the models we have discussed in class, etc.).

 

Please finish your essay using MS word and print it out. 12 points, Times News Roman, double spacing. There is no min. requirement or cap for length. You are not expected to use data to support your arguments, but the use of data is a plus. If you choose to use data please list your data sources. (Hints: 1. Make sure the sources are credible before you use the data; 2. Examples with made-up numbers, like those we use in the Ricardian model, are theory, not data.)

 

Your essay will be graded based on substance (e.g. how well your theory (and data, if you use any) supports your arguments) and clarity of exposition.