The first written homework assignment for this course is posted at the Content link. You should use the posted sources to answer the posted questions - Admission/Application Essay Example

Cod Fishing Between 1968 and 2008 What was the approximate worldwide catch of cod, in metric tons, in 1968 and in 2008?In 1968 fisheries around the world produced over 3 million metric tons of codfish on the other hand in 2008 fisheries produced 128 600 tons of codfish and this is according to the US ground fish market report released in January 2009. What was the approximate market price of cod block, in 1968 and in 2008? From the 1973 article provided was 24 cents per cod block in 1968. In 2008 the price per cod block was $1.

50 and this is according to NMPS. Donald Witiker, a former member of staff at the Fishery Products Research and Inspection Division says “Cod prices have been rising and will probably continue to rise ” (1). Based on the (rather limited) information available in the posted sources, and your general Economic knowledge, what do you guess happened to the demand curve for cod between 1968 and 2008? Around 1968 the demand for cod was high and supply was relatively equal to demand. Advancement in fishing technology supply became higher than demand around 2008.

Due to the social, political and economic conditions brought about to overfishing which eventually led to ban of cod fishing in some areas: demand for cod fish significantly went down. Based on the data in Figure 3 in the 1973 article, identify years in which the demand curve for Cod must have shifted and which way it must have shifted. Looking at the entire twelve-year period, rather than year-by-year, is it clear happened to demand between 1960 and 1971? In 1964 demand for cod shifted upwards as prices increased while supply was on the rise.

Demand however shifted downwards in 1967 despite of the increasing supply, prices went down due to reduced demand. However in in 1969 demand went up again but this is not clear because the supply of cod was also going down. Compared to 1968 demand was on the rise. It is not very clear what happened to the demand of cod between 1960 and 1971. Despite the significant increase of supply of cod, the prices will indicate that demand for cod neither significantly increased nor reduce. It is therefore improbable to come to any particular conclusion related to demand and supply during the period stated above.

In 1968, about what fraction of the worldwide cod catch came from the Newfoundland fishing Grounds? In what year did production from Newfoundland collapse almost to zero? “In 2009 a number of groundfish resources showed good signs of recovery, after several rather bleak years”, says The Fish Site.In 1992 the cod population of Newfoundland was almost eliminated. One normally expects a competitive market to produce efficient levels of production. Do you think Canadian cod production was efficient from 1948-68?

Which market failure discussed in class could apply to this market? The Canadian cod production was greatly inefficient. Comparing the levels of production and consumption there is a great disparity. Technological advancement and relative high prices that cod fetched during this period propagated excessive exploitation of cod population in Canada. Market failure identified is Moral Hazard. Fishing companies had the technology and the supply and they abused this available resources leading to a significant collapse of the cod industry over the period of 1948-69 In what year did the Canadian government ban cod fishing in its Northeast fishing beds?

Do you think that the Canadian government, from 1968 on, followed an optimal policy in its regulation of these fishing beds? How did politics likely affect the government’s decisions? The Canadian government banned cod fishing in Northeast fishing beds in 1992 due to the decline of cod population. An optimal policy was not implemented by the Canadian government from 1968; if cod fishing was properly controlled at that relatively initial period of 1968 and strong policies implemented, the population of cod would not have been reduced to almost extinction.

Was the ban effective in restoring the cod population? In the Scientific American article, what Is the explanation for slow cod recovery? What evidence in the same article argues against that theory? The ban was not effective in restoring the cod population. The restoration of a specific species will not just depend on the eradication of the predators. What the article explains removing the predators and in this situation, Humans there is a trickle-down effect ; whatever species is on top of the food chain will thrive for a while then deplete its food supply and consequently diminish in numbers.

The slow recovery in cod numbers is accounted for by reduced prey after cod numbers thrived for a long period of time and also due to the overfishing taking place during that period. How would you expect the events in the cod market to affect the markets for other fish species, during the period 1968-2008? Overfishing of cod fish between 1968 and 2008 should be used as guideline to how other fish species should be exploited. Cod fishing was done without proper policies in place and fishermen brought cod population to almost extinction.

It is clear supply was greater than consumption and therefore policies to be implemented should ensure supply should be relatively equal to demand. Implementing policies that optimize available resources will protect other fish species around the world. Whiteker raised a fundamental question in 1973, “What do we do when we see cod supplies running short?” Diversifying the sources of cod blocks would be essential to avoid the repeat of events between 1968-2008. What do cod eat? Based on the historical experience related in the posted sources, how has the cod population responded to changes in the availability of its food supply?

Cod fish basically eat whatever comes there way; such as forage fishes, a wide array of invertebrates, or any remains of dead animal in their habitat. “The cod’s own prey, forage fishes, thrived following the fishery collapse” this is according to Scienetific AmericaTM Some fish species, notably including salmon, are substantially grown through aquaculture. How does aquaculture address the market failure that has affected the cod market? How is aquaculture likely to affect prices, compared to species that are caught only in the wild?

“Many of the worlds fisheries are at unhealthy or unsustainable levels” this is according to Nichola Meserve (2005) . Aquaculture implements very efficient control policies. The fish that is harvested is equal to the demand and therefore overfishing does not take place. Aquaculture reduces fluctuation of prices compared to fishing in the wild. Fishing in the wild does not guarantee a steady and reliable supply of fish compared to aquaculture. Works Cited Donald R. Whitaker (1973). Why the Cod Shortage?

What are the Alternatives?. Marine Fisheries Review, pg 1,4 Frank, K., Petrie, B., Fisher, J., & Leggett, W. (2011). Transient dynamics of an altered large marine ecosystem Nature, Retrived April 1, 2013, from http://www.nature.com/nature/journal/v477/n7362/full/nature10285.html Hannah Waters (August 1, 2011). Collapsed cod fishery shows signs of life. Retrieved April 1, 2013, from http://blogs.scientificamerican.com/culturing-science/2011/08/01/collapsed-cod-fishery-shows-signs-of-life/ Nichola Meserve (2005).

Aquaculture in America , Retrived April 1, 2013, from http://biology.duke.edu/bio217/2005/ncm3/index.html Paola Sabatini. (2009). Groundfish Market Report-2009 . Retrieved April 1, 2013, from http://www.panoramaacuicola.com/reportes_de_mercado/2009/02/09/groundfish_market_report_january_2009.html. 5M Publishing (April 12, 2010). US Groundfish Market Report. Retrieved April 1, 2013, from http://blogs.scientificamerican.com/culturing-cience/2011/08/01/collapsed-cod-fishery-shows-signs-of-life/