Link: http://www.economist.com/business/displaystory.cfm?story_id=12270958
Summary
In this article it talks about the relationship between the manufacturing of automobiles and bicycles. All around the world, prices of oil and gas are rising at a tremendous speed and this is causing problems for the automotive companies. Many of the companies are working under high oil and gas prices, low demands and financial problems. As the demands of cars are going down, the demands of bikes are booming. Giant Manufacturing, the world’s largest bicycle-maker, sold 460,000 units in a month and their sales are heading in one direction, up.
Connection
The relation connecting the textbook to the article is the production-possibilities curve between the manufacturing of automobiles and bicycles. If the demand for automobiles goes down, the number of automobile being made will go down and the number of the work force will also go down. If this happens, there will be an increase in the number of bicycles being produced for the bicycle manufactures, since there are more materials and workers to obtain. There is also the direct and opportunity cost of riding a bike instead of a car. The direct cost of buying a car is the price of the car ($15k). The opportunity cost would be interest. So if you bought a bike instead of a car you would have $14,850 + interest in your pocket.
Reflection
I believe this is a good way to fight obesity, high gas prices and also helping the Earth. Riding your bike gives you many benefits such as losing weight, healthier lifestyle, lowering the risk of heart attack, reducing stress and spending more time outside. If everybody started using bikes to go to work or school, it will reduce the emission of greenhouse gases dramatically. By riding your bike to work or school, you saving tons of money from gas, you are helping your body, but more importantly you are helping the Earth.
2 comments:
As a member of a family owning three automobiles, the price of gas these days is in fact overpriced. Back in the 1990's, gas prices were about 60 cents per litre, where as today the price has increased by more than two folds. Unfortunately, prices will only go up as the years go by, which means more greenhouse emissions will be released in the atmosphere.
Hopefully as time goes by, science and technology will be able to find an alternative to oil and gas. Until then, the demand and use of bicycles will have to do to balance the outrages prices of oil and gas, and also help save our environment.
-Jason Choy
Driving is costing more than ever. As a driver, I can also feel the pain and sorrow filling up an empty tank. Because of this, I find myself commuting different ways like busing and biking.
Every year, more and more car factories are closing down. One recent example would be the announcement of closing General Motor’s car factory plant in Windsor, Ontario. The demands of car production is not as high a decade ago. Nowadays, people are thinking different ways other than driving.
Every year there are more cyclists on the road. Cycling is very enjoyable especially in Vancouver because the safe bike routes we have. In all the bike routes, there are always streetlights to cross over a big intersection. Other than helping the environment, you can lose a few pounds and live longer if you cycle everyday!
-Michael Li
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