Pearson Education, in collaboration with the world's leading newspaper, The New York Times, is pleased to offer educators and students a carefully edited collection of recent New York Times articles for Economics.

Article:

"Drywall Maker in Pain as Housing Suffers"

Questions:

1. Based on this article, explain how a macro-economy can impact a micro-economy.

2. Consider two statements made in the article:

   "Business is tough. The recession is entering the second year of what is likely to be a multiyear downturn." William C. Foote

   "We were having some dumb accidents." James S. Metcalf

   Which of these statements would you consider "normative" and which would you consider "positive," and why?

3. The article clearly states that drywall is not a glamour industry, but Warren Buffett has invested in it. Is his investment rational?