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Is annual money income a good measure of economic status? Is the standard of living of the $80,000 family twice as high as that of the $40,000 family? Discuss.
What effect does the Internet have on the efficiency of markets? Explain. How is the Internet likely to influence productivity and the growth of output?
Do you think the increase in the number of people who pay no taxes will affect the efficiency of the political process? Why or why not?
What was the top marginal personal income tax rate in 1980? What is the top rate now? Are you in favor of or opposed to the lower marginal rates? Why?
Discuss How do taxes influence the efficiency of resource use? How much does it cost for the government to raise an additional dollar of tax revenue?
As income transfer programs accompanying the War on Poverty increased beginning in the latter half of the 1960s, what happened to the poverty rate?
Using this example, discuss whether the fairness of the process or the fairness of the outcome is more important, and how they differ.
What would happen as a result to the average quality of automobiles if the proceeds of the tax were used to subsidize a government-operated lottery?
What determines the variety of styles, designs, and sizes of different products? Why do you think there are only a few different varieties of toothpicks?
Why will the firms be able to make economic profit in the long run? Why or why not? What do competitive price searchers have to do to make economic profit?
Discuss what price will maximize the profits of a price searcher? How will the firm's marginal cost compare with its price at the profit-maximum output?
Discuss how many units would the Tucker Tomato Farm produce if the price of tomatoes fell to $450 per ton? What would be the firm's profits?
Is price discrimination harmful to the economy? How does price discrimination affect the total amount of gains from exchange?
Which is the safer (less likely to result in a substantial capital loss) investment? Why? Is there an offsetting advantage to the other investments?
What determines whether small firms, mediumsize firms, or large firms will dominate in a market?
Is quality and style competition as important as price competition? Would you like to live in country where government regulation restricted use of competition?
In which case will it be easier for customers to get a taxi? In which case will the amount of capital required to enter the taxi business be greater?
Why is oligopolistic collusion more difficult when there is product variation than when the products of all firms are identical?
How will high entry barriers into a market influence the long-run profitability of the firms and the cost efficiency of the firms in the industry.
Why is a monopolist subject to any competitive pressures? Explain. Would an unregulated monopolist have an incentive to operate and produce efficiently?
Does economic theory suggest that regulatory agency will in fact follow proper regulation policy? What are some of factors that complicate regulatory function?
Compare price and output policy of a purely competitive industry with policy that would be established by a profit-maximizing monopolist or trade association.
Do monopolists charge the highest prices for which they can sell their products? Do they maximize their average profit per sale?
If so, how does one account for the rising real wages of barbers, who, by and large, have used the same techniques for a half-century?
How does a firm decide whether or not to employ an additional unit of a resource? What determines combination of skilled and unskilled workers employed by firm?