Short Essay:
Answer question in complete sentences. If you decide to use a figures or graph, label it and refer to it in your essay as such (e.g. "In Figure 1 we notice that ... "). Your essay should be written clearly and grammar errors should be minimal. When introducing any concepts or key terms, make sure to define them as though the reader does not know what they mean. Remember, this is a short essay, therefore an introduction with a clear thesis statement and a conclusion should be present in your response. Please aim for 1 - 2 pages per essay to be competitive.
Discuss that labor supply should be properly understood as a common pool resource and whether or not the tragedy of commons applies in the labor market. Make sure to mention lateral and vertical exclusion in your discussion along with some brief remarks regarding externalization of collective costs.
Critical Response:
Read the Excerpt provided in the back of this exam from The General Theory, by J. M. Keynes and answer the following 3 questions.
1. According to Keynes, how do we form our expectations of the future?
2. What is the point that Keynes is trying to make when he explains, "it is as though a farmer, having tapped his barometer after breakfast, could decide to remove his capital from the farming business between 10[am] and 11[am] in the morning and reconsider . . . it later" [pg. 2]?
3. What is the underlying reason that keynes proclaims that investment based on long-term expectations is "scarcely practical" [pg. 4]?