Provide an overview of economic behavior in its four aspects and tell which of them is most useful to your work situation.
Economists often employ a set of graphical tools to illustrate how individuals make choices ("Theory of Consumer Choice"). Define each one: (a) individual objectives, (b) indifference curves, (c) opportunities and constraints, and (d) individual choice.
Describe what Pareto efficiency is and why economists use this criterion for comparing alternative economic systems. Use a graphic display in this essay.
Describe the difference between general and specific knowledge and how specific knowledge supports the use of decentralized decision-making.
Some states in the United States allow citizens to openly or covertly carry handguns. Citizens can protect themselves in the case of robberies or harm by using these guns. Other states do not allow citizens to carry handguns. Criminals, however, tend to have handguns in all states.
Use ECONOMIC ANALYSIS to predict the effects of handgun laws on the behavior of the typical criminal. In particular: (1) Do you think criminals will commit more or fewer robberies in the states with these laws (check on Texas, Nevada, and Georgia to begin with)? (2) How do you think the laws will affect the types of robberies criminals commit? Be sure to explain your "economic reasoning" and find some statistics to back up your findings.