Assignment
1-In Mark Skousen's article, "What is Economics, Anyway?," he bemoans the apparent fact that the modern definition of economics is incomplete. What does he say is missing?
A. relationship between means and ends
B. the concept of scarcity
C. the process of transformation of resources
D. allocation toward competing ends
2- The "Broken Window" fallacy is one of the most famous metaphors in free market economics circles. In the story, what exactly does Hayek say is fallacious about the crowd's thinking?
A. Their belief that the hoodlum is somehow a public benefactor by breaking the window.
B. The crowd's accusation of the hoodlum as a menace.
C. That the glazier will be no more unhappy to learn of the breaking of the window than an undertaker to learn of a death.
D. Their inclusion of the glazier and baker in the solution to the problem
3- True or False/Then Explain your answer (in 2 sentences, no more!):
From the perspective of the defeated nation, wartime destruction is an economic blessing. Hint: think Germany during both World Wars.
4- We discussed the concept of "concentrated benefits, dispersed costs." In a few short sentences, please explain what this means and give an example of its application.