Problem 1:
What are some of the economic consequences of global warming? What kind of market failures does this predict? What should the role of government be to correct this market failure? If you were "monarch of the world", what would you do? Who would be hurt by your action? How would you compensate them?
Problem 2:
Does the theory of consumer behavior describe how you shop? How (this applies to whether it does or doesn't describe your behavior)? What factors affect your buying decisions? Does indifference curve analysis describe your behavior better or worse? If you found neither theory representative of your behavior, how would you develop a model that would do it better?
Problem 3:
This discussion concerns one of the most fundamental features of a market system, but one of the most important obstacles to the development of capitalism in the developing world. The topic is property rights.
In addition, I have provided a link to a companion article by Madeleine Albright from the Economist magazine, "The World in 2007".
https://www.statkart.no/IPS/filestore/Eiendomsdivisjonen/PropertyCentre/Pdf/20061211_ArticlebyMadeleineAlbright.pdf
What is the impact of ill-defined property rights in the developing world on the evolution of market economies in those countries?
What do you suggest be done in those countries to improve the situation? Balance creativity and realism in your response.
Problem 4:
Q1: Coke and Pepsi are two of the most famous products and companies in the world. Would you describe their market structure as an oligopoly or a monopolistic competition? Why? (Justify your answer).
Q2: Banking is an industry that affects us all in one way or another. What industry structure best describes the banking industry in America? Why?