1. How is the life-cycle pattern of income related to the measurement of income equality at a point in time? What are the differences between social insurance programs and income assistance programs?
2. To what extent do you think U.S. income distribution is determined by economic factors? Use the material developed in this unit to inform your (positive) position. To what extent do you think the U.S. income distribution should be determined by economic factors? Use the material developed in this unit to inform your (normative) position.
3. If you owned a small business, would you develop a code of business conduct? If yes, what variables would you include? If no, how would you ensure that your employees were following ethical business standards?
4. How can two countries both be better off as a result of trade?
5. How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs? Explain. Who are the winners and losers from trade restrictions? Given that trade restrictions impose losses on an economy, why are trade restrictions so common?
6. Why can't all the balance of payments accounts be in surplus?
7. What is foreign aid and what is the goal of foreign aid? Does foreign aid promote economic development? Explain briefly.
8. How did the Bretton Woods system operate? What caused its collapse? Some think the current system of managed but floating rates is too unstable. What would generate the instability?