Questions:
1. a. How would a free market (i.e., market forces alone) answer each of the "three economic questions" with respect to health care?
b. Why might a society allow government (i.e., political forces) to play a role in answering the "three economic questions" with respect to health care?
c. With a focus on the for whom to produce question, how might ObamaCare differ from the answer market forces alone would provide?
2. a. Why on average do professionals work more years than laborers?
b. Does marginal cost and marginal benefit have anything to do with your answer? Explain.
3. a. Will the Invisible Hand lead to the correct number of smart phones produced in the U.S. in a given year? Why? How?
4. Draw a PPC and clearly label:
a. A possible but inefficient point.
b. An unattainable point.
c. An attainable and efficient point.
d. What may make the unattainable point attainable in the future?
5. a. Why do Floridians buy their potatoes from Idahoans?
b. Explain the connections between Markets, Specialization and Growth.
6. a. Identify groups of U.S. workers that have been helped and others that have been hurt by globalization.
b. Explain each case.
7. In terms of economics efficiency and growth, what do you think is the most important institution? Defend your answer.
8. What distinguishes Socialism, Capitalism, Feudalism and Mercantilism? Note the general time line of the development of each.
9. Assume the U.S. Government enacts legislation prohibiting the sale and/or possession of gun clips that would hold more than six cartridges.
a. Would government be acting as an "actor" or "referee"? Explain.
b. Would you support this legislation? Explain.
10.a. What are some commonly agreed upon (in the U.S.) "proper" roles of government? Explain.
b. Are markets perfect? Explain.
11. List five examples of "Welfare Capitalism" and comment on the typical justification provided for each.
12. Using a market diagram for coal, show the effects of each of the following:
a. Lower natural gas prices.
b. A tax on coal production.
c. Discovery of new easily accessible coal beds in Wyoming.
d. Higher oil prices.