Assignment Problem: Can you please answer the following questions one by one
1. Think about a social networking site that you use, for example, Facebook. Now, look at our definition of a market. What are the similarities and differences between that social networking site and a market?
2. 'The poorest man may in his cottage bid defiance to all the forces of the Crown. It may be frail, its roof may shake; the wind may blow through it; the storms may enter, the rain may enter-but the King of England cannot enter; all his forces dare not cross the threshold of the ruined tenement.' - William Pitt, 1st Earl of Chatham, speech in the British Parliament (1763).
What does this tell us about the meaning of private property?
Does it apply to people's homes in your country?
3. Suppose you and a partner are starting a business involving each of you selling a new app to the public. You are deciding how to divide the profits and are considering four alternatives. The profits could be split:
- equally
- in proportion to how many apps each of you sells
- in inverse proportion to how much income each of you has from other sources (for example, if one of you has twice the income of the other, the profits could be split one-third to the former and two-thirds to the latter)
- in proportion to how many hours each of you has spent selling.
Order these alternatives according to your preference and give arguments based on the concepts of fairness introduced in this section. If the order depends on other facts about this joint project, say what other facts you would need.
4. Malthus wrote: '[I]t is not to be supposed that the physical laws to which [mankind] are subjected should be essentially different from those which are observed to prevail in other parts of the animated nature.'
Do you agree? Explain your reasoning.
5. Where do prices come from? (Why is a cup of coffee ~$1 not $10 or $100?) By prices, I am implying prices that result in a sale. Hint, prices come from at least 2 places.