1. A flood has destroyed a city's downtown. The mayor declares that the rebuilding of the city will lead to economic growth and the city will end up better than before. Use economic reasoning to analyze if the mayor's statement is correct.
2.The president of a large public university proclaims. "if we can get the state government to fund our new football stadium, it will not cost us anything" Evaluate this view from an economic perspective. Answer this in the text block below
3. Explain what crony capitalism is and what effects it has on the economy using the PPF model. You do not have to draw the graph just explain how it looks with crony capitalism
4. Explain why 4 letters are used to describe the four types of business cycles. Give the economic reasons for using the letters to describe various types of business cycles.
5. What was U3, U6 and labor force participation for Jan. 2017? What was the advanced 4th quarter 2016 GDP growth rate? What was the real GDP growth rate for 2016? If the economy continues to grow at the growth rate for 2016, how long will it take for the U.S. to double its living standard? Explain how you got this number. How does this number compare to the number of years using the historical growth rate average (pre-2000)?
6. Explain what are the myths about free market capitalism and why they are myths not realities.