Economics discussion questions

1. of the six roles of government listed: a) Providing a stable institutional framework; b) Promote effective and workable competition; c) Correct for externalities; d) Ensure for economic stability and growth; e) Provide for public goods; f) Adjust for undesired market results. Which do you believe is the most controversial? Why? 2. Say the government establishes rights to pollute so that without a pollution permit you aren't allowed to emit pollutants into the air, water, or soil. Firms are allowed to buy and sell those rights. In what way will this correct for an externality?

Economics discussion questions

• What is the current state of the US trade deficit? Is this a concern? • What is the current state of the dollar versus other international currencies? What has been the trend for the last six months? • What is the size of the national debt? Is this a concern? • Is the federal government currently running a budget deficit or a surplus? • What is the relationship between the trade situation, the value of the dollar, the national debt and the budget deficit/surplus?

Competitive Bidding

the book is not good at explaining or giving examples of these problems

Demand and supply

What kind of policy could you use to make housing available to low-income individuals that would not have problems of rent-control?

Price matching policies

Suppose the 2 rival "Super Stores", Walmart and Target both adopt price matching policies. If people can find lower advertised prices on any items they sell, then they will match the lower prices. Explain why this policy might not be good news for consumers.