Discussion regarding the economic costs resulting from liberalization in the European Union.

As a result of political and economic liberalization in Eastern Europe, there has been widespread speculation that Eastern European nations such as Poland and Hungary may join the European Union. Discuss the potential economic costs of such an expansion of the European Union, from the point of view of (1) Western Europe (2) Eastern Europe (3) other nations

Economics discussion questions

1. When all people use economic reasoning, inefficiency is impossible, because if the benefit of reducing that inefficiency were greater than the cost, the inefficiency would be eliminated. Thus, if people use economic reasoning, it's impossible to be on the interior of a production possibility curve. Is this statement true or false? Why? 2. How does the democratic political system lead politicians to emphasize points outside the production possibility curve?

Economics discussion questions

1. List three ways in which individual debt differs from government debt. 2. If all of the government's debt were internal, would financing that debt make the nation poorer? 3. How can a government that isn't running a deficit still get itself into financial trouble? 4. Why is debt service an important measure of whether debt is a problem?

Regulations by the government

Since Gov't imposes regulations on businesses for such things as safety regulations for workers, pollution controls on the amt of emissions, and requirements on access for workers with disabilities how might you answer the following questions? 1.How might these regulations be thought of as being a negative technological change (techn deterioration rather than techn improvement)? 2.What effect would these regulations have? 3.With Q2, is it still possible for such regulations to be efficient from the point of view of society and why might this be true?

Economies of Scale

How would you explain the situation below? You are the owner of a small bank in a state that is considering allowing interstate banking. You do not like this because it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area. While the states' reasoning believes that the benefits to consumers of increased competition, you believe that economies of scale could force you out of business. Explain how economies of scale (if large economies of scale in fact do exist) could force you out of business in the long run? Thank you