03 Jun Question (1) How do market incentives and disincenti
Question
(1) How do market incentives and disincentives led to the growth or the eradication of poverty? How is poverty measured? What seems to be the best way to life people out of poverty?
(2) Explain why the US uses the FTC and the SEC to promote competition in the market. What are the costs and benefits of such governmental agencies? In your opinion, are they worth the costs for the perceived benefits that they provide?
(3) Why are American public schools deemed to be inefficient? How do vouchers attempt to correct disincentives while also providing incentives for fixing some of American public school problems?
(4) How does China’s export-driven economy affect consumer spending in the United States? What products face steep competition from East Asian imported goods? How has American consumer spending shifted due to an influx of such imports?
(5) Take the Nash equilibrium as an example of game theory. Explain briefly how it works and its applications in real life? Last, why is game theory considered to be important in the field of microeconomics?
(6) Identify and briefly explain 3 pro-market and 3 anti-march market-oriented policies presented by the Obama administration.
(7) Briefly explain the economic costs and benefits to how the American government combats crime. Cite examples of the pros and cons. If the United States is a free society, would it incarcerate a very large proportion of the population (and an even larger proportion of those who have been incarcerated)? Is this financially wise? What would be a way to improve the existing system from an economic perspective?
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