Econ 101 questions (7 of them)

No minimum on answers.   (word doc with questions attached).

Need completed in a short time frame of 2 hours.


Why should taxpayers subsidize public colleges and universities? What external benefits are generated by higher education?

Why might Fourth of July fireworks be considered a public good? Who should pay for them? What about airport security?

If smoking generates external costs, should smoking simply be outlawed? How about cars that pollute?

The government now spends over $700 billion a year on Social Security benefits. Why don’t we leave it to individuals to save for their own retirement?

Should the government be downsized? Which functions should be cut back? Which ones should be expanded?

If gross investment is not large enough to replace the capital that depreciates in a particular year, is net investment greater or less than zero? What happens to our production possibilities? 

What jobs are likely part of the underground economy?

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