Problem 6
Using Your Notes Explain how producers, consumers, and the government interact to allocate resources in a free enterprise system.
Problem 7
Applying Economic Concepts Think of several examples in which consumers have voted with their dollars and driven a product from the market or into high demand. Record your ideas in a table like the one below.
Problem 7
Explain the role of competition in a free market. Illustrate your answer with examples of businesses in your local economy.
Problem 7
Unemployment compensation and payment of living expenses for the disabled are examples of what kind of government involvement in the American economy?
Problem 8
After several incidents of hallway disputes among students, the board of a high school decides to hire hallway guards. In economic terms, what is the school board doing? How might this decision affect other programs at the school?
Problem 8
Comparing and Contrasting Economic Information Compare and contrast the role of consumers and producers in allocating resources. Which do you think has the greater power?
Problem 9
As part of the welfare reform of the mid- 1990 s, the federal government hired 10,000 people who had been dependent on welfare in an initiative called welfareto-work. How does this approach differ from transfer payments? What are the costs and benefits of this approach?
Problem 10
In a 1973 magazine interview, Milton Friedman said, What kind of society isn't structured on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm; capitalism is that kind of a system. Do you agree with Friedman that societies are structured on greed and that capitalism can reduce the harm caused by greed? Explain your answer.
Problem 10
In \(2003,\) Congress passed laws to encourage private charitable organizations to provide social services. They would compete for government funds to carry out community services through their own networks. Do you think this is an effective way to address social issues? Why or why not? Use economic concepts, such as markets, efficiency, and opportunity costs in developing your response.
Problem 10
Challenge What industries in today's world do you think would be wise to make changes given consumers' preferences? Give reasons for your selections.
