An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self-interest always contradicts social interest." Do you agree or disagree? Substantiate your answer
What will be an ideal response?
You should disagree. The recent corporate scandals only show that self-interest might contradict social interest. But they don't prove that this is necessarily the case as we can find many real-world examples of how people guided by self-interest promote society's well-being. In fact, under the market system the whole economy operates through the decisions made by self-interested individuals. And countries such as the United States have proven to be more successful in promoting social interest than were centrally planned, or communist, economies where people's self-interest was suppressed and all important economic decisions were made by government.
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What is the key assumption about a consumer's marginal rate of substitution?
What will be an ideal response?
Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
a. the Japanese yen has appreciated in value. b. U.S. citizens will buy more Japanese imports. c. Japanese will demand more U.S. exports. d. U.S. citizens will buy less Japanese imports.
Budget surplus:
What will be an ideal response?
How were labor rights affected by the long economic depression of the 1930s?
a. Unions disbanded until the economy improved. b. Labor unions and reform movements stalled. c. New anti-labor reforms restricted union activities. d. Many important pro-labor reforms were passed.