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What impact do natural resources have on economic growth? Will it be possible for a country with few natural resources to grow rapidly? Why or why not? Why did Thomas Malthus believe that per person income could never rise much above the subsistence level? Given the era of his writings, was Malthus’s view on this […]

“Because government-operated firms do not have to make a profit, they can usually produce at a lower cost and charge a lower price than privately owned enterprises.” Evaluate this view. How does money of stable value influence the volume of trade? When the inflation rate is volatile, how is the volume of trade affected? How

Name five of the fastest-growing economies in the world since 1990.Why do you think these economies have grown so rapidly? “The rich countries are getting richer, while the poor are getting poorer.” Evaluate this statement.

Name five countries with a high income per capita. Why do you think the income is so high in these countries? How many of your high-income countries also ranked among the fastest-growing countries in the world since 1990?

When the government is heavily involved in the regulation of markets, how will this influence the gains from trade? How will it influence the degree of rent-seeking by business and labor groups and the campaign contributions available to politicians?

The European Union has virtually eliminated trade restrictions among its members, and most members now use a common currency. What impact have these changes had on European economies?

How do tariffs and quotas differ? Can you think of any reason why foreign producers might prefer a quota rather than a tariff? Explain your answer. It is often alleged that Japanese producers receive subsidies from their government permitting them to sell their products at a low price in the U.S. market. Do you think

How will the purchases of items from foreigners compare with the sales of items to foreigners when the foreign exchange market is in equilibrium? Explain. Will a flexible exchange rate bring the imports of goods and services into balance with the exports of goods and services? Why or why not?

As U.S. trade with low-wage countries like Mexico increases, will wages in the United States be pushed down? Why or why not? Are low-wage workers in the United States hurt when there is more trade with Mexico? Discuss. “Tariffs not only reduce the volume of imports, they also reduce the volume of exports.” Is this

Does international trade cost Americans jobs? Does interstate trade cost your state jobs? What is the major effect of international and interstate trade?  “The United States is suffering from an excess of imports. Cheap foreign products are driving American firms out of business and leaving the U.S. economy in shambles.” Evaluate this view.