Problem Set #4

Due Friday, Jan. 11.

Prof. Foldvary

10 pts.

Either attend the Civil Society presentation on "The Joy of Freedom" on Jan. 16, or do the alternative problem 4b.

4a.

The Civil Society report should summarize what was said, note any major questions discussed, and provide your own reaction and analysis.

Was the speaker, Prof. David Henderson, clear and easy to understand?

Did the speaker define key terms such as "freedom"?

Did he provide logic or evidence for what he said?

If you disagree with him, what is the reason?

You may also use the questions below as a guide or answer them as well.

If you cannot attend the Civil Society event but a friend does, you may get the notes from your friend, but you must answer all questions 4b below rather than turn in a report just on the talk. Credit for the Civil Society event will only be given to those actually attending.

4b. Freedom and a free market economy (based on class lecture and discussion, Jan. 16).

1. (2 pts) What does "freedom" mean?

2. (2 pts) What is a purely free market?

3. (3 pts) What do you think would be the outcome of a pure free market, in terms of total output and the distribution of income, relative to today's economy? Try to justify your answer.

4. (3 pts) What social and economic problems do you think would be greater in a pure free market than they are today (if any)? How do you know? (If you don't know for sure, but have an opinion or a guess, that is fine, if you say that's what it is.) Try to justify your answers.