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Some societies allocate their resources using

 

  1. Some societies allocate their resources using the ‘command’ approach. Give one example of when you feel that this type of approach is the best. Explain in detail.
  2. The U.S. uses a combination of the market price approach and the force (taxes) approach. Why doesn’t it just use one or the other to efficiently allocate resources? Explain your reasoning.
  3. Within the last 10 to 15 years the U.S. has allocated a tremendous amount of its resources to influence countries in the Middle East toward democracy. Much of these resources have come in the form of military interventions. Do you think that this has been an efficient allocation of resources? Explain.
  4. What is the opportunity cost in terms of other programs the U.S. could have spent its resources on? Be sure to identify those programs that you feel have suffered because of the use of funds for interventions in other countries.
  5. You are allocating quite a bit of your own resources toward your bachelor’s degree. What do you expect is the marginal benefit you get from these expenditures? Is it enough to equal or surpass the marginal cost? You may use $ amounts in your response.
  6. Give one example of a time when the marginal benefit you received from purchasing something was actually less than the marginal cost of what you purchased.
  7. Assume that you have your own business which has become quite successful but only after several years of extremely hard work and commitment. Do you feel that the government should have the right to take larger and larger portions of your income as you become wealthier from your business’ success? Explain your response in detail.

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