What is the difference between normative and positive economics? What's scientific about economics? Can an argument be valid and not sound? Explain.

What are some synonyms for preferences? What are some synonyms for constraints? (See the movie about preferences and constraints.

Define: Ceteris paribus.

Why does voluntary trade increase utility? What are transaction costs and how can they reduce the benefits of trade? What are some examples of things provided by the market to reduce transaction costs?

What are property rights institutions? What are the four consequences of well-defined property rights, as discussed in class?

Read the summary to "Private Property Rights to Wildlife: The Southern Africa Experiment" by Muir-Leresche and Nelson. They write: "It is thus particularly significant that in the past 30 years Zimbabwe, Namibia, and South Africa have altered their legal regimes to give full control over the use of wildlife to the private owners of the land on which the wildlife are located. Prior to that, private landowners had limited incentives to increase wildlife populations, because the state denied them the full opportunity to profit from wildlife."

True or false and explain: The benefits that can accrue to society from well-defined property rights can occur as long as property owners hold a title to their property.

The marginal analysis of tea brewing:

It doesn’t take an econ Ph.D. to brew tea—but Barry has one and sometimes it actually helps. Here’s how. Sugar, like most goods, has a declining marginal utility. One teaspoon takes away tea’s bitterness. Another adds a nice sweetness. That’s where we stop. More sugar add calories but not much more taste. By the time you’ve got teaspoons per serving, it’s liquid candy. Green dragon Tea is organic and just a tad sweet. Honestly yours, Seth and Barry.

Please note the link to "I, Pencil" on the right.

Define economics, microeconomics, and macroeconomics. What two elements are important in any definition of economics?

What are the three factors of production? What is the difference between an economic good and a free good? Define opportunity cost. Why are scarce goods never free (but sometimes zero-priced)?

What is economizing behavior?

The Kennedy Center wants more middle and lower income earners to attend its concerts. What is a good way to achieve this goal, given that individuals economize?

Why haven't CAFE standards worked?

The great social philosopher Gordon Gekko (from the movie Wall Street) said, "Greed is good." What are some of the social advantages of human selfishness, as discussed in class?

What does it mean to think on the margin? Define marginal analysis.

What is the difference between a good economist and a bad economist, as discussed today in class? Give examples. Why is there a bias toward bad economics in a democracy?