[These questions pertain to the last two classes.]
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.
What two important functions are performed when property rights institutions are established and enforced? (Answer in terms of Bill Gates's property rights over the code to Windows and that house next door to Sunny King in Anniston.)
What is the significance of this guy (and how would you interpret the quote provided at that link)?
Where are the benefits and constraints being described in this story?
Define: specialization and division of labor. (Be sure to read Adam Smith's pin factory example nearby.)
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.
Define: comparative advantage. I LOVE Alabama wine. Based on the Law of comparative advantage, why shouldn't I support a state-funded program to encourage the development of the Alabama wine industry?
Define: capitalism and socialism. In a market economy, how is the new wealth created distributed? How did Marx critique this system?
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.
What two important functions are performed when property rights institutions are established and enforced? (Answer in terms of Bill Gates's property rights over the code to Windows and that house next door to Sunny King in Anniston.)
What is the significance of this guy (and how would you interpret the quote provided at that link)?
Where are the benefits and constraints being described in this story?
Define: specialization and division of labor. (Be sure to read Adam Smith's pin factory example nearby.)
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.
Define: comparative advantage. I LOVE Alabama wine. Based on the Law of comparative advantage, why shouldn't I support a state-funded program to encourage the development of the Alabama wine industry?
Define: capitalism and socialism. In a market economy, how is the new wealth created distributed? How did Marx critique this system?
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