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You need to write two responses for two prompts (your choice). Write around 100
words for each. Please be thoughtful and concise.
1. Explain the revolution in economic thinking that Adam's Smith's ideas
represented, historically speaking. In your estimation, what are the
contemporary lessons to be drawn from Smith's ideas and how may they be
applied to policy? . . . Finally, is there a danger in using, without
modification, the ideas of a man from the 18th century in the 21st
century? . . . Explain.
2. Explain arguments both in favor and against using GDP as a measure of
human welfare. . . . In your estimation, how should human welfare be
measured? . . . To what extent does your analysis incorporate economic
reasoning into measurement of human welfare and what does this tell us about
the possible limitations of economic analysis when it comes to policymaking?
3. Economic can have great impact on electoral politics. In your estimation,
how can public understanding of economic concepts such as growth, the
business cycle, unemployment, and inflation be influenced by politicians'
rhetoric? . . . Also, which of these four macroeconomic "problems" do you
believe to be thought of as the "most important" by voters? . . . Explain.
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GDP
In favor: GDP is the sum of finished products and services produced in a country during a given
time and weighted by the market price. It also includes projects conducted by the government
like a building of hospitals, school...
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