Economia

Anthony Bianco
9/10/02


Homework

1. What determines thecomposition of national output?
National output is determined by the consumers (or the invisible hand) in the market place. What and how much they consume determines out national output.Transportation-government
Education –government
Police-government
Energy efficiency-consumers
Health care-government
TV advertising- consumers
No

2. What are the strengths and weaknesses of..strengths weaknesses
First come first serve- shows who really wants not fair to those who can’t
The good at hand get to the goodRationing- everyone gets a fair the ones who need more
Share of what is available won’t be able to get it

Auction- price shows how much it those who need maybe
Is needed by theconsumer cannot afford
The market rations because when the supply is scarce the price will go up and it is not available to everyone who may want it.

3. Welfare, Breaking up monopolies,stricter regulations on air pollution,
Breaking up monopolies, they ensure lower prices, and if the consumers are unwilling to pay for it than the monopoly will break up on its own.4. list the market failure, way of intervention, and gov’t failure.
Air pollution- spill over, gov’t lays strict regulations on pollution, higher prices on the goods the plant in questionproduces.


Income support for the poor- unemployment, gov’t pays income to families, higher taxes


Price regulation on telephone monopoly imperfect competition, break up the monopoly,prices will rise due to more competition.
.
5.






6. Three examples of specialization and division of labor. In what areas are you and your friends thinking of specializing?...