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1. The allocation of resources to the military is a major policy choice for the US. First, find out how much currently is spent on military programs from the Center for Defense Information an independent watchdog on US military spending at: http://www.cdi.org/index.cfm

In Washington, DC, research organizations provide information to political leaders regarding the military budget. At the following two sites find three arguments in favor of the current budget level (or increasing it) and three arguments for reducing the current spending level. Select one argument from each side as the most important reason for increasing/maintaining/reducing military spending. Then write a response to this argument, pointing out its weak points.

The Heritage Foundation is a think tank to promote conservative public policies based on a strong national defense. http://www.heritage.org/Research

Project on Defense Alternatives is a think tank to promote the broadest range of defense options that will allow significant reductions in the level of armed forces and military spending. http://www.comw.org/pda/

2. There is a shortage in the organ-transplant market. More than 100,000 Americans are waiting for life-saving kidneys, livers, lungs, and other vital organs. The government doesn't permit organ sales to occur. In 1984, Congress forbade the purchase or sale of human organs in the United States (the National Organ Transplant Act).

Use the following sources to research this example of the price floor set at zero. Write your own conclusion regarding what should be done about organ shortage, including references to the sources you used.

Located in Richmond, Virginia, the United Network for Organ Sharing (UNOS) is a non-profit, scientific and educational organization that administers the nation's only Organ Procurement and Transplantation Network established by the U.S. Congress in 1984. http://www.unos.org/

The U.S. Congress established the Organ Procurement and Transplantation Network (OPTN) when it enacted the National Organ Transplant Act (NOTA) of 1984. The act called for a unified transplant network to be operated by a private, non-profit organization under federal contract. http://optn.transplant.hrsa.gov/

The Center for Organ Recovery & Education (CORE) is a non-profit organization dedicated to promoting donation, education and research for the purpose of saving and improving the quality of life through organ, tissue and corneal transplantation. http://www.core.org/

Microeconomics, Economics

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