Assignment: Economic Questions

Short answer for each quesion. 1 paragraph

1. What is meant when we economists say that industrial policy leads to inefficient use of resources?

2. GMO-free soybeans cost about $2 per bushel more than GMO soybeans. How many hours does someone have to work to pay that premium in the U.S. where average wages are about $25 per hour? How many hours does someone have to work to pay the premium in those African countries where average wages are about $.25 per hours? Are attitudes toward GMO-free crops likely to be different in Africa and the United States?

3. If it is so obvious that farm subsidies hurt consumers of food, especially lower income consumers, why do such subsidies continue to be voted in by Congress?

4. How would a change in immigration laws that allowed more legal immigration into the U.S. affect the budget crisis we face with Social Security and Medicare?

5. Has there ever been a problem with the extinction of cats, dogs or cattle? Why not? Why do fish stocks diminish to low levels?