Economics Problems

PROMPT 1: Does the existence of market failures mean the market system doesn't work? Explain.

PROMPT 2: Given that inflation exists to some extent every year, why don't firms generally give at least cost of living raises every year to employees (which isn't really a raise, but just keeping purchasing power the same)?

PROMPT 3: Is achieving and/or maintaining economic growth a socially beneficial goal? What might an alternative goal be?

PROMPT 4: What did the recent "Sovereign Debt Crisis" in Europe have to do with Fiscal Policy?

PROMPT 5: What are the advantages and/or disadvantages of using monetary policy instead of fiscal policy?

PROMPT 6: Is the increase in international trade a worthwhile trade-off for the increased globalization? Why? If not, how would you change the ways countries interact?