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) Homework Three (Explain your answers):

Do you think it is appropriate that the consumer bears part of the burden of pollution fees in the form of higher prices? Why or why not?

Before spending money, the government is supposed to do a cost-benefit analysis of that expenditure. Would the results of cost-benefit analysis ever be different in the short-run than in the long-run? Why or why not?

Do you think we are a throwaway society? Are your attitudes towards consumption of goods the same as your parents? Your grandparents? (Think of how goods have changed over the years.)

A few years ago we became aware that disposable diapers were a major item being put into U.S. landfills. Some communities discussed banning disposable diapers from their landfills. There were protests from parents groups whose members found disposable much more convenient than cloth diapers. Rationally evaluate this policy from both the community environmentalists and the parents groups’ viewpoints.

Should income in the U.S. be distributed equally? If not, should there be at least a greater degree of equality than we presently have? What are the advantages and disadvantages of greater equality?

Which do you feel is more effective in reducing poverty: government poverty programs or economic growth of a nation? How do private charities fit in? Are you an economic conservative or economic liberal when it comes to addressing poverty?

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