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Econ Questions
Each answer should consist of one or two paragraphs that contain analysis (not opinion).
1. Explain the incentives faced by a Federal Drug Administration drug inspector whose deliberations will determine whether a drug is allowed to be produced or sold to Americans. How is it possible for them to ignore those who die from delayed introduction of a drug?
2. What is the difference between an invention and an innovation? Explain why inventions may not become commercially viable.
3. Who is likely to have better information about safety and the strongest incentive to safely provide air travel services: airlines or FAA regulators? Would you feel safer flying in Air Force One or a regularly scheduled flight, both of which are regulated by the FAA?
4. The wealth of a nation can come from tangible and intangible sources. Explain which is likely to be most important in wealthy nations like the United States? What role do property rights enforcement and enforcement of contracts have in generating wealth?
5. Is access to the house or apartment in which you live open or closed? If it is currently a closed access resource, how would the dwelling likely be treated differently if it were converted to an open access resource – one that anyone could use at any time in any way she chose?
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