1.          What is the opportunity cost you incurred in reading the intro text provided on the webpage?

2.         This year the Governor of Minnesota has proposed an increase in spending for high schools in the state.  What would that added spending cost us?  Is this too much or too little?  How can we decide?

3.         Should the government build more shelters for the homeless?  Where will it get the resources to do so?

5.         4.         Why might it be necessary to reduce consumer spending in order to attain faster economic growth?  Would it be worth the sacrifice?

5.         If auto-emissions controls weren't required, would people willingly buy and install them?  Explain.

6.         McDonalds recently asked its suppliers to process chickens more humanely.  How much more would you be willing to pay for chicken that was “humanely” processed?

8.         7.        Which government income transfers do rich people receive?  Who pays for them?

8.         If taxes on the rich were raised to provide more housing for the poor, how would the willingness to work be affected?  What would happen to total output?

10.       9.        Why is public confidence in government so low (see Headline, p. 18)?  How can government failure be avoided?