‘The poorest man may in his cottage bid defiance to all the forces of the Crown. It may be frail, its roof may shake; the wind may blow through it; the storms may enter,
- From the Text chapter on private property and the changing meaning of possession and ownership, respond to the following.
‘The poorest man may in his cottage bid defiance to all the forces of the Crown. It may be frail, its roof may shake; the wind may blow through it; the storms may enter, the rain may enter—but the King of England cannot enter; all his forces dare not cross the threshold of the ruined tenement.’ – William Pitt, 1st Earl of Chatham, speech in the British Parliament (1763).
- What does this tell us about the meaning of private property?
- Does it apply to people’s homes in your country?
QUESTION 2
Capitalism is made possible by specialization and division of labor, as described in Chapter 1.8. That is, individuals can develop certain skills, that combined with other individuals with different skills, can produce goods quickly and efficiently.
Imagine and describe the opposite of this arrangement (imagine no specialization or division of labor). What does it look like on an individual level? What does it mean for an economy?
Chapter 1.8
https://core-econ.org/the-economy/book/text/01.html#18-the-gains-from-specialization
QUESTION 3
There are two major approaches to the war on drugs. These approaches do not necessarily compete, but they are different.
- Attack and destroy the supply of drugs.
- Make illegal drugs unattractive to potential consumers.
Describe what happens to prices in both scenarios by referencing market mechanisms from Units 2 and 3. What parts of the market are impacted in both approaches? What specific impact do they have on the market for illegal drugs?
QUESTION4
Use the concepts of supply and demand to explain how wages are set. What does excess supply of a good (in this case labor) do to the price of that good?
https://core-econ.org/the-economy/book/text/08.html
QUESTION 5
Tariffs are taxes on specific imported goods. By definition, taxes increase the prices of goods and are mostly borne by consumers. Using economic concepts from the first three units (pay special attention to supply and demand curves), explain how the current trade war with retaliatory tariffs on American crops is impacting the American agricultural industry.
