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SOME ESSAY TOPICS TO CONSIDER COVERING CHAPTERS 1 TO 11 1. Explain how the forces of supply and demand bring about equilibrium in a competitive market and maximise welfare. 2. Consumer surplus is a good measure of economic well-being. However in some circumstances, policy makers choose to disregard consumer surplus. Explain what those circumstances may be and illustrate with at least two examples. 3. Give three arguments for restricting free trade. Do you think they are justified? Explain why you think they may be justified. 4. What are positive externalities in production and consumption? Why are market outcomes inefficient in the presence of externalities? 5. National defence is seen as a public good. Why? Is free to air TV a public good? Explain your answer to the TV question briefly but covering the main points. Note to all students: The above topics have been chosen to allow you to study the topics comprehensively. The exam questions will be more specific and will require you to give a short answer – eg one paragraph of maybe not more than 100 words. Also please note that I have decided that the Monday evening class in being behind the other class (Tuesday evening) will have their Mid-session exam in WEEK 8 so as not to disadvantage them further

Question Set #548

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