AP Microeconomic students have an assigned summer reading: Naked Economics by Charles Wheelan. There will be a graded activity about this reading on the first day of class, based on the following questions. Students are welcome to bring their own notes/ answers with them to use the first day. You may NOT use someone's else's notes!
1. What are the key points Wheelan makes about the role of government in providing goods and services?
2. What key points does Wheelan make about taxes and productivity?
3. Explain: "Economy is the art of making the most out of life."
4. Wheelan says the "real cost" of something is more than its dollar price. Explain.
5. What is the drawback for new airlines entering the marketplace?
6. How and why do dollars allow some industries to grow and others to disappear?
7. Describe in context: price discriminatiom, free-rider problem, adverse selection, law of unintended consequences, principal-agent problem, prisoner's dilemma,, creative destruction, deadweight loss, green tax, sin tax, externality, public goods, crony capitalism, fiscal drag, Goldilocks question, asymmetry of information
8. Why does Burger King want you to get a receipt?
9. Wht did the chicken cross the road?
10. What positive externaltiy exists because people smoke?
11. Explain the economic rational of patents.
12. Real estate agents act in whose best interests?
