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Written Exercise 1. Why are private property and freedom of

October 12, 2022

Written Exercise

1. Why are private property and freedom of choice essential components of a market system? What would be the consequences if we lived in a society that did not honor the right of private property? Try to compare the United States with a “command and control” economy.

2. What role does freedom of choice and self-interest play in capitalism? Why are these attributes critical to the operation of a competitive market economy?

3.Suppose you are contemplating opening your own business (or that you already have one and are reconsidering your options). Describe the business and consider the advantages and disadvantages of each form of business and how they would possibly impact you. After your analysis, which form of business is most appropriate?

Discuss the issues of one current trade negotiation. For example, in March 2006, the Bush administration was contemplating reducing tariffs on cotton to the benefit of African nations. In your discussion, describe why tariffs and quotas were instituted in the first place, what changed, the setting, the actors involved, who will benefit, who will lose.

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